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Dear Fellow Investor,
The dollar was down yesterday, and gold was up. The dollar’s flat as a pancake today, and so is gold.
It’s a refreshing breath of normalcy.
You see, the very tight, inverse relationship between the dollar and gold seemed to weaken over the past few weeks. Usually, the two assets function like opposite sides of a see-saw; when the dollar’s down, gold’s up. And vice-versa.
It doesn’t always work that way. For some periods and for various reasons, the dollar and gold can be directly correlated, rising and falling in unison. But most of the time, and especially over the last couple of years, they’ve displayed a very tight inverse relationship.
Again, neither one of them has shown much of a trend, or a relationship with each other, in recent trading sessions. I think they’ve both been reacting to headlines, particularly the escalating trade tensions with China, rather than any underlying economic fundamentals.
It’s not uncommon for major asset classes to drift aimlessly at major turning points — and I think we’re seeing one of those tectonic market shifts right now.
Change Is In The Air
Of course, the daily foreign exchange market is about 50 times larger than daily gold trading, so if we’re trying to figure out where gold is headed we should start by analyzing the dollar.
In that regard, we see that the greenback, as measured by the trade-weighted Dollar Index, did burst through its long-standing resistance around the 95 level in mid-August. However, it seems to have been a false breakout, one prompted by the currency crisis in Turkey and concerns over the potential for emerging market contagion.
That brief spurt of strength passed quickly, and now we see that the index has dropped back below 95.
It’s too early to draw any conclusions, but I think we’re at a key turning point in the dollar...and therefore gold...with the dollar resuming its long-term downtrend. And that obviously means that gold should resume the strong up-trend it began in late-December 2015.
Why? For one thing, investors looking ahead to 2019 will see that the Federal Reserve’s rate-hike campaign is likely to end before the middle of the year.
Fed officials have previously stated that their target for the Fed Funds rate is 2.5%-3.0%. With the current rate at 2.0%, that means we only have two to four quarter-point hikes ahead.
In other words, the rate hikes could end as early as this December, or by mid-year 2019.
Once the market begins to grasp this, the dollar will crumble, and gold will soar.
Here Are Three Specific Things You Can Do Now To Get Positioned
I’ve been warning readers that the bottom in gold is less a point than a process. We’ve been enduring that process for some time, waiting (with admitted impatience) for gold to begin a consistent rally.
I think it’s coming, and soon, but no one can pin point the exact time. What you can do is get ready now...and here are three ways to do it.
1) Buy Resource-Rich Juniors
When the rally begins, the junior gold explorers/developers with large, established resources will be the first to respond. In the past, we’ve seen them double or triple in value on a mere 10% rise in gold.
So get ready for that by acquiring the best of these resource-rich juniors now.
2) Buy The Explorers Making Big Discoveries
In the meantime, there are a number of well-positioned explorers who are soaring in price — right now — on great drill results.
For example, I’ve told you about the big news from Great Bear Resources (GBR.V; C$1.64) which announced tremendous, high-grade gold intersections from drilling on its property in the fabled Red Lake district.
I recommended that investors buy Great Bear in our August issue of Gold Newsletter. Within days, the company announced its outstanding drill results and was on its way to quadrupling in value, reaching a high of C$2.33.
The good news for you: Great Bear’s share price has come back a good bit as investors have nervously awaited more results. I think the company understands the geology of their high-grade target now and more great news is on the way.
I’ve got it as a buy at current levels. (Note: I own this stock personally.)
3) Reserve Your Place — Right Now —
At New Orleans 2018
I can’t stress it strongly enough. Absolute fortunes were made in the last great bull run in metals and mining stocks that began in 2001.
If it’s beginning again — and important signals are saying this right now — then you will be cheating yourself if you don’t take advantage of this rare opportunity.
The single best way to make sure you’re positioned for this move is to attend the world’s greatest investment event.
I know, it’s my conference and I’m talking my “book” here. But check around — see how many world-renowned experts agree that the New Orleans Conference is the most rewarding investment event around.
This year marks another blockbuster line-up of speakers. As usual, we start with geopolitical, economic and other “big picture” experts like Robert Kiyosaki, James Grant, Mark Steyn, Jonah Goldberg, Guy Adami, Dennis Gartman, Doug Casey, Rick Rule, Peter Schiff and more.
We get more specific with experts like deadly-accurate market forecaster Keith Fitz-Gerald...wealth and livelihood preservationists Chris Martenson and Adam Taggart…
...Influential market economist Peter Boockvar…world-renowned crypto expert Juraj Bednar...and popular analysts Ben Hunt, Bob Prechter, Mark Skousen, Sean Levine, Matt Warder, Tom Wheelwright, The Real Estate Guys and Steve Hochberg.
And of course, we’re going to drill down (pardon the pun) into every investment sector — but specifically metals and mining — with experts like Adrian Day, Nick Hodge, Louis James, Byron King, Sean Brodrick, Lawrence Roulston, Lindsay Hall, Mary Anne and Pamela Aden, Omar Ayales, Thom Calandra, Chris Powell, Gerardo Del Real, Mickey Fulp, Bill Murphy, Rich Checkan and more.
There’s a sense of urgency to this year’s event for a couple of reasons.
One is that, as I’ve said, gold seems ready to begin its next rally at any moment. Not only that but, if speculator sentiment is any indication, this next move in gold could be historic in nature.
That would imply life-changing returns in mining stocks...and there’s no better place to be in that scenario than the New Orleans Investment Conference.
Second, I’m getting concerned about our room block at the New Orleans Hilton. At the current rate of response, we’re very likely to sell out well before the Conference.
If you lock in your place now, you’ll guarantee accommodations in our convenient host hotel, just an elevator ride to our general sessions and social events.
Moreover, you’ll also lock in a savings of up to $400 per registration. And, as a Golden Opportunities subscriber, you’ll qualify for a FREE Gold Club upgrade. That’s a $189 value!
To learn more and reserve all of these benefits, just CLICK HERE now. (And be sure to enter FREEGOLDCLUB as your discount code to claim your free Gold Club upgrade.)
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
CLICK HERE
To Learn More About
New Orleans 2018!
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