The New Safe Haven: Gold Stocks!

The US stock market continues to implode. At the same time, precious metals, bitcoin, and the Indian stock market are acting as superb safe havens.

Double-click to enlarge this great short-term gold chart.

Note the positive bounce from buy-side support at $1237 and the inverse H&S bottom pattern. A fresh rate hike from the Fed tomorrow could crush the stock market again, but if there’s no rate hike, that could also crash the stock market.

That’s because money managers would believe the Fed thinks the supposed “world growth leader” economy is too weak to handle even a 2.5% Fed funds rate!

This Fed meeting could be an important catalyst that makes institutional money managers start to get serious about viewing gold as a respected asset class… that is here to stay.

While an overdue import duty cut remains elusive, the citizens of India (and China) are the clear leaders in the quest to make gold the world’s most respected asset class.

On the government side, the Chinese government has been a leader in building gold market infrastructure to move price discovery from the dingy trading rooms of the Western fear trade to the more positive love trade environment of the East.

The Indian government is beginning to play “catch-up”, and that’s very good news for gold investors around the world.

There are currently about 400 million Indians who have internet access, and that is expected to double to 800 million quite quickly.

The World Gold Council (WGC) estimates that 3 million Indians buy gold online, and they predict that number will soon quintuple to 15 million!

In 2014 I predicted a “gold bull era” was being born and it would be founded on a gargantuan ramp-up in Chindian online gold demand.  

Indians can already get physical delivery from most of the online platforms when total purchases reach just one gram of online-purchased gold.

Warren Buffett is buying into one of the platforms (Paytm). This man is an elephant hunter! 

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