Loading ...Graceland snip at 321gold and gold seek
19. Those reserves exceed two trillion dollars. Alan Greenspan has referred to their potential movement as inflationary tinder, and rightly so.
20. Influential economist Mike Ivanovitch is respected in the mainstream financial community. To understand his new views on US inflation dangers, please click here now. Interest rates will rise, but not much, because commercial banks are set to lend out reserves, and flood the system with liquidity.
21. Mike ended his discussion with this strong statement: “Equities are still my preferred asset class — provided the portfolios are carefully reviewed toward a defensive posture. Also, think of putting some of that yellow stuff under your Christmas tree.”–CNBC News, December 8, 2014.
22. While most gold analysts are focused on the fear trade, I think it’s too early in the economic cycle for that. Institutional money managers focused on gold bullion ETFsduring the 2008 crisis. They saw system risk, and focused on bullion rather than gold stocks. I think that as the inflation I’m predicting begins to appear in 2015, the money managers will focus on gold stocks much more than on bullion.
23. On that note, please click here now. That’s the daily chart for GDX. The downtrend line has been clearly penetrated, and there’s an irregular drifting rectangle pattern in play. My short term target is $22. It’s tax-loss selling season. As a result, gold stocks are trading erratically, even though gold itself is doing well.
24. A nice gold stocks rally should begin early in January. That’s just three weeks away. My suggestion is to put some quality gold stocks under the Christmas tree, and get ready for a super year in 2015!