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Gold mauls the dollar & silver stocks soar

Commentaries & Views

  1. The year 2020 was a solid year for gold, silver, and associated miners.  The juniors were particularly impressive.

  2. Double-click to enlarge this important weekly gold chart. It should be clear that the traditional Chinese New Year gold price rally is officially underway.

  3. Investors who focused on my key buy zones of $1450, $1566, and $1788 for gold (and 21,700 and 18,3000 for the Dow) did incredibly well… and 2021 is already off to a phenomenal start!

  4. Note the buy signal that is almost occurring now, on my 5,15 moving average series. 

  5. Double-click to enlarge this ominous dollar vs. gold chart.  A bear wedge meltdown is in play.  Before the damage gets worse, dollar bugs would be wise to close out positions and get into gold.

  6. Fiat currencies have unlimited supply, and the main backbone of that money is government debt and income tax extortion.  Simply put, fiat has no real spine. 

  7. We all need some fiat because government makes sure everything we buy is priced in it, but this type of money really serves no purpose other than to empower the government. 

  8. Electronic gold money with a tiny transaction fee could replace the current model of income tax revenue generation for government.  That would generate more revenue than income tax does, while dramatically reducing rampant government “thugsterism”. 

  9. A global launch of electronic gold money would probably see gold trade at a higher price than bitcoin.

  10. That launch won’t be happening though, because the nature of government is to endlessly brag about itself while using heavy-handed actions that create far more problems than solutions.

  11. Double-click to enlarge.  When bitcoin was trading in the $1000-$100 price zone, I urged my subscribers to buy as I bought.  Many did, and are now happier than a crypto clam.

  12. I also set a $250,000 target for the “prince of coin” then.  Now, mainstream analysts are pouring into the market.  They sound more like fans at a sporting event than analysts, which is a concern. 

  13. The bottom line is that it is not too late to get involved with bitcoin, but rather than listening to the silly cheerleaders who bought nothing in the sub $1000 price zone, the buying needs to be done professionally.  That means using the big support and resistance zones on my weekly charts.

  14. Fear can be a more powerful emotional force than greed.  Investor buying into a parabolic move like bitcoin is experiencing now can end with tears. 

  15. I’m a happy seller of some bitcoin for gold right now, although I am buying some particularly interesting “alt” coins that could surge dramatically higher.

  16. Investors who wasted too much time ranting about U.S. politics and Corona missed out on buying the stock market at my important Dow 18,300 price zone. 

  17. They also missed buying gold at numerous key areas that I highlighted emphatically.

  18. My suggested new year’s resolution for 2021 is to focus much less on the extortion racket known as government, and much more on what is happening at key weekly chart price zones for the dollar versus gold.

  19. Double-click to enlarge this fabulous GOAU ETF chart.

  20. Some investors panicked last week when the ETF made a distribution.  The price dipped, but only by the amount of the distribution.

  21. The bottom line is that the chart looks solid, a breakout appears imminent, and stoploss enthusiasts can place a stop at $19.40 or $18.80.

  22. The next positive event to look for is an Edwards and Magee pattern of higher minor trend lows and highs, and that could come into play later this week.

  23. Double-click to enlarge this SIL silver stocks ETF.  SIL already has a nice pattern of higher minor trend lows and highs in play.

  24. Double-click to enlarge.  On the monthly charts, silver stocks are staging major bull flag breakouts.  If the SIL ETF pushes above $50, and another huge flagpole move to the upside should follow.  Clearly, the time is now, for investors to make money in the metal markets, with a solid allocation to hi ho silver!

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.