"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 47 mins 5 Big Drivers of Higher Inflation Rates Ahead
  • 2 hours U.S. And China To Face Off Over Aramco IPO
  • 5 hours Gold Bulls, Brace Yourselves – Fed Hikes Are Coming!
  • 8 hours Stocks Fail to Hold Gains, But Still No Correction
  • 10 hours Cryptojacking: A New Threat Vector To Critical Infrastructure
  • 1 day Why The Next Oil Boom Will Be Fueled By Blockchain
  • 1 day 5 Things Investors Should Know About China this New Year
  • 1 day Is The South Korean Crypto-Drama Finally Over?
  • 1 day Miners’ Rally? What Rally? Watch Out for More Fake Moves!
  • 1 day Four Percent 10-year Note Yield Will Be a Floor Not a Ceiling
  • 1 day The End Is Near
  • 2 days 5 Record Breaking Gemstones Even Billionaires Can’t Buy
  • 2 days Irredeemable Currency De-tooths Savers
  • 2 days CFTC Offers Bounty For Crypto Pump And Dump Whistleblowers
  • 2 days Have You Been Getting Run Over By This Stock Market Action?
  • 2 days Decision Time
  • 2 days 1 Week Later, Risk Remains ‘On’ as 2 of 3 Amigos Ride On
  • 3 days The Most Polarized Commodity Ever
  • 3 days Commodity Coins and Us: What To Expect From The "Tokenization of Everything"
  • 3 days U.S. Dollar Bull and Bear Markets

Gold: Keep Calm and Carry On

There will be a new day in the UK, it will be just different. The shock of the Brexit referendum will ease but the effects will be long lasting. In the interim, a new Prime Minister must be appointed to negotiate Article 50 with the European Union. Its six founding members are to meet this weekend with a response.

Markets are down big time and no doubt will be ugly. To be sure, there will be terrific buying opportunities. But today, Gold is up to a two year high in a knee-jerk reaction and will find some resistance at $1,350 per ounce. To be sure there is now solid support at $1,250 per ounce. In GBP terms, gold went up 15 percent overnight. Attached is a gold chart from Joe Ismail. Joe is calling for resistance at $1,400 per ounce to test the $1,600 per ounce resistance high.

To date, gold has put in its best performance in three decades. Gold is a barometer of investor anxiety and today there is much anxiety. Gold is easily exchangeable for other currencies and protected some Brits last night.

We believe under our faith-based fiat currency system, currencies will be faith tested by doubts over the solvency of the dollar system, political worries this November and geo political concerns. In an environment of failed quantitative easing, Brexit and the latest rounds of negative rates, the economic consequences are clear. Central banks are at the limits of what they can achieve, particularly without the support from their respective governments from fiscal policy. Investors and savers are looking for alternative stores of value. To be sure in the last 20 years we have seen steady debt accumulation, globalization and a shift of risk to debtors at the expense of savers. A new monetary order must emerge. Stores of values are needed and sooner or later everyone must deal with the consequences of the past. Central banks are part of the problem, not the solution. Gold will be a good thing to have.

We continue to believe the bullish long term secular trend is intact and gold will reach $2,200 per ounce. A rising tide lifts all boats. Gold stocks, in particular the juniors today are great buys.

Weekly Gold Chart

 

Back to homepage

Leave a comment

Leave a comment




Don't Miss A Single Story