1. While many gold market technicians have been neutral to slightly negative about gold in the short term, I’ve been extremely positive.

2. As of today, I’ve become outrageously more positive. To understand why that is, please click here now. Double click to enlarge this spectacular daily gold chart.

3. I’ll dare to suggest that gold investors have behaved very well this year.

4. As a result of that behaviour, Santa has put a beautiful bull wedge breakout into everybody’s Christmas stocking!

5. The near-immediate price target is $1310, but $1360 should also be hit during what looks to be a very positive Chinese New Year season.

6. Do the festivities extend to gold stocks as well?

7. Absolutely! Please click here now. Double click to enlarge this GDX chart.

8. GDX is sporting a great looking inverse head and shoulders bottom, and the rally from the head of the pattern has a bull pennant formation breakout in it.

9. This is quite exciting. For gold stock investors around the world, it is really ushering in the new year in a great way.

10. I’ve suggested that the $25 – $26 target zone is likely to turn out to be little more than a pitstop on the road to the $35 area.

11. I’ve argued that the biggest bubble of all time is the bubble of government fiat money, and that bubble has started to burst. The initial bursting of the bubble has seen all global fiat collapse against blockchain currencies like bitcoin.

12. That’s a lot like how the stock market crashes when it becomes a bubble. The initial collapse happens in the most speculative stocks. From there, the collapse spreads to the big Dow Jones Industrial Average component stocks.

13. In the case of the fiat bubble, I’ve predicted that the collapse of fiat against bitcoin is only the very beginning of a horrific collapse that will ultimately see fiat fall hard against gold, silver, and mining stocks.

14. Please click here now. Double-click to enlarge this exciting bitcoin chart. Technically, the double bottom pattern is arguably the most difficult one for investors to handle emotionally.

15. A great double bottom appears to be in play now on this short term bitcoin chart. Note the immense panic volume on the first low, and the much lighter volume on the second one.

16. That’s classic technical action. There’s also a potential flag-like pattern in play, which is quite positive. A breakout above $15,000 is likely, and it would serve as a lead indicator for an imminent and powerful rally in the precious metal markets.

17. The bottom line: gold investors don’t need to be invested in bitcoin, but it’s important to follow the price action as a lead indicator for the spread of the global fiat wildfire.

18. Please click here now. Some heavyweight institutional analysts are concerned that a fall in bitcoin against fiat could trigger a stock market crash.

19. Governments and central banks are becoming pushed into a corner. They need to quickly regulate bitcoin markets so that a rogue bank or other nefarious entity doesn’t try to cause a global markets crash by crashing bitcoin.

20. Please click here now. Tom Lee was head of equities for JP Morgan. He turned bullish on the US stock market at almost the exact low in 2009, and stayed bullish until 2016 when be saw the market as fully valued.

21. He’s started his own firm now. He’s moved his focus to bitcoin and was an eager buyer on Friday, as I was. With heavyweights like Tom in the blockchain house, the global fiat fire is likely to intensify.

22. On that exciting note, please click here now. Double click to enlarge this key money velocity chart. I think most mainstream analysts are underestimating the commitment of Trump and new Fed chair Powell to small bank deregulation.

23. That deregulation can end the twenty-year money velocity bear market, and usher in an era of inflation.

24. Please click here now. Double click to enlarge. Hi ho silver! When inflation becomes widely accepted by institutional investors, they will flock to silver more than gold. This is particularly true if global growth continues. Watch for a trendline breakout fuelled by bank deregulation to send silver soaring to my initial $26 target, and on to higher prices after a brief rest there!

Cheers

Stewart Thomson, Graceland Updates

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

1.   Are government, central banks, and fiat money the three biggest bubbles in the history of the world?  I would suggest they are.

2.   The rise of private money (bitcoin) combined with the rise of China and India as economic empires is popping these bubbles.  Against bitcoin, fiat is now burning like an out of control wildfire.

3.   Within a year or two, it could begin disintegrating against gold in a somewhat similar manner.  Whether that happens or not depends on whether a blockchain currency backed with gold gets widely accepted in the blockchain community.  I predict that it likely happens.

4.   Simply put, fiat is a barbaric relic and the younger generation isn’t interested in relics.  There are almost three billion citizens in China and India.  Many of them are obsessed with gold, and almost all of them respect it as the ultimate asset.

5.   There are about 600 million Indian citizens under the age of 35.  They are now getting a taste of private money with bitcoin, and they like it!  Blockchain is newer than fiat.  It’s technologically superior.  Fiat is like a rotary phone, and millennials want to trade up for the newest Iphone.  In the currency world, that’s blockchain!

6.   Many analysts have noted the strong seasonal tendency for gold to rise from late December or early January until mid-February.

7.   To understand why that happens, please click here now.   About 65% of all gold demand comes from China and India, and that demand increases exponentially with income growth.  Incomes are growing, so Chinese New Year gold price rallies are intensifying.

8.   The rally begins as Chinese New Year buying begins.  It ends when that buying ends, which is in mid-February for 2018.

9.   Note that China’s businesses (including gold shops) close for a week as the celebrations end.  Commercial traders on the COMEX tend to buy long positions in gold ahead of Chinese New Year (now), and then short it as the demand begins to peak.

10.        A huge number of savvy Indian investors will also buy gold ahead of Chinese New Year to get in on the action.  The price premium in India tends to rise as that happens. 

11.        It’s risen to above 12% in the past few weeks.

12.        Please click here now.  Double-click to enlarge this daily gold chart.  Chinese New Year celebratory buying should see the price easily reach my $1310 area target.

13.        The bull wedge pattern looks fabulous.  The current $1265 area supply zone is likely just a short term pitstop on the way to prices well above $1300 by mid-February.

14.        Top analysts at Goldman Sachs are predicting a rise in Indian GDP growth to 8% for 2018.  That should be occurring as the Indian gold market restructuring gets completed.  In India, as incomes grow, gold demand increases even more exponentially than it does in China.

15.        I’ve talked about the importance of getting more global rate hikes to boost inflation and commodity prices in the late stage of the business cycle.  Gold stocks can’t really perform well relative to bullion if that doesn’t happen.

16.        On that note, please click here now.  Goldman analysts clearly agree with my take on the situation for 2018, and a lot of powerful institutional money managers rely on Goldman’s analysis.

17.        It should be a great year for commodities in 2018.  As the commodities rally, I’m predicting that new ICOs (initial blockchain coin offerings) will occur, featuring coins that are linked to various commodities.

18.        If this happens, it could add intensity to the general commodity price rally.

19.        Please click here now.  All investor eyes should be on key 200 number for the CRB commodity index.   There’s a base pattern in play, and a move above 200 would be a major breakout.

20.        This base pattern is in sync with the fundamentals.  There was a big move higher during the late stages of the last business cycle in 2008.  That was a speculative move and OTC derivative bets were rampant.

21.        This move higher in commodities should be steadier and continue for a long time.  Twenty years of deflation have ended, and a long term upcycle for inflation is beginning.

22.        Please click here now.  Double-click to enlarge this solid looking GDX chart. GDX should be able to reach my $25 – $26 short term target zone by mid-February.

23.        Note the nice inverse head and shoulders bottom pattern in play, with the head forming in a big support area near $21.

24.        More importantly, I expect that as the CRB index moves towards 240 – 280, that should trigger enough inflation-oriented institutional buying of gold stocks to send GDX into my medium term $31 – $37 target area.  Are all gold bugs taking their seats on the inflationary train?  I hope so, because it’s pulling out of the station very soon.  All aboard!

Thanks

Cheers

St

https://www.gracelandupdates.com

Email:

stewart@gracelandupdates.com

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?