Top Three Videos – September 5, 2023

Vermeulen discuss how gold miners are rallying and the potential for a significant rally in gold and other precious metals due to a rotation of money from equities and the resilience of gold as a global asset.

Quick Summary Bullets:

Gold Market Analysis and Predictions

• Chris Vermeulen highlights the interesting correlation between the performance of the stock market and the rally in gold miners during a period when the stock market was not favorable.
• Gold miners are starting to rally and move up with good volume and power behind them, indicating a rotation of money from equities to the precious metal space.
• Gold’s ability to hold steady and even end in the green, despite the possibility of higher interest rates, is surprising and indicates its strong performance.
• The speaker predicts that gold will have a significant rally next year, reaching big upside targets that many people have been waiting for.
• Gold could potentially have a significant correction and drop to $1700-$1600 if there is a financial reset, but this could be seen as an opportunity for investors.
• Gold, silver, and miners are expected to be strong in the next couple of weeks as money rotates away from stocks and into defensive sectors.
• Chris Vermeulen believes that precious metals, particularly gold, are a good investment in the short term, while other markets may not be as favorable.
• “We can profit from falling markets, we can profit from rising markets, and that’s probably one of the reasons why it works so well.”

Clean Energy and Uranium Potential

• The world’s move towards achieving Net Zero carbon emissions by 2030 or 2035 can be facilitated by the use of new micro uranium nuclear plants, which are considered to be very safe.
• Gold could be one of the next big moves due to its clean energy potential and the increasing adoption of EV vehicles.
• Uranium could become a “secret weapon” to save the planet, with the potential to power entire states or provinces with a machine the size of a house.

Transcript Summary:

• 00:00 Gold miners are rallying with good volume and power, indicating a rotation of money from equities to precious metals, potentially leading to a 5-30% rally in gold miners like GDX and GDX Jade.
  • Chris Vermeulen , a technical trader, will discuss gold and silver in this discussion.
  • He discusses the importance of precious metals in the mining space and asks viewers to subscribe to the channel, then introduces the guest and mentions they will focus on the current health of the financial markets and the gold and silver prices.
  • Vermeulen believes that the market is on the verge of a major downturn as money is flowing out of growth stocks and the market is reaching its peak.
  • He discusses the connection between the stock market and the gold miners, noting that when the stock market was not favorable, the gold miners rallied, but as soon as there was a buy signal in the stock market, the focus shifted to Tech and the NASDAQ.
  • Gold miners have found a bottom and are starting to rally with good volume and power, indicating a rotation of money from equities to precious metals, potentially leading to a 5-30% rally in gold miners like GDX and GDX Jade.
• 04:11 Despite a lack of new trends in the gold market, gold miners have the potential to start an upward trend due to technical analysis and the resilience of gold, making it a strong global asset that is predicted to have a big rally next year.
  • The trigger for our stock market strategy is when the stock market officially turns into a downtrend, indicating that we should not hold stocks as they tend to go down with the tide.
  • Gold miners have the potential to buck the trend and start a new upward trend, despite the lack of new trends in the gold market, as indicated by technical analysis and the resilience of gold in the face of potential interest rate increases.
  • Gold is a strong global asset that continues to hold its value due to global fear, and it is predicted to have a big rally next year.
• 06:54 Gold is expected to experience a significant correction before rallying to a price target of $2700 next year, with the possibility of reaching $3000-$3500, as money rotates away from stocks and investors seek safety in the precious metal space.
  • Gold could potentially experience a significant correction in the near future due to a financial reset, but once panic selling subsides, it is expected to rally and reach a price target of $2700 next year, with the possibility of reaching $3000-$3500, although there may be some weakness in the precious metal space until the financial reset occurs.
  • Gold, silver, and miners are expected to be strong in the short term as money rotates away from stocks, with a bullish outlook for gold in the next year, and seasonality may contribute to an uptick in early September.
  • Seasonality can provide a slight upward bias in the market, but it is not a strong signal, and currently, there is fear and nervousness as many people bought into the stock market right before it topped out.
  • Investors who have given up on the AI sector and are looking for a new place to invest are turning to gold miners due to the current desire for safety in the precious metal space and the potential downside for the bond market.
  • Bottom picking in the market is risky, but there may be a potential rally in the bond market if rates are cut during a recession.
• 11:41 Yields on bonds are high and could rally further, creating a good opportunity for safe returns, but a potential drop in the bond market may cause panic selling among passive investors.
  • Yields on bonds are high and could potentially rally even further, causing bonds to fall and creating a good opportunity for safe returns, as the biggest percentage moves in any trend often happen at the end.
  • The bond market may experience a significant drop, causing passive investors to panic and sell their positions, especially those with a higher percentage of bonds in their portfolio, despite advisors urging them to hold on.
• 14:04 Investors should consider moving into precious metals or miners due to a potential long-term recovery and attractive dividend yields, with silver having the potential to significantly increase in value with a gold-backed currency, while uranium stocks may outperform precious metals in the long term but could be pulled down after a financial reset, and renewable energy sources like wind power could be the next big move but the electrical grid may not be prepared for increased demand.
  • The speaker believes that there is a major super cycle happening in precious metals, similar to what occurred in the 2000 Tech bubble, and suggests that investors should consider moving into precious metals or miners due to the potential for long-term recovery and attractive dividend yields.
  • Silver is considered both a precious metal and an industrial metal, but it typically moves in tandem with gold and falls into the speculative category, with the potential for a gold-backed currency to significantly boost its value.
  • There may be a pullback in the price of silver before a major rally, possibly dropping to $18, and there is limited information about the gold-backed currency in Western media.
  • Uranium stocks have the potential to outperform precious metals in the long term due to a decade-long cup and handle pattern, but they may be pulled down after a financial reset, and the world’s move towards Net Zero carbon emissions by 2030 or 2035 can be achieved through the use of new micro uranium nuclear plants.
  • Renewable energy sources like wind power could be the next big move as more people adopt electric vehicles, but the electrical grid may not be prepared for the increased demand.
• 18:47 Vermeulen believes that the stock market is reaching resistance levels and expects choppy trading with potential lower prices and a possible correction, so they suggest moving to a cash position and being bullish on precious metals like gold.
  • Uranium has the potential to be a secret weapon in saving the planet, as evidenced by the French President criticizing the German government’s nuclear policies, which has sparked interest in energy policies and uranium stocks.
  • Vermeulen believes that the stock market is reaching resistance levels and expects choppy trading with potential lower prices and a possible correction.
  • I am currently not bullish on anything except precious metals and suggest moving to a cash position like bil to earn a monthly dividend income while waiting for new opportunities, as I believe the US dollar will have a significant rally and the dollar index has the potential to go up to 114 or even 120 in the event of a financial correction or crisis.
  • Gold and the dollar tend to have an inverse relationship, but there is potential for them to move up together; however, the speaker is bullish on the dollar and believes it will create a headwind for gold, although they did move up together recently.
• 22:38 Actively trading assets based on wave-like patterns allows for profit from both rising and falling markets, while maintaining control over capital and consistently achieving new all-time highs in the account.
  • Investing in the stock market can be done in two ways: actively trading for higher returns or being a passive investor, but re-vesting offers a different approach.
  • Set and forget, reinvesting in assets that are going up and moving out of assets that are going down based on technical analysis and risk management.
  • The strategy discussed in the video involves actively trading assets based on wave-like patterns in the market, allowing for profit from both rising and falling markets, while also maintaining control over capital and consistently achieving new all-time highs in the account.
• 24:58 Gold and silver expected to rally despite recent statements from Jerome Powell, encouraging viewers to engage with Chris and subscribe for more content.