Jan 9, 2018
1) Gold should have gone down in 2017.
2) The everything bubble is coming to an end.
3) The technical picture shows gold coiling for a big breakout!
Soaring stock markets, with all major US markets making numerous new highs throughout the year...
• Raging bitcoin and crypto prices, captivating investors worldwide and dominating headlines, with numerous stories of investors getting rich.
• Rising real estate values, with some areas reporting frothy prices.
• Rising US interest rates, with promises of more from the Fed.
• Higher GDP in the US and many other economies around the world.
• Falling unemployment in the US.
• Higher wages, with the passage of a tax bill that spurred many companies to offer bonuses and wage increases.
• And last, falling gold bullion sales, so soft they reached a 10-year low.
• The VIX (Volatility Index, a general measure of fear in the marketplace) has registered a reading below 10 a total of 54 days in the last 20 years—and 46 of those abnormally low readings have occurred just since last May! The reversal to the upside could be stunning—and push investors into gold.
• The CAPE (Cyclically Adjusted Price-Earnings) ratio has now matched its 1999 level, the second highest reading in over 100 years of data. And you remember what happened in the years following that bloated stock market level. The CAPE has now registered a higher reading only in 1929. Yikes.
When will gold begin its surge?
It's impossible to pinpoint the day, but we know when:
Gold will respond when uncertainty and fear creep back into the economy or markets.
Or any other surprise that catches investors off guard. The next event that causes financial instability will likely be the spark that pushes gold out of its current range and kick-starts the next surge.