Gold: It Doesn’t Change, the Market Does

Dear Reader,

Ask any old punter who’s been around in the markets a few decades, and I’m sure they’ve seen a couple of crashes.

They know they happen.

Their analysis tells them one’s looming…

They create an investment strategy to try and minimise the losses…

Yet, as Greg Canavan, Dan Denning, and I talked about yesterday, there’s something different about what we’re witnessing now.

In Friday’s round table discussion, we looked back at the 2008 market crash, and what stood out from then and now.

The biggest difference, we all agreed was, the speed at which all these markets are falling.

When the market tanked 12 years ago, there were respite rallies. Short period where stocks went up a bit, or even sideways, before the really big falls gripped the markets again.

The falls went on for months…as opposed to now when it’s happening in mere weeks.

Over the past three weeks, investors are waking up to news of assets selling off every day.

Leaving you no time to digest the news.

Headlines are invading investors’ thoughts.

Which in turn makes you own investment decisions difficult.

It’s not just paralysis by analysis, it’s the fear of not understanding what’s going on.

Yet…there are opportunities.

Less than a year from now, we may see this as one of the greatest buying opportunities of your investing lifetime.

Sometimes the best time to wade into the stock market is when everyone else is running out.

As both Greg and Dan have shown you throughout the week, what’s unfolding is unprecedented.

We are seeing a sell-off of everything as investors, governments, and central banks scramble for a modicum of control.

Gold isn’t immune.

On Friday morning, I woke to the news that gold was down 3.6% overnight. Bringing the metal back under US$1,600.

But that doesn’t make sense, does it?

Fear is gripping the markets. Why isn’t the so-called ‘fear metal’ breaking out to new highs?

Well, I know why.

And so do a handful of others.

So, what do they know, that you don’t?

Let me show you.

Gold doesn’t play by the rules

If you learn anything in this video today, it’s this.

Getting caught up in the daily price movements of gold is dangerous.

Unless you’re a bullion trader that shifts bullion tons by the minute, the daily price moves are irrelevant to you.

By focusing on the miniature gold price gyrations, you miss the bigger picture.

Which is why I have spoken to over 30 experts — and counting — on the subject.

One of the key takeaways from today’s video, comes from a long-term gold investor, Claude Bejet.

You’ve probably never heard of him. And that’s just the way he likes it.

This French-born but Swiss-based investor has far more experience with the gold market than he likes.

And as you’re about to discover, has a tale or two to tell about the first African-based gold play he bought in the 1980s.

But when you’ve got three or four investing decades under your belt, you learn a thing or two.

Gold doesn’t play by the rules,’ is one of the first things Claude will tell you today.

It’s true.

Right now, you’re watching the yellow metal sell-off when we believe it should be booming.

Yet, throughout its tradeable history, the yellow metal has had different correlations based on ‘what’s in fashion’, Claude says. Adding that we’ve created various tools to predicts the yellow metal’s movements, which undermine the purpose of the metal.

He points out, that at times gold’s behaviour was predictable because of what oil is doing.

Other times, it’s gold’s inverse relationship with the US dollar used as the main tool to predict a trend.

Or it’s interest. Or inflation. Or geopolitical tensions.

As investors, we’ve created a bunch of ideas to predict the metal’s direction, when really it has just one purpose: gold is money.

The variable and the constant

Thinking gold is money, is a foreign concept for most.

And that is why I want you to hear from Maurice on the matter.

In fact, from all the videos I’ve shown my subscribers in the past few months, the most feedback I have ever received, has been on Maurice.

Why? Because in two sentences he points out the difference between money and currency. What he calls the variable and the constant. What can be trusted, and what can’t.

After a few minutes of listening to Maurice, you will understand the difference between the polymer notes in your wallet, and the gold in your wedding ring. You may even flick open a new web browser and purchase some of the metal after listening to him…

Of course, gold isn’t without controversy.

The wild dips and dives of the market — and the falling of the gold price — means that it’s time for the conspiracy theories to come out.

My Twitter feed is alive with ideas on why the gold price is stuck so low…and that perhaps this volatility is nothing more than ruse to convince numptys to hand over their gold to the government.

Well, dismiss them now.

Because today, I have an Australian gold bullion expert for you, that knows more about gold and the Australian Banking Act, then almost anyone else.

Bron Suchecki is the senior precious metals analyst for Pallion, and he is the one that spotted the flaws in Australia’s Banking Act. He can tell you what it really means…and that it’s not some nefarious government plot to steal your gold.

Join me next week

This is what I do.

Not only have I been investing, analysing, and writing about gold for over 15 years now…

I then scour the globe for others that have done the same…but for even longer.

Why’s that?

To tell people the facts behind why the metal matters.

But more importantly, to remind us that as modern-day investors, we’re applying trendy rules to a metal that has been the foundation of money for over 5,000 years.

It’s because of this foundation, that we’ve taken over these pages all week.

As markets dip and dive, we’ve brought you round table discussions on the distressing market backdrop…and given you glimpses into the power of gold.

And come Tuesday, there’s a very special event coming your way.

I promise you; you won’t want to miss it.

Until then,

Shae Russell Signature

Shae Russell,
Editor, For Money Morning


Since starting out in the financial markets over a decade ago, Shae has extensive experience across various aspects of the industry. Shae cut her teeth in the derivatives industry, teaching clients basic trading techniques with technical analysis.

Joining Port Phillip Publishing eight years ago, Shae has worked across a number of publications, such as Australian Small-Cap Investigator, Gold Stock Trader and Microcap Trader. She’s spent the past two years however, honing her macro analysis skills alongside Jim Rickards, showing Australians how to invest and profit form global macro trends.

Drawing on her extensive experience, Shae is a contributor to Money Morning, and lead editor of sister-publication Markets & Money, where she looks at broad macro trends developing around the world, combining them with her distaste for central banks and irrational love of all things bullion.


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