“I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counterparty signature.”
– Alan Greenspan
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Your next gold opportunity has been around for about two years now.
Incrementum released their monthly Gold Compass Report this month.
You can download it here.
There’s a few good insights, and one major opportunity.
Three charts show us where…
As you may know the price of gold has come down from its (unadjusted for CPI) all-time high of $2146 back to down to hit resistance just above $2000 at $2030. This looks due to declining US Treasury yield curves, buyers simply didn’t hold, while short term gold traders sold off too.
As the dollar continues to hold its strength on hopes the Fed will lower interest rates, we can assume a sideways and slow upwards motion for gold at least until mid January. I’m going on annual cycles to assume that…
Meanwhile, a few days ago Alasdair Macleod released a chart showing that volume in gold and silver futures are declining. He said, “…this shows a decline in selling pressure.” And what that means is that traders are looking at gold futures volumes to see if there is interest in moving the spot gold price. If there’s high volume and open interest, you can generally see the price of gold also move. So gold prices are leveling out for awhile.
While the price of gold remains above $2000, we’re also seeing new declines in another chart. Incrementum’s latest report shows monthly Gold ETF flows. While we saw a small rise in the of Gold ETF inflows in late spring, we are now consistently seeing a pattern of outflows since late 2021. The chart below compares the price of gold to Gold ETF outflows.
Here’s what the difference between gold and ETFs actually looks like. The chart below shows the price of gold compared to the price of the Van Eck Gold Miners ETF (GDX). Since early 2021, you can see a departure in direction. Gold is going up. GDX is going down.
If you don’t want to dig into specific gold miners in the ETF, or exploration companies, then tracking this departure would be a good option to catch the GDX at a bottom. Just watch those volumes as they pitter out like the 2016 lows when the GDX more than doubled.
When the Fed decides to start lowering interest rates and then increasing the M2 Supply that’s when we’re most likely to see some changes, and more inflows to Gold ETFs. For now, trading gold seems to be levelling out and we could even see some declines below $2000 with gold futures falling below October levels.
It’s true. You’ll make the most money in a bear market.
And the big money is in the waiting…
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Disclaimer: This is not financial advice. Before making any investment decisions, you should talk to a registered advisor in your area.
One thought on "Your Next Gold Opportunity in Three Charts"
Gold is not being priced by solely free-marked exchanges. The wealthy people who actually run things have a very intense interest in maintaining the corrupt system as it is. They are not going to just stand-by and let that dissolve in front of their eyes. The Federal Reserve Bank of New York recently opened a futures trading office in Chicago. Why do you think they did that? Are they just neutral observers or are they working in the interest of the banking cartel? Come on, they are powerful and will every means possible to stay in control.