This Is A Good Sign Why Gold Is Resting

The Federal Reserve printed 3.5 trillion dollars since 2008 to get things going in the economy. It introduced ZIRP for years but nothing worked like it should according to their models. So, it’s not the models that suck, it’s the printing machine. Whether there will be a new rate hike or not, it’s all too little, too late. So keep those shiny golden bars close to yourself.

Why?

Obvious, after QE, Twist, ZIRP, … there is only one thing the Federal Reserve can do: helicopter money. Even Nouriel Roubini, one of the most influential economists in the world, thinks it’s a good idea. Money printing and zero interest rates aren’t enough, he said, it’s time to give money to the people, not the banks.

Extraordinaire times ask for extraordinaire measures, according Roubini. Helicopter money doesn’t literally drop money on the houses, but the money should purpose the people directly, not the banks. QE-money never made it to the people, it’s stuck at the balance sheets of the banks.

But the problem is, QE and ZIRP only encouraged bad investments. It didn’t matter if the return was 3% or 10%, businesses made money. Cheap money led to bad investments. Helicopter money will lead to even more bad choices. Do you really think people can handle free money in a good way?

The day of reckoning

But the day of reckoning will come, says Doug Casey. One day, all these bad investments will have to be liquidated and a big disaster will occur. It’s just like the Depression nearly one century ago that lasted from 1929 till 1946. Helicopter money will make this even worse.

Doug Casey thinks gold can rise another 500% the coming years. Gold mining shares will rise even more, even up to 1.000% for the best breed. He predicts this will be the most amazing bull market the world has ever seen.

So why has gold lost it’s luster?

Gold has seasons. The price of gold fluctuates over the course of the year. This pattern is known to gold bugs and they don’t mind to see gold drop a little. At the moment, gold is in the middle of the weak season from March till July.

If ‘Sell in May and Go away … but remember to come back in September’ is true for stocks, the same should count for gold, only it would be ‘Sell in March and go away … but remember to come back in August’ – only that doesn’t rime.

Last year gold lost 6,5% during March till August, high season from September till February saw an increase by 8,8%. This pattern is not a guarantee, you must consider other elements as well. But it’s a good sign why gold is resting for the moment.

We came up with ten stocks, which have the potential to become ‘ten baggers’. Stocks that can tenfold your returns, when this market really gets going. 

We combined these 10 ten baggers is a separate report, for the symbolic low price of $10. So, 10 ten baggers for ten dollars.