THE "LAST MOVE" OF THE MATRIX
The financial markets have been massively manipulated since 1996. Alan Greenspan had started the DotCom bubble with cheap money on a massive scale. At the same time, 1996 marked the beginning of a 20-year bear market in goldstocks(See chart).
By pumping liquidity into the general stock markets, the long-term squeezing of gold shares was made possible. Since the beginning of 2016, however, gold shares can no longer be manipulated more deeply. The long-term trend with its now double bottom is beginning to reverse. The FED can do whatever she wants, money supply expansion hardly helps the general stock market anymore, but instead it helps gold stocks and commodities in general. Economically, we are now in the stagflation.
The financial insiders have probably been preparing for this scenario for years. The mass of investors is being kept in the general stock market with a lot of media noise or is further encouraged to get in, while the insiders themselves are probably buying gold shares and gold inconspicuously.
The financial insiders have, so to speak, created these extremely cheap purchase prices for gold shares with the last power of the disappearing monetary system. Now that the power of derivatives and the monetary system is waning, you want to be in the right asset class - goldstock´s.
Just copy the financial insiders, sell the most expensive asset class in the world (standard stocks) and buy the cheapest asset class in the world (gold junior stocks). Especially in the case of exploration companies with good and large resources, a hundredfold increase is still possible in the next 1 to 2 years.
Gold could rise now to $1700, 1800 or even $2000 in 2020. This could result in the gold/HUI ratio (see lower chart) being hurled to the median of 0.37 or higher in just a few months. This could make gold stocks to the number 1 asset class of 2020 (which may go down in the history books). This is an opportunity last seen between 2002 and 2003. Junior gold shares with great potential can be found in the 1000 Bagger Report.
Disclaimer: I am not a financial advisor. This article is therefore to be regarded as completely non-binding information. The article is for information purposes only and does not constitute a recommendation to buy or sell. It is neither explicitly nor implicitly an assurance of a certain price development of the mentioned financial instruments. It is not a request for action. Any liability of any kind for the content or actions of the readers derived from it is expressly and completely excluded. This also applies to all links in this list, for the content of which any liability is also excluded. is excluded.
Follow me on Twitter: https://twitter.com/JoernGebert
HUI/Gold Ratio: The ratio shows the ratio between gold and gold shares. If the ratio is low, (0.10), gold shares are very cheap, if the ratio is high (0.60) is very expensive. A great indicator to know when gold stocks are expensive or cheap. One could also compare this with the ever-changing distance between Earth and Mars. Sometimes Mars is only 56 MIO kilometers away, but then again 401 Mio Kilometers.