July 21, 2026
- Amateur gold investors in the West are terrified of higher rates because they erroneously treat the Fed as if it is the bond market.
- In the big picture, the Fed is about as useful to the average US citizen as a soup kitchen is to the richest residents of Monaco.
- Ironically, incredibly high rates (and accompanying inflation) are the only true catalyst for a parabolic move in the price of gold.
Serious Western investors need to consider a scenario of 15% rates and $15,000 gold, with rates put there not by the Fed, but by the free market.
- Venezuela’s government didn’t plan on raising rates to 50% but 500% inflation forced them to do it. The exact same scenario is beginning to play out in America and…
- The market is vastly underpricing the risk of default; a move to just 10% would take US government interest payments to about 80% of revenues.
- In a nutshell, QE worked when there was deflation, and mainly for financial markets rather than for the average US citizen.
- Now, QE would be an inflationary powder keg for citizens who already feel hammered by the modest inflation that has recently enveloped them… and intensified.
- In ancient Rome, instead of prepping for the coming mayhem with gold, the “sheeple” watched gladiators gore each other to death.
- Has there been progress? Sadly, no. In late-stage empire America today, the sheeple watch steroid-infused UFC cavemen on the government’s front lawn try to give each other brain damage… while they gleefully refuse to buy any gold.
The story of gold versus fiat is the story of healthy and happy individuals versus deranged governments stricken with overspending cancer and debt drugs addiction.
Today’s breakout appears to be significant.
- I’ve urged investors to take the price sale into the big round number zone of $4000 seriously:
- It’s roughly a 30% price sale and these kinds of buy-side opportunities are rare. The entire $4100-$3900 area is best viewed as a “buy zone of champions”.
- The downtrend line has been penetrated and a surge to another key trend line at about $4400 appears likely.
Numerous scenarios are plausible, and this is certainly one of them.
- It’s unknown if gold $9000 will occur with rates at 9%, but that’s also realistic, if inflation is higher. Note that the Venezuelan and Zimbabwe governments survived high rates… because inflation was higher.
- Much higher.
What about silver? For silver bugs who bought into the zone basis the arrival of gold at $4100-$3900… it’s time to rejoice.
- This mighty metal looks set to make a fabulous beeline-style move to $80, and perhaps to $90.
The miners are also coming to life. For the CDNX index, all technical lights are now green.
- Next, please take a look at this stunning GDX buy zones chart. Gold stock investors can expect to make 20%+ gains very quickly from key buy zones for gold and the Dow.
- Now, there have been three waves down for gold, silver, and the miners. A much bigger rally is likely from here, and it could see GDX challenge or even exceed the all-time highs. Value players already bought the price weakness into the $4100-$3900 area. Momentum-oriented investor now also can buy.
- The bottom line is obvious: Government has always been the world’s most despicable disease… and glorious gold is the greatest cure!
Thanks!
Cheers
St
Stewart Thomson
Galactic Updates
