• 208 days Could Crypto Overtake Traditional Investment?
  • 213 days Americans Still Quitting Jobs At Record Pace
  • 215 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 218 days Is The Dollar Too Strong?
  • 218 days Big Tech Disappoints Investors on Earnings Calls
  • 219 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 221 days China Is Quietly Trying To Distance Itself From Russia
  • 221 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 225 days Crypto Investors Won Big In 2021
  • 225 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 226 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 228 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 229 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 232 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 233 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 233 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 235 days Are NFTs About To Take Over Gaming?
  • 236 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 239 days What’s Causing Inflation In The United States?
  • 240 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Gold Demand: Grand Slam For Islam

Graceland Updates 4am-7am
Dec 6, 2016

  1. Institutional money managers move gargantuan amounts of gold market liquidity. Their fundamentally-based actions create the chart patterns that technical analysts use to try to project the next rally or decline in the gold price.

  2. On that note, please click here. Double-click to enlarge this key daily bars gold chart.

  3. Note the three big fundamental events that I highlighted on the chart. The Brexit, US election/Indian fiat call-in, and the Italian referendum were all predicted by most analysts to boost the price of gold. The sad reality is that gold went nowhere or tumbled after each of those events.

  4. On the eve of the US election, I warned the world gold community that gold was very vulnerable to a major sell-off, partly because it traded near major sell-side resistance at $1320. What happened?

  5. Gold promptly stunned the gold community and tanked from there, as the Indian fiat call-in overwhelmed the US election news.

  6. So, what now? Well, another major fundamental event is now in play, as of Monday December 5, 2016. Please click here. The Shariah Gold Standard was just approved!

  7. Please click here. Details of the standard are being released at this week's annual World Islamic Banking Conference in Bahrain.

  8. The bottom line is that gold is set to get a major boost in demand from 25% of the world's population who are part of the Islamic faith.

  9. The world gold council estimates the boost could be as much as 500 to 1000 tons, which would make the Islam religion a major factor in gold price discovery for decades to come.

  10. Champions adapt. They prosper by adapting. So, gold community citizens need to adapt to the new gold market normal. That means they need to move, somewhat, from mainly a fear trade focus to both a fear trade and love trade focus.

  11. To repeat: champions adapt. On that note, please click here. In regards to gold demand, I think that most analysts are understating the positive events taking place in India, and overstating the negative ones.

  12. Top Goldman economists are predicting that India not only rebounds from the current downturn caused by the fiat call-in, but prospers from it. Goldman is predicting India will grow at a mind-boggling 8.6% GDP growth rate through March 2018.

  13. I think it's important that all world gold community citizens understand that the actions of the Indian government will make gold less of an overall percentage of income spending than it is now, but overall gold demand will still grow.

  14. Higher gold demand, from the Sharia Gold Standard, China, and India should boost the price of gold stocks… in a major way.

  15. To view the daily bars GDX chart, please click here. Double-click to enlarge.

  16. In the short term, the upcoming Fed meeting is likely going to the be the catalyst for a nice rally towards my $1230 - $1245 target zone for gold, and to $25 for GDX.

  17. In my professional opinion, most gold investors are making far too much effort to put bull market and bear market labels on gold. In the big wealth building picture, it's fundamental news that creates major support and resistance zones that matters, not bull or bear market labels. In the new world of gold, bull and bear market labels are about as useful as a rotary phone.

  18. Support created by key news must be bought, and resistance must be sold. I sold into $1320 because it was major resistance created by major fundamental news. It's that simple.

  19. The current price area of $1160 - $1170 is a modest buy zone, and nothing more. In time the Sharia Gold Standard will define the next key support zone of size. It may be here, or at some other price. Investors need the patience to let Sharia-oriented fundamentals create the next major technical buy zone.

  20. The world is transitioning from deflation to inflation, and the key to vastly higher gold stock prices is a combination of increased love trade demand and a reversal in global money velocity.

  21. To ramp up money velocity, bank loan activity must increase substantially, and that's starting to happen. Please click here now. I've argued that the world's most important charts are monthly gold charts that show major support and resistance zones.

  22. In the shorter term, the most important charts are money velocity and bank loans. This Asian bank loans chart shows a fabulous bull wedge pattern. Morgan Stanley just upgraded HSBC from an "underweight" holding to "overweight", based mainly on loan growth prospects.

  23. Where there's a loan growth spark, there's a money velocity upside flame. Where there's a money velocity flame, there soon follows an inflationary fire!

  24. Attention US dollar watchers, please click here. Heavyweight Wells Fargo analyst Jim Paulsen notes that five out of five major rate hikes have resulted in a lower dollar. I've noted that rates rose throughout the 1970s and inflation and gold soared as that happened. Last year's rate hike was followed by a collapse in the dollar against both the yen and gold. Please click here. Double-click to enlarge this dollar-yen daily chart. The dollar is quickly approaching major resistance at 116. The upcoming Fed meeting could be the catalyst that launches the next gold price rally, and does so as Sharia and Chinese New Year buying come into play. The 2017 calendar year is looking very good indeed, for the entire precious metal sector!

Thanks!
Cheers
St

 


Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and I'll send you my free "Gold Stocks, Silver Stocks, Or Both!" report. I cover four of the hottest gold stocks and four of the hottest silver stocks that are ideal for core positions, but also poised for the biggest short term gains!

 

Back to homepage

Leave a comment

Leave a comment