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1.All
institutional analyst eyes are on this week's central bank announcements from
Japan and America.Most gold community analysts seem to have a difficult time
grasping the idea that Japan's fiat currency is viewed by top FOREX money
managers as a safe haven, albeit less of one than gold.
2.The
Japanese government is a huge debtor, but the citizens are even bigger
creditors, and the bottom line is that the weakness of the debtors is
superseded by the strength of the creditors.
3.It's
possible that the Bank of Japan fires a "bazooka" this week,
but how that will affect the Japanese stock market, the dollar-yen trade, and
gold. is unknown.
4.Goldman
Sachs analysts believe that a Kuroda bazooka shot will strengthen the dollar
and make the Japanese stock market surge higher.
5.In
contrast, Morgan Stanley believes the bazooka shot will have the opposite
effect; the Japanese stock market rally will fail, and the dollar will fall
against the yen.
6.On
that note, please click
here now. For more detail on Morgan Stanley's view, please click
here now. I think Morgan Stanley's team will likely prevail.Here's why:
7.Kuroda
is attempting to send the stock market higher just as the seasonally weak
month of May arrives, and that's a tall order, especially when powerful money
managers at Morgan Stanley are going to use any strength to exit the market.
8.The US
central bank is also in an interesting position right now.The NIRP policies
adopted by Japan and Europe are viewed as failures by more and more top money
managers around the world, yet just one small US rate hike caused a huge
global stock market sell-off, and a safe haven surge into the yen and gold.
9.If
Janet Yellen raises rates at any time this year, an even bigger global stock
market tumble than the last one is likely.If she leaves rates unchanged, or
joins "Team NIRP" and actually cuts rates, it could cause a
loss of confidence event with central banks in general, and an enormous
institutional gold buying binge is quite likely to happen.
10.In
terms of the fear trade, gold is clearly sitting in the best win-win position
of many years.
11.Please
click
here now. I've been emphatic that India is entering a one hundred year
"gold-oriented bull era".Stock market enthusiasts in the
Western gold community should focus on Indian stock market ETFs, rather than
on "hail Mary" plays with the aging empire of America.
12.Please
click
here now. Double-click to enlarge.From a technical perspective, the
Bombay Stock Exchange (BSE) index looks truly spectacular.
13.I
think the BSE is likely beginning the greatest bull move in the history of
global stock markets.Eager investors can use INDA-NYSE to get in on the
upside action.
14.Interestingly,
as Indian markets soar, the US stock market rally is likely to drift
aimlessly, and a crash to below the 2009 lows cannot be ruled out.
15.That's
because US stock buybacks have massively distorted price/earnings ratios, and
without the QE lifeline, large money managers are showing real concern about
being invested in American markets.
16.Please
click
here now. Double-click to enlarge.Gold is the world's ultimate asset, and
it's showcasing a beautiful rectangular consolidation pattern against the
dollar, on this daily chart.
17.Sizable
volatility is likely as the Fed and the BOJ make their announcements.After a
likely pullback towards $1190, gold should rise towards my $1305 target
price, and then onto $1320, $1350, and $1380.
18.Fear
needs to be tossed aside.Short term pullbacks offer superb entry points for
all ultimate asset enthusiasts!
19.Please
click
here now.Double-click to enlarge this hourly bars oil chart.Oil is the
largest component of most commodity indexes, and there's a nice bull wedge
pattern in play.
20.Chinese
demand for commodities is rising again, and many large US money managers
believe an upcycle for inflation lies just ahead.I don't think they will stop
allocating money to the sector because of any short term concerns, and most
gold stock charts look somewhat like the "oil chart on steroids".
21.Please
click
here now. Double-click to enlarge this GDX hourly bars chart.The bull
wedge pattern is almost identical to the oil chart wedge.All ten percent
price corrections in gold stocks should be bought aggressively.Stock market
investors can't avoid India just because they lost money in US markets after
Y2K.Likewise, Western gold stock investors can't focus on past gold stocks
losses.It's a new era.It's a gold bull era, and it's time for the Western
gold community to embrace it with open arms.
22.Please
click
here now. This is a nice Chinese commodity exchanges volume chart.I
predicted a soft landing for the transition of the Chinese economy from an
exports-orientation to domestic consumption, followed by a surge in gold
buying.That's exactly what has happened, and I'll dare to suggest the upside
fun has only just started!
23.Please
click
here now. Western mainstream media is beginning to note the growing power
of Chinese exchanges in major commodity price discovery.
24.Please
click
here now. Russia's central bank continues its relentless monthly gold buy
program, as does the PBOC, the central bank of China.Western gold and silver
community investors should be modest buyers of all small pullbacks, and
bigger buyers of any "price correction" that ultimately
appears.It's time to say good-bye to tears and fears, and say hello to about
one hundred years of bull era fun!
Thanks!
Cheers
st
Stewart
Thomson
Graceland
Updates
www.gracelandupdates.com
www.gracelandjuniors.com
www.gutrader.com
Email:
stewart@gracelandupdates.com
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