|
1. Ethanol and many
biodegradable plastics are made from corn. Some experts estimate that corn is
present in more than half of all grocery products.
2. Please click
here now. You are looking at the price action of corn. Rising food prices
translate into real inflation, and real inflation leads to higher gold
prices.
3. It’s possible that a full flag pattern could
form on this corn chart right now. The upside breakout has turned the highs
around $6.75 into substantial price
support.
4. Please click
here now. Corn blasted out of its super-wedge pattern, and I think
it’s reasonable to suggest that gold & silver could make a similar
move very soon.
5. Some soybean contracts made all-time highs yesterday. Please click
here now. Two bullish breakouts have occurred. The first was a move over
massive resistance at $14, and the second was the rise above the blue supply
line, at about $15.25.
6. The target of the head & shoulders pattern is
about $17 a bushel. The United
States is a major exporter of soybeans to China, so you can see that Chinese
consumers may be about to get hit with substantially
higher food prices.
7. The vertical movement in soybean prices is another
key factor that could help launch the gold price higher.
8. Please click
here now. Technically, sugar is acting very well at this point in time.
Sugar has risen to HSR (horizontal support & resistance) at $.2225, which
is only about 1/3 of the levels that it reached back in the 1970s. As a long
term core holding, and as a gold price driver, sugar is firing on all
cylinders.
9. A lot of American corn is used to produce ethanol,
and Brazilian sugar could be required as a substitute if the drought
doesn’t end.
10. South America has also experienced some drought
conditions, so sugar could be more of a “price
powderkeg” than most investors realize.
11. Along with food, the energy markets are key movers
of the gold price. The oil charts are particularly interesting. Please click
here now. In the short term, oil has a tiny head & shoulders top on
it.
12. Ironically, that top pattern could help create a
bigger head & shoulders bottom pattern. To view a longer term chart,
please click
here now. Oil appears set to begin rising back towards $100.
13. The gold community’s greatest love is gold
stocks. I’m a big proponent of the view that gold will ultimately be
the tool that ends the global financial crisis. Central bank buy programs
should not only raise the price of gold, but maintain it close to the highest
price attained in this bull market.
14. In the 1970s, gold crashed at the end of that bull
market. In the 1930s, gold was revalued and traded sideways for decades. I believe the current bull market will end
more like the 1930s bull market ended, with gold locked in a tight trading
band.
15. When the bullion bull market ended in 1979-1980,
gold stocks continued to rise substantially higher in price.
16. As this bullion bull market ends, if gold trades
sideways like it did in the 1930s, your gold stocks could rise
a lot higher, and possibly pay enormous dividends for quite a long time.
17. Please click
here now. You are looking at the daily chart for GDX, and you can see it
is trading roughly between HSR that is near $39 and $49.
18. Short term traders should be buyers near $39 and
sellers near $49, but I think that more risk capital should be allocated to a
buy & hold strategy.
19. If gold bullion makes a move like corn and soybeans
just did, GDX and your individual resource stock holdings could get
“slingshot” to prices far above where they are now.
20. I want to see the gold community 100% prepared to
buy and endure all worst-case scenarios, because
the potential rewards being offered on the upside are so great.
21. A situation where GDX breaks the lows near $39 could
create some panic selling, but my view is that most sellers have already sold
out of the market.
22. It is much more likely that a move back down towards
the lows would simply create a solid double bottom pattern, with powerful
upside implications. Remember that there are likely a large number of stop
loss orders near $1520 in the gold market. A shocking fall to that level is more likely to be a fake-out than
the beginning of a new decline.
23. Given the powerful movement in the price of key food
crops, rather than beginning a new leg down, it’s more likely that gold
begins to rise violently to the upside.
24. Please click
here now. That’s another look at the trading range for GDX, with
emphasis on the volume. GDX has
meandered sideways, and volume has tapered off nicely while that has
happened. Technically, that’s very bullish. The weight of the evidence
suggests that GDX will soon launch a successful attack on the $49 level!
Special Offer For Website Readers: Send me an Email to freereports4@gracelandupdates.com
and I’ll send you my free “Big Gas Report”. My friend
“GoldLion” and I have put together a
list of must-own natural gas stocks, and I’ll cover the reasons why we
like them now!
Thanks!
Cheers
St
|
