Technicals nearing breakout to
match bullish fundamentals
Gold is on the verge of a breakout, a positive close today or tomorrow
above $1,750.00 will send gold prices up to at least $1,850.00 or most
likely $1,900.00 in the coming weeks. Matched with wildly bullish
fundamentals this would confirm my projected move to the $2,250.00 by mId
to late February.
Technically gold is still short on the
short term but turns to a massive buy on a solid close above 1,750.00
because both the mid term and long term trends are solidly up and in a
major bull market.
Stocks are still a short on a long term
basis, the S&P 500 would need a monthly close above 1285 which it
failed to do yesterday despite its massive up move. My suggestion is to
remain negative towards stocks and unwind positions. The only thing
remotely saving the S&P and Dow are desperate acts through Fed
interventions and monetary infusions from money that flat out doesn't
exist. It is high time that we all face the fact that the entire monetary
system is bankrupt! The only way out is to either inflate or default. I
believe the hand they are showing and the path they taking is becoming very
obvious, they have clearly shown they have chosen to inflate. In any case
both scenarios are wildly long term bullish fundamentally for hard gold
assets, not paper assets.
At the end of this decade there will
have been a huge wealth shift to hard asset holders, as stocks continue to
wind choppy sideways, both wildly higher and dramatically lower throughout
the remainder of this decade, gaining nothing, while gold continues to
enjoy it's rather silent 30-50% annual gains as world fiat currencies are
debased at an alarming rate.
Watch what they DO, not what they
say. Low yields will ultimately lead to what few are even talking about, a
Bond/Bill bubble, as inflation begins, this is a massive trap. People are
seeking safety and deflation is the buzz word they use or SAY, but what
they are DOING is debasing or devaluing currencies which leads to inflation
through deflated currency values. These are the currency wars you may have
heard about, If China won't let the Yuan rise, we will force the Dollar
lower. Once people grasp this, bonds and bills will be the LAST place you
want to be and the bubble will burst. Gold will begin to surge even further
but by that time many won't be able to afford it.
DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of GoldIRAS.com. Past performance of any investment is no guarantee of future performance. All investments have risk.