Make Kitco Your Homepage

A dying fiat empire & gold

Commentaries & Views

  1. With the Fed set to hike rates and kill QE, markets are in turmoil.  Some bank analysts are forecasting seven hikes this year. 

  2. Joe Biden's crazed war mongering in the Ukraine presents an additional danger.  Russian citizens are bomb-sheltered, while Americans have no protection.  

  3. Clearly, the danger for citizens of the failed American fiat empire is immense, but the government has a psychotic history of using external "bad guys" to divert attention from a crashing domestic economy.  It's even used as a macabre scheme to boost GDP.

  4. Double-click to enlarge this long-term Dow chart.  My buy and sell signals are obvious.  

  5. The fundamentals are horrific.  The Fed has deliberately created house market inflation for America's wealthiest investors and now the average home buyer can barely afford a down payment. 

  6. A significant rise in mortgage rates will take a lot of potential buyers out of the market.  Current homeowners whose mortgages are due for renewal later this year will face major stress as rates surge higher.

  7. With key market valuations in the "Icarus" zone, the 2021-2025 war cycle intensifying, and the Fed killing its financial markets welfare programs, it seems impossible that the stock market could surge to a new high, but a final "truly ludicrous" blow-off rally could occur.  It happened in 1929, and it could happen again.   

  8. Double-click to enlarge.  This "Q's" chart (Nasdaq ETF) shows the weak technical picture; volume consistently surges as the price swoons.

  9. The US stock market has volume versus price "Ebola".

  10. Double-click to enlarge this short-term TQQQ chart.  I sold out of my US stock market core positions in 2021.  Where did I put the proceeds?

  11. Well, a lot went to gold bullion, some to fiat, and some is ready to go into the crypto market, and on that note. Double-click to enlarge this key bitcoin signals chart.  It's possible that an Elliott "B Wave" has either ended or is ending now, and a C Wave with a target of $90,000 (and much higher) is about to begin.

  12. While gold is the ultimate asset, crypto is exciting.  I run an intense crypto newsletter priced at $299/year.  Gold bugs who are interested in crypto can send me an Email to get special "Bull Wedge Breakout" pricing this week, at just $199 for the year.

  13. Some of my stock market proceeds are also going into the leveraged trades I do in gold and the stock market at my swing trade newsletter.  We use trailing stoplosses to lock in the profits, and our current one, happily, is at $59 for the "TQ's". 

  14. The bottom line:  I have no issue in getting gold bugs long the stock market (for the short-term with modest capital), while forecasting what is essentially the complete obliteration of the US fiat empire and its markets.

  15. In the big picture, the most likely scenario is that the "QE welfare addicts" invested in the US stock market are wiped off the map in late 2022-2023, and the US government starts a significant global war in an attempt to stop a civil war from developing. 

  16. My main concern is that the government will be successful in creating global war but will fail to stop a civil war.  In a nutshell, "Mad Max" is likely set to lord over the floundering fiat empire once known as America, but not over citizens who have gold.

  17. Gold is of course the world's ultimate asset.  For a short-term view of the action. Double-click to enlarge.  Gold is surging out of an inverse H&S bottom on this hourly chart and that's in sync with the action on the dollar index chart.

  18. A H&S top meltdown is in play for the dollar!

  19. Double-click to enlarge.  The short-term charts are in sync with a potential third fan line breakout and a rally to the neckline zone on this truly magnificent weekly chart.

  20. Some technicians may wish to add a C&H (cup and handle) pattern to the chart, and others may debate about where to draw the neckline.  The bottom line is that debates about minor technical details don't make this chart into the work of art that it truly is.  Market fundamentals are what created it, fundamentals will drive the upside breakout, and the fundamentals are incredibly bullish!

  21. The miners?  Well, the miners are the first love of most of the Western gold community, particularly in America.  That's likely because of the love of capitalism; if gold is money, the companies that mine it must be incredibly awesome investments!

  22. That's true, but mining stock investors need to pick their spots and focus on compounding booked profits.  Hoping that the miners will do as well against the dollar as gold bullion does, with a buy and hold strategy, is not a great way to buy the miners.

  23. Double-click to enlarge.  Gold is either going to $1566 or $2089.  Both zones are "cash cow" opportunities for buying the miners.  $2089 is slightly more likely, and it's coming even if $1566 gets touched first. 

  24. GDX and associated miners have a history of surging 20%-30% from these major support zones for bullion, allowing disciplined gold bugs to outperform the world's top money managers.  The juniors can surge 30%-50%.  A gold price of $2089 is coming, and it's a much bigger buy zone than the previous (and great) zones of $1671 and $1778.  When it happens, I expect the seniors and intermediate miners to then surge 100%-200%, and the juniors to blast 300%-1000% higher.  To get in on the action, simple patience is all that is required!
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.