Gold recently hit $1,500, up from $1,200 in just a matter of months. I've been predicting such an increase for about seven months. Unlike many forecasters, I’m not the kind of person to cry “Wolf.” I don't constantly send out alerts in the hope that someday one of them might be right. This is one short series of just three alerts that were sent over a period of seven months because I was convinced that the time was right.
Many investment newsletter writers and pundits just blast out positive and negative predictions. Eventually, something will happen that they had talked about, and they’ll go back and say, “Look, I predicted this.” They’ll say, “I was right,” but they always seem to forget to mention all the other dozens of times they were wrong. (Remember, even a broken clock is right twice a day.) I only sent out three Alerts over the the last seven months - and they were all correct. (If you’d like to see the three full Alert emails, just contact me.)
The first Alert Warning was on December 21st, when we had the worst December for stocks since 1929. It was entitled, “Stocks Down, Gold Up - Take Action.”
Gold was at $1,258 the day I sent that.
Then the second Alert Warning was sent out on March 11th:“Gold is Set for a Dramatic Rise in Price!”
Gold was at $1,293 that day.
Finally, on July 2nd I sent this:“GOLD ALERT - Gold's Next Target Price: $1,530 - Probably this Year.”
Gold was at $1,391 that day.
Based on Gold at $1,500, if you had bought based on the three Alerts, you would have been up $242, $207, or 109, respectively. Please understand that I am not bragging. I just want you to know that thoughtful and careful analysis and research works - most of the time. Alert Warning #1
on December 21 was a special announcement that the new Gold Bull Market was about to begin. In that Alert I asked, “What are the signs of the times? What will be your warning that the stock markets are about to crash in a serious way? You've already seen the signs. This entire email has detailed the signs. Just your common sense should tell you that with stocks dropping huge amounts and then bouncing only part way back, the end is near.” I can also say that common sense should also be flashing “Danger” with the stock market at all-time highs. It's got to come down at some point. The stock market has always been, and will always be, a roller coaster. And no roller coaster goes up forever.
I also said at the end of that email, “Will you be like the people in 2008 who waited until 50% of their money had evaporated before you take action? Or will you be like the wise servant in Matthew 25 who multiplied his gold? (Yes, the "Talents" spoken of in the Bible were actually bags of gold.) Don't bury your assets in the ground – or in this case in the stock market. Alert Warning #2
was sent on March 11 when gold was just $1,293. I said that the new Gold Bull Market was officially on a roll. I warned, “Don't wait until gold hits $1,400 to buy
.” Many people listened, and they're very glad now that Gold is over $1,500. In my conclusion I said, “I'm not writing this to cause panic. I just want you to do what the Bible says to do: “Be sensible, and store up precious treasures; don't waste them like a fool.” (Proverbs 21:21).
I also said, “Not to be too blunt, but in these days anyone who doesn't have at least a part of their assets in gold is foolish - and will live to regret it. Just a small portion of your assets in gold could make the difference in whether you have a place to live and food to eat in the case of a serious financial disruption. We dodged the 'Big Bullet' in 2008. We may not be so blessed this time.” This is true mostly because the national debt is much, much higher than it was in 2008. And, of course, the stock market is insanely high.
Financial planning experts recommend having at least ten percent of your assets in Gold to keep you safe in case of a financial crash. So if you don't have at least part of your assets in Gold you’re not providing your family the protection they deserve. Alert Warning #3
was sent on July 2nd: “GOLD ALERT: Gold's Next Target $1,530 - Probably this Year.” We've seen what's happened since then. Gold has already hit $1,546, and $1,600 is in our near future. Enough said. In that email I said, “The short story is that if there has ever been a time to buy gold in the last decade it is today. It's at a six and a half year high. Its current price momentum makes this a confirmed breakout from the price range it has been stuck in.
"A breakout is where a security - or in this case a precious metal - goes sideways for a period of time, and then it breaks through resistance and starts to sprint. Spot gold (also known as bullion), has been stuck in a trading range of $1,200 to $1,300 for about five years, but now the bankers and politicians can no longer suppress the price of gold. And the world's smartest investors - including the world's central banks - are buying gold as fast as they can. The irony is that it was the central banks that caused gold to crash some years ago by selling tons of gold to depress the price. Now they’re scrambling to replenish their coffers, which is helping to push gold even higher.
You see, when gold rises in price it makes central banks (and therefore their governments) look bad. It makes their currencies lose value, and makes the government look weak. So years ago they sold literally tons of gold. But they can only sell so much because of their reserve requirements. Their manipulations pushed gold down as far as they could. Now that it is rising, they're being forced to buy gold quickly - before prices go even higher.
Here are some recent major headlines about Gold’s huge price increase. I'm going to discuss each of them briefly in this article. Gold Makes its Move
Gold Closes Above $1,400
New Gold Six-Year High
New Records 3 Days Running
Gold Soars Above $1,500
Gold Closes Above $1,500 Gold Makes its Move:
Gold has been range bound for 5 years. World Governments and central banks have done their best to suppress Gold. But Gold is the only real money – and it is where the world goes for safety when things get rough. Not even governments can stop the trend.
What does “range bound” mean? A trading range occurs when a security trades between fairly consistent high and low prices for a period of time. Well, it's broken out of that range. If you look at the average price of gold for the last five years, it's been a little over $1,200. So this move to $1,500 is a 25% move in the price of gold. Gold Closes Above $1,400:
I had to laugh when I saw that headline because I remembered some of the previous headlines from the so-called “experts.”
New Gold Six-Year High:
- CNBC: “Will Gold Ever Top $1,300 Again?”
- JP Morgan: “2019 Gold Forecast $1,294.”
- Credit Suisse: “2019 Gold Forecast $1,250.”
- Scotiabank: “Gold’s $1,300 is the New $1,200.”
- Kitco: “Gold Needs Inflation to Break $1,300.”
- Merrill: “Bullion could average $1,350 in 2019.”
- HSBC: “Expect Gold to average $1,292 in 2019.”
Once that headline hit, the blow-dried talking heads on the financial TV channels and the newsletter writers were scrambling to come up with an explanation. Here are a few of them…
- “Rising Stock Market Risks”
- “Fears of a Global Recession”
- “Trade Worries Deepen”
- “Rising Risks”
- “Iran Fears”
- “Bond Yields Collapse”
Well, as usual, none of them were right, and all of them were partially right. They certainly couldn’t all be right with such widely diverging opinions. They’re all just guessing - and the amazing thing is that people invest money based on what they read off their Teleprompters. The best of the bunch was the first one. Anyone who has studied the markets for decades as I have knows that it’s just a matter of time before the stock market bubble bursts. And I am certainly not alone in that opinion. Most people just look at the big picture – stocks have been up for 11 years. But you need to look closely and see the fracture lines in the foundation.
In 2018 we had three days with drops of over 1,000 points. That’s never happened before. December, 2018 was the worst December since the Panic of 1929 that caused the great depression. And we’ve had warning signs in 2019 that are too numerous to mention. The bottom line is that if you accumulate enough cracks, the foundation will crack. And the higher the market is when it breaks, the farther and harder it will fall. Not convinced? Remember what I said earlier: No roller coaster goes up forever. New Records 3 Days Running:
In early August Gold broke a new record every day, for three days in a row! Why is that important? It is a significant indicator of momentum. “Momentum is the rate of acceleration of a security's price or volume – that is, the speed at which the price is changing.”
Momentum is the key. Gold took 8 months to rise from $1,200 to $1,300. Then it took 6 months to rise from $1,300 to $1,400. But it only took one month to rise from $1,400 to $1,500. Gold Soars Above $1,500:
For years experts have been saying that when Gold smashes the extremely critical $1,500 psychological barrier, nothing could stop it until $1,900. That’s because most of the overhead supply has been absorbed. "Overhead supply" may sound complicated, but it’s really not. It just refers to the buyers who own gold at higher prices. They’re the ones who have been praying, “Oh, Lord, if gold ever gets back to price where I bought it, I promise I will put all my money in bank CD’s and never invest again.” There was quite a bit of overhead supply on the way to $1,500, which is why the rise in price paused periodically. It had to absorb all that selling.
But Gold has been trading sideways for so long that most of the people who owned it between $1,500 and $1,900 sold their positions long ago and bought stocks. (They’ll soon be selling their stocks as they drop, and running back to the safety of Gold.) At any rate, most of the experts who’ve been right time after time believe gold will have a fairly smooth run up to its old high of $1,900. It will probably take a pause at the other important psychological barriers like $1,600, $1,700 and $1,800. But that won’t hold it back. Once it breaks through $1,900 we will probably see $2,000 in short order. Gold Closes Above $1,500:
Wait. Wasn’t that the last headline? No, the last one was that it hit $1,500 sometime during the trading day. As important a milestone as hitting $1,500 was, closing
above $1,500 was far more important. This is true of anything you can track on charts. Many times a Precious Metal hits an important trigger point several times (often over several weeks) before it actually “fires” by closing there. Such a close implies stability & staying power.
Bo Polny has been almost prophetic when it comes to the stock market. Check him out – he’s usually right. In early 2019 he said, “The reason the stock market crashed in the month of December is because, basically, we are leading up to the greatest crash in history, which is going to hit this year. The crash that happened in December is only a prelude to what comes this year. So, that was only leg one down, and leg two is going to be much, much worse. It’s a replica of the great crash of 1929. That massive crash is about what is to be experienced this year - but worse.
“What I know is the stock market has a down cycle into the end of the year. What price the stock market hits by the end of the year, I don’t know. I will tell you it’s probably a 40% crash from the top. Protect your family with an ark of safety. What is an ark of safety? Having food and water in your house and also having means. They have kept down the price of gold and silver because if it goes up, it’s the end of the paper game
. This is also going to bless God’s people. This is a fight between good and evil. These are Biblical times. God says prepare. We are going to see gold explode before year end.”
There was a British Naval historian named Northcote Parkinson. He said “Delay is the deadliest form of denial.” I believe that most of the people who have money in the stock market know it’s on its last legs, and they know they should be selling stocks and buying Precious Metals. They know, because they’ve seen it so often before, that when the market rolls over, it usually goes down two to three times as fast as it went up. But they’re greedy, so they are in a state of denial. “I’ll see the top coming, and I’ll get out before the market falls apart.” I would ask them, “How did that work out for you in 2008?" Nobody
sees the top until stocks start to drop. That's how you know it was the top!
In the Great Financial Panic of 2008 millions of Americans were so deeply in denial that they delayed until it was too late. When they were down 15% or 20% they thought, “That has to be the bottom. So they delayed. Then it was down 35% to 40%, and they said, “I can’t afford to take that big a loss.” They didn’t understand that they had already lost that it. Finally, when the pain became too great, they sold – many of them losing 50% of their retirement accounts.
Learn from their bad decisions. Protect your family with gold while you still can.
Most of you know that I have a company that imports Investment Grade Gold from Europe at great prices compared to U.S. Investment Grade Gold (which I believe has already topped out). We were fortunate enough to reserve some great coins before gold started to run. If you are interested in protecting your family by buying gold coins at prices several hundred dollars lower than they could be bought today, check out www.InvestmentGradeGold.com.
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