Fiat and government are perhaps best described as failed financial relics of a monetary stone age. 

(Click on image to enlarge)

Gold is of course the world’s ultimate money. The more ounces a person has, the more money they have. It’s really that simple and… it’s really that awesome!

Here is this morning’s “scoreboard”. The bottom line:

The world is at the dawn of an era where inflation of concern may become the dominant theme.

(Click on image to enlarge)

The BDRY is essentially a shipping price ETF. 

While the Nasdaq crashed again yesterday, the BDRY pushed to a fresh short-term high.

Is this a sign that global “growflation” is already transitioning to stagflation? The dismal US jobs report on Friday adds weight to this scenario, but more time is needed to prove it as fact.

My suggestion to all gold bugs in the West: When it comes to the BDRY, watch the price action with a golden eagle eye!

(Click on image to enlarge)

important GDX versus gold ratio chart

A beautiful inverse H&S bottom is in play. A pullback would only add to the aesthetics of the pattern… and to the potential upside target price!

The fundamentals? Well, the QE programs operated by global central banks are really a ghoulish scheme that is best described as “welfare for government, banks, and rich stock market investors”.

It was President Trump who began pushing for some of the ludicrous amounts of printed and borrowed money to flow to regular American citizens.  

I am not a fan of any welfare payments for any reason, but if they are going to happen, the money should not go to rich stock market investors who are too lazy to sell rallies and buy price sales.

President Biden has continued this policy of what I call “QE for the people”.Unfortunately, the welfare money arrived too late for most Corona victims, due to government infighting and callousness. 

Both presidents refer to the universal basic welfare program as “stimulus”. That is quite a misnomer, but all governments tend to engage in misnomers regularly. 

Regardless, what matters to gold, silver, and mining stock investors is that printed/borrowed money inflates what it is aimed at.

Since 2008, most of that money was aimed at the government, OTC derivatives on real estate, and the stock market. Suddenly… it’s going to Main Street!

(Click on image to enlarge)

For the past several weeks I’ve hinted that Elon Musk could be involved with the Dogelon currency coin.

Just the rumor of the “electric car superstar” being involved in a junior crypto is enough to create a tidal wave of buying pressure. Here’s the bottom line:

Clearly, gold is the ultimate currency and crypto is the hottest. I have an ironclad rule that most gold-stock and crypto market profits should be allocated into the ultimate money that is gold.

(Click on image to enlarge)

the GDXJ money train chart

Partial profits can be booked by investors who took my cue and bought as gold arrived at the key $1680 buy zone. 

Can the GDXJ rally continue if the Nasdaq keeps tumbling? I think it can and $58 is my medium-term target price. 

Momentum investors following the inflation theme can still buy now, but a stoploss is recommended to help manage the risk!