HH 2018: The Most Golden Year

The world’s most awesome asset is taking the world gold community into the new year with grand style.  

Double-click to enlarge. 

Gold has stunned most analysts and roared to my $1310 target price without missing a heartbeat!

The bull wedge pattern is both majestic and powerful. The ultimate price target of this pattern is a minimum price of $1350 and arguably as high as $1490.

When “QE to Infinity” and the death of the American economy was accepted as “the new normal” in both the gold and mainstream communities, I argued vehemently against that view.

Instead, I laid out an intense scenario involving an imminent multi-year process that would involve a taper to zero, relentless rate hikes, quantitative tightening, and ultimately a massive reversal in US M2V money velocity.

I’ve predicted this reversal will create a powerful bull cycle in gold and silver stocks, making them one of the best-performing assets on the planet.

I think many gold investors are underestimating just how little inflation it really takes to create an institutional panic in US stock and bond markets.

I’ve predicted that this inflation likely happens by mid-2018.Clearly, institutional investors view even a modest rise of inflation as a major concern, if not outright panic. 

This is the type of statement that entices institutional money managers to buy lots of gold, silver, and mining stocks.

They like to see consistent price appreciation with reasonable volatility, and a modest rise in inflation is exactly what the doctor has ordered to make that happen.

I realize that the election of President Trump has been wildly celebrated by many gold market investors. They are fed up with the endless socialism and warmongering policies that have hallmarked recent administrations, but I would caution investors that presidents don’t change the nature of business cycles.

The policies that presidents enact tend to slightly limit or magnify the business cycle, but most of what happens in business is not related to the actions of the president. It’s related to inflation, wages, interest rates, corporate earnings, demographics, and stock market valuations.

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