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The gold money train: all aboard!

Commentaries & Views

  1. Another key "green shoot" for gold is almost in play.

  2.  To view the weekly chart that matters. Double-click to enlarge.   

  3. My 5,15 moving averages have converged into a "kiss".  A crossover buy signal seems imminent, as does a gold price breakout over the $1800 round number resistance zone.

  4. I've urged investors to buy gold miners in the gold price zone of $1680-$1671 and sell in the $1780-$1850 area.  

  5. It's time for some profit booking.

  6. For a look at the daily chart. Double-click to enlarge.  The modest sell zones are $1780, $1800, $1820, and the bigger one is $1850, all with a focus on the miners that were bought around $1680.

  7. Amateur gold investors often struggle to do well with the miners, and it's mainly because they ignore the physical market action in China and India.  Instead, they focus on various statistics in the West that are largely irrelevant to price discovery.

  8. Around $1680, Indians bought record tonnage, China was supportive, most gold analysts and investors in the West were despondent, and gold surged $100 an ounce higher!

  9. Currently, demand is relatively strong in China (due to economic strength), but it's weakening badly in India (due to the Corona crisis).  So, as expected:

  10. Gold is now struggling to rise over $1800.

  11. The big picture?  Well, investors need to ignore the $100-$200/oz gyrations and focus on the fact that gold is the ultimate currency.  I recommend using business deals (private and publicly traded) to get more gold. 

  12. Double-click to enlarge this dollar versus gold chart.

  13. Clearly, the dollar (and all fiat) is a ridiculous currency to hold over time.  Gold bugs should hold the amount of fiat needed to quench their thirst for more, and then focus on acquiring additional gold (and some silver).

  14. The one Western item that can really move the global gold price is: inflation. 

  15. On that note. Double-click to enlarge what is really a "shipping inflation" chart, the Baltic Dry Index. 

  16. A huge base pattern breakout is in play. 

  17. It's too early in the inflation cycle to create an institutional panic out of the stock market and into the miners, but it's only a matter of time before it happens.

  18.   In fiat terms, investors can make a fast and easy 20% profit by buying key senior miners at my gold price buy zones… and then selling at my sell zones.

  19. These zones are defined by weekly chart horizontal support and resistance (HSR), and those are created mainly by the ebb and flow of physical market demand.

  20. For CDNX juniors, the profits are often higher, typically in the 50% range.  Here's the bottom line:

  21. Amateur investors don't need to go to work more than a few times a year to make 40%-100% gains… and outperform every major money manager in the world!

  22. Double-click to enlarge this "money train" chart.  This time it is the GDXJ ETF.

  23. Did investors get on board at the $1778 and $1680 train stations?  Did they get off at the sell stations of $1966 and $1800?  If not, there's no need for worry, because while I'm blowing the sell whistle now, I'll be sure to blow it again when it's time to buy. 

  24. There are many more stations ahead, for passengers on the gold bullion and mining stocks money train!
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.