I know I’ve been telling you to ignore gold’s short-term moves…but today’s rebound in gold is impressive nonetheless.

January 20, 2021

Dear Fellow Investor,

An amazing thing happened in the gold market this morning.

Make that two things: A gold crash…and a gold rocket-launch.

As you can see from this chart, gold was doing quite fine in overnight trading, until we got the usual smash right as New York trading was opening.

You know that I’m not a big conspiracy bug and I don’t believe there’s an official, organized cabal acting against gold on a daily basis. (My beliefs tend more toward unorganized cabals of convenience acting intermittently — but that’s a story for another day.)

All this said, for gold to continually get repeatedly taken to the woodshed at virtually the same trading moment…as Joe Biden would say, “C’mon man!” At this point it’s undeniable that “they’re” trying to keep gold down.

And why? One reason is the massive amount of paper gold standing for delivery as every active contract month draws to a close. The simple fact is that there isn’t enough gold in the Comex warehouses to supply those deliveries, so the price has to be driven down to discourage them. And that has to be done every month these days.

It’s getting harder and harder to accomplish this, however. And as evidence, you only have to look at what happened today.

The chart shows it: Gold not only halted that sell-off, it rebounded and soared higher for the day.

What This Means For The Long Term

Again, I urge you to focus on the longer-term fundamentals of debt and currency creation, and the absolute necessity these create for very significant dollar depreciation, as the reason to own gold and invest in mining equities right now.

These factors, as I detailed on Monday, ensure much higher prices for gold, silver and mining stocks over the years to come.

The short-term moves — even ones as impressive as today’s rebound — can get quickly wiped out by the day-to-day volatility.

And to have a new gold rally begin on the day that President Biden is inaugurated…well, it just seems too simple of a story to be true.

Still, what’s impressive to me is that investors around the world rushed in to buy gold on this day, in the face of a sharp sell-off.

They stood in the way of the avalanche of selling and figuratively said “Bring it on — we’ll take all you’ve got.”

That’s encouraging, no matter how you spin it.

So keep watching gold, as it’s showing some life again. And make sure you’re positioned for the big moves ahead.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference