Title: The Ultimate Guide to Investing in Gold: Why You Should Focus on Getting More Gold
Fake employment reports, endless wars, a soup kitchen called the Fed, free speech in a garbage can, and a soaring US stock market that supposedly proves that all this madness is sanity… Does anyone really need another reason to focus on getting more gold?
The Chinese stock market crashed overnight, after the government didn’t promise any more free printed money to “fix” the economy. The US stock market has soared about 75% from my buy zone for investors… But the more exciting news is that the overnight crash could create a tidal wave of fresh demand for gold.
After 54 years (more than half a century!) the mighty US dollar has failed to produce any sustained gains when measured in supreme currency gold… If America’s 30 mightiest companies can’t build any sustained gold money wealth after 54 years, can the average investor expect to fare better? The obvious answer is no.
The US dollar is a failed currency (because it’s fiat), yet most investors are obsessed with getting more dollars rather than more supreme currency gold. The 2021-2025 war cycle has once again put the spotlight on gold. In a nutshell, the mid-East is always a powder keg, and the fuse is once again lit.
Now, gold is drifting sideways while oil is aggressively rallying. Will this action continue? Well, for some technical insight into the matter, the short-term US rates chart. The most likely scenario is that the dollar, rates, and oil all rally together until rates get to the neckline zone on this chart. From there, a big decline in rates is likely, and it “should” be accompanied with a surge to $3000-$3300 for gold.
This long-term chart suggests that a short-term fade in US inflation and growth will produce a dip in rates… But then both inflation and rates will begin to rise like they did in the 1970s (and more), creating what is best described as nirvana for mining stock investors.
Note the RSI and Stochastics action on this daily chart; gold is simply working off another short-term overbought situation. It could take a few weeks until US rates arrive at their H&S top neckline and gold’s oscillators become oversold, but there’s no reason for investor concern… Provided they are focused on getting more gold!
The hourly chart H&S top pattern for GDX (NYSE:) is in sync with the H&S top for RSI on the daily gold chart. Short-term top patterns on the miners are expected to form as gold becomes overbought… It’s clear that GDX is recoiling after rising towards the area of the hugely significant previous high of $43.
Another look at this intriguing chart. Inverse H&S patterns can morph into cup and handles, and that appears to be what’s happening here. The golden news is that both patterns are outrageously bullish, and both have a $60 target for GDX!
Analysis: In a world of economic uncertainty, investing in gold can provide stability and protection against market fluctuations. The recent events in the financial markets, including the Chinese stock market crash and the looming war cycle, highlight the importance of diversifying one’s investment portfolio with gold. By focusing on acquiring more gold, investors can potentially safeguard their wealth and capitalize on the bullish trends in the precious metal market.