Gold Pounded As Forecast But Trump Just Tipped Us Off With Another ULTIMATE Contrarian Indicator

Low print of $1262.40 this morning, and while there’s likely more price damage to come, fundamentally, gold has bottomed. Here’s why…

Gold is performing exactly as forecast.

If you’re long, sure, it’s no fun.

If you’re a buyer here, it’s great news because fiat dollar for fiat dollar, you get more ounces for your buck.

So where you are in life depends on your feelings for gold being worked lower all night and into the pre-market:

Look, the corrupt bankers and government officials who suppress the prices of gold & silver are going to make gold have a Death Cross, so take some advice from Cousin Eddy:

There is no sense in not facing what is going on, so we might as well just let ’em finish.

They are going to paint a Death Cross on the gold chart.

Will it cross today?

Lord I hope so.

OK, “so Half Dollar, is the Death Cross the end of it?”.

Good question.

No it’s not.

The Death Cross is just the technical indicator that traders and investors, but mostly just computer programmed High Frequency Trading algorithms (HFTs) notice and decide to sell gold off of.

Because a Death Cross means we’re going lower.

So when the cross happens, who knows where the gold price will fall to?

We’ll look at those targets when we have to cross that bridge.

But it’s going to happen, first, however, the contrarian indicator President Trump just tipped us off too.

See for yourself:

Not just “all-time record optimism”, but “ALL-CAPS WITH AN EXCLAMATION POINT!”.

Look stackers, time for some ugly truth.

Real talk.

You could call it “rant time”.

Half of the country was sold down the river by Obama.

How do I know that?

I was living in Durham, NC during the time of the Duke Lacrosse “rape” scandal.

My direct neighbors were black, and I was in a diverse neighborhood with a mix of blacks and whites.

I had lived there many years and every time I went to vote, there was never a line, never a person in the parking lot, and just a few polling place workers looking bored out of their minds.

Until the Duke Lacrosse “rape” scandal and Barack Obama.

Especially Barack Obama.

When I went to go write in Ron Paul in 2008, Even though I had never, ever waited to vote, even in a presidential election, on that day in 2008, the line was a mile long. And it was a mile long with nothing but blacks in the line. And black supporters, campaign volunteers, and all that pro-Obama stuff.

You knew what was going to happen.

Well, I did.

I knew Obama was going to win.

Sure enough, that night, when they announced Obama the winner, there were screams, fireworks and celebratory gunfire heard all over for many hours.

But what happened?

Well, half the country in general and all the Obama supporters specifically were sold down the river.

The people truly thought things were going to change, and in a way, I guess things did change – things changed in our country for the worse.

Side note: Back in 2008 I told my family, “What we need is a person who is not a politician to become president, and that’s the only way to fix this country”.

My family laughed at me and ridiculed me.

Which is one reason among many that I haven’t spoken with my family in years.

You can’t cure a brainwashed zombie, nor can you free a willing slave.

In my opinion, in 2016, the country got it. They knew only a non-politician could fix this country.

But I was early.

I’m always early.

And guess what?

Now it’s too late.

The Titanic sinks.

But I digress.

Back on track.

In 2015, Trump was really just “rumored” to be a candidate, and I said he would win.

I was laughed at again, but I digress.

Half the country was mad at anything and everything with Trump.

You know – the “racist”, “bigot”, “sexist”, “anti-fat people”, etc, etc, etc.

Were they really mad at Trump for those reasons, or were they just lashing out because they were sold down the river by Obama and don’t realize it, so they mistakenly want something even more socialistic/communistic in Washington?

Regardless, now we have half the country who buys into the whole President Trump MAGA hype.

I’m sorry to tell you, but just like the half of the country that was sold down the river under Obama, the other half of the country is being sold down the river by President Trump.

Those who lash out in disagreement or anger, well that’s understandable.

I empathize.

Something about the five stages of grief?

Or was it seven?

I dunno.

But it’s too late for America.

After Trump’s Presidency ends, what is next?

The hard pivot to socialism or communism,

or by that time will it actually be the time we see real blood on the streets spilled again?

That is my forecast, and I wish it weren’t, but that’s what happens.

It’s too late for America.

In a Neil Howe Fourth Turning kind of way.

But look again –

Said differently, it could just as easily read: “Number of Americans duped into believing and who bought into the lie just reached an all-time high”.

Seriously.

To my main point.

Because this wasn’t supposed to be a political-economic rant, but a post about gold.

When you hear those words,

And when you see stuff like this:

Then you know we’re close to the end of good times.

For gold, it means we’re close to the turn.

Or the reset.

Why?

Well, if it’s the greatest economy ever, which way can that economy go?

Well, it can only get worse from here.

Call it “peak greatness”.

It’s a top in greatness, and gold, being the ultimate hedge against uncertainty, would be the inverse of greatness.

You see, I’m saying that fundamentally, gold has bottomed.

Technically, at $1262.40?

I don’t think so, we’ve still got that Death Cross to deal with.

Fast forward to last night/today’s Tweet, and if more manufacturers have never been more optimistic, ever, (just ignore all the anti-depressant usage, suicides, the opioid crisis, and things that mask the pessimism for now), then which way can that optimism go?

Well, it can’t get any more optimistic, so things can only turn pessimistic.

You see, in markets, and that’s what manufacturers do, they bring things to markets, there’s what you call “a crowded trade”.

Sometimes it’s called “everybody is on one side of the boat”.

Fundamentally speaking, the “optimism” trade is a crowded trade. Everybody is on the same side of that boat.

What would be healthy would be a bunch of people who are optimistic, and a bunch of people who are pessimistic, and by their course of market actions they balance themselves out.

But when every widget maker in the United States is optimistic, so that’s like all seven of them, well, that’s a recipe for disaster.

Once reality sets in that this is not the greatest economy ever and that people in general and manufacturers specifically are too optimistic, well, that pendulum is going to swing the other way.

And gold is going to swing with it – higher.

And that’s only the fundamentals of economics.

There’s two components to the fundamentals: Economics and politics.

I didn’t even bring up the politics in this post, but the ultimate in politics – geo-politics, is at a peak too.

We have put in a top in geo-political bliss, otherwise known as world peace:

Question: If things are as peaceful now as they can ever be, which way can they go from here?

Well, the world can only become more hostile.

Let me hone in like a laser and spell this all out in one phrase: President Trump has been ringing the bell at the top for the U.S. economy.

Overall point – selling that stack right now if you can afford to hold on to it is a mistake, because we’re right at that point, where, fundamentally, as argued here, gold has already bottomed, even if technically there is still a little more price damage to come.

Let’s recap: Will the cartel pull off the Death Cross in gold?

I think so.

They will force it on us.

Yes.

They will impose their will and they will strong-arm it, backed by sheer paper which no trader, hedge fund, or miner can out spend (because the cartel’s paper is without limit).

The question: How low does gold go from here?

Well, fundamentally, between the “greatest economy ever”, “all-time record high optimism”, and “world peace”, we’ve already bottomed.

Technically, however, is another story.

We could go lower.

I think we’re going lower, because I think the cartel is determined to make the cross and bank on the downward momentum it implies.

Besides, the last Death Cross attempt failed:

Are they really going to get this close this time only to come up short?

I don’t think so.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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