A new tidal wave of stimulus money is about to flood the U.S. economy, inflation indicators are pointing straight upward, real rates are generally headed lower, commodity prices are soaring…yet gold is being dumped.

Is there any sense to it all?

February 17, 2021

Dear Fellow Investor,

There is a long list of reasons why gold should be soaring right now.

But no one seems to be listening.

Gold is down another $20 today, adding to yesterday’s loss of about $24. It’s now trading below the November 24th bottom, a key support level that I’ve mentioned before.

As I noted above, the factors that should be working in gold’s favor are numerous. Considering that the Fed has no intention of raising rates any time in the foreseeable future (and simply can’t raise rates in any case, considering the size of the federal debt), the path to much higher gold prices should be clear.

But it hasn’t been. Granted, real rates, while generally headed lower, have been moving sideways over the past couple of weeks…and the dollar has put in a couple of days of strength.

Still, gold has been refusing to respond to the bullish factors that have come around in its favor. And that’s not how an asset in a bull market behaves.

Right now, gold seems to be unable to overcome the short-term indications of higher inflation that are spooking investors afraid of potential Fed tightening. Of course, rising inflation is great for gold over the longer-term, but few traders are looking past tomorrow.

The good news, such as it is, is that a number of gauges of investor sentiment and price momentum seem to have bottomed over the past week, so the likelihood of a rebound, or at least a bounce, in the near future is high.

And as I noted, the future still looks very bright for the yellow metal.

Gold And Gold Mining In 2021:
The Expert View

One of the advantages of being an attendee/member of the New Orleans Investment Conference is access to a steady stream of valuable information and events.

For example, I recently hosted a panel of industry experts sharing their views on what 2021 holds for investors in metals and junior mining stocks.

In addition to great insights on the market from my friend and fellow newsletter writer Gwen Preston, we enjoyed ideas from a trio of industry insiders, including some checklists that investors need to consider before investing in any junior company.

Our New Orleans Conference members got exclusive access to this panel last week, and now I’m making it available to all of our Golden Opportunities readers.

In addition, I’ve also conducted interviews with a few top-notch exhibitors at our New Orleans Conference, including an in-the-trenches report on the drum-tight bullion market from Dana Samuelson of American Gold Exchange.

You’ll find links to all of these valuable videos below. I urge you to watch them as soon as possible to get a clearer picture of the exciting days ahead for metals and mining.

All the best,

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