Gold, Fed Speak, And The Inflation Trade

A global stampede out of fiat and into “private money” gold, silver, crypto, and commodities seems imminent.

It will happen when the current transitory wave of inflation gets replaced with one that is much bigger.

My suggestion for stock market investors is to move to a short-term approach. That will help minimize the risk that a new inflationary wave crushes their holdings. Some long-term gains can be booked, with partial proceeds going into gold and silver miners.

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As this Bloomberg chart shows, the miners have become “cash cows on steroids”.

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GOAU daily chart

Investors who followed my suggested path have booked solid profits after buying in November and selling just a month later.

I urged investors to buy in March again and to sell more recently. The profits booked were stellar.

The current “main stage” play is to hold core positions. Short-term traders can buy the dips, using the lows around $21.25, $20.50, and $19.85 for stoplosses. 

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On the daily chart for GOAU, the 20,50 moving average series can be helpful.  

The latest buy signal is intact, and a dip to the red 50DMA line could be a good entry point for mine stock enthusiasts.

What about GDX… do the moving averages work as well as they do for GOAU?

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The technical action for GDX is not as crisp and clean as for GOAU, but it’s still incredibly positive.

A focus on gold bullion support zones for mine stock buying should be an investor’s “magic marker”. 

“Fed Speak” day is tomorrow. If the Fed downplays the horrifying fire that is engulfing the government’s fiat money system, legendary investors like Paul Tudor are ready to go all-in on the inflation trade.  

Now could be the time, for gold bugs to get ready too!

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Almoni33 3 months ago Member's comment

you surprised me - on your chart $2,000 lower than $1,500 is unthinkable