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Gold, Gold Stocks, and Gold Favorable News

Recent News:

Four hurricanes arrived in six weeks.  Harvey, Irma, Maria, and Nate have caused hundreds of billions in damage to the US.  Repairs and human misery will continue for months or years.  Many will never return to Puerto Rico, Houston, and Florida. Where will they go and what will it cost?

Regardless, it means higher deficits, more debt, a weaker dollar and higher gold prices!

Wildfires, literal and figurative:

California wine country is burning out of control as of October 11.

 

 

 

 

 

 

 

 

  • NFL revenues, credibility, and viewership are “burning” in early October.
  • Las Vegas was the setting for an active shooter, many deaths, and multiple stories about other shooters, organizations involved, and skepticism regarding the supposed facts. The “lone wolf” story sells in managed news, but is it true?
  • North Korea, nuclear bombs, ICBM technology from the Ukraine, nuclear subs, carbon bombs to destroy North Korean power grid, nuclear annihilation, and tweets created a firestorm of diversions. The U.S. stock market does not take the North Korea news seriously (all-time highs) but a wildfire of nuclear proportions is possible.
  • North Korean hackers (per NY Times) supposedly stole military documents from the U.S. and South Korea that included a plan to assassinate Kim Jong-un. Supposedly U.S. hackers (per NY Times) also broke into North Korean networks in 2010. If we operate computer networks, someone will break into the networks. Kim Jong-un does not appreciate being the target of an assassination and the U.S. does not appreciate his threats.  Military action and nuclear wildfire will boost gold prices.
  • California passed a law establishing penalties for improper pronoun use. It is time that a horrific threat to western civilization, such as improper pronoun use, is elevated to the status of a crime…. or something…..  Link here.
  • Illinois: accounts payable, retirement liabilities, and politics out of control. That “runaway freight train” will eventually crash.
  • Sexual harassment in Hollywood per Weinstein: If an organization loses control of the narrative, the truth may surface.  Expect more unpleasant truths to be revealed in other institutions.

 

MARKETS:

The Dow, S&P 500, and NASDAQ have hit all-time highs.  Central banks have printed $ trillions in the past decade and boosted stocks and bonds higher.  By dozens of measures the stock markets are too high, dangerous, and vulnerable to a severe correction or crash.  Yet they surge higher!

Look out below! But when? It is better to be too early than too late.

 

U.S. 30 year bonds have climbed for 37 years.  Many believe the bull market is over and others believe, based on central bank actions and weak economic fundamentals, bonds will rally further.  As bonds rise, interest rates fall.  Perhaps central banks can drive interest rates lower, bonds higher, and stocks even higher. Perhaps Kim Jong-un and President Trump will “make nice,” relations will improve, perhaps gold and silver are relics from ancient history, the US dollar will remain strong, and unbacked debt based currencies will survive forever.  Are you willing to bet your financial well-being on those unlikely expectations?

GOLD, SILVER, AND STOCKS:

Do your own due diligence and make your own investing decisions.  This information is provided without recommendations.

China has announced plans for exchanges that will enable crude oil suppliers to sell crude oil for yuan, and yuan for gold sourced from the west.  If this becomes a high volume operation it will diminish the use of dollars in international trade, the value of the dollar, and substantially increase the value of gold and silver.  This is important!

Endeavour Silver Produces 2.2 Million Silver Equivalent Ounces in Q3 2017

New Gold Announces First Gold Pour at Rainy River Mine

“As previously announced, the Rainy River mine began processing ore on schedule on September 14, 2017.  Since that date, the company has successfully processed approximately 290,000 tonnes of ore.”

 

The gold stock fund GDX is a popular ETF for gold stocks.

IN OTHER NEWS:

Bitcoin Plus Gold:  Bitcoin Exchange Wants to Bring Gold Ownership to the Masses.

“Vaultoro believes that gold ownership should be easy, secure and cost effective for everyone.”

Vaultoro also stores gold.  The exchange offers investors the ability to trade in and out of cryptocurrencies and precious metals.

 

Eric Sprott Announces Investment in Novo Resources Corp.

“Mr. Sprott now owns or controls 13,005,692 shares and 10,723,038 warrants.”

 CONCLUSIONS:

  • Hurricanes, floods and wildfires have destroyed hundreds of billions in property, vehicles, and vineyards. Expect higher insurance costs. Expect more Federal Government deficit spending, accelerating national debt, and further devaluation of the dollar.
  • North Korea: The stock markets see the confrontation as a distraction.  If there is a war, expect gold and silver to spike higher.
  • Hacking is a fact of life for networks, governments, and individuals. Equifax reported a breach that potentially put over 140,000,000 individuals at risk.  Shortly thereafter Equifax received a contract from the IRS.
  • California passed a law … say no more!
  • The NFL will listen to their advertisers. Revenues will dominate the discussions.
  • As the world adjusts to increased risk, stock markets will correct.
  • As the world realizes that continual fiat currency devaluation is inevitable and necessary, demand for gold and silver will increase.
  • Chinese and Russian efforts to price oil in yuan will weaken the dollar and increase gold prices. China and Russia want much higher gold prices.
  • You can protect your purchasing power, savings, and retirement assets with gold and silver bullion. Gold and silver stocks are highly volatile and excellent speculations during gold stock bull markets.  We believe that gold stocks will rally for several years in a prolonged bull market. 

 

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Article written for Gold Stock Bull by Gary Christenson of The Deviant Investor

By | 2017-10-13T05:45:21+00:00 October 12th, 2017|Gold & Silver Commentary|

About the Author:

Gary Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of several books, including “Fort Knox Down!” and “Gold Value and Gold Prices 1971 – 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking.

Many years ago he did graduate work in physics (all but dissertation), so he strongly believes in analysis, objective facts, and rational decisions based on hard data.