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Will Gold's Price Surpass Bitcoin?

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Published : April 12th, 2022
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Category : Gold and Silver

Even the most cynical members of the gold community may be somewhat stunned by the intensity of the American government’s current meddling in the affairs of almost every nation in the world.

The ability of citizens to pay for minimal food, shelter, medicine, and basic transport is obviously not on the list of “freedoms” that debt-obsessed and war mongering US politicians are fighting for.

It’s likely only a matter of time before the 2021-2025 war cycle sees major food riots in America, and these riots could involve tens of millions of armed citizens in combat against government stormtroopers… a de facto civil war.

Give the above, gold should be a thousand dollars an ounce higher than where it is now, but America is a fiat nation.  Neither political party has made any serious attempt to make gold the money of the nation and the world.

Because of this fact, gold market enthusiasts need to employ hardcore tactics.  On that note, the “zones for action” gold chart.  The $1965-$1975 area has emerged as a light resistance zone but $2000 and $2089 are where most investors should focus their modest selling.

The $1909, $1870, and $1835 areas are for buying.  Investors with no gold can buy right now, and more at my key zones.

The GDX target price chart.  A move over $1975 for gold likely brings a solid upside breakout above $40 for GDX.

For now, GDX is consolidating in a $35-$40 range trade.  It’s up about 30% in just a few months from my “gamble buy” zone.

That buying area was based on a potential rally from the right side of one of the most bullish chart patterns in the history of markets, the gold bullion H&S/C&H/Quaich pattern on the weekly chart.

The rally happened, a view the current status of this enormous chart pattern.  While the pattern is truly majestic, that won’t be the case if an upside breakout doesn’t happen soon.

If too much time passes, the right side of the pattern will lose symmetry with the left, weakening its upside price implications.

Will the pattern weaken?  For some insight into the matter, the important oil chart. 

The Chinese government has imposed severe restrictions on businesses and citizens due to a new Corona virus surge.  This is happening at the same time as the US government opens the strategic oil reserve spigots.  

This may be why price has suddenly eased from about $130 to $95… and it may be why oil could slip to $85, $75, or even $65 before reversing.  

The good news for gold bugs is that “houseflation” and “foodflation” seem unaffected by the drop in demand for oil.  Gold can trade higher even if oil and other commodities swoon, due to the US government’s enormous sabre rattling.  The future appears to be themed on surprise, and gold thrives in this environment.

What about the stock market?  Simply put, a Corona-oriented slowdown in the Chinese economy as the Fed begins rate hikes and QT with the S&P500 CAPE ratio at 36… that’s not what I’d call a fabulous buy signal for the stock market, to put it mildly.

My QQQ moving averages chart.  A sell signal is almost in play and today a key US inflation report is released.

If it’s concerning, the stock market could begin a new leg down. In the short-term, the stock, commodity, bond, and gold markets are gyrating wildly.  My swing trade newsletter offers great value at $269/3mths.  Due to reader requests and given the wild market action and the solid tactics we use with items like GDXU, OILU, SQQQ, etc, I’m going to extend my $249/4mths special offer for one more week.  Click this link or send me an email if you want the offer, and I’ll get you onboard. Thank-you!

What about crypto?  Key bitcoin versus gold chart.

Crypto has been hailed as “digital gold” by over-enthusiastic investors who arrived late to the bitcoin party.  As somebody who runs a crypto newsletter, sold into the highs, and put the proceeds into gold bullion, my take on the matter may carry weight.

If the war cycle brings a civil war to America, crypto could gain some traction against fiat, but not against gold.  I’m a huge fan of bitcoin… and a vastly bigger fan of gold.  The huge double top pattern on this bitcoin versus gold chart suggests that the price of gold will surpass the price of bitcoin!  The bottom line:

Fiat is money.  Bitcoin is better money than fiat, and gold is the ultimate money and the ultimate asset.  It’s really just that simple.

Silver?  The daily chart.  There’s a possible bull wedge breakout in play, and it’s doing battle with a H&S top pattern.  Today’s inflation report likely determines whether the bulls or bears control the next couple of dollars an ounce for this mighty metal.

Silver could become everything the crypto bugs wanted bitcoin to be (the currency of the people) if food riots and civil war occur in America.  With the stock market, bonds, and housing looking shaky at best, the average hungry citizen can’t afford an ounce of $2000 (and $5000 soon?) gold, but an ounce of $25 (or $250?) silver?  It could soon be hi ho, hi ho, and up we go!

Thanks!    

Cheers

St

Stewart Thomson 

Graceland Updates

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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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Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form, giving clarity of each point and saving valuable reading time.
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