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?

1. The synergistic relationship between gold and economic growth is quite healthy, and poised to become even more healthy in 2018 – 2019.

2. Please click here now. Double-click to enlarge this fabulous South Korean stock market ETF chart.

3. Big name Western money managers are finally racing to move money into Asian markets, and this is great news for both gold and global stock markets.

4. For several years I’ve recommended that the gold community slightly reduce (but not drop) their focus on gold’s Western world fear trade and increase their focus on the Eastern stock markets and the love trade for gold.

5. South Korea’s stock market sports 50% earnings growth and a P/E ratio of just 10! Japan’s market is also red hot, and so are the markets of China and India.

6. US markets have risen strongly, but with anemic economic growth and nosebleed valuations. Growth is vastly stronger in Asia, but without European and US money manager participation, Asian stock markets have previously languished.

7. This situation has changed dramatically in 2017, and 2018 should see an acceleration of this new trend.

8. The bottom line: American markets are hot but overvalued. Asian markets are red hot but not overvalued.

9. I own ETFs (and some individual stocks) in the “Big Four” Asian markets; India, China, Japan, and Korea. I urge all Western gold bugs to “get with the (good) times”. The fear trade for gold will never disappear, but it’s a new era, and this new era is dominated by Asia.

10. Investors should be very comfortable owning Asian stock markets and gold… at the same time. The bottom line: America isn’t out, but Asia is in!

11. When times are good (and they are now very good in Asia), Asians buy more gold. Exponentially more. Chinese demand reflects this fact. It’s rising again; demand is up almost 20% over 2016, and poised to rise even more strongly in 2018.

12. Please click here now. Next, please click here now. Double-click to enlarge this daily gold chart.

13. Technically, gold’s rally ended in early September because of significant resistance at $1362 (the demonetization night high).

14. Fundamentally, gold peaked then because of the Modi government’s August 23rd launch of the hideous PMLA program. That launch immediately sent Indian imports plunging towards the zero marker. When Indian gold imports sink, the price of gold sinks. It’s that simple.

15. The good news: The government has rescinded PMLA and imports are growing again. Wedding season is beginning and Chinese New Year buy season approaches. As a result, the price is showing firmness, and a gold price rally appears imminent.

16. I’ve predicted that Indian GDP growth should hit 10% by 2020. America’s could fall to 1% by then while US inflation starts surging and gold mine production shrinks noticeably. This is an epic win-win situation for gold.

17. Sentiment in the gold and hedge fund communities is now generally negative, as it always is when significant rallies begin.

18. Please click here now. Double-click to enlarge. There’s a bear wedge in play on this dollar-yen chart now, which is more good news for all gold price enthusiasts. The commercial traders are also adding to their short positions in the dollar against both the yen and the Swiss franc.

19. Please click here now. Double-click to enlarge this GDX chart. There’s a modest head and shoulders top pattern in play, and that has a lot of old timer gold bugs nervous.

20. Unfortunately, these old timers may be too obsessed with the Western fear trade era of the past, and missing out on the Asian stock markets and gold price synergy that defines the new gold bull era.

21. Minor H&S top patterns like this one are irrelevant in the big picture, and this one may be getting technically voided anyways.

22. On that note, please click here now. Double-click to enlarge. This is just what the gold bug doctor ordered, to spread some bull era cheer!

23. A fabulous bull wedge pattern is destroying the H&S top pattern, which makes sense given the great fundamental action taking place in India and China.

24. Owning the “Big Four” stock markets of India, China, Korea, and Japan while engorging on gold, silver, gold stocks (with some bitcoin for extra wealth building fun), is perhaps the greatest “no-brainer” investor play in the history of markets!

Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I’ll send you my free “All Aboard The Golden Train!” report. I highlight eight must-own gold stocks, growth stocks, and key ETFs to participate in the biggest upside markets action from now until December 2018!

Thanks
Cheers
St

Stewart Thomson
Graceland Updates

https://www.gracelandupdates.com
https://gracelandjuniors.com
www.guswinger.com

Email:
stewart@gracelandupdates.com

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. Several weeks ago, I surprised most investors by issuing my “Book Profits Now!” call for the precious metals asset class.
2. When I did so, head and shoulders top formations immediately formed on gold and GDX, and prices have swooned.
3. Rumours of a sudden drop in Indian dealer demand appeared to become a concern for commercial traders on the COMEX.
4. India’s monsoon season has turned out to be a bit of a “bust”, with both flooding and drought.  Farmers buy gold with a portion of their crop profits.  With only another week or two left in the monsoon season, crop sales may not be very good.
5. Of further concern to me was the fact that the demand drop was occurring as gold arrived at the $1352 resistance zone.  That resistance was created by Modi’s cash call-in that took place in November of 2016.
6. The upcoming Fed meeting will probably mark the end of the decline related to those concerns, but there could be additional weakness until the next US jobs report is released.
7. Please click here now.  Double-click to enlarge.
8. For investors, this gold chart tells the entire tactical story.  The $1270 – $1260 area is the target of the H&S top pattern.
9. Investors should use a two-pronged strategy to profit from the coming rally that should take gold back to the “Call-In Day” resistance around $1352.
10. I’ve outlined the $1315 – $1295 price area as the first key buy zone.  Eager accumulators can buy right now.
11. Janet Yellen’s handling of the imminent launch of quantitative tightening (QT) at this Fed meeting is critical.
12. It will almost certainly determine whether gold bounces from the $1315 – $1295 buy zone or first proceeds down to the H&S target zone at $1260 -$1270.
13. If gold moves to that lower zone, investors need to consider taking more aggressive buy-side action.
14. That’s my personal strategy as well as my recommended one for gold bugs around the world.
15. Please click here now. Double-click to enlarge this GDX chart.
16. The technical picture for GDX is very similar to gold. Note the small but positive wedge pattern.  I’ve highlighted it with thick black trend lines.
17. While the target of the H&S top pattern is about $22.50 (similar to the $1260 – $1270 target for gold), the wedge formation could send GDX and most gold stocks higher from current price levels.
18.  Please click here now.  Double-click to enlarge this US dollar versus Japanese yen chart.  My important 14,7,7 series Stochastics oscillator is now overbought, and that’s happening just ahead of the Fed meeting.
19. Heavyweight analysts at Japanese bank Nomura are predicting a collapse in the dollar down to the 105 – 100 target zone by the end of the year.
20. That’s also been my target zone for quite awhile, and it’s because the dollar is trading in a rectangle between 108 and 114.
21. The technical odds of a breakdown to 100 -105 are about 67%.  Also, rallies tend to be week when oscillators become overbought quickly, and that’s what’s happening now.
22. Please click here now. This chart tells the entire story for the precious metals asset class.  It’s dramatically under owned, and there’s a beautiful double bottom pattern in play.
23. Gold and associated assets are clearly poised for an enormous increase in institutional ownership.  I call it “The Golden Wave”.  This buying is not event-based. It’s based on portfolio allocation to gold as an asset class, and that means the buying will be sustained.
24. Gold bugs around the world can use my key prices zones of $1315 – $1295 and $1260 – $1270 now to get tactically positioned in key gold stocks to surf the golden institutional wave!   

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. It’s not easy to build wealth in any asset class.  It’s even more difficult to retain it.
2. On that golden note, please click here now.  Double-click to enlarge this short term gold chart.
3. Over the past week or two, my wealth building mantra has been, “Book profit now”.  From a technical standpoint, the world’s mightiest metal has begun to show signs of “head and shouldering”.
4. Head and shoulders top patterns are negative for the price, and it’s normal for them to appear when gold reaches strong resistance.
5. Strong resistance is not created out of thin air.  It’s created by major fundamental events.
6. To view the ramifications of one of those events, please click here now. Double-click to enlarge.
7. In November of 2016, many gold market players were buying gold aggressively as it became obvious that gold enthusiast Donald Trump had won the US election.
8. The gold price spiked higher as Trump won, and then imploded when the Indian government’s shocking demonetization announcement ruined the party.  Conspiracy buffs will find it very suspicious that the Indian demonetization announcement seemed to happen just minutes after Trump had won.
9. Regardless, the Trump victory became bitter-sweet for Western gold bugs as they watched the gold price crash.
10. From a technical perspective, the tremendous volume that occurred on demonetization night has turned the $1350 price zone into powerful resistance. 
11. The good news is that compared to the violence of the November sell-off, the current decline is very mild.  I’m a light buyer now, and a much bigger buyer at $1308 and $1280, basis December futures.
12. It’s important that investors wait for emotional discomfort before rebuying with size.  The bottom line is that to build gold market wealth that is sustained, significant patience is required.
13. Please click here now.  Double-click to enlarge this dollar versus yen chart.  The 108 area is the “line in the sand” for the dollar.
14. That line in the sand has been severely tested, but so far it has held.  When it fails, I expect gold to make a serious charge at major resistance in the $1377 – $1392 price zone.
15. The SPDR fund (GLD-nyse) gold holdings have climbed to the 834 tonnes area during this gold price rally.  I have suggested that the rise in tonnage is related to a“gold market game changer” mentality amongst a growing number of institutional money managers.
16. They are not buying gold because of any particular market event (low real rates, Korea, the dollar index, etc), but because of a newfound respect for the precious metals as an investment asset class.
17. Jeff Currie of Goldman Sachs recently suggested that physical gold ownership is a good idea and a key diversifier for equity market investors.
18. Please click here now.   Bank America is now quoted by Kitco News suggesting that a holding of slightly under 5% is beneficial for an equity portfolio.
19. The big picture for gold is fabulous.  In the past, a rising equity market was negative for gold.  Now, a rising equity market forces money managers to buy more gold to maintain their fixed allocation percentage to it.
20. Chinese and Indian money managers recommend higher portfolio allocations to gold than their Western counterparts.  As they begin to dominate the market, I predict that the larger Chindian allocations will become “the new normal”.
21. Also, Merrill notes that Chinese jewellery demand is soft.  That’s normal at this time of year, and my Chinese jewellery stocks are making multi-year highs. These stocks are key lead indicators for Western gold/silver mining stocks, and they are flashing big green lights.
22. Please click here now.  GDX has had a fabulous summer rally.  Given the $1350 gold market resistance and the arrival of GDX itself at my $25 – $26 target zone, a pause in the action is normal.
23. Once the consolidation ends, I expect GDX to charge towards $28 – $29.  I’m also predicting that the next stage of the rally will be much broader, with many of the more speculative junior stocks joining the upside fun in a much bigger way than they have so far.
24. Please click here now. Double-click to enlarge. Silver is also poised for a very big move higher.  It’s carving out a beautiful inverse head and shoulders bottom pattern, and an upside breakout should coincide with gold surging above $1392!

Stewart Thomson

Graceland Updates

https://www.gracelandupdates.com

https://gracelandjuniors.com

www.guswinger.com

Email:

stewart@gracelandupdates.com

stewart@gracelandjuniors.com

stewart@guswinger.com

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. SPDR fund tonnage (GLD-NYSE) has recaptured the 800 ton mark, and rose to 814 yesterday.  This is happening as a steady wave of institutional money managers embrace gold as an important portfolio component.
2. It’s also occurring as Indian dealers begin buying for Diwali.  The result of this overall ramp-up in demand is a beautiful surge higher in the gold price!
3. Please click here now. Double-click to enlarge this important gold chart.  I call this my “Road To $1392” chart.
4. When the price of an asset arrives at major resistance in a huge chart pattern, a real upside breakout and sustained move higher can only occur if market fundamentals are aligned with the technical set-up.
5. The good news is that for gold, this appears to be the case.  Please click here now. Double-click to enlarge this monthly gold chart.  The $1377 – $1392 price range is the resistance zone of a huge inverse head and shoulders bottom pattern.  It is the neckline of the pattern.
6. Note the tremendous rise in volume that is occurring as gold makes a beeline to that neckline.  The Indian gold market has completed its restructuring, and Western money managers are lining up to add gold to their portfolios.
7. The managers are not just making a one-time purchase.  They are adding gold as apercentage allocation.  That allocation seems to be averaging around 5%.  As the funds gather new assets, they buy more gold to maintain that 5% allocation.
8. Asian fund managers typically give gold an even higher allocation to gold in their funds than Western managers.  As China and India become the main economic empires, Western money managers will tend to play “follow the Chindian leader”.
9. That means the current Western money manager allocation to gold that is about 5% could easily rise to 10% or 15% in the coming years.  Clearly, all liquidity flow lights for gold…are green!
10. My weekly chart roadmap suggests that gold will rise not just to $1392, but to $1526, and $1800.  Importantly, the rise will be accompanied by substantial growth in respect for gold as an asset class.
11. There’s a huge difference in a rally based on an event like QE and a rally based on a permanent portfolio commitment to the asset class.  The latter produces price gains that are sustained.
12.  Please click here now. Double-click to enlarge this important dollar versus yen chart.  The 108 “line in the sand” seems ready to fail.  A tumble towards 100 would almost guarantee that gold surges to $1392 and begins the move towards $1526.
13. The yen and gold are the two most important risk-off assets for heavyweight FOREX traders.  The dollar entered a long-term bear market against the yen in 2016. That defined risk itself as entering a major bear market.
14. Please click here now. Double-click to enlarge.  That’s a daily chart of the dollar versus the yen.  It looks like a train wreck.
15. US taxes have not been cut.  There’s not even any intention to cut the capital gains rate, let alone abolish it.  That makes it almost impossible to attract serious long term investment capital into demographically-disastrous America.
16. Trump had a chance to turn the country into a bigger and better version of Switzerland, and oversee a tax-free empire where the citizens age with grace.  Instead, a 1929 type of situation now seems imminent.
17. An inflationary depression is likely to follow the US government’s launch of what I call Trump’s “Tariffs to Infinity” program.  He’s launching a mirror image of Herb Hoover’s tariffs program, and doing it with stocks, bonds, and real estate all in a precarious position.
18. That’s truly great news for gold stock investors!  Please click here now. Double-click to enlarge this fabulous GDX chart.  I’ve told gold bugs to watch for a big volume day to send GDX rocketing towards my $26 target, after buying every ten cents decline in the $23 – $18 price zone.
19. That volume surge occurred yesterday.  Please click here now. Double-click to enlarge.  On this two-year chart for GDX, my new $31 target is clear.  That’s a key number, because it’s the equivalent of $1392 for gold.
20. The 2014 – 2017 period is the most important accumulation zone for gold stock enthusiasts in the history of the gold market, and perhaps in the history of all markets.
21. That’s because a reversal in US money velocity is imminent, and the gold stocks versus gold bullion bear market that began in 1995 has ended.
22. Tactics?  Well, I realize that many gold bugs may have sold their gold stocks in 2014 – 2016 instead of launching the major accumulation program that I adamantly recommended.  Some investors bought penny stocks in the general US equity market to try to make back the losses they booked with gold stocks.
23. That was obviously a mistake, and those stocks are vulnerable now to a 1929 type of crash.  The bottom line is that the current situation of many gold bugs is unfortunate, but just as a car can be repaired, so can a portfolio be repaired.
24. Yesterday’s volume bar in GDX is a game changer.  So is the growing allocation to gold by institutional money managers, and so is the completed restructuring of the Indian gold market.  It’s time for investors to forget the past, move their portfolio cars into the gas station, and fuel up on gold and silver stocks!

 Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I’ll send you my free “Precious Metal Stocks Or ETFs” report.  I highlight the advantages and disadvantages of owning individual stocks versus owning ETFs, with key buy and sell points for four ETFs and six great stocks!

Thanks! 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.

https://www.gracelandupdates.com

https://gracelandjuniors.com

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?