I love gold. The first time I bought physical gold, I felt amazing. I felt that I'm holding a piece of the planet in my hands, which isn't corrupted by the workings of men and autocrats. My name is Lior Gantz, founder of Wealth Research Group and I will never sell my gold stack.
Why even debate the matter? Since 1971, gold had done exactly what it is meant to do: crush, beat, destroy, humiliate, annihilate and vanquish any fiat currency that any country has put in front of it, thinking that its internal economy is stronger than the universally-accepted coin of choice for kings and for societies big and small, throughout the past 5,000 years.
I am not just saying empty words; I believe mining shares are about to soar and HERE'S WHY!
I love gold.
I also think that it's no secret that governments and central banks respect it, except for the country that is trying to defend and preserve its currency as the global reserve, the United States.
While they are publicly stating that they are going after your privacy and attacking your liberty with their CBDC's, which you must study HERE, in order to protect yourself, they have plans for gold.
Central banks love gold; I mean they REALLY love it:
Courtesy: Incrementum AG Chartbook 2023 (A must-read, IMO)
They spent the entire calendar year of 2022 buying a record amount of it… unless I'm missing something here, I think it's safe to say they are rejecting the dollar. In fact, DE-DOLLARIZATION is happening everywhere, as you can see HERE.
They don't like other currencies; I can see why… The Eurozone is slowly falling apart, China is a huge mess, Japan peaked three decades ago and the other stable nations are small and insignificant.
The vacuum created by the absence of an adequate replacement for the petrodollar, in a time when the Saudis are turning their backs to the U.S. – and the Americans are not worried about it, since they struck it rich with shale deposits – has started to be filled by China and Russia, but also by Germany, Japan and India. They are all seeking to become regional dominators, understanding that though the USA is top dog, it is a tired dog.
But what about silver?
It's been kind of left for dead since 1944's Bretton-Woods agreement, completely demonetized by central banks and governments, loved for its monetary reasons, only by a small group in the public who swear by it. Can silver finally fulfill the promise of its die-hard fans and return to trade at some of the more historical ratios with gold?
Courtesy: Incrementum AG Chartbook 2023 (A must-read, IMO)
Silver lags. This is some theory that I came up with; it's reality. Silver rallies after gold proves the trend.
Once a trend is firmly in place, silver surpasses gold, percentage-wise, only to be outpaced by the more leveraged assets in the class, the companies that engage in the mining industry.
When I launched Wealth Research Group in Q1 2016, gold and silver were snapping out of their disinflationary bear markets, which halved gold's price and brutally tanked silver's price by over 65%.
Since then, gold has doubled and silver has also doubled.
As you can see above, what we are living through is the most inflationary period in at least three decades and the jury is still out on that.
Silver has held well, trading above its long-term support of $18/ounce and its most recent support of $22.50, which makes me extremely confident that silver is going to rally, once gold shows its resolve to go over the $2,000 landmark, and I wouldn't be shocked to see silver at levels above $30, as the FED begins cutting rates.
I've got much more to show you because we've definitely turned a corner on silver. Suffice it to say: I love gold, but I really love silver.
If Picasso were interested in painting bullish charts as a career move, and had asked to see previous designs by the likes of Leonardo da Vinci, they'd look kind of like this.
Courtesy: Zerohedge.com
This is a near-perfect pattern for a bullish breakout. No, not sometime in the future, but NOW, as in the next 90 days.
What you see is a triple-test of the resistance level at $2,000/oz and two retracements to the support at $1,700, and even a failed attempt to break down to the $1,500s.
The breadth of the range ($2,000 – $1,700 = $300) is the likely breadth of the breakout, implying that gold could surge to $2,300, given the right catalysts:
• Recession fears turn into recessionary data.
• Rate cuts (May or June).
• FED Intervention to accelerate the over-tightening of the credit markets.
What made Jerome Powell confident that he could turn dovish in the last meeting is that the banking crisis was like a passing of the baton from the central bank to the free markets, in all matters of credit.
The FED tightened and kept tightening, but some money managers wagered bets and gambled that the FED would pivot or capitulate, before they'd have to realize any losses.
When a fund does it, the investors who signed up for the risk take the hit.
When a bank's asset managers do it, the depositors, who understand that putting money in the bank does carry some risk, but not that of seeing their deposits wiped out, LOSE EVERYTHING.
After SVB, the risks of betting against the FED have been made clear.
Banks are adjusting, money managers are tweaking and the financial system is much more in line with the appropriate levels of liquidity needed to survive 2023.
The main takeaway from SVB is that the FED doesn't need to act aggressively in the months ahead, because credit markets have taken over.
While the FED is programmed to act gradually and slowly and to give enough forewarning about its intentions, which it does very well, the free markets are erratic and snap at an instant.
This is the reason uncertainty is now ELEVATED.
Courtesy: Zerohedge.com
The reason that history shows that the FED can't manage a rate hike cycle without triggering a credit event is because, by definition, the FED operates in a way that REQUIRES them to keep at it until market conditions are on par with the FED's thinking.
As you can see above, the FED is trying to stop the worst inflationary period since the 1970s, yet what Americans are choosing to do is hold cash, a complete paradox, but a reality nonetheless.
Had the public preferred gold, they'd fare much better, but you can't win them all…
When the public rushes to cash to such an extent, the FED has to eventually ease the financial conditions, since hoarding cash is a sign the public is bracing for a recession.
Therefore, in the months ahead, I expect:
• Plenty of volatility.
• Real signs of no growth and perhaps a recession.
• Gold's outperformance.
• Dollar's underperformance.
And, best of all, a real bottom for market and the birth of the recovery. At the end of the day, everyone wants a prosperous society (any normal person, at least), and ultimately, this is coming… Spring follows winter.
Ziehier Yoeri Albrecht, die door een jonge journalist van het mediakanaal Left Laser betrapt werd tijdens een privé-onderonsje met twee ...
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