Charlie Kirk is/was perhaps best described as a political poet. Before his shocking death, potential tourists to America were already deeply concerned about getting caught up in one of the seemingly endless goon squad raids from ICE.
Watching Charlie get shot through the neck sealed their “We don’t want to visit America” deal. Sadly, these types of wild and horrific events are normal in the final stages of an empire.
The disturbing Shiller/CAPE ratio chart. The ratio hasn’t been in the value zone (sub10) since the mid-1980s.
Rather than allowing markets to naturally return to a zone that offers value, reduces recklessness, and destroys debt, central bank and government “fiat freaks” and debt worshippers keep rushing forwards during downturns to “fix” the printed fiat and excessive debt problem… with more fiat printing and more debt.
Because of this insanity, the US stock market is now in a macabre state of “permanent overvaluation”, yet investors are told that it represents the fabulous financial state of the average citizen. A closer look at the average citizen’s actual financial condition. In a nutshell: Why should a citizen bother to save for emergencies when their government and central bank stand ready to borrow and print all they may need?
Why should a citizen commit to a monthly buy program of supreme money when their own government gleefully refuses to do it?
Luckily, the citizens of the Western gold community don’t have that disturbing mindset… a mindset that is the hallmark of all late-stage empires. Luckily, these “gold bull era mavericks” think for themselves, are eager to create a central bank for themselves, and so they wisely commit to accumulating silver and gold. Professional accumulation requires some patience and…
Further insight into this interesting matter, the exciting weekly gold chart. How does a concerned citizen begin accumulating gold during this kind of rally? Should they just buy now, buy the dips, or wait for a major pullback?
Well, for citizens with no gold, the best approach is to purchase a “grub stake” immediately, which can be up to 30% of their planned total allocation. From there, little dips in the price can be bought with small size. For larger commitments, it’s best to wait for significant price sales that put gold at previous support of significance. In the current market, $3500-$3250 would be a significant zone to buy on a drop into it.
On this long-term chart, a flag pattern and breakout are in play. The flag target of about $4300 is an enticing one. In a strong market like this, significant price sales into strong support are rare… making grub stakes mandatory for new investors.
A look at the daily chart. It’s normal for oscillators to stay overbought in a powerful market and that’s the case with gold right now.
What about profit booking? Where should an investor sell? Well, Venezuelans don’t buy gold to make “big bolivar profits” and Germans didn’t buy gold during their hyperinflation to make “big German mark profits”.
Now, Western fiat currencies are all failing against supreme money gold and their failure will intensify over time. So, while mining stocks are exciting investments that can be sold for fiat profits, an investor’s main currency market goal should be not to get more fiat… but instead to work patiently to get more gold.
Simply put, top calling gold to make fiat profits is now less useful than a Dodo bird. The need to do it is going extinct.
What about the miners? Well, of course they are red hot. Before their party is over, they will probably become white hot… and stay that way for a long time. A look at one of the most stunning charts in the sector. The CDNX index is arriving at the outskirts of the 900-1000 neckline zone of the massive inverse H&S base pattern.
The pattern is what I call the launchpad of the gold stocks bull era. Value players who bought the base pattern lows can book some profits now… not to call a top, but simply to help them work more with the market’s money rather than theirs. The Fed meet tomorrow could trigger a short-term correction in the metals market, making today a good day to book partial profits. At the same time, large core positions need to be held with an iron hand… so investors can fully enjoy what looks to be an inevitable upside breakout from this massive H&S base.
The mindboggling CDNX versus gold chart. Generational value is clearly at hand!
A look at the senior miners, the “work of bullish art” chart. The chart is annotated with my many buy and sell signals of the past.
I’ve just added a new sell signal to the chart. Why? Well, it’s not a top call… but what I will say is that while gold stocks are still dramatically undervalued, there’s a bit of short-term froth.
A 10% pullback for GDX and most senior miners from “about here” would be very healthy for the market.
Also, $68-$70 is a zone of some significance and on that note, the dividend-stripped GDX chart. Textbook action around a major previous high in a bull trend would see GDX exceed that high and then experience a pullback before moving significantly higher.
GDX just took out its all-time high with the move through $68. A pause here is expected, normal, and healthy.
The fabulous GDX versus gold chart. Like the CDNX, GDX is arriving at the neckline zone of a truly epic inverse H&S pattern. While a pause is expected, what follows that pause is likely to be the most exciting rally in the history of mining stocks!
