Riding The Gold Money Train

Amateur investors tend to focus on predicting what’s next for their current situation. In contrast, professionals prepare for a future that is mostly unknown.

In 2019, when I talked about preparing for a potential 2020-2021 virus cycle, most investors ignored my warnings, and many paid a horrifying price.

They were focused on the US election because it was the current event in play. A focus on what is happening today is easy, and… focusing on what is easy is a hallmark of the end-stage of empires.

A lot of gold bugs are now focused on the “vax” discussion, but they mainly discuss the questionable vax for Corona rather than the failed fiat vax for gold

The bottom line: gold investors don’t need a fiat vaccine. They just need to follow some basic rules. 

Investing in gold requires a “keep it simple” approach.

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I like to start my investing day with this chart. 

Sadly, if libertarians had spent a fraction of the time-fighting fiat, that they now spend fighting Corona vaccines…

There would never have been any lockdowns because the government couldn’t have paid for them with printed fiat money.

Corona is old news and a focus on that virus and related vaccines won’t make gold investors richer. 

What lies ahead is a potential war cycle (2021-2025), potential stagflation, and a possible “super top” in the US stock market.  

The bottom line: America may be at a time that is a hybrid of 1861, 1929, 1939, and 1966… a horrifying mix of war and stock market cycles.

It looks like Jay Powell will need a new reason to continue his silly “inflation is transitory” narrative. He’ll likely claim that the floods are a black swan that simply delays his “grand taper” and rate hike plans. 

My suggestion to the world’s gold bugs is to be much less sure than Jay is about his roadmap for US inflation.

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Note the action of the key 14,5,5 series Stochastics oscillator at the bottom of the chart. 

A buy signal now seems imminent, and that’s a major green shoot for investors.

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Back in 2012, I suggested this gigantic “bull continuation pattern of champions” could form, and now it has not only formed but nears completion!

The right shoulder has an inverse H&S bottom pattern within it, which is another strong green shoot for investors.

What about silver? 

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The same bullish pattern is on the long-term silver chart. It’s less aesthetic, but it’s there!

When nations go to war, the military tries to establish “green zones” for civilians. It’s very important for mining stock investors to do the same thing and on that note…

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The bottom line: Major weekly chart support zones for gold bullion against fiat are green buy zones of safety for mining stock investors.

This caveat applies, regardless of whether the investor is focused on juniors, intermediates, or senior miners. GDXJ looks good but it’s in an “amber light” buy zone.

Investors don’t have a gold bullion green zone of support for buys made here. That means small size or stop losses are required to manage the risks. In the time ahead, a fiat vaccine is not required, but patience is. Patience is not just a virtue… it’s awesome!

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