Shares in gold miner Newcrest Ltd [ASX:NCM] rose nearly 4.5% today. They strongly outpaced an Aussie market that regained some ground.
The market is telling you they have turned a corner. They’re moving up. In other words, they’ve hit ‘lift-off point’. You’ll see what I mean tomorrow.
Gold is trading around US$1,085 per ounce. That’s a five-year low, down over 40% from its all-time high in August 2011, and down over 8% this year alone.
When the banking system breaks down next time, it will mean great times for gold and silver.
Confidence in the US dollar will be lost. And gold will rally against the US dollar. That’s right, the US dollar will start to die in your lifetime.
This means commodities have significantly further to crash, including gold, which I’ve long said will fall to US$931 per ounce.
If you don’t know already, I’m extremely bearish on gold stocks. And Steve does agree with me. While his attention is on the gold sector, he’s not buying…yet.
Throughout 2015 though, the Dow Jones index has struggled to maintain its upward momentum.
The spot gold price crashed on Monday. This had a huge impact on several Aussie gold miners. But not all gold miners have been affected equally.
China can’t have a reserve currency because it does not have a bond market, and it can’t have a gold-backed currency because it has nowhere near enough gold.