The good news for gold keeps flowing, with institutions around the world stepping up to the buy window ever-more frequently.

They are clearly embracing gold as a key portfolio holding for the long term. The bottom line: institutional respect for gold as a portfolio diversifier has never been stronger than it is right now.

On that exciting note.  

Standard Chartered bank carries serious institutional weight. Their gold market analysis projects a surge to five-year highs. This kind of positive analysis that continues to emanate from major banks is bringing more institutions into gold.

Germans are now the most aggressive gold buyers in Europe.

While SPDR fund buying was soft in 2017, German institutions bought about 50 tons of gold… in just one physically-backed gold fund! Deutsche Boerse reports that family offices and individuals are starting to join institutions on the buy. I expect record demand in Germany in 2018.

I’ve predicted that Trump would unveil inflationary tariffs in America, and that’s in play as of this morning.  

I’ve coined the term “Trumpflation” to describe what is coming, and what is coming is very positive for gold.

Trump sees a huge cash cow for the government as solar energy becomes a gargantuan industry. The citizens get hit hard… unless they own a diversified portfolio of gold stocks!

I’ve also predicted a major partnership between blockchain and gold will emerge, creating a significant rise in global demand for the world’s greatest metal. 

Rob Martin is head of market infrastructure for the World Gold Council. 

In this interview, he does a great job in explaining how gold backed cryptocurrency tokens will be exempted from onerous government regulation on cryptocurrencies that are not backed with gold.

A tidal wave of tokenized gold, silver, and industrial metal offerings is coming. Are investors prepared?

The LBMA in London is prepared. The LBMA runs the world’s largest market for physical gold. This morning they announced they are considering employing blockchain technology to strengthen gold supply chain integrity. 

If it happens, I expect markets in China, Dubai, and India to quickly follow the London leaders. Any action that increases the integrity of the supply chain increases institutional respect for the asset class. As noted, the good news for gold just keeps rolling!

Bitcoin itself has been soft since the CBOE five-coin futures contract was launched. Tom Lee was head of equities for JP Morgan and wisely sold stocks in 2016 after entering at the March 2009 lows. 

Tom views the US stock market not as overvalued, but as fully valued. I see it as slightly overvalued, with real risk exceeding potential reward.   

The similarities between today’s market and the market of 1929 are eerily similar. I don’t know if the market is poised for a repeat of that horrific past. I do know that when power players like Tom Lee call the market fully valued, it’s usually a good time to book some profits.

Regardless, Tom eagerly embraced bitcoin in 2016 and has never looked back. He’s a very calm and rational man whose views are widely followed in the institutional investor community. Tom says his team are “aggressive bitcoin buyers” in the $9000 area, with a five-year target of $125,000 per bitcoin. 

My blockchain focus now is still bitcoin, but also the “alt coins”. I highlight the most exciting action for both with my newsletter.  My long-term bitcoin target is a little higher than Tom’s ($500,000), but even at $30,000 most investors should be sporting a very big smile! 

I expect the bitcoin price will likely remain soft until the CBOE futures expiry on February 14. The $10,000 - $8,000 price area appears to represent very good value for new bitcoin investors.

Gold’s technical action is glorious.

A pennant breakout was immediately followed by flag-like action, and an upside breakout is in play this morning. Also, note the decent support zones I’ve highlighted at $1328, $1320, $1300, and $1270. In a negative scenario, these are all key buy zones. 

Gold looks poised to take a major battering ram to the $1370 area highs that were created by Modi’s infamous cash call-in. A move above $1370 opens the door for a charge towards $1500!

GDX is starting to show some impressive technical action. New investors who are stop-loss enthusiasts could use $22.90 as their maximum risk price. Others can employ put options if nervous. 

Regardless, GDX appears to be poising for a charge to my $25 - $26 price area. I expect 2018 will be ultimately be remembered as the year gold stocks begin a long-term bull cycle against bullion. I’m predicting that over the next five years they will go nose to nose with bitcoin, in the battle to be the performing asset class in the world!