Apr 15, 2025
- In response to tariff tax attacks launched by US government “cowboys”, the Chinese central bank (PBOC) may or may not increase its tiny monthly gold purchases.
Whether it’s the Shanghai futures market, ETFs, or the physical market… it’s clear that savvy Chinese citizens are not waiting for cues from the PBOC… they are racing to get more gold!
- Millions of American small businesses look like sitting fiat ducks being blasted with tariff tax cannon balls from a government pirate ship. Disturbingly, some US citizens (who own no businesses or gold) appear to be reading government cue cards with gusto. They tell some of the waylaid business owners that government pirates are “makin’ ‘em great”.
- Like most tax-worshipping socialists, they eagerly speak of their government working for “The Greater Good” of the nation, while millions of individuals are financially and emotionally destroyed.
Double-click to enlarge this “Road To Hades” chart for the vile US fiat that is enshrined by the government and its most gullible citizens.
- A bear flag is likely to form in the May-Oct period, and then a new vertical trip down into the year 2026 (and perhaps into 2027) should follow a breakdown from the flag.
- It’s clearly a sad moment in late-stage empire time for fiat America (as most moments have been in recent years), but hopefully the waylaid small business owners follow the lead of the Chinese citizens… and buy lots of gold.
To view some key zones for action. Double-click to enlarge. $3167, $3060, and $2960 are all exciting zones to buy.
- Note the action of the key 14,7,7 series Stochastics oscillator at the bottom of the chart. Dual buy signals in the momentum zone of 50 are in play, and that suggests the current rally has legs.
- A surge through the $3245 high is increasingly probable. Interestingly, that’s great news for silver bugs, because I expect their mighty metal to take the lead baton from gold… as the upside breakout occurs.
Double-click to enlarge. It’s important to focus on long-term charts, which themselves are often “loose”. Upside breakouts are delayed and price patterns morph into other ones, especially for silver. Why?
- Well, gold is bought aggressively by global central banks and treasuries, while silver is not. Ironically, the nation with the biggest debt and fiat problem, America, buys no gold or silver for its treasury or central bank, when it should be the biggest buyer of them all.
- The lack of central bank buying of silver has seen the gold/silver ratio rise to the key round number of 100, but not to the deflation cycle peak high of 120. Eager silver enthusiasts could be buyers here… and get ready for a very profitable 35 year ride… one that continues all the way to the year 2060!
- Silver is the “poor guy and gal’s gold”. Sadly, most middle earners in America should now be classified as poor. Hidden inflation and government greed are the root causes of their loss of purchasing power plight.
- The good news for silver enthusiasts is that as the stagflation theme intensifies, the outrageously overvalued US stock market will swoon, and waylaid retail investors will find silver to be even more attractive than it was in the 1970s.
For a look at the stock market’s overvaluation. Double-click to enlarge. The good news for stock market investors is that most of the tariff tax news is priced into the market now.
- The bad news is that none of the overvaluation news is priced in. In fact, the overvaluation isn’t even in the news. It’s completely ignored by most investors!
That “pricing in” is coming, and it’s likely to play out as a hideous bear era for the stock market… one that is themed on stagflation. Double-click to enlarge. Here’s a look at the SP500 alongside the average of about 15 key cycles for the market.
- The market is unlikely to bottom until around the year 2034. America’s fiat-oriented citizens may find that the only way to put enough food on the average table then… is to choose between breadlines and riots.
- The good news is that it’s never too late to choose gold! In the East, gold bugs love jewellery to “spice things up”. In the West, it’s the miners, and the great news is that I marked Thursday, April 10th as “The Golden Gold Stocks Beginning” day.
- It’s the day that Western money managers appear to have finally begun to consistently allocate money to the miners, as a result of their fully concerns about coming long-term stagflation.
- With this theme in play, the miners will often rise regardless of what the stock market does, and they will also begin rising quite often on down days for gold. That’s not just due to their massive undervaluation versus gold. It’s because money managers get money regularly and they often allocate it daily, regardless of what the market is doing.
Double-click to enlarge this incredible GDX chart. While the stock market flounders under its highs, the gold stocks price action has become so bullish that right shoulders on expected inverse H&S patterns no longer even form. The price just marches gloriously higher… and probably continues to do so… for the next 40 years.
Double-click to enlarge this weekly chart. GDX is already up about 50% against US fiat… just since the start of this year. While the technical cup and handle pattern target is about $60, when patterns are this aesthetic (complete with an ultra-rare inside handle), investors need to be open to an aggressive overshoot, which in this case means GDX probably surges to the big round number of $100!
Thanks!
