Monday, March 20, 2017

Why Gold is About to Get Scary....Is it Due to this War?

People in Sweden are pulling cash out of the bank and hiding it in their microwaves. It sounds crazy, but when you hear why they're doing it, you'll instantly see why this could be the beginning of a massive wave of "gold mania."

And why there's 1 thing you can do tomorrow morning that could give you a quick 40% gain -- without making any trades or buying any precious metals.

Have a look....

Good Trading,
The Gold ETF Trader

p.s. Banks in Sweden, France, England and Japan have already started. When banks in Canada and the U.S. jump on board, that's when things will really get ugly.

Full story here...

Saturday, March 18, 2017

Rapid Account Growth Strategies for 2017....Our Next Free Webinar

Our trading partner John Carter of Simpler Options is back with another one of his wildly popular free webinars. John is absolutely killing it again in 2017 and he has put together a 90 day trading plan to share with us.

He is calling this free webinar "How I Almost Doubled My Account in Less than 60 Days".

Claim Your Spot Here 

Limited seats are available and as always this one will fill up fast so get your reserved spot now. This is free training on the rapid account growth strategies that are working right now, not in 2015 or 2016....right now!

So please join us Tuesday, March 21st @ 7:00 pm central time

Here's just some of what he will cover:

  *  John F. Carter will reveal his new 90 day trading plan that will take us into the 2nd quarter of 2017

  *  With the market at all time highs John shows us how to adapt to conditions most traders haven’t seen in years

  *   John will show us how he grew his account by 82% between January and February, 2017.

  *  We'll find out what’s working now because outdated strategies could be dead wrong in current conditions.

 Just Click Here to get your seat now and we'll see you Tuesday March 21st

See you there!

The Gold ETF Trader

Saturday, March 11, 2017

Mike Seery's Weekly Futures Recap - Crude Oil, Silver, Sugar, Wheat Futures and More

Trading for the week of March 6th through March 10th ended with the market indexes closing higher on Friday following the latest jobs report, which showed that 235,000 jobs were created in February while January number was revised to show 238,000, pushing the unemployment rate to 4.7%. Hourly pay increased 2.8% from February 2016 to February 2017, up from 2.6% in the prior month.

Time to get the a heads up from our trading partner Michael Seery. We've asked him to give our readers a recap of the this weeks futures markets and give us some insight on where he sees these markets headed. Mike has been a senior analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Crude oil futures in the April contract are currently trading at 49.50 a barrel after settling last Friday in New York at 53.33 down nearly $4 for the trading week near a 14 week low as the true breakout was below 51.86. However, I am not involved in this market as I'm waiting for some type of price rally to enter into a short position, therefore, lowering the monetary risk. If you are short this market I would place my stop loss above the 10 day high which stands at 54.44 as the chart structure is very poor because prices absolutely collapsed over the last several days having its worst one day performance in over 11 months. Prices are now trading below their 20 and 100 day moving average telling you that the short term trend is lower as massive supplies continue to put a lid on this market coupled with the fact of a strong U.S dollar as the commodities, in general, look weak across the board, but wait for some type of price rally before entering, but I'm certainly not recommending any type of bullish position as I think lower prices are ahead.
Trend: Lower
Chart Structure: Poor

John Carter's Next Free Webinar "Rapid Account Growth Strategies for 2017"....Sign Up Here

Gold futures in the April contract settled last Friday in New York at 1,226 an ounce while currently trading at 1,204 continuing its bearish momentum right near a 6 week low as the precious metals continue to move lower on a daily basis due to a strong U.S dollar. At the current time I have no trade recommendations in the precious metal sector as it looks to me that gold might even possibly retest the contract low around 1,150, but avoid this market at present & look at other trades that are beginning to trend with a better risk/reward scenario. Gold prices are now trading under their 20 and 100 day moving average telling you that the short term trend is lower as crude oil prices have also broken out of a tight consolidation which is another negative towards all commodity prices in my opinion. The U.S stock market is higher across the board today as the monthly unemployment number came in as the United States added around 235,000 new jobs as all the interest lies in the S&P 500 & not in gold at the current time.
Trend: Lower
Chart Structure: Poor

Silver futures in the May contract settled last Friday in New York at 17.74 an ounce while currently trading at 17.02 down over $0.70 for the trading week as prices have hit a 6 week low trading lower for the 4th straight day. I was recommending a bullish position in silver for around two months getting stopped out in last week's trade which I considered very disappointing. However, prices have dropped much further as that is why you must have an exit strategy because you don't know how high or low prices can go as the precious metals, in general, have fallen out of bed. Silver prices are now trading under their 20 & 100 day moving average telling you the short term trend is lower as the contract low is around the $16 mark which was hit in December 2016 and it looks to me that prices might head down to that level, however, avoid this market at present as the chart structure is terrible therefore the monetary risk is too high. At present, I do not have any trade recommendations in the precious metals as my main focus is in the grain market to the downside as the commodities look weak in my opinion due to a strong U.S dollar.
Trend: Lower
Chart Structure: Poor

Sugar futures in the May contract settled last Friday in New York at 19.52 a pound while currently trading at 18.13 looking to retest the contract low which was hit in December 2016 and if that is broken you could head all the way down to the February 2016 low around 12.50 as this market remains very bearish. At present I am not involved as the chart structure did not meet my criteria when the original breakout occurred, however I do think lower prices are ahead and if you do have a short position place your stop loss above the 10 day high which now stands at 19.80 and will not improve for another 5 trading sessions, so you will have to accept the monetary risk. The commodity markets, in general, look very weak as the U.S dollar despite selling off this Friday afternoon continues to hamper commodity prices and especially the agricultural markets as I'm certainly not recommending any type of bullish position in sugar as the momentum is getting stronger on a daily basis. Sugar prices are trading below their 20 and 100 day moving average is telling you that the short term trend is lower and expect to see stop some stops below that level as the large funds will add to their short positions in my opinion.
Trend: Lower
Chart Structure: Poor

Wheat futures in the May contract settled last Friday in Chicago at 4.53 a bushel while currently trading at 4.45 down about 8 cents for the trading week reacting pretty neutral to yesterday's USDA crop report lowering carryover levels by about 10 million bushels as the grain market still looks weak in my opinion. At present, I'm not involved in wheat as I am short oats, corn, and soybeans as I do think the whole complex is headed lower. However, wheat prices are still near a 4 week low with poor chart structure, so I probably will not be involved in this market for some time. The next major level of support is 4.38, and if that is broken, I think we will join the rest of the grains to the downside as we are now trading under the 20 and 100 day moving average telling you that short-term trend is lower. The U.S dollar is still hovering right near a 7 week high around the 102 level as that has finally put some pressure on many of the commodity sectors which have been rallying until the last week or so, but wheat has remained choppy for months so avoid this market & look at other trades with better potential.
Trend: Mixed - Lower
Chart Structure: Poor

For more calls on this week's commodity trades like Lean Hogs, Soybean, Cocoa and more....Just Click Here!

Monday, January 16, 2017

Why Gold Could Soar Another 353%

By Justin Spittler

Gold is on the rise again. It’s climbed for two straight weeks, and it’s now up nearly 5% since December 15. Many precious metals investors couldn’t be happier about this. You see, gold stormed out of the gate last year. It had its strongest first quarter since 1986. By the end of June, it had risen 25%. Things were looking up. Then, the market changed course. Gold plunged 18% in just four months. Last month, it hit its lowest level since last February.

• The sharp pullback spooked precious metals investors….
But regular Dispatch readers knew that gold would rebound. After such an explosive start to 2016, it was only natural for gold to “take a breather.” We urged you to not lose sight of the big picture. As we often remind you, gold’s a safe-haven asset. Investors buy it when they’re worried about the economy, financial system, or politics. And right now, investors have plenty of reasons to be worried, even if some are still enjoying the “Trump Honeymoon” phase.

• Louis James thinks gold will keep rising….
Louis is our chief resource expert. He is the editor of International Speculator and Casey Resource Investor, our advisories dedicated to resource stocks with big upside. According to Louis, gold has struggled recently because investors expect interest rates to rise. They have good reason to think this, too. After all, the Federal Reserve just raised its key interest rate… but for only the second time since 2006. It also said that it plans to lift rates three more times this year. Conventional wisdom tells us that this is bad for gold. Since gold doesn’t pay interest like a bond, most investors don’t want to own it when rates are rising or are likely to rise.

• According to Louis, the market has already “priced in” higher interest rates….
This means gold shouldn’t fall if the Fed sticks to its plan and raises rates three more times this year. Of course, that’s a big “if.” Heading into last year, the Fed said it wanted to raise rates four times. But it only raised rates once last year, and it waited until the eleventh hour to pull the trigger. We wouldn’t be surprised if the Fed sits on its hands again. If that happens, investors will know something is very wrong with the economy. Many folks will start buying gold hand over fist.

• But that’s not the only reason Louis is bullish on gold.…
Last week, he gave his subscribers several reasons why gold should keep rising:
➢ Rumors of new gold curbs in India have not panned out.
➢ Fear of the fall of New Rome [the EU] is driving Europeans into [U.S.] dollars and gold.
➢ The escalation of the “other” Cold War with China increases uncertainty in global markets.
➢ Even Trump’s best ideas (cuts in taxes and regulations) will cause disruptions that will have to work through the economy before things can improve.
• Gold is incredibly cheap, too.…
Louis explains:
Gold needs to rise another US$900 or so to hit a new inflation-adjusted high. Given the trillions and trillions of new dollars, euros, yen, yuan, and so forth printed over the last 45 years, it should do much more than that.
Right now, gold is trading for about $1,180. In other words, it would have to climb about 75% to reach its previous inflation-adjusted high.
But Louis thinks gold could race well past that in the coming years:
Many analysts see the current market as analogous to the great gold bull of the 1970s, only bigger and longer. Adjusted for inflation, gold rose about 353% from its mid-1970s trough to its 1980 peak. If that pattern repeats itself, gold would have to rise from its December 2015 low to just above US$5,200 per ounce by October 2022.
If gold does anything close to what it did during the ’70s, precious metals investors could see explosive gains in the very near future. Just take a look at the chart below.

• Louis is so convinced that gold’s headed higher, he just made a giant bet on it…

He wrote last week:
I’m so sure, I put my money where my mouth is last week. As advised last month, I entered the market during the peak of Tax Loss Season. I’m not allowed to buy the same stocks I recommend (to avoid possible conflicts of interest), so I bought ETFs instead. In fact, I put about twice as much of my own cash into these proxies for gold stocks than I ever put into gold stocks before.
Louis also plans to buy more gold at the first chance he gets:
I think that 2016 was an overture for what’s ahead. I intend to profit from it. And I’m not worried about any fluctuations in the near term. If prices drop, I’ll hope to buy more. If prices rise, it’s off to the races.
• You, too, can make huge profits from rising gold prices.…
The key is to buy gold mining stocks. Gold miners are leveraged to the price of gold. This means gold doesn’t have to rise much for them to take off. During the 2000–2003 gold bull market, the average gold stock gained 602%. The best ones soared 1,000% or more. Of course, not every gold company is a winner. In fact, many gold stocks are total duds. That’s because gold mining is an incredibly difficult business. To protect your capital and make monster gains, you have to own the right gold stocks. Unfortunately, most folks have no clue what to look for in a gold stock.

That’s where we can help.…

You see, Louis is a true industry insider. He’s visited mining projects all around the world. He’s on a first name basis with many of the world’s top mining CEOs. And he understands the geology inside and out. Louis also has a proprietary system for finding the best gold stocks. Casey Research founder Doug Casey actually taught Louis this system… after he spent decades perfecting it.

You can learn more about Louis’ system by clicking here. As you’ll see, it’s delivered giant gains over and over again. Just don’t wait too long. Gold probably won’t stay cheap for much longer… meaning you’ll want to take action soon to have a shot at truly life changing gains. Click here to learn more.

Chart of the Day

Gold stocks are dirt cheap, too.

Today’s chart compares the NYSE Arca Gold BUGS Index (HUI), which tracks large gold stocks, with the price of gold. The lower the ratio, the cheaper gold stocks are relative to gold. According to this ratio, gold stocks are cheaper today than they ever were during the dot com bubble. They’re also cheaper than they ever were during the last housing bubble.

Keep in mind, stocks were trading near record highs during these periods. Most investors were extremely bullish. They owned too many mainstream stocks and not enough gold stocks. Right now, this key ratio is lower than it was during either period. This tells us that today could be one of the best times to buy gold stocks since the turn of the century.

If you would like to add gold stocks to your portfolio, we encourage you to sign up for International Speculator. As we said earlier, this is our publication dedicated to gold stocks with the most upside. 

Click here to begin your risk-free trial.

The article Why Gold Could Soar Another 353% was originally published at

Stock & ETF Trading Signals

Wednesday, October 5, 2016

Carley Garner's Higher Probability Commodity Trading

Carley Garner's new book "Higher Probability Commodity Trading" takes readers on an unprecedented journey through the treacherous commodity markets; shedding light on topics rarely discussed in trading literature from a unique perspective, with the intention of increasing the odds of success for market participants.

In its quest to guide traders through the process of commodity market analysis, strategy development, and risk management, Higher Probability Commodity Trading discusses several alternative market concepts and unconventional views such as option selling tactics, hedging futures positions with options, and combining the practice of fundamental, technical, seasonal, and sentiment analysis to gauge market price changes.

Carley, is a frequent contributor of commodity market analysis to CNBC's Mad Money TV show hosted by Jim Cramer. She has also been a futures and options broker, where for over a decade she has had a front row seat to the victories and defeats the commodity markets deal to traders.

Garner has a knack for portraying complex commodity trading concepts, in an easy-to-read and entertaining format. Readers of Higher Probability Commodity Trading are sure to walk away with a better understanding of the futures and options market, but more importantly with the benefit of years of market lessons learned without the expensive lessons.

Get Higher Probability Commodity Trading on Amazon....Get it Here!

Friday, September 16, 2016

Heisenberg's Next Big Short

The "Next Big Short" is a collection of looming market risks from The Heisenberg. This 37 page special report will show you the risks in the markets. How to explain The Heisenberg?

Essentially, it's a collective brain trust of skilled traders willing to discuss markets with the freedom of anonymity. You can enjoy Heisenberg's lively market commentary in the TheoDark Report section of their public blog.

Get the "Next Big Short " free special report....Just Click Here

For more backstory, here's Heisenberg in his own words: Heisenberg spent a long time in college. Probably too long. Be that as it may, the experience afforded him extensive cross disciplinary experience. From Aristotle to Kant to Wittgenstein, from Hobbes to Locke to Rousseau, from plain vanilla equities to FX to CDS, Heisenberg is right at home. With degrees in political science and business, as well as extensive post graduate work in political science and public administration, Heisenberg is uniquely positioned to analyze markets from a holistic perspective. He also has a sense of humor, which allows him to fully appreciate how entertaining it is to talk about himself in the third person.

Heisenberg has traded pretty much everything at one time or another and if he hasn’t traded it, he’s studied it enough to drive himself just as crazy as if he had. He doesn’t sleep much because the terminal doesn’t sleep and neither, generally speaking, do currency markets.

Heisenberg once took the law school admission test (LSAT) for fun with no intention of actually going to law school. He then took it again to try and beat his first score. He paid for the second test with profits he made from long calls on a Brazilian water utility ADR that he sold to close from the first iPhone (the 2.5G version that no one remembers) in the middle of a graduate political science class. His score on the verbal section of the graduate management admission test (GMAT) was near perfect. As was his score on the analytical writing portion. Don’t ask about the math section. He got bored after two hours and didn’t care about using the Pythagorean theorem to determine how long Timmy’s shadow was when he was standing next to a 90 degree flag pole.

Professionally, Heisenberg has worked in Manhattan and many other locales and has years of experience generating and monetizing financial web content. He’s continually amused at those who make it seem hard. You provide quality content for users on a consistent basis. Everything else falls into place. Build it, and they will come.

Get the "Next Big Short " free special report....Just Click Here

See you in the markets putting the Next Big Short to work,
The Gold ETF Trader

Tuesday, August 30, 2016

Why You Must Adapt or Die in Today’s Market

Have you noticed we’re getting a lot of brutally sharp reversals in the markets lately? It’s so frustrating because most traders get caught on the wrong side over and over again. So called safe trend trades get destroyed while betting on bold reversals is working like clockwork.

What’s going on?

For years, it was possible to just buy any dip in stocks and crank out winner after winner. But those days are long gone. If you try that now, you’ll burn through your account in the blink of an eye. These days’ trends reverse on a dime, but at the same time, you can’t just blindly pick tops and bottoms either.

Anyone who was short stocks recently learned that lesson the hard way when the market rocketed to new all time highs. The bottom line is that those outdated strategies no longer work. If you want to generate consistent profits in these volatile conditions, you’ve got to adapt. And that’s why this short video by renowned trader John F. Carter is so exciting

You’ve just got to see the breakthrough strategy that allows him to catch massive price swings without breaking a sweat.

See for yourself >>> Click HERE to Watch <<<

If you haven’t heard of John before, he’s a best selling author and trader with over 25 years’ experience. He’s developed a world wide reputation for catching explosive trends in stocks, options, and even futures, too.

So I hope you attend on September 6th, 2016 at 7:00 PM Central for a special webinar called, “Hunting for Tops and Bottoms - Low Risk Setups for Trading Precise Turning Points in Any Market”.

Here’s just some of what you’ll learn....

  *  A simple 3 step process to identify major market turning points in any market

  *  How to find low risk, high probability trades in today's volatile market conditions

  *  Why it’s finally possible to catch tops and bottoms in real time on almost any chart

  *  Why these ‘Bold and Beautiful’ reversal trades can be safer than ‘comfortable’ trades

  *  How to avoid getting suckered into the costly traps that most traders fall into

  *  How to adapt your trades automatically for choppy conditions and big trends

  *  How to know when a support or resistance level is likely to hold or not

And that’s just the tip of the iceberg.

I’m looking forward to this special event and I expect I’ll be taking a lot of notes, too. There may not be a replay and this event will almost certainly fill to capacity – so register now and be sure to show up a few minutes early. Unless you’ve already mastered trading these volatile swings, this could be the most important training you attend this year.

To claim your spot just Click HERE

See you next Tuesday,
The Gold ETF Trader

P.S.   If you have not downloaded John's free eBook do it asap....Just Click Here

Tuesday, August 23, 2016

Will The Bubble Pop Regardless if the Fed Never Raises Rates?

The current overall SPX pattern is a broadening top, which is usually a very reliable pattern. The market continues to look as though it wants to go even lower. The momentum shift, which I have been expecting, has been slow to start, however one should be prepared for this occurrence ahead of time. Nevertheless, the large divergences which I have been viewing, in my proprietary oscillators, are most real, and, once the selling starts, the momentum should quickly move to the downside.

The current market is being supported by a lack of sellers more so than aggressive buying. With investors still thinking that there is no other place to store their money, they appear to be content with leaving their money with risk on assets within a market that is pushing to all time highs. This type of mentality usually leads to large losses rather than big gains. There isn’t any real opportunity for growth in the SPX that I can see right now.

Dow Theory: Market Indexes Must Confirm Each Other
The Dow Theory was formulated from a series of Wall Street Journal editorials which were authored by Charles H. Dow from 1900 until the time of his death in 1902. These editorials reflected Dow’s beliefs regarding how the stock market behaved and how the market could be used to measure the health of the business environment.

Dow first used his theory to create the Dow Jones Industrial Index and the Dow Jones Rail Index (now Transportation Index), which were originally compiled by Dow for TheWall Street Journal. Dow created these indexes because he felt they were an accurate reflection of the business conditions within the economy, seeing as they covered two major economic segments: industrial and rail (transportation). While these indexes have changed, over the last 100 years, the theory still applies to current market indexes.

Market indexes must confirm one another. In other words, a major reversal from a bull or bear market cannot be signaled unless both indexes (generally the Dow Industrial and Transports Averages) are in agreement. Currently, They are DIVERGING, issuing MAJOR NON-CONFIRMATION HIGH the Dow Jones Industrial average. If one couples this with the volatility index, this is a warning sign and a recipe for disaster.

chart 1

The FEDs’ monetary policy over the last eight years has led to unproductive and reckless corporate behavior. The chart below shows U.S. non financials’ year on year change in net debt versus operating cash flow as measured by earnings before interest, tax, depreciation, and amortization (EBITA).

Chart 2
The growth in operating cash flow peaked five years ago and has turned negative year over year. Net debt has continued to rise, which is not good for companies.

This has never before occurred in the post World War II period. In the cycle preceding the Great Recession, the peaks had been pretty much coincidental. Even during that cycle, they only diverged for two years, and by the time EBITA turned negative, year over year, as it has today, growth in net debt had been declining for over two years. Again, the current 5 year divergence is unprecedented in financial history. Today, most of that debt is used for financial engineering, as opposed to productive investments. In 2012, buybacks and M&A were $1.25 trillion, while all R&D and office equipment spending were $1.55 trillion. As valuations rose, since that time, R&D and office equipment grew by only $250 billion, but financial engineering grew by $750 billion, or three times this!

You can only live on your seed corn for so long. Despite there being no increase in their interest costs while growing their net borrowing by $1.7 trillion, the profit shares of the corporate sector peaked in 2012. The corporate sector, today, is stuck in a vicious cycle of earnings manipulation management, questionable allocation of capital, low productivity, declining margins and growing debt levels.


In short, I continue to pound on the table to help keep you and fellow investors aware that something bad, financially, is going to take place – huge events like the tech bubble, the housing collapse a few years back, and now national financial instability. Experts saw all these events coming months and, in some cases, years in advance. Big things typically don’t happen fast, but once the momentum changes direction you better be ready for some life changing events and a change in the financial market place.

Follow my analysis in real time, swing trades, and even my long term investment positions so you can survive from the financial storm The Gold & Oil

Stock & ETF Trading Signals

Tuesday, August 16, 2016

The “Perfect Storm” That Could Shoot Gold Prices Through the Roof

By Justin Spittler

A “perfect storm” has hit the gold market.  Longtime readers know Casey Research founder Doug Casey has been warning of another major financial disaster for years. According to Doug, the financial hurricane that made landfall in 2008 never left. It’s been hovering above us, gaining strength.   Doug now thinks we’re exiting the eye of the storm. When the trailing edge hits, it will trigger a crisis “much more severe, different, and longer lasting than what we saw in 2008 and 2009.”

He’s encouraged anyone listening to buy gold, the ultimate safe haven asset. If you took Doug’s advice, you’re likely sitting on big gains. The price of gold has surged 27% this year. It's beat global stocks 6-to-1. Gold hasn’t done this well in years. Today, we’ll explain what’s driving gold prices. As you’ll see, folks are piling into gold at the fastest pace ever. And there’s no reason to think this buying mania will end anytime soon.

Gold is having a historic year..…
Over the first six months of this year, the price of gold surged 25%. According to the World Gold Council, gold had its best start to a new year since 1980. Record “investment demand” caused gold to take off.    If you’ve been reading the Dispatch, you might find the phrase “investment demand” odd. After all, we don’t consider gold an investment. We think of it as real money.

For centuries, gold has preserved wealth because it’s unlike any other asset. It’s durable, easy to transport, and easily divisible. Unlike paper currencies, it’s survived every financial crisis in history. It’s the most reliable store of value on the planet. When the World Gold Council says “investment demand,” it’s talking about gold coins, gold bars, and gold ETFs… basically anything but jewelry. Frankly, it doesn’t matter if you call gold an investment or real money. The point is that folks are buying gold at the fastest pace ever.

Investors bought 1,064 tons’ worth of gold during the first half of this year..…
That shatters the previous all-time record. Investors bought 16% more gold during the first six months of this year than they did in the first half of 2009, when we were still in the midst of a global financial crisis. Investors are buying any gold they can get their hands on.

MarketWatch reported last week:
Demand comes from a “broad spectrum of investors accessing gold via a range of products with gold-backed ETFs and bars and coins performing particularly strongly.” As you probably know, gold ETFs like the SPDR Gold Trust ETF (GLD) track the price of gold. They trade like stocks, making them a convenient way to “own” gold.

However, it's important to keep in mind that gold ETFs are “paper gold”—they’re no substitute for a gold coin you can hold in your hand. That said, gold ETFs are incredibly popular. They can say a lot about investor sentiment toward gold. Right now, investors can’t get enough of these funds. According to the World Gold Council, inflows into gold backed ETFs hit 579.2 metric tons during the first half of the year. That, too, is a new all-time high.

Mom and Pop investors aren’t the only ones buying gold..…
Legendary investors George Soros, Carl Icahn, Stan Druckenmiller, Bill Gross, and David Einhorn have all recently placed huge bets on goldThese are some of the best investors to ever walk the Earth. None of these men got to where they’re at by investing like everyone else.

They made billions of dollars by being contrarians. Yet, they’re all doing the same thing right now: buying gold. Just as important, they’re buying gold for the same reasons we own gold. It’s the ultimate safe haven asset.  This tells us something is very wrong with the global economy or financial system.

The World Gold Council says a “perfect storm” has pushed investors into gold..…
MarketWatch reported on Thursday:
“The global picture for gold is dominated by considerable and continued investment demand driven by the West as investors rebalance their investment in response to the ever-expanding pool of negative yielding government bonds and heightened political and economic uncertainty,” said Alistair Hewitt, head of market intelligence at the WGC, in a statement.
Regular readers won’t find this surprising. All year, we’ve been pointing out dangers in the economy and financial system. We said most stocks and bonds are incredibly risky. We’ve explained that global debt is spiraling out of control. And we’ve shown you countless examples of how the global economy is stalling.

Governments are desperately trying to prevent another major financial crisis..…
Since 2008, central banks have cut interest rates more than 650 times. And they’ve “printed” more than $12 trillion. Central bankers thought flooding the global economy with easy money would make it grow. It hasn’t worked. The U.S., Europe, and Japan are all growing at their slowest rates in decades.

Governments are trying to “stimulate” the economy with even more extreme policies..…
Negative rates are the latest government “stimulus” measure. This radical policy basically flips your bank account upside down. Instead of earning interest on your money in the bank, you pay the bank money. The idea is that people will spend more money if they’re “taxed” to save money. It’s a completely idiotic idea. Yet, as the World Gold Council noted, negative rates are spreading like a plague. According to Business Insider, more than $13 trillion worth of government bonds now have negative rates. Keep in mind, negative rates were practically unheard of two years ago.

The average investor is starting to realize easy money doesn’t work..…
Just look at what’s happening in Europe. Two months ago, Great Britain voted to leave the European Union. The “Brexit” shook the global financial system. It knocked more than $3 trillion from the stock market in two days. Policymakers immediately sprang into action. Within hours, the Bank of England (BoE) pledged to pump £250 billion ($322 billion) into Europe’s financial system. And two weeks ago, the BoE announced its biggest stimulus package since the 2008-2009 financial crisis.

It dropped its key interest rate just above zero. And it launched a new £70 ($90) billion “money printing” scheme. It hopes its “sledgehammer stimulus” program will help England avoid a recession. We wouldn’t bet on it. As we often point out, easy money policies don’t actually help the economy. At best, they buy the government time, but this comes at a price.

Easy money policies destroy the value of paper currencies..…
The euro has lost 18% of its value since the European Central Bank (ECB) introduced negative rates in 2014. And the British pound plummeted after the BoE announced its new stimulus plan. It’s now down 13% since the start of the year. On Friday, it hit a 31 year low. People in Europe are taking shelter in gold. According to the World Gold Council, Europe was the biggest source of gold investment demand over the first six months of this year.

Doug Casey thinks paper currencies will fall one by one in the coming years..…
Doug explains:
A panic into gold. You’ve heard this story many times before here. But it’s truer than ever as we approach a genuine crisis. There are no stable paper currencies anywhere in the world. The dollar has been strong only because it’s liquid. Liquidity is good, but here, we’re talking about liquid like nitroglycerin.
While gold is already up big this year, Doug thinks it’s headed much higher in the coming years:
Hedge funds will start buying gold in size. As will central banks, who don’t want to hold each other’s paper. As will individual investors. Right now, few people even think about gold, much less understand it. How to profit? Buy gold. I expect we’ll see it well over $5,000 this cycle.
Right now, gold trades for around $1,340, meaning Doug thinks gold could easily triple in the coming years.

If you do one thing to protect yourself from the coming crisis, own physical gold..…
We also encourage you to watch this important presentationAs you’ll see, the crisis Doug’s been warning about has already begun. It could eventually take out every major paper currency, including the U.S. dollar. The good news is that you can still protect yourself. If you act soon, you could even turn this coming crisis into an opportunity to make BIG gains. Watch this free video to learn how.

Chart of the Day

The U.S. economy is growing at its slowest pace in decades. Today’s chart shows the average annualized growth rate of the past 11 U.S. economic recoveries. As you can see, the U.S. economy has grown just 2.1% per year since 2009. That makes the current “recovery” by far the slowest since World War II. Last quarter, the economy grew at an annualized rate of only 1.2%. That’s not even close to the average annualized growth rate (4.7%) of the last 10 recoveries.

We’ve been saying for months that the U.S. is in big trouble. We’re now starting to see this in the headline gross domestic product (GDP) number, which lags other indicators we follow. This tells us a major crisis could be around the corner. We encourage you to protect yourself before it’s too late. Step No. 1 is to own physical gold. We recommend most investors put 10% to 15% of their wealth in gold. For other ways to safeguard your wealth, watch this short video.

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Sunday, August 14, 2016

It Can’t Wait Any Longer – It's Deja Vu in the Markets

The stock market tends to repeat itself on a regular basis. Why? Because it moves mainly based on the emotions of market participants, with the exception of extreme times when the masses are moving the market with extreme fear or greed, at which point they are flooding the market with buy or sell orders to create a final pop or drop in the market just before a major market reversal.

As with everything in the universe, everything moves in cycles, periods of expansion and contraction, and there are regular wave like patterns that happen on a regular basis no matter the time frame one is reviewing on a stock chart.

Here are three charts, each showing a similar price pattern of extreme washout lows, followed by roughly a 1 1/2 month rally taking investors on a roller coaster ride from fear and complete panic to greedy "know it alls". In short [no pun intended] U.S. large cap stocks look and feel toppy here. I feel a correction is likely to take place any day now, and the big question is “how much will the stock market pullback? Will it be another 4-5% correction similar to the chart examples above? Or will it be something larger 8-15% correction?

Chris Vermeulen

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