As Trend Journal subscribers well know, we were the first to call the “Gold Bull Run” a year ago when gold was trading at $1,332 per ounce.
Today, gold hit its highest level since October 2012, up $17, closing at $1,770 as the dollar descended.
After the U.S. government went some $3 trillion deeper in debt this year and with the Fed pumping tens of trillions of digital dollars backed by nothing and printed on nothing into equity markets and corporate bank accounts, it was only a matter of time before the dollar dive would accelerate.
In this issue, Gregory Mannarino’s article, “U.S. Dollar to Fade Away” further articulates the why, when, and where the dollar is going.
TREND FORECAST: Gold, now at $1,770, is solidifying well above our $1,740 per ounce breakout point. Thus, we maintain our forecast that gold will spike above $2,000 per ounce.
When gold breaks above $2,000 per ounce, we forecast a sharp rise in silver prices as well as investors seek safe-haven assets.
For younger and more speculative investors, Bitcoin will remain their alternative to precious metals, thus pushing that price higher as well when it solidly breaks above the 10,000 mark.
As the dollar declines, other than big-time gamblers artificially beating another currency up, there are no alternatives to replace the dollar as a safe haven currency, since no country will be spared the “Greatest Depression” disaster.
The deeper economies fall, the more nations will do to artificially prop them up with both monetary and fiscal stimulus. Thus, the deeper countries go in debt, the further their currency will fall.
And, as per one of our recent forecasts, “Dragflation,” as economies drag downward and currencies decline, inflation will rise. While prices of goods and services will not rise, as currencies fall, it will take more dollars, yen, yuan, euros, pesos, etc., to buy them.
TRENDPOST: Financial advisors to the world’s top wealth-owners are urging them to put more assets into gold.
The advice is based on the separation of U.S. stock markets from financial realities, the uncertain pace and future of a global economic recovery, and the impact of the deluge of cheap cash that central banks have poured into national economies.
Before the global lockdown, most advisors were telling rich clients to ignore gold.
Now financial stewards are redirecting as much as 10 percent of clients’ wealth into gold as central banks’ stimulus programs drive down bond yields and raise the risk of inflation in the medium to long term.
