Gold — and gold stocks — crashed during the banking and stock market crisis of 2008/09. This time, albeit worse, should be no different.
The price of gold is on the launch pad…and it may be poised for a moonshot. We already saw the price of gold ‘lift-off’ after the Brexit announcement.
With a catastrophic financial meltdown looming — possibly the greatest of all time —the US dollar is going much higher.
How will silver fare? We’ve seen it surge recently. Silver could be in the early stages of a bull market. Or a massive bear trap.
Now the Brexit vote is over, the sterling will suffer yet another blow. With the Leave vote winning, we have seen a sudden loss of confidence in the Pound.
I’m short term bearish and long term bullish on gold. I’d like to draw your attention to a couple of charts which back up my fundamental research.
Selling fewer phones, making lower profits…none of that is good. Not for Apple. Not for technology stocks. Not for growth stocks.
Currency wars involve devaluation of your currency as a form of monetary ease. Devaluation is what you do when you can’t get growth any other way.
Based on the Shanghai Accord and the dynamics of currency cross-rates, we expect the strong yen trend to continue for several years. That’s bad news for major Japanese corporations.
The US dollar gold price has collapsed for five years straight. So, I wouldn’t back up the truck and buy gold stocks right now.