GOLD COMEBACK: HERE’S THE BLUEPRINT!

Gold does not directly correlate with the dollar. This couple has ceased from trading inversely to each other for many years. It’s very common to see a strong dollar and a strong gold rally, as well as a weak dollar (like right now) along with a weakening gold price (like right now). So, if the dollar isn’t the leading indicator for future gold prices, then what is?

The answer isn’t government debt either; the federal deficit and the national debt pile are contributors to the macro case for owning and storing precious metals, but the debt rises by the second, so if that were the case, gold would always go up.

It’s not inflation either; there’s inflation in the system inherently. Our global economy keeps adding more currency to circulation with each passing year and gold has been rising at more than a 1.6% pace, which is what the Federal Reserve cites as its gauge for CPI (Consumer Price Index).

Inflation and gold correlate much more once inflation becomes a noticeable issue, which any person can see and recognize. The truth is that the average American not only does not know how to define the term monetary inflation, he also has no idea what the consumer price index is – which means that inflation isn’t a hot topic, mentioned daily by influential figures.

Courtesy: U.S. Global Investors

This, as you can see, is an inverse correlation at its best. Bond yields, especially real yields, are the best barometer for where gold is headed next. Real yields are the result of discounting CPI from the nominal 10-yr bond yield.

Right now, the 10-yr bond is 0.84%. Because inflation is higher than that in the United States, there are negative yields, when accounting for real life. If one lends the government $100,000 for a decade, receiving 0.84%/annum, while his purchasing power erodes by more than that, he’s actually banking a guaranteed loss.

93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.

Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!

Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!


    In that type of world, one is incentivized to allocate a portion of his savings towards precious metals, since bonds don’t offer much of an alternative to cash.

    But, if the sentiment on the street is that this trend is reversing – which means rates are headed higher, while inflation stays tame, causing negative rates to disappear – the reason to own gold, as a trade, goes away.

    This is what’s happening right now: Wall Street is convinced that rates bottomed in March and after six months of recovering from the initial shock, lenders have more options to choose from, so they’ll demand higher rates from the U.S. government.

    Courtesy: Zerohedge.com

    We do not anticipate inflation remaining the same as today. In fact, with the latest reporting about oil prices in 2021, it seems that the street doesn’t either.

    On top of that, as you can see above, the markets are euphoric, with valuations resembling Dot.Com era levels. Right after it burst, gold bottomed and then soared for eleven consecutive years.

    That’s not what we’re envisioning, but if stocks peak soon and trade sideways for a number of months, gold could do well, as money rotates toward it.

    The point is that this slump could be based on a totally false narrative.

    So, what we’re doing is building our watchlist and waiting for the SWING, which will occur the moment the trend reverses.

    Best Regards,
    PortfolioWealthGlobal.com

    Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!

    Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!


      Disclosure/Disclaimer:
      We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. We are a marketing company. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it.

      Please read our full disclaimer at PortfolioWealthGlobal.com/disclaimer

      POUNDING THE TABLE ON THIS STRATEGY!

      POUNDING THE TABLE ON THIS STRATEGY!

      Because of the travel restrictions of 2020, I was so thrilled to see nature in these past few days. I’m currently in an area of America that is just perfect. In fact, as you’re reading this, I’m making my way to Wyoming, named by many as the most beautiful of the 50 states.

      read more
      MAXIMIZE YOUR HEDGES NOW!

      MAXIMIZE YOUR HEDGES NOW!

      Two days ago, I was watching the championship game of the Milwaukee Bucks, who won their first NBA title since 1971. Right outside of the packed stadium, some 70,000 fans watched the game on large screens.

      read more
      ARE THEY BLIND? OUTTA CONTROL INFLATION!

      ARE THEY BLIND? OUTTA CONTROL INFLATION!

      A good friend of mine just liquidated 80% of his mining stocks portfolio. He wrote his broker in June 2020, when he saw the big recovery happening, that his thesis was that because of all the currency printing, global supply chain shutdowns, inflationary rebound and stimulus checks, gold would be at $3,000/ounce by the November elections.

      read more