Saturday, 21 March 2020

Gold Has Confirmed Its Status As The Ultimate Hedge In The Uncertain Times During Double Black Monday 2020.

To all our Crew

"Everybody Hurts". My heart goes to ALL. Thank you for encouragement, follow and all your support. Stay Strong. Do your part #StaySafeStayHome. Help others, share the best knowledge and learn. We can make it. We know.

We had another very challenging and brutal week for all in the markets. I would like to thank all our Shareholders for your support. And on your behalf, I would like to thank our very talented GEM Royalty Team at TNR Gold who are working hard to make our dreams happen. We are welcoming today our new Shareholders who have decided to start their own journey with us. Nobody knows the future, please always do your own research.

I will always share with you my very personal opinion about what is going to be next and how we are getting ready for it with our Company. The most important message is that Gold has confirmed its status as The Ultimate Hedge in the uncertain times during Double Black Monday 2020 and now we can dive into more charts and details. 

On Friday Gold jumped from its chair at $1,515 during the Asian trading day, walked around the boardroom table and took the Chairman's place. "Whatever It Takes". The first wave of forced selling covering Margin Calls was over. CNBC screen on the wall was counting Trillions in QE, bailouts and Stimulus packages of all sorts. 

Chart by @TaviCosta

I can provide only non-scientific, but spiritual comment on this brilliant chart from Otavio Costa. The fabric of the Financial Universe was torn apart. US Dollar was the shooting star and could become the Supernova erupting and literally tearing apart our time and space.

FED and all Central Banks were facing 2008 all over again compressed in just 3 weeks in March 2020. US Dollar was skyrocketing reflecting the sadden rush for dollar liquidity among the major operators in sovereign and corporate debt. There are reports that first liquidity injections actually bailed out a couple of major hedge funds first. Now we can better understand "Repo Apocalypse" in the Fall of 2019. FED and BIS have unleashed all their water cannons: "Whatever It Takes" and "Unlimited Liquidity". US Dollar was cooled down by the flood of QE for now.

As we have discussed, all my brave thoughts and investment thesis are based on the FED's ability to print Trillions of dollars and flood the system in order to save it from a total collapse. Nobody knows the future, but they are trying super hard now. The major real known unknown, the virus, remains the major external shock for the totally unprepared "developed economies", particularly when efforts are spearheaded by politically "Fair and Balanced" WHO.

Criminally slow introductions of testing on the massive scale provide the first indications of the real spread of virus infections across countries and provide another evidence that the level of stupidity in some very high offices can really exceed even the human's limits as species. Have we all missed AI deployment together with permitted frontrunning for some super-smart politicians and Algos with High-Frequency Trading? Markets are discounting the brave faith in the human ingenuity and reflecting the widespread damage.

Chart by @jsblokland

VIX at 103 intraday high on March 18, 2020 (repeating its spike to the similar super extreme level on October 18, 2008) screamed not just fear, but total panic and expectations that The Global Financial System will collapse. Non-scientific, but in spirit: it will not. We will have enormous harm and hardship, but we have non-traditional bullets deployed globally now.

All Central Banks are printing Trillions of the new dollars and other currencies and buying all types of assets starting with US Treasuries and other government bonds and moving along the Exter's Pyramid to municipal bonds, corporate bonds, stocks (like BOJ and SNB), futures and Oil.

The money will be sent directly to households. We can expect a lot of rumours about vaccines at the critical junctures for the market.

It does not mean that the bear market is over and stock will not go lower, but it is very important to cut the daily noise and listen to the stars. "Bond King" Gundlach: "Gold is going to make a new all-time high in US Dollars" and "For the first time in years I am now not short any U.S. stocks." 

We have signs of extreme stress everywhere. Jeffrey Gundlach has been warning about Junk Bond Bubble for years. 

Central Banks unleashed their water cannons and flooding with QE the global financial system preventing it from total collapse. As Holger has noted: "ECB lanched its own bazooka dubbed Pandemic Emergency Purchase Programme, PEPP. At least Eurozone bond markets cheer. Italy's 10y yields drop by 105 bps to 1.32, risk spread over Germany to 172 bps."

Chart by @Schuldensuehner

All this enormous flood of liquidity is finding its way to our safe harbour as well. Tide is lifting all boats. While some people are still questioning the Gold's status as The Ultimate Hedge in the US, everybody in the UK is quite certain about it already.

Chart by @Northst18363337

Gold is hitting all-time highs this year in a lot of currencies already and the UK is a very good illustration of what is coming next to the US. 

Chart by @RonStoeferle

Adrian has provided us with a very good big picture for Gold. The extreme spike in volatility in 2008 marked the bottom for the Gold price during GFC and Gold has never looked back after that.

Chart by @highlevelTrader

And this brilliant chart presented by Holger provides another illustration of what we can expect from Gold in this bear market for the general equities.

Chart by @Schuldensuehner

All those people who survived the Double Black Monday 2020 Crash and the following weeks will be looking for value now. All governments are working over the clock this weekend in order to provide the backstops for all operators in the financial system and stimulate the economy in order to avoid Depression 2020. There is news already about bailouts measures for the industries in the UK, Germany and the U.S. which will include taking stakes in the companies. "Larry Kudlow coronavirus relief package worth more than  2 Trillion dollars" - as reported by CNBC.   

Otavio Costa provides us with his brilliant charts to work further on our brave investment thesis: Gold Is The Ultimate Hedge and The Best Gold Companies Will Be The Generators Of Wealth.

Smart money knows what real investment means. It means owning the business by owning the shares of the Company. Invest like Warren Buffett, who is proven to be right and sober again with his huge cash position. Nobody knows the future. I can only share with you what I am doing.

I am going "Warren Buffett" in Gold. Buying a business and building it. No Margin. I will be back monitoring The Big Picture For Gold and TNR Gold place in this generational opportunity. Join us. Follow TNR Gold.

"...The upside is clear. Indeed, Novagold sees it well enough, since it retains a significant stake in TNR, and former Novagold director Greg Johnson now sits on the TNR board. How long it will take the rest of the market to wake up remains to be seen. 
Nonetheless Klip is confident that this is a company that’s going places. 
“We are not dreamers,” he says. “We did it with the copper. We did it with the lithium. I would like to make it even bigger with the gold. I would like to do better, to keep a 25% stake.” 
It’s a vision for growth that makes a lot of sense. In tough markets, where capital is scarce, this kind of approach may well end up being a model that others choose to follow too."

Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.

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