A Global Money Printing Competition

Despite rising steadily since the start of the year, the sentiment towards gold and silver still seems not particularly positive. Despite the price looking like it bottomed out in December, rising but still being comparatively low to much of 2016, we are seeing very little buying of either metal currently.

Below Stewart Thomson explains why the price action and recent news coming out in gold, silver and their miners is looking more and more positive… 

A Global Money Printing Competition

Graceland Updates

By Stewart Thomson

 

  1. With each passing day, both the technical price action and the news flow are getting more positive for gold.
  2. Please click below now. Double-click to enlarge this daily bars gold chart. 2017 Feb 7 Gold Chart
  3. Another great week for the world’s ultimate asset is clearly underway.  A beautiful technical uptrend is now in play.
  4. Gold has also surged through resistance at $1220 and is making a beeline towards my $1250 target zone.
  5. Please click the chart below. Double-click to enlarge.  The US dollar has broken down from a substantial head and shoulders top formation against the Swiss franc. 2017 Feb 7 USD Chart
  6. A small rally back towards the neckline of the pattern is likely, but the overall technical picture for the dollar is very negative.
  7. Please click below now.  Double-click to enlarge this key dollar versus yen chart. 2017 feb 7 usd vs yen
  8. Both the yen and the franc are safe haven fiat currencies, and the “risk-on” dollar’s price action against both of them is truly horrific.  That’s great news for gold, which is the ultimate safe haven.
  9. Please click below now. Will President Trump order Janet Yellen to engage in outright money printing to devalue the dollar? 2017 Trump the dollar and gold
  10. I think he’ll do it, and here’s why: America’s demographics are drastically different from the demographics that were in place when Ronald Reagan got elected with a similar “Make America Great” mantra.
  11. America is now an ageing society, and both the citizens and the government are maniacally obsessed with debt.
  12. Also, the business up cycle is nearing an end, and while immigration changes make most citizens happy, that’s not going to re-create a 1950’s society with a 15% GDP growth rate.
  13. Sadly, Trump’s only practical tools to reduce the huge debt burden on the backs of both citizens and government are money printing and gold revaluation.   
  14. Please click below now.  FOREX reserves in China may be about to become a very powerful gold price driver. Falling Chinese Forex Reserves
  15. To combat the disintegration of its FOREX reserves, China may have to float the yuan, or engage in significant money printing.
  16. Please see below now. Double-click to enlarge this spectacular daily bars GDX chart. 2017 Feb 7 GDX Chart
  17. Gold stocks are roaring higher because of Trump’s dollar bashing and even more because of the end of global deflation.
  18. GDX itself is sporting a beautiful momentum-oriented crossover buy signal on my 14,7,7 Stochastics oscillator.
  19. I suggested that gold stock enthusiasts should be on the lookout for that signal, and now it is in play.
  20. GDX should run to $26, and perhaps to $27.50, as gold marches from $1220 towards $1250.
  21. For even better technical news about most gold stocks, please see blow chart now.  Double-click to enlarge.Regardless of whether GDX makes it to $27.50 or not on this rally, the coming pullback is simply going to create a beautiful right shoulder of a large inverse head and shoulders bottom pattern! 2017 feb 7 GDX Chart 2
  22. The target of the pattern is the $32 area, and I think GDX has a very good chance of surpassing that high.
  23. I suggested that 2017 would be all that gold stock investors could ever ask for, and that is certainly playing out in textbook fashion.  Rallies are strong.  Pullbacks are orderly and modest.
  24. US dollar bulls will likely be hit hard by Donald Trump’s dollar devaluation team.  Governments around the world may be poised to enter not just a fiat devaluation competition, but a money printing competition.There are no winners in such a competition, except for gold, silver, and associated stocks!

 

Thanks!

Cheers

St

 

Stewart Thomson

Graceland Updates

 

Note: We are privacy oriented.  We accept cheques, credit card, and if needed, PayPal.

 

Written between 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.

 

https://www.gracelandupdates.com

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Email:

stewart@gracelandupdates.com

stewart@gracelandjuniors.com

stewart@guswinger.com

 

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.

 

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

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