Hard assets are in hard demand. The rise in all metals in a global pandemic year indicates the revival of investment demand for hard assets. Parabolic rise of hard assets gives an indication of the slide of paper assets. The future real asset will be water and land where water is stored. Gold’s value will be zero only when a price of a drop of water costs $1000 and more.
The break of $2000 before the release of US July jobs numbers suggest that sharp corrections will be limited. Gold and silver will not fall below last week’s low (if there is a sharp correction).
The western world is going over the moon over the current price rise in gold and silver. As Asians and as Indians gold and silver investment is in our genes. Our ancestors invested a good amount of their investment in gold and silver. The western world is now realizing the power of gold and silver investment.
The reasons like continued rise in investment demand, increase in long positions in futures, etc are useless reasons for gold and silver price rally. They are just to console yourself and nothing else. In my view the real reason for gold and silver price to rise are:
- Decline of the US dollar. A decline in US dollar or a busting in the purchasing power of the US dollar signifies that the end is near of USA as ruler of the world.
- Busting of paper currencies which gained mass acceptance after world war1.
- The safest state backed treasuries are not safe anymore.
- Gold is the only alternate to replace the US dollar.
- Current generation of new investors, obsessed with only stock market investment suddenly realizing the power of gold investment and silver investment.
- Limited mine supplies.
- Central banks will run out of options if the tried and tested measure of just increasing money supply fails to revive global economy. I believe that central banks have run out of options.
- Inflation, the term created by economist after the First World War is also the reason for gold and silver price to rally. Central banks are still obsessed with inflation under recessionary times. Inflation, deflation or stagflation or any other acronym used by central banks to justify their policies will only increase the pace of rise of gold and silver.
- This year’s pace of rise of gold and silver are suggesting that a global economic doomsday is just around the corner. Central banks are aware of the same. They are just refraining from going public as it will cause mass unrest and a barbaric world.
- Gold price rise in also an indication that political boundaries of nations will change. It will start with the Indian sub-continent. China, Pakistan and Nepal are encroaching in our land. India will surely hit back using armed attack. A strong leader and a decisive leader of Modiji will ensure that encroachers of Indian land make hay. This is happening all over the world and not just India.
I have traveled extensively in very interior parts of states of Rajasthan. Western Madhya Pradesh, Western Uttar Pradesh and Northern Maharashtra and Konkan belt of Maharashtra. I have spoken to jewelers, the demand scenario, how they calculate gold price trend accurately without reading/listening to news etc. Some of the techniques adopted by generations of jewelers in different parts of India have been adopted by me in my daily analysis and long term forecast. I have been made mathematical models based on their ways. A lot of Vedic Mathematics is involved. The real “Bharat” (India) lies in deep rural India and not in urban cities. (I love travelling to my ancestor’s state of Rajasthan, particularly the Marwar region. I am a Marwari be genes).
COMEX GOLD DECEMBER 2020 – current price $2033.20
- Gold can rise to $2227.90 by next week as long as it trades over $1972.80..
- Corrections upto $1972.80 will be a part of the bullish trend.
- Monday’s (10th August) daily close is very important from a technical perspective).
MCX COPPER AUGUST 2020 – current price Rs.507.80
- View till 27th August: Copper needs to trade over 494.30 to rise to 516.20 and 534.60. Bearish trend in copper will be there if (a) Copper does not break the immediate resistance of 520.50 (b) Copper trades below 494.30 for a few days.
- Today copper needs to trade over 503.70 to rise to 513.60 and 516.70. Copper will crash if it trades below 503.70.