Monday, 2 March 2020

What Is Next For Gold: Will Global Coordinated QE Stop The Avalanche Of The Unpayable Debt?

What is next for Gold? A lot of people are asking me during our TNR Gold PDAC 2020 on the WEB video updates on Skype and I better put it all in my blog post so that you can study the charts at your convenience. 

Gold is already jumping like a puppy to $1,610 in anticipation of FED and ECB rates cuts and more QE. BOJ has provided support to the markets overnight and I think that we can stop asking whether BOJ was buying directly S&P futures again this time. In the age of algos even the US Plunge Protection Team desk does not have to be located in Tokyo for BOJ to do so. 

Chart by Holder Zschapitz

This chart from Holger demonstrates the reality of the 21st century the best for our discussion. A champion among Central Banks by the size of its balance sheet relative to the economy is SNB (Swiss National Bank) and they have been buying stocks as Apple in the US like forever now. My very personal view on the situation can be summarised as follows: nobody can afford a second Lehman collapse. It was unimaginable to try again after the Great Financial Crisis in "normal circumstances" it is suicidal on the global scale now. 

We are talking not only about tanks on the streets but people in hazmat suits with machine guns closing communities full of sick people into quarantine. This time there is a real problem which cannot be fixed just by printing money but without it, the full-blown panic will tear our societies apart. I believe in the human ability to adapt and survive. Let's hope, that for a lot of us we will have a more pressing issue in life - our ability to lose money long before that brutal picture from a bad movie will ever materialise as I have described above. I expect a full-blown coordinated QE by all Central Banks like there is no tomorrow. Gold will go dramatically up allowing for the recalibration of the global financial system in order to survive the avalanche of unpayable debt. Now we can check what data and charts are telling us about the big picture.

As we have discussed on Saturday on my Twitter feed, my first assessment of the coronavirus situation was published in January

Reality is very sobering. I expect global coordinated interest rates cut on Sunday. Otherwise, it will get really ugly really fast. It will not cure the virus but can avoid panic when finally governments will announce that coronavirus has become pandemic and their plans to deal with it. 

As you already know, our rule #1 - Stay Safe. Virus, markets, please never try to be smart on margin. Do Your Own Research. All markets are heavily manipulated. Gold and Silver are the best examples. Now we are entering the mega stage. Algos and Central Banks will be frontrunning us all.

Age brings fewer advantages the longer you go. Ones of the few - are memories you wish to forget. Those of us who waited for Gold to put us all on the boats in 2008 must know what is happening with Gold now. Margin calls are killing retail and millennial Pros. They sell what they can.

Chart by Holder Zschapitz

Let's cut the noise and look at the big picture for Gold. I do believe personally that we had a brutal trigger to start the avalanche. Debt. Unsustainable. Unrepayble. The only way now to avoid total panic is QE and pumping the air in the bubbles. Chose yours wisely. 

Chart by Holder Zschapitz

Gold. This is a good way to start your quest for answers. Nothing has changed in the big picture. Central Banks will put our Gold Bull on steroids. Nobody knows the future, but today you have the luxury to get a lot of wise people to draw you the maps to search for the best way for your journey. Best to All and stay safe. 

Chart by Keith McCullough

The young Gold Bull was swimming against the tide of the rising US Dollar. Now POTUS is facing elections during the very challenging times. The "strong dollar" is not welcomed anymore. FED and other central Banks will be racing to the floor devaluing all FIAT currencies against Gold.

Chart by Northstar

Very interesting chart from Patrick demonstrates the big view picture on the Gold market from another bird's view perspective.

Chart by Patrick Karim

Next chart is pointing out to the Diamond Top Formation for USD.

Chart by @graddhybpc

And this long term monthly chart for Gold from Edward puts all our fundamental observations on the navigation touch screen. Nobody knows the future, but Gold has two very powerful friends now: POTUS and FED.

Chart by Edward Gofsky

Now you can better understand our TNR Gold Story and why I do believe in it. Please feel free to contact us in order to schedule a Skype Video update to learn more about our Company. Please always do your own research and never try to be super smart on the margin. Always consult a qualified financial adviser before any investment decision.

"...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."

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