Happy New Year From Queen Gold & King Silver

As the new year begins, gold continues to gain respect as the ultimate investment asset. Unfortunately, the same cannot be said for the US dollar.

Most investors tend to view the dollar as a “safe haven”, but the big bank FOREX traders that really move the currency market view the dollar as a risk-on asset class.

They view gold and the Japanese yen as the main risk-off assets. So, when the dollar falls against the yen and gold as the US stock market rises, all may not be quite as well as investors think it is!

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After building an immense sloping H&S top pattern, the dollar has collapsed against the yen and is now almost in “free fall”.

That top pattern is technically a “head and shoulders (top) bear consolidation pattern”, and its implications are ominous.

I’m short the dollar versus the yen (and short the dollar versus the yuan) in the FOREX market. Traders are making solid profits on these anti-dollar trades. 

We’re also long NUGT and Barrick.  With John Thornton and Mark Bristow at Barrick’s helm, I now have a $200 long-term price target for Barrick. The NYSE stock symbol is set to change from ABX to GOLD, and that’s positive news.  

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As 2019 begins, investors need to think hard about whether it’s more important to predict a late cycle rally for the US stock market… or a much better idea to focus on the spectacularly bullish price action taking place on the long-term gold chart.

India’s government is launching a new pro-gold policy within a few weeks. That will see gold become endorsed as a respected investment asset class by the government. A significant chop in the import duty will likely follow, and discussions are already underway with Russian entities about duty-free imports.

In America, the current collapse in the dollar comes late in the business cycle. The big bank FOREX departments are almost universally negative on the dollar, and rightly so. 

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Disclosure: I’m short the dollar versus the yen (and short the dollar versus the yuan). Also, long NUGT and Barrick.

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