{"id":93942,"date":"2016-08-05T10:08:40","date_gmt":"2016-08-05T14:08:40","guid":{"rendered":"http:\/\/countingpips.com\/?p=93942"},"modified":"2016-08-05T10:08:40","modified_gmt":"2016-08-05T14:08:40","slug":"gold-about-to-crash-or-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/08\/gold-about-to-crash-or-rally\/","title":{"rendered":"Gold About To Crash Or Rally"},"content":{"rendered":"
August 5, 2016<\/div>
\r\n<\/div><\/div>

Gold has a \u201cclear presence\u201d to play in a world dominated with \u2018global economic uncertainty\u201d<\/em><\/strong><\/p>\n

By Chris Vermeulen –\u00a0www.TheGoldAndOilGuy.com<\/a><\/strong><\/p>\n

My analysis shows that gold will be implemented to protect \u2018global purchasing power\u2019 and\u00a0minimize losses during our upcoming periods of \u2018market shock\u2019. It serves as a high-quality, liquid asset to be used when selling other assets would cause losses. Central Banks of the world\u2019s largest long-term investment portfolios use gold to mitigate portfolio risk in this manner and have been net buyers of gold since 2010.<\/p>\n

Investors should make use of gold\u2019s lack of \u2018correlation\u2019 with other assets which makes it the best hedge against currency risk.\u00a0 There was a huge trend change in U.S. gold investment last May 2016. Switzerland is now a major source of U.S. gold exports. The tables turned back in May 2016 as the Swiss exported a record amount of gold to the United States. There has been a huge increase in gold flows into the Global Gold ETFs & Funds. \u00a0Something seriously changed in May 2016 as the Swiss exported more gold to the U.S. in one month than they have every year for several decades.<\/p>\n

\"a\"<\/p>\n

Though we are in for a period of great financial turmoil, investors can safeguard themselves by investing smartly in gold. Do not be left behind and see your dollar assets lose value. Invest in gold!<\/p>\n

It is in these conditions gold is the only investment that will appreciate in time.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

The world including Russia, Syria, Libya, North Korea, the South China Sea, Venezuela and social discord from Europe to the U.S., it is difficult to make the case for any good news.\u00a0 Gold will continue to perform its role as a \u201csafe haven\u201d in these times of crisis which appear to be never ending.\u00a0\u00a0 The metals surge of as much as 8.1 percent on the day of the \u201cBrexit\u201d vote last month is an indicator that its\u2019 luster of safety is undimmed in the current market. There\u2019s little to be gained from arguing whether such beliefs are right or wrong:\u00a0\u201cThe market can stay irrational longer than you can stay solvent\u201d.<\/p>\n

The list of prominent hedge fund managers backing gold is lengthening.\u00a0 Paul Singer<\/a>, of Elliott Management Corporation, is the latest name to lend his support. It is likely that more investment institutions will turn to gold as the logical way to countervail the effects of many years of quantitative easing.<\/p>\n

\u201cIt\u2019s a glaring warning sign of deflation. We\u2019ve never really had deflationary fears throughout such a widespread part of the world before,\u201d said Phil Camporeale, a multi-asset specialist at JPMorgan Asset Management.<\/p>\n

These accommodative Global Central Bank policies has lead to monetary easing policies that have been adopted globally. It is not so much that the U.S. Dollar has become strong the last few weeks. The \u201csystemic\u201d uncertainty of the recent \u201cBrexit\u201d vote in the U.K. resulted in the U.S. Dollar became a \u201csafe haven\u201d.<\/p>\n

The FED is doing everything in its power to prevent a rise in the dollar. They are willing to \u201corchestrate\u201d any scenario where the stock market continues to soar and people will feel a \u201cwealth effect\u201d from new stock market highs and fight the argument that the economy is \u201ccontracting\u201d. The FED is getting everything it wants in this regard and will continue to do so.\u00a0 The number one priority of the FED is \u201cdebasing\u201d the U.S. Dollar. Gold can rise even if the dollar continues to rise<\/p>\n

Investors of all levels of experience are attracted to gold as a solid, tangible and long-term \u201cstore of value\u201d that historically moved independently of other assets classes<\/p>\n

Golds\u2019 importance even in today\u2019s environment was clearly visible during the massive rally during the start of the year, when all other asset classes were tanking. Investors piled on gold on a scare of a likely financial crisis in the world.<\/p>\n

Investors should make use of Gold\u2019s lack of \u2018correlation\u2019 with other assets which makes it the best hedge against currency risk.<\/p>\n

Though we are in for a period of great financial turmoil, investors can safeguard themselves by investing smartly in gold. Don\u2019t be left behind and see your dollar assets lose value. Invest in gold.<\/p>\n

It is in these conditions that one of the best investments is gold.<\/p>\n

Talk of further \u201cunconventional\u201d monetary policies globally has increased. Japan has reached the limit of what negative interest rates and quantitative easing have achieved. The Bank of Japan may adopt a policy of so-called \u201cHelicopter Money\u201d.<\/p>\n

Dr Loretta Mester, President of the Federal Reserve Bank of Cleveland and a member of the rate-setting Federal Open Market Committee (FOMC), signalled direct payments to households and businesses to stoke spending was an option Central Banks might look at in addition to interest rate cuts and quantitative easing.<\/p>\n

However, back in April 2016, if you have followed my recommendation, you would have maintained that once gold crossed the $1190\/oz. levels, it was destined to go higher. Above the downtrend line, which acted as a resistance from 2013 and onwards, the trend altered and it appears to be extremely highly unlikely that it will reverse downwards, at all!<\/p>\n

However, the head and shoulder formation tested my resolve to buy into gold, as it is a most reliable bearish pattern, but, once a bearish pattern fails, it becomes very bullish which is what has happened in this case. I was quick to alert my subscribers to buy as soon as the pattern was triggered.<\/p>\n

\"b\"<\/p>\n

 <\/p>\n

\u201cWe\u2019re always assessing tools that we could use,\u201d Dr Mester said in response to a question about the potential use of \u201cHelicopter Money\u201d. However, Dr Mester signalled that in the event of another shock or economic downturn that most likely option would be more quantitative easing-style money printing.<\/p>\n

Global Government Bond rates are negative:<\/em><\/strong><\/p>\n

Global rates are at zero too negative, money will continue to chase gold and U.S. Treasuries for the higher yield. This will continue to push yields lower as the global economy continues to slow. What would cause this to reverse? It would require either an \u201ceconomic rebound\u201d or a complete \u201closs of faith\u201d in the U.S. to pay its debts such as a collapse of the U.S. Government.<\/p>\n

Addicted to debt:<\/em><\/strong><\/p>\n

The total amount of government bonds in the world that have negative yields are currently $13 trillion, according to Bank of America Merrill Lynch. Given that there were almost zero negative-yielding bonds just two years ago, the rise is \u201cincredible\u201d. Do not be surprised to see $15 trillion to $20 trillion worth of negative-yielding government debt by the end of this year.\u00a0 The yield on short-term government include Switzerland, \u00a0Belgium, Denmark, France, Germany, Japan, and the Netherlands which are all sub-zero. Even short duration U.S. bond rates are barely above zero.\u00a0 Bonds are not fixed-income assets anymore now as fixed-outgoings once were ones. \u00a0Investors are currently buying them for their \u2018capital appreciation\u2019 rather than their \u2018coupon payments\u2019<\/u><\/em>.<\/p>\n

Gold is currently in a correction. In this upcoming August of 2016, gold is set to surge much higher and surprise ALL.\u00a0 As you can see from the chart below, I am targeting 135 level on GLD.<\/p>\n

\"c\"<\/p>\n

\"d\"<\/p>\n

Global Central Banks have yet to \u2018manufacture\u2019 inflation!
\nThis trend will continue to grow for now, until, just like in 2008, the bubble bursts in \u201ccataclysmic fashion. \u201d<\/p>\n

The Central Banks are manipulating the fabric of price-time by reversing the flow of time via negative interest rates. Therefore, the global financial system no longer possesses the \u201cproductive capacity\u201d to generate any income to sustain current equity asset values.<\/p>\n

My own economic outlook is \u201cinvaluable\u201d and is a must have if one wishes not only to save their wealth to profit themselves handsomely from this current \u201cgloomy\u201d crisis that is only worsening behind the scenes.\u00a0 There are many ways to survive, protect, and grow one\u2019s financial position in this prolonged economic downturn.<\/p>\n

The end of the Great \u201cKeynesian\u201d Experiment<\/a> is upon us. Follow my lead as we navigate through the various financial markets using cycle price forecasting, technical analysis, my secret pre-market price spike intraday trend indicator for accurate swing trades and long term ETF investment positions. Copy what I do in both of my portfolios \u2013 Active Trading & Long Term Investing at\u00a0www.TheGoldAndOilGuy.com<\/a><\/p>\n

Chris Vermeulen<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Gold has a \u201cclear presence\u201d to play in a world dominated with \u2018global economic uncertainty\u201d By Chris Vermeulen –\u00a0www.TheGoldAndOilGuy.com My analysis shows that gold will be implemented to protect \u2018global purchasing power\u2019 and\u00a0minimize losses during our upcoming periods of \u2018market shock\u2019. It serves as a high-quality, liquid asset to be used when selling other assets […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-93942","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=93942"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93942\/revisions"}],"predecessor-version":[{"id":93944,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93942\/revisions\/93944"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=93942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=93942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=93942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}