Gold Update

Posted by on November 16, 2017 - 7:48 am

While there may be six weeks or so left on the 2017 calendar, liquidity and interest will continue to dry up as we get closer to the New Year. Therefore, moves in many markets get exaggerated often up or down, so keep that in mind.

Despite knowing the New Year will mark the start of the fifth year of me out of the metals and mining industry for a living, you don’t spend 25 years living and breathing almost every tick up or down in gold, and not still peak at in every once and awhile.

Since bottoming at the end of 2015, gold has begun what I believe will be its biggest and longest bull market run since becoming free trading in the early 70s. If it doesn’t feel like that, keep in mind it’s managed to add almost $250 to its price since bottoming in the face of many negatives that most so-called experts have continuously predicted would lead to its demise. Things like higher and higher stock markets, supposed rising interest rates, low inflation and the latest “false-hope” for gold bears, “Bitcoin” (and Cryptocurrencies, which I believe many will end up like the Internet stock bubble bust at the end of the last Millennium).

My enthusiasm for gold is purely that of a private investor now. I don’t represent mining and exploration companies, sell physical gold, guns and ammo, dry food or cabins deep in the woods.

My expectation is gold takes out critical resistance in the $1,375 – $1,400 area in the first half of 2018, and combined with at least a serious correction, if not a full-fledged beginning of a nasty general equity bear market, will see a marked increase in interest that helps accelerate its climb now to new, all-time nominal high at $2,000+ sometime in 2020 (if not before).

Posted in: Matters of Finance, News
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