Gold trends, page-3

I think gold is looking very good for 2018 and well beyond.

For the fund investment managers and fear trade: The US T-bond chart looks terrible. A multi-decade bond bear run if everything plays out as it should. Massive US debt troubles means new T-bonds must be sold. Meanwhile the petro-dollar weakens, the Fed continues QT and economic war is starting between the US and the east - so less T-bond buyers. Fiat is the enemy of gold, and bonds are effectively fiat. US govt spending and funding combined with QT for at least 2018 means a huge devalue of the USD and massive hike in interest rates. The end of QE and start of huge rate hikes means collapse of property and most business markets and deep recession. The US stock market is very shakey and Fed chair J Powell clearly doesn't care about the stock market. The global business cycle hasn't ended yet, so the irrational over priced US stocks are kept alive because retail investors believe mainstream media BS and professional fund managers are paid to get yield and while they cannot be excused for short term low yield, they can be excused for loss of funds in a major crash. So they keep their algo robot traders tuned into buy mode. Monetary policy in Europe looking more like a failed experiment every month that goes by. Insane times right now. Meanwhile central banks are stock piling more gold just in case. So even without inflation, gold is looking very attractive. More and more investment managers are starting to doubt the official inflation figures. Greenspan says stagflation is coming and it's hard to argue with against it. Where is the safe haven? Belief in cryptos is still far too low to cope. Gold must become money again. Anyone believing in QE to debt infinity is wacked on crack.

On the love trade side: Economic growth in the east is looking good. Especially in India. The yellow metal will always be viewed as a symbol of wealth and a ageless asset. The Germans and Chinese love gold too. Aussies don't value it (yet) which is a little sad considering how much we mine and sell to China and Germany.

While it's possible for the price of gold to take a moonshot, I doubt it and I hope it doesn't. Better for us will be low key slow steady increase in POG year buy year. But on the other hand it'll be difficult for the precious metals to not attract a lot of attention when stocks, bonds and property are on their way down. Also, bankster price manipulation via derivatives will become unprofitable when metals are in a clear price up trend.

It's amazing (to me) that the average citizen has minimal or zero interest in global macro economic status. The two things which have the most impact on people's lives are their health and the state of the economy. Go figure.