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.
After six years of saying nothing about how much gold it owns, China told the world. But it wasn’t the news everyone expected.
Since February the US dollar gold price has not changed. And neither have many of the gold mining companies’ share prices.
I now fully understood why so many traders fail. It all comes down to preparation. The system trader has a plan for everything, while many traders have a plan for almost nothing.
Investors have long understood that gold is an excellent hedge against inflation. The analysis is straightforward.