- As 2022 begins, most of the world’s governments have no savings, face each new crisis with more debt, and enjoy bragging about themselves to financially impaled citizens.
- Please click here now: https://galacticupdates.com/wp-content/uploads/2022/01/2022jan4photo1.png Is this a snapshot of the world’s largest photocopier?
- The Fed has turned stock, bond, OTC derivative, and mortgage investors into QE welfare recipients. It’s a sad situation and I’ve argued that the Fed needs to be closed down. Immediately.
- Amongst the sea of fiat-oriented insanity, there are islands of rational thought and action, and the citizens of India are obviously leading the way.
- In 2011, the Indian government was only at the beginning of what was to become a carpet bombing of the gold market. As a result of the taxes and restrictions imposed, there is now an enormous black market for gold.
- If unofficial market tonnage is combined with the 1050 tons of official market demand, total Indian citizen demand for the 2021 calendar year was likely in the 1200-1400 tons range.
- That’s only going to keep growing in the years and decades ahead.
- In the West, there’s a lot of propaganda that “gold pays no interest”. At my GU Dividends newsletter I’ve been helping subscribers earn a solid 6%-10% a year on highly reputable and liquid gold investments for almost a decade.
- In India, it’s normal for investors to get around 8% interest on gold stored with reputable jewellers and dealers. Gold does pay interest, and a lot of it, but fiat fiends in the West don’t want to hear the truth.
- Next, please click here now: https://galacticupdates.com/wp-content/uploads/2022/01/2022jan4gold1.png Double-click to enlarge what is probably the most fabulous chart in the world.
- Here’s the bottom line: In 2014, I told investors to prepare for a long “head building” process in what could become the greatest chart pattern in the history of markets, then a surge to $2000, then a swoon to about $1500, and then an “Astro blast” to about $3000.
- Clearly, gold investors have nothing to fear. Everything is playing out exactly as suggested.
- Please click here now: https://galacticupdates.com/wp-content/uploads/2022/01/2022jan4stk1.png Double-click to enlarge what is clearly the most ridiculous long-term chart in the world, the US stock market.
- Since 1980, I’ve issued five major buy signals and all of them have been followed by “multi-bagger” gains for investors. What comes next?
- What comes next is the biggest sell signal in the history of the American fiat empire. Please click here now: https://galacticupdates.com/wp-content/uploads/2022/01/2022jan4triple1.png I’ve urged investors to follow the Morgan “Full House” triple sell signals since 1980, but few heeded my call.
- I believe that within 12-24 months, another full house sell signal will be coming from Morgan, and their top analysts are already showing heightened concern.
- “A long decline in real interest rates, which allowed stocks to break free from economic fundamentals and their price/earnings multiples to expand….” – Lisa Shalett, chief investment officer, Morgan Stanley Wealth Management, Jan 3, 2022.
- Please click here now: https://galacticupdates.com/wp-content/uploads/2022/01/2022jan4rates1.png Here’s a US rates and inflation chart courtesy of longtermtrends.net. I’ve added some key annotations.
- In all previous bouts of inflation, the US central bank has hiked rates substantially. In the current situation, it’s done nothing, but promises to do so. If inflation doesn’t wane (and with US Omicron cases hitting 1 million a day it probably won’t), the Fed is likely to become much more aggressive than stock market investors are prepared for.
- The danger for stock market investors is becoming as extreme as it was in 1966 and 1929.
- Metals market enthusiasts should take note of the fact that in the 1975-1980 period, not only did nominal rates rise, but so did real rates… while gold and silver surged, and the miners went parabolic!
- Please click here now: https://galacticupdates.com/wp-content/uploads/2022/01/2022jan4goau1.png Double-click to enlarge his GOAU daily chart. Investors need to prepare for a hybrid of 1966 and 1929, where the stock market tumbles much more violently than it did in 1966… but the crash is more inflation-oriented than liquidity-oriented.
- Inflation is likely to keep rising, creating a panic out of the stock market and into the miners, similar to what happened in the 1960s and 70s.
- Even if gold does dip to my original $1500 area target, I think most of the downside in the miners is already priced into the market… especially the juniors!