Every now and then a chart appears that provides us with a great opportunity.
The following chart fits that mold.

 

Submitted by Peter Degraaf: 

(Charts courtesy Stockcharts.com and Goldchartsrus.com).  Featured is a chart that compares the EURO(DM) to the US dollar.  When the trend is rising, it means the Euro is stronger than the US dollar and vice versa.  History tells us that gold has a tail wind when the trend here is upward bound, and a head-wind when the trend in this index is falling.  Please notice the upside breakout in 2002 from a multi-year triangle.  It was at this time that gold began its rise from $260.00 to $1,925.00.  Now notice a similar pattern (a falling wedge), developing on the right.  Price is close to breaking out at the second blue arrow.  The supporting indicators are giving off positive divergence (green arrows).  A breakout could come at any day, and gold (and silver) stand to benefit.  In the event of a repeat percentage performance in the price of gold, the long-term target (based on gold’s performance between 2002 and 2011), for this coming breakout, is $9,300.00.

Here is a close-up of the first chart.  Price is breaking out at the blue arrow and a close above the green arrow will confirm the breakout.  The supporting indicators are positive (rising). 

 

Featured is the daily gold chart.  The vertical green arrows point to ascending bottoms.  The pattern is an Ascending Right Angled Triangle.  A breakout at the blue arrow will set up a short-term target at $1480.  The supporting indicators are turning positive. 

 

This chart shows the combined demand for gold in India and China during March (281 tonnes), equaled the amount of gold that was mined worldwide (white line on chart).  Conclusion:  These two nations combined are soaking up virtually all of the gold that is being produced.  Whenever demand exceeds supply, price must rise.

 

This chart compares dollar value of the (stated) US gold reserves to the US Monetary Base.  The two are as far apart as they were in 1976, when a bull market in gold was just getting underway.  In order for the value of the US gold reserves to match the comparison of 1940 and 1980, the gold price will have to rise 12 fold.  Before we shrug that off, we must remember that it has happened before. 1940, 1980, – next 2020?

 

Please do your own due diligence.  Investing involves taking risks. Peter Degraaf is not responsible for your trading decisions. 

Peter Degraaf is an online stock trader, with over 50 years of investing experience.  For more information please Google him, or email him at [email protected].

  1. Charts, Farts, they stink!  I don’t give a rat’s ass about charts, I don’t give a rat’s ass about manipulating the price of silver and gold.  I’ll just buy it.  Most everything is grossly overvalued except AU AG.

    I don’t give a rat’s ass if it all falls on its corrupted, dishonest ass tomorrow or next year.  It will all end eventually as the u.s. dollar becomes more regional than global, the East will likely make that happen, sooner than we think,  and when it does we will wish for yesterday.

    I always look for undervalued assets and that’s when I buy them and I keep buying them until its start selling time.

    I did it at $48 and $1860.   And now on 40 acres of land for my trouble.    Its a matter of Patience.

  2. If , as we all know, that silver and gold are rigged from a to z then please explain to me how this chart could be any better than wiping paper.  Such ridiculous bullshit , one article says the charts  portend great advances in precious metals, the next article says ain’t no f-ing way pm’s will do anything but go down .  Thoroughly disgusted at this point .   Charts are total 100% absolute BULLSHIT. There I said it !!!!

  3. The last chart is revealing as it demonstrates that even central banks cannot defeat changing sea levels.  Sure, CB’s can build a seawall and hold off the tide, but if an ice age is coming, then they, too, are powerless.

  4. So, what should we Investors do with our Fiat-Money?

    Buying a lot of physikal Silver. (deposit it outside the Banking-System).

    Find the best Gold/Silver shares in the world….and buy them.

    Which are in my opinion the best Mining-Stocks…with a huge leverage on the rise of Silver/Gold?

    Undervalued in comparson to other Gold/Silver Mining Companys?

    1. Blackham Resources: 80 Mio Market Cap, 6.4 Mio oz Gold-Resources, +200.000 oz Produktion in 2020.

    2. Levon Resources: 35 Mio Market Cap, 500 Mio oz Silver-Depot, 1.2 Billion oz Silver equivalent.

    3. Americas Silver: Silver-Miner,Assets in USA/Canada/Mexico, undervalued in all metrics.

    DYOR…Rumpelofen

  5. I buy on the dips, no charts needed. Buy low, sell very high for hard assets. Quite elementary dear Watson.. Comment section is where one can pick up valuable information. Articles for the most part are fake news. Trumps $110 Billion dollar deal has quite a bit of Silver weaved through its software and hardware. Industrial use to the moon.

  6. Well, since

     the long-term target (based on gold’s performance between 2002 and 2011), for this coming breakout, is $9,300.00.

     

    at least we’ve been provided a prospective selling point to consider at $9300 but even that is pretty night to useless. We all know, that if Silver and Gold achieve their historic price points relative to fiat currency, it will destroy the current banking system and certainly end the dollar as the world’s reserve currency. When that day comes, $9300 could easily be the price of a single trip to the grocery store after the Chinese and Japanese dump all their dollars.

    Predictions for what “might happen” if gold and silver return to their proper place, in terms of  actual buying power, ignore the fact that the manipulation is necessary to maintain the current system.  It also ignores the effects of any quantitative easing measure that could be taken by central banks in response to such a crisis.

    The way I see it. Right now my silver buys me about 40-60% of the beef cattle that it would have bought me in 1913.  My silver buys about 1% of the livestock that it would have bought in ancient Rome. I am more inclined to think that the buying power increase will be to pre-Federal-Reserve levels, rather than Roman times levels when it is allowed to go free. If it is remonetized, then it might go a lot higher. I don’t see it getting back to Roman Empire levels permanently, but a bubble might take it that high.

    There will definitely be a bubble, but we can all worry about that when we’ve finally made some money.

    • you have to admit, the price in any of those localities might have a significant premium over SD Bullion. I have noticed significant premium beyond here/JM/Provident at the lesser known online sights.  I heard the price on the ground in India was over $2000/oz in Rupees during the height of the currency fiasco.

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