Monthly Archives: September 2017

Pure Gold likely to soar as much as 500% if gold enters a new bull market

Sjuggerud: This chart is great news for gold…
From Dr. Steve Sjuggerud, Editor, True Wealth Systems:

When the U.S. dollar is going down, the price of gold goes up.

The reason is simple… It’s basic math.

Gold is priced in U.S. dollars… so if the U.S. dollar is weakening, it takes more dollars to buy the same ounce of gold.

That’s the logic, anyway. But does the logic actually work in the financial markets?

Sometimes it doesn’t… As the economist John Maynard Keynes famously said, “The market can remain irrational longer than you can remain solvent.”

But as it turns out, the logic works with gold and the dollar…

Gold’s compound annual return since the early 1970s has been about 6.9% a year. But when the dollar is weakening, gold goes up at 12.2% a year. And when the dollar is strengthening, gold only goes up 1.8% a year.

This table shows it simply…


To identify uptrends and downtrends, we looked at whether the dollar was above or below its 10-month moving average at the end of a month. Then, starting at the date of that signal, we measured gold’s performance over the following month.

You can see dollar downtrends led to strong gains in gold…hu-688315_8HYCZGCU6F

So… why is this important today?

Because we are now in one of those times when gold has historically delivered double-digit compound annual gains.

“The dollar could be starting a multiyear bear market,” my colleague Brett Eversole wrote yesterday…

The greenback recently hit its lowest level since early 2015. It has now clearly broken down from a multiyear uptrend…

Major currencies tend to move glacially. They have slow, long-term moves higher or lower… not drastic crashes or spikes.

So this year’s decline isn’t something that happens often. The dollar is down 9% in just the first eight months of the year – a massive fall for a major currency.

His conclusion was that the dollar could decline for the next two years.

If that’s true, then gold could be starting a multiyear bull market.

Don’t be too worried about the short-term fluctuations… We actually think the dollar could go up a bit more before it resumes its fall. But the dollar’s long-term trend is clearly down. And we are finally on board with gold again.

Gold could be starting a multiyear bull market. You want to be on board.

Good investing,

Crux note: Steve just recommended his favorite gold investment to his True Wealth Systems subscribers. According to him, it is likely to soar as much as 500% if gold enters a new bull market. You learn how to get a subscription right here.

The end of BitCoin?

Will China’s stance on Crypto Currencies bring about the end of bitcoin? I’ve no idea but perhaps this is an indication to diversify and also buy Karatbars pure gold.

As Bill Bonner states:

But the biggest win-lose deals are those forced upon us by the federales.

This week, for example, the Chinese authorities actepd on their much-anticipated crackdown on cryptocurrencies by banning “initial coin offerings,” or ICOs.
s this is an indication
These are the cryptocurrency equivalent of stock market initial public offerings, or IPOs. But instead of selling shares to the public to raise money like regular companies, crypto startups raise money by selling cryptocurrencies. Investors buy them because they believe they’ll go up in price if the crypto startup is a success.

Reports Bloomberg:

Bitcoin tumbled the most since July after China’s central bank said initial coin offerings are illegal and asked all related fundraising activity to be halted immediately, issuing the strongest regulatory challenge so far to the burgeoning market for digital token sales.

The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have already raised money must provide refunds, though it didn’t specify how the money would be paid back to investors.

It also said digital token financing and trading platforms are prohibited from doing conversions of coins with fiat currencies. Digital tokens can’t be used as currency on the market and banks are forbidden from offering services to initial coin offerings.

Will this be the end of bitcoin?

In 1933, the U.S. government successfully banned private ownership of gold when President Roosevelt signed Executive Order 6102, “forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”

For 40 years, the yellow metal was out of circulation.

What if you can’t use bitcoin without risking jail time? What if you can’t convert your cryptocurrencies into regular, government-issued paper? What good is a better form of money if you can’t use it?

Again, nobody knows anything.

Bill Bonner