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Gold: World Currency or Ultimate Asset

Commentaries & Views

  1. The world’s greatest asset is on sale.  In China, India, and the Western gold community, shoppers are happily placing small amounts of “golden groceries” into their shopping carts each week, and enjoying the price sale.

  2. Please click here now. Double-click to enlarge this gold chart. 

  3. From a technical perspective, this chart is magnificent.  The left shouldering process took about eighteen months, and the right shouldering process has just reached the same eighteen months of time.

  4. The pattern itself is an inverse head & shoulders bull continuation pattern.  From a price perspective, perfect symmetry would be created if gold traded at $1180 during the next few months, before surging above the $1400 neckline area and up towards the $1750 target zone.

  5. Please click here now. Double-click to enlarge this short-term gold chart.

  6. Gold may trade down to the “perfect symmetry” zone of $1180.   It could also begin to rally from the current $1250 - $1225 modest support zone.  What happens next will be determined mainly by market fundamentals.

  7. Jay Powell seems determined to push ahead with balance sheet contraction via QT, rate hikes, and he may widen the Fed funds/excess reserves spread further. 

  8. That’s negative for the ability of the US government to finance itself, positive for money velocity, and positive for gold.

  9. Please click here now. Double-click to enlarge this dollar versus rupee chart. 

  10. The bottom line is that the current gold price sale is a very mundane love trade oriented affair.

  11. That’s because the dollar’s strength against the rupee during gold’s weak demand season has resulted in a very modest price sale for gold priced in rupees.

  12. The good news: A bear wedge has appeared on the dollar-rupee chart just as gold arrives at $1250 -$1225 support and seasonal love trade demand begins to strengthen. 

  13. This is essentially a mandate for all gold market shoppers to buy this price sale, and buy it with a smile.

  14. Please click here now. I’ve suggested the US stock market is somewhere between the seventh and ninth innings of its ballgame, and clearly top money managers at Guggenheim agree.

  15. Global tariffs are modestly inflationary and negative for GDP growth.  Trump’s next round of tax cuts may not even provide enough stimulus to offset the tariffs. 

  16. The Western world is steadily transitioning from growth with growing inflation to more inflation, fading growth, and peaking stock market valuations. 

  17. Recent polls suggest that at least 70% of American Millennials want a third political party, don’t trust banks, and are enthusiastic bitcoin investors.

  18. Please click here now.  Double-click to enlarge.  Gold is the world’s greatest asset, and bitcoin is the most exciting.  I cover the most intense action at my website.  The goal is to help global blockchain/crypto enthusiasts get richer as fast as possible.

  19. When baby boomers dominated US demographics, they focused on traditional stocks and government bonds.  In contrast, Millennials in Asia are focused on stocks, bitcoin, and gold.  I’ve predicted that American Millennials will ultimately have the same focus as their Asian counterparts. 

  20. I’ve also predicted that gold-backed bitcoin beats out the yuan and the IMF SDR in the race to become the main world currency, but it could be just bitcoin alone. 

  21. In that scenario, gold would function as the safe haven/ultimate asset, and bitcoin as the payments currency.  Going forwards a decade or two, the dollar may look good in a glass jar in the ancient history museum, but Asian Millennials won’t see much use for it beyond that. Regardless, outrageously good times lie directly ahead for both bitcoin and gold.

  22. Please click here now. Double-click to enlarge.  GDX has rallied against gold many times in the past, but that was always when gold rallied against the dollar.

  23. Now it’s happening while gold falls about $140 an ounce!  This stunning price action fits with the transition from deflation to inflation. 

  24. It’s very similar to what happened in the late 1960s in America, and adds to the importance of buying the current price sale in both miners and metal!


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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