The days of being on the track team are long gone. The title is not a prep for track and field, but a call to anyone out there that would like to get on a shooting star before it crosses the sky.
On the internet you see adds every day from hawkers about their new find. They claim it will be like buying Amazon at $3 per share or getting in on an IPO like Google. In a way, I and this piece is not any different except my readers know that I rarely push a stock. If I do recommend something, I put my money where my digital letters form on the page (in this case, WPM).
Dear Reader, it is time to put on your gold chains because the chains of manipulation on precious metals is coming to an end. Even the naysayers of yesterday are waiting at the station to get on the train.
The list grows every day and former naysayers are even adjusting their price range. This is basically covering your ass and a last gap method to limit the price rise of gold. You know the shills for the Fed and fiat money. No need to recap their names. On the positive side: Steve Sjuggerud, Bank of America, Stanley Druckenmiller, Paul Tudor Jones, Doug Casey and the crew of this blog.
Love Train - O'Jays
...Tell all the folks in Russia and China, too
Don't you know that its time to get on board
And let this train keep on riding, riding on through
Join hands - Start a love train
You may recall the song. John Lennon said he thought it was one of the best rock songs ever even though the O'Jays were a disco group.
You might think that this is all well and good, but you want some fundamental facts or maybe you would like to know what the charts are saying. People, it's all good.
On the positive list Doug Casey offers these four points:
1) Basel III - the Bank for Settlements(BIS) issued a new accord for transactions. It said that gold holdings by central banks will be classified as a 0% risk asset. This is huge! This is recognition of gold by a leading central bank for the first time in 50 years.
2) Central Banks - are buying gold. This aspect changes both perception and character of gold. Russia and China are the biggest buyers. This is seen as nations look for an alternative to US dollars which carry excessive debt and politics.
3) Oil for Gold - Yes, you read that right. China, seeking to avoid US dollars will pay an equivalent amount of gold for oil suppliers as an exchange in the transaction. Keep in mind that the oil market is 10x larger than the gold market and China is the largest importer of oil.
4) Fed - no longer looking to raise interest rates, but they may cut. If this happens, it lowers the value of the dollar and raises the price of gold.
Excessive Debt
Sebastian wants readers to remember that the US is technically bankrupt. Japan is worse. Don't forget the EU with its phony pledge of just 3% over budget with debt. In fact, all fiat based economies which includes Russia and China too. They all have excessive debt and they all are just one false derivative away from financial Armageddon. Gold will retain its value.
One Negative
At the moment, Bitcoin is seeking to gather investors to it by claiming this non-political aspect. It is the only stumbling block to gold's advance. Don't fall for this siren call. Bitcoin is worthless digital print. You lose your code; you lose your money. If there is a run on the firm selling these coins, they will go under as they have no tangible backing other than the internet. Hackers can steal or destroy a website. All central banks oppose it. As they say on Arthur Ave. in the Bronx, "Forget about it!"
What the Charts say...
Gold is above its 50 and 200-day average. Gold rallied in January 2018, but failed at resistance. It declined all the way to $1200 in October 2018. Then, it began another rally which took it to $1350, resistance. It retraced and now, it is approaching resistance again except with stronger volume. More people in the store, more sales.
For those of you that like patterns, my stock of choice, WPM is displaying a bull flag which is a continuous of trend pattern.
The future looks as shiny as a gold chain. When $1350 is breached, the next point of resistance is $1400. If this rally has enough strength and breaks the $1400 level, there is no resistance until $1650.
Now, that is a train you want to ride...
...if you miss it, I fell sorry, sorry for you. Everybody! Got a love train, love train...
