| |
Gold is gaining momentum after a 5-year consolidation and is set to challenge the 2011 highs some time next year. Once gold clears $2,000, a powerful bull market should drive the gold price meaningfully higher. The original article has been edited here for length (…) and clarity ([ ])Physical Gold Gold has been an unloved asset class for years but that is about to change. I am expecting a bear market in equities and rising yields as a consequence of years of central bank QE. A traditional portfolio of stocks and bonds will not protect investors during the next downturn. I expect gold will replace bonds as the go-to hedge. Ultimately, I think gold will reach $5,000/ozt-$10,000/ozt, as a multi-year bear market in equities and the USD unfolds (along with a USD currency crisis), but let's get to $2,000/ozt first. Gold Miners Should gold continue on its bullish trajectory, the gold (and silver) miners will explode higher. $XAU is an index of gold and silver mining companies, and they are on sale today, following a catastrophic collapse from 2011 to 2016. Miners are cheaper today than they were all the way back in 2000 when the gold bull market began (and gold was trading at $250/ozt). Many gold and silver mining companies are now breaking out from multi-year base formations. Fortunes will be made in this sector over the next 5-10 years… The U.S. Dollar The US stock market has rallied +167% from 2012 to 2018. US Treasuries added almost +40% from 2013 to 2016 before falling -20% over the last two years. The USD added +32% from 2013 to 2017 before declining -15% over the last 15 months. Investors with a bullish bias should be rooting for both US Treasuries and USD to stabilize. If the USD and Treasuries continue to fall, the stock market will surely follow and the decline could accelerate at a moment's notice. Physical Silver Silver has been in a trading range for over four years and is now preparing to launch higher. More volatile than gold, silver is also considered a precious metal and the upside potential from here is significant. Silver cleared $17 a troy ounce yesterday. I think $18 and $20 will fall shortly as the next leg of the precious metals bull market gets underway. Just as I expect gold to break out to new all time highs next year above $2,000/ozt, silver has a good chance of doing the same.
Commitment of Traders The latest Commitment of Traders report is also favouring a sharp move higher in silver prices. The Commercial Traders (smart money, purple bars) who are always short the metal to hedge silver producer production, are holding their smallest short position in years. Meanwhile, the Large Speculator position (blue bars) is now short silver for the first time in years. The scene is set for a rocket launch in silver prices. Scroll to very bottom of page & add your comments on this article. We want to share what you have to say! Related Articles From the munKNEE Vault: 1. Weakening USD Underlines Case For Owning Precious Metals (Gold, Silver, Platinum & Palladium) Larger allocations to gold are merited, then silver and investors should consider very small allocations to platinum and palladium. 2. Silver Could Hit $150 A Troy Ounce ? Here's Why …A collapse of the U.S. dollar is inevitable. The U.S. Dollar Index has been bouncing off of four-year lows for the past several weeks but this cannot last much longer with a global trade war and U.S. equity correction looming….The U.S. dollar and fiat currencies are in trouble, hinting that gold and silver prices could again go screaming higher…[as] the two still generally trade inverse to each other and, while gold is perhaps the safest way to hedge against a falling dollar, the most profitable option is silver. 3. Silver Prices: How High Will They Go? $100? $300? $500? Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises. 4. The Silver Setup Is Stunning ? Absolutely Stunning! A major new silver bull market looks imminent and is expected to kick off with a dramatic spike. 5. Silver Is In A Massive Bull Market ? Here's Why It's Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand…[and] that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame… 6. Silver Is A ?Must Own? ? Here's Why Silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months. 7. Silver is Now Even More Precious Than Gold! Do You Own Any? Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: 'Got gold?' The much more important - and potentially more profitable - question to ask these days is, 'Got silver?' 8. Silver Is THE Antidote to Bubble Craziness ? Here's Why Silver in early 2018 is inexpensive compared to M3, National Debt, government expenditures, the Dow and gold. 9. Investors Should Take Advantage Of the Gold Price NOW! Here's Why Investors should take advantage of the gold price now. The factors are aligning for a situation akin to the financial crisis, which could be dangerous for those holding cash in the bank or other assets exposed to counterparty risk. 10. 2018 Could Turn Out To Be the ?perfect storm? For Gold ? Here's Why …Gold is positioning itself as a must-have in anyone's portfolio, including large institutional investors. [In fact, 2018 could turn out to be the ?perfect storm? for gold. This article outlines why.] 11. These 5 Analysts Have Different Views On the Future Of the Gold & Silver Markets ? What Do You Think? Recent comments by the following analysts reflect the current uncertainty of the gold & silver markets. 12. $8,000/ozt Gold Is Possible (likely?) Here's Why You can either wait on the sideline and watch gold and silver prices skyrocket in the coming months and years and look back in regret, or you can diversify a portion of your portfolio to precious metals now, before the next financial earthquake or stagflation destroy your financial future. The choice is yours - you can triple your money at the very minimum if you think ahead and act now and buy gold. 13. 6 Concrete Facts Why Smart Investors Own Gold Be smart and add a gold position to your portfolio and sit back knowing you made a smart investment. This article highlights 6 concrete reasons why. 14. Gold: Going To $10,000? What will drive the gold price to new record highs over the coming months and years? We look at the dangerous developments in monetary policies. macro-economics and geo-political tensions that make an allocation to physical gold prudent for both investors and those with pensions. 15. Odds Heavily Stacked In Favor Of Gold ? Here's Why There are certainly times when you can see that the odds are heavily stacked in your favor and we have one of those potential scenarios right now in gold. 16. These Charts Show a VERY Bullish Picture for Gold ? Take a Look Gold is getting closer and closer to breaking out of a giant Head-and-Shoulders base pattern and it won't be stopped from doing so by any minor short-term reaction. 17. These 3 Facts Show Gold Is Set to Surge in 2018 We're inching closer and closer to a major move in the gold market and you'll want to be positioned beforehand to take full advantage. 18. Gold & Silver Price Predictions For 2018 Coming off two successive positive years, gold seems to be building toward something. Fizzling or dropping seems unlikely given 2017's surprise performance and the general state of global equity markets ? most of which seem to be overpriced, over-loved and over the top. 2017 will be recorded as a transition year for gold; 2018, in my opinion, will go down as the year gold reasserted itself as a primal force in the global financial marketplace. 19. Gold: 8-yr Cycle About To Start ? Next 5 Years Will Likely Be Good Ones For those who believe in cycles, the timing is perfect for a strong run up in gold. Here's why. 20. 10 Charts That Show Why Gold Is Undervalued Right Now Gold has historically shared a low-to-negative correlation with many traditional assets such as cash, Treasuries and stocks, both domestic and international. This makes it, I believe, an appealing diversifier in the event of a correction in the capital and forex markets. Need more reasons to add to your gold holdings? Below are 10 charts that show why the yellow metal is undervalued right now. 21. Place Your Bets: Gold Prices Will Break Out In 2018 ? Here's Why Gold just entered a new bull market but the price of gold has failed to garner any meaningful rally so, what gives? Why haven't gold prices rallied? Well, it's just a matter of time. 22. Your Portfolio Should Have 2-9% Physical Gold In It ? Here's Why Because investment professionals are generally well informed, competing in an industry in which performance is king, one would assume any asset class deserving of rightful consideration would enjoy a fair hearing so it begs the question "Why Doesn't Gold Get The Respect It Deserves?" 23. These Technical Developments Suggest Gold May Be About to Get Its Shine Back In A Big Way Gold may be about to get its shine back in a big way, as a number of significant technical developments suggest a strong potential for the resumption of the bullish medium- and long-term trend. [Here are the specifics.] 24. Precipitous Decline In U.S. Dollar Index Could Result In Gold & Silver Boost ? Here's Why This looks like an excellent point to short the dollar, which is expected to drop and probably accelerate away to the downside. This should provide a boost for the Precious Metals sector which…will increasingly be seen as a safe haven. For all the latest ? and best ? financial articles sign up (in the top right corner) for your free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page. The post New All Time Record Highs For Gold & Silver Coming In 2019 appeared first on munKNEE dot.com. |
