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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 now. 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 now.The Shariah Gold
Standard was just approved!
7.Please click here now.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 now. 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 now. 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 now. 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 now.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
Stewart Thomson
Graceland Updates
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Written between 4am-7am.5-6 issues per week.Emailed at
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Stewart Thomson is a retired Merrill Lynch broker.
Stewart writes the Graceland Updates daily between 4am-7am. They are sent out
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Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor.
The information provided by Stewart and Graceland Updates is for general
information purposes only. Before taking any action on any investment, it is
imperative that you consult with multiple properly licensed, experienced and
qualified investment advisors and get numerous opinions before taking any
action. Your minimum risk on any investment in the world is: 100% loss of all
your money. You may be taking or preparing to take leveraged positions in
investments and not know it, exposing yourself to unlimited risks. This is
highly concerning if you are an investor in any derivatives products. There
is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion
written off officially. The bottom line:
Are You Prepared?
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