With the US dollar moving lower today, is the gold bull market getting ready to unleash higher?
“… in that case, the Fed will pause, and the massive short position at the front end of the curve will be seriously offside. Short rates will plummet. Gold will rally harder than Heather Locklear parties on a Saturday night.” — Kevin Muir
Gold Bull Market
By Ronald-Peter Stoeferle, Incrementum AG Liechtenstein
June 7 (King World News) – We will stick to our conviction that we are currently in the early stages of a new gold bull market, which has been temporarily slowed down by the election of Donald Trump. The expectations of the political newcomer were clearly excessive – as we warned last year – and continue to harbor large potential for disappointment. As pointed out earlier, we can see significant upward potential, especially in the commodity markets, which now command extremely attractive valuations in a historical context, both in absolute and relative terms.
Stoferle continues: At the moment we are at the turning point towards a gold bull market. The macroeconomic and geopolitical factors support this tendency. One of the things we notice across the bull markets of the past 50 years is that, even in its weakest period of increase, gold gained more than 70%. This record supports our optimism for future developments.
In 2017, one liter of beer cost EUR 10.95. In 1950, a patron would have had to put only EUR 0.82 on the counter. This means that the price of beer at Oktoberfest has increased by an annual average of 3.9%. But how much beer does an ounce of gold buy you? In 2017, 99 liters. Relative to the historical average of 87 liters, the “beer purchase power” of gold remains well above the long-term mean.
However, we are still far off the historic high of 227 liters of beer for one ounce of gold that was set in 1980. We do not regard this exalted level as completely unattainable. Of course, that does not mean that investors with an affinity for gold must step up their drinking game, even if the temptation of a good lager is in the same ballpark as the one for the shiny precious metal. It only means that less gold is needed this year to maintain a constant level of beer consumption.
King World News note: Although games are still being played in the paper gold market by the bullion banks, the clock is ticking for the bears. Gold will break above $1,400 and explode higher, it’s just a question of when the manipulators will lose control. Also, the KWN audio interviews will resume this week with London whistleblower Andrew Maguire!
In The Footsteps Of Giants
One of the top questions KWN receives from investors about the mining industry is always: “How do you know out of the thousands of companies there are to choose from which will take-off and which ones will falter?” The answer for smart money investors is always to look for proven leaders with previous success as a good indicator of future success. One individual that fits this description is pictured below with multi-billionaire Robert Friedland.
Multi-billionaire Robert Friedland chose this man to lead his exploration team and it turned out to be a brilliant move because he was responsible for two of the largest and most important discoveries the world has ever seen while leading the team at Ivanhoe Mines. Investors across the globe are now following this man into his latest venture where he will help lead an exploration team where the CEO believes the team will deliver drill results that will send the stock price soaring more than 1,000 percent! Also, a legend in the business just made a 7-figure investment into this relatively unknown company. To get in on the ground floor and learn more about this remarkable company simply CLICK HERE.
***ALSO JUST RELEASED: A Fascinating Look At Homebuilders, US Dollar, Copper, Inflation, Gold & Silver CLICK HERE.
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