goldWhen vote counts began to show that Donald “The Golden Trumpster” Trump would win the US election, gold surged well into my key sell zone at $1320, reaching about $1337.
The gold price was flirting with an upside breakout from a key monthly chart downtrend line.
In my professional opinion, gold would have achieved the trend line breakout, but only if the Indian government had not suddenly showed up on the scene that same night… with a horrific announcement that overwhelmed the US election news.

down-fall-smashA US government bond market panic is becoming a potential event that serious money managers will need to think about very carefully.
I would suggest they start thinking about it… NOW.

rocketThe world gold community should probably fasten their seat belts now, and get ready for an end of the year upside ride!
For gold investors, some days are more awesome than others, and I’ll boldly suggest that today is one of those days. Here’s why:

woodshedJanet Yellen is going to have to face the fact that rate hikes are desperately needed to save Main Street from the government monster that is enveloping almost everyone, including the central bank.
The only things that QE has inflated are houses and government bonds, and that is opening the door to an “endgame” type of scenario…

hyperinflationThe world is undergoing a major economic transition from deflation to inflation.  Sadly, very few retail investors are correctly positioned to benefit from this exciting change.
The early 2016 rally in gold stocks was the canary that sang loudly in the “inflation is coming” coal mine.
What’s coming in 2017 is not a “bull market”.   It’s the start of a wondrous bull era!

willieThe next crisis will be a full deleveraging event that involves both public and private assets. I call it the “End Game”.
As it unfolds I expect markets to act more like they did in 1929 than 2008, and end with gold revaluation…

storm-boat-wavesThe world is only hours away from key BOJ and Fed meetings that could create a SEA CHANGE in global markets.
A rate hike from the Fed would create panic in the stock market, and investors would flock to gold, just as they did after the first rate hike in December…

If there is no rate hike next week, GDX should challenge the $32 area highs, and lead bullion higher.
If there is a rate hike, GDX and most gold stocks will likely spike lower while bullion soars higher, in a scenario similar to what happened when Janet hiked in December of 2015.
The good news is that after a very brief decline when Janet hiked last year, gold stocks staged one of the biggest rallies in many years.
If she hikes next week, I expect history to rhyme!

gold-silver-investmentsAgainst gold, gold stocks have been in a bear cycle since 1996.  That cycle appears to be ending now, and its end will be confirmed by an upturn in bank loan profits and money velocity.  A rising oil price floor could be the catalyst that creates the upturn. 
For the Western gold community, good times are here, and great times are near!

fall-plungeThe September and October time-frame is what I call “US stock market crash season”. The worst stock market crashes have historically occurred during these months, and Friday’s jobs report has the potential to create another one.
The PBOC could announce a major yuan devaluation if Janet hikes rates in September, and that could potentially unleash the type of stock market crash that occurred in 1929…

imagesIn regards to gold stocks specifically, I called the 2014 – 2015 period the greatest accumulation zone for any asset in the history of markets. That was a bold statement, and the price action in 2016 is already hinting that my view may be the correct one.
Silver is very responsive to inflationary pressures, and if gold stocks are outperforming silver in a massive way, it’s an indication that inflation may be poised to rise in a MUCH bigger way than most analysts believe is possible…

For the first time in history, all US central bank actions are bullish for the entire precious metals sector.
Gold stocks continue to take out key highs, but in the big picture, the upside action has barely started.
Silver now has what appears to be a bull flag pattern in play.  A pullback within the pattern is likely now, but an upside breakout would suggest silver is going to $26 quite quickly…

Silver often acts like a levered version of gold. I don’t think investors who feel the urge to buy silver now are making an error, given the huge amount of institutional enthusiasm for the entire precious metals sector that is occurring now.
Having said that, given the importance of the $21.44 price zone, a decline to about $18 could easily happen.  I don’t think the next price movement can be predicted easily at this point in time, but if they are buyers now, silver-oriented investors should prepare themselves to take more buy-side action at $18.