The last time this happened, Gold Price Soared for 10 years / Commodities / Gold and Silver Stocks 2023
Justin Spittler : 615% gains the last timethis was triggered… “This is incredibly bullish”… “Someone big” is loading up…I’m no gold bug, but…
Gold is closing in on its all-time highs.OnMonday, gold broke above $2,000 per ounce—the highest it’s been in over a year:
Itsall-time high of $2,074 is now within reach.
Andif history repeats, gold could soar 600% from here.
Here’swhat I mean…The gold price has been stuck in neutral for the last 12 years.
In2011, gold traded at $1,920 per ounce.
Today,it’s at $1,951.
Inother words, gold’s risen just 2% in 12 years.
Wecan blame that mostly on the strength of the US dollar.
SinceMay 2011, the dollar index has gained 40%. At its peak, it was up 58%.
That’sonly the second time in the last 30 years the dollar gained 50% or more. Theother was from 1995 to 2001. And it killed the gold market. Gold lost 30% ofits value from January 1995 to January 2001.
However,once the dollar peaked, gold skyrocketed. It soared 615% over the next10 years.
We’reon the cusp of another such opportunity…
As Ishowed you, gold’s on a tear.
Itbottomed in October and is up 20% since.
Guesswhat else happened in October?
Thedollar peaked. Justlike it did in 2001 when it sparked the last gold bull market:
Thisis incredibly bullish for gold.
Andit’s not the only signal screaming “buy gold”…
Thisis a popular saying amongst traders.
Generally,the longer an asset consolidates (trades sideways), the bigger gains it willproduce when it finally breaks out.
Gold’sbeen consolidating since 2011…
Source: StockCharts
Whatyou see is a massive “cup-and-handle” pattern.
It’sprobably the single most bullish pattern there is. When the price breaks abovethe “handle,” the pattern is complete, and the uptrend continues.
Fornow, gold remains in the handle portion of the pattern. But it looks on thecusp of breaking out.
If itdoes, it would signal a new gold bull market has begun.
SPDRGold Trust (GLD) is an ETF that tracks the price of gold.
OnFriday, it broke above last month’s highs. And it did so on heavyvolume…
Source: StockCharts
Thebars on the bottom represent volume. Notice how they surged in recent days? Ittells me “someone big” is loading up on gold. By that, I mean hedge funds,institutional investors, or other big-money players who often controlbillions of dollars.
Thatmeans this rally likely has legs... and the gold price could be just days orweeks away from breaking to new all-time highs.
Thesecompanies make money finding gold and pulling it out of the ground. That’simportant because it gives them “leverage” to the price of gold. When goldmoves an inch, gold stocks can move a mile.
Again,gold spiked 615% between 2001 and 2011. But the average gold stock soared muchhigher.
Forexample, Agnico Eagle Mines (AEM) surged 1,593%... KinrossGold (KGC) shot up 1,992%... and Newcrest Mining (NCM.AX) jumped1,478%.
Goldstocks are like gold on steroids. Keep in mind, they’reextremely volatile in both directions. Realize you’re making a risky bet whenyou buy a gold stock.
Thatsaid, gold stocks look great…
OsiskoGold Royalties (OR) broke to new 52-week highs on Monday. The stock is up 60% inthe last six months. And as you can see, the breakout happened on massivevolume:
Source: StockCharts
AlamosGold (AGI) isanother surging gold miner.
It’sup 80% in the last six months—on huge volume as well…
Source: StockCharts
Samestory with Caledonia Mining Corporation (CMCL).
Thestock doubled in the last six months. And the volume is spiking.
Source: StockCharts
But the safest way to profit—and protect your savings—is to ownphysical gold.Ithink everyone should own at least a little physical gold, just in case.
Goldis the ultimate money. For thousands of years, it’s stood strong and protectedfolks’ savings as fiat currencies have come and gone.
I’mno gold bug. But, like it or not, the value of the US dollar depends on ourpoliticians acting prudently.
Owninggold is a hedge against them printing infinite amounts of dollars to bail outbanks, fund green energy, or participate in whatever the next big “cause” is.
JustinSpittler
Chief Trader, RiskHedge
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By Justin Spittler
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