|
1.The year of 2016, for a veritable myriad of reasons,
looks very good for gold and related assets.
2.First, while gold bullion recently traded below its
summer low, about 75% of GDX component stocks are trading higher.That's
a classic technical bullish non-confirmation, it is significant.
3.Please click here now. Double-click to
enlarge this daily chart of Barrick.The company has reduced debt levels
significantly, and is trading sideways during tax season.That carries
bullish implications for the entire precious metals sector.
4.Please click here now. Double-click to
enlarge this Agnico Eagle daily chart.The "Golden Eagle"
appears to be establishing an up channel in the face of lower bullion prices,
and the company does not engage in hedging.
5.For gold bullion itself, a substantial array of bullish
price drivers appear set to take the "price discovery stage".
6.Please click here now. Double-click to
enlarge this daily gold chart.
7.From a technical perspective, there's a commodity-style
double bottom pattern in play, and that may be part of something much bigger,
and much more bullish.
8.On that note, please click here now. That's another look at
the daily chart.Gold appears to be steadily carving out a large inverse head
and shoulders bottom formation.
9.Gold is traded as currency on major bank FOREX desks,
but because it is a central bank reserve asset, it's very difficult to assign
clear cut bull or bear market labels to its price action.
10.Regardless, volume must rise with a primary trend.If
price declines and volume does not rise, the primary bull market remains
intact.
11.Please click here now. That's the quarterly
bars gold chart.At some point in the future, the highs in the $1900 area will
become a major support zone, as the $1033 area is now.
12.Note the rising volume with rising price, and
declining volume, with declining price.The primary trend is unchanged, and it
is bullish.
13.An analyst carries a degree of responsibility.When an
investor in a major asset class has drawdowns, care must be taken not to
break the spirit of that investor.Investor spirit needs to be nurtured and
strengthened.
14.In that regard, when gold declined into significant
quarterly bars support in 2008 at $728, my job was to nurture the spirit of
gold community investors, so they could muster the intestinal fortitude
required to hold positions, and buy more.I did that job to the best of my
ability.
15.The Western gold community is now entering the year
2016, as gold approaches another mighty support zone, this time at $1033.It's
unknown whether gold enters that support zone, or rallies from just above it.
16.What is known is that this is a major buying area,
and a generational low appears to be in the works for both the bullion and
the miners.Intestinal fortitude, and nurturing of investor spirit, are
all that is required now.
17.Many investors have asked me if US bond and real
estate markets could be topping, now that the Fed is raising rates.The answer
is that junk bonds have probably topped and are likely headed vastly
lower.Real estate (except beachfront property) appears set to ooze lower in
price, and it will probably do for several decades.
18.In regards to the US T-bond itself, the tools Janet
Yellen is using to raise rates are somewhat supportive of long term bonds.I
think the best way to summarize the T-bond market is that the party is
ending, but rather than getting "blown away", long term
T-bonds are more likely to fade away, like the rotary phone did.
19.So, I would not short the T-bond.Shorting
enthusiasts should focus on junk bonds and leveraged real estate.
20.Geopolitics is a bullish 2016 wild card, and the PBOC
gold buy program looks set to continue relentlessly.The SGE gold fix is
scheduled for a spring launch, and that coincidentally comes at the same time
as cycle master Marty Armstrong predicts a horrific sovereign debt crisis
will appear.Marty is widely followed by many money managers, and their
liquidity flows can be sizable.
21.It can be persuasively argued that Indian demand is
the most important big picture driver of the gold price.When India "sneezed"
with a gold duties virus in 2013, the Western gold price immediately
looked like it caught financial Ebola.For the past two years, India has
suffered from drought, and that's reduced the rate of demand growth
significantly.
22.For the good news, please click here now. The bottom line for
2016 is, "Out with El Nino, and in with La Nina!"Bumper
crops across India would create a huge surge in both official and unofficial
gold market demand!
23.The 2000 stock market crash involved retail stock
market investors.The 2008 crash involved institutional and local government
OTC derivative investors.Each crisis is intensifying, and each crisis is
affect the price of gold to a greater degree.
24.I've argued that the Fed must raise rates, to reign in
the US government's insane obsession with debt. If that creates a
government debt crisis, so be it. Gold price parabola fans should know there
is nothing more bullish for gold than a global sovereign debt crisis.Santa
has been pretty good to the Western gold community during the 2015 tax
season, and 2016 looks like it may be a truly golden year!
Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I'll send you my free "Silver Stocks Rock!"
report.I cover five of the hottest silver stocks, and the silver stocks ETF,
with key recommendations for each item!
Thanks!
Cheers
st
Stewart Thomson
Graceland Updates
Note: We are privacy oriented.We accept cheques.And
credit cards thru PayPal only on our website.For your protection.We don't see
your credit card information.Only PayPal does.They pay us.Minus their
fee.PayPal is a highly reputable company.Owned by Ebay.With about 160 million
accounts worldwide.
Written between 4am-7am.5-6 issues per week.Emailed at
aprox 9am daily.
www.gracelandupdates.com
www.gracelandjuniors.com
www.gutrader.com
Email: stewart@gracelandupdates.com
Or: stewart@gutrader.com
Rate Sheet (us funds):
Lifetime: $799
2yr:$269(over 500 issues)
1yr:$169(over 250 issues)
6 mths: $99 (over 125 issues)
To pay by cheque, make cheque payable to "Stewart
Thomson"
Mail to:
Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario
L6H 2M8 Canada
Stewart Thomson is a retired Merrill Lynch broker.
Stewart writes the Graceland Updates daily between 4am-7am. They are sent out
around 8am-9am. The newsletter is attractively priced and the format is a
unique numbered point form.Giving clarity of each point and saving valuable
reading time.
Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The
information provided by Stewart and Graceland Updates is for general
information purposes only. Before taking any action on any investment, it is
imperative that you consult with multiple properly licensed, experienced and
qualified investment advisors and get numerous opinions before taking any
action. Your minimum risk on any investment in the world is: 100% loss of all
your money. You may be taking or preparing to take leveraged positions in
investments and not know it, exposing yourself to unlimited risks. This is
highly concerning if you are an investor in any derivatives products. There
is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion
written off officially. The bottom line:
Are You Prepared?
|
