The Reasons Behind The Gold Sell-Off

Gold is selling off because traders now believe the Federal Reserve will not be as easy as once expected. While Fed policy is more likely to be much easier than expected, if traders are correct this development would be far more bearish for the stock market than it is for the gold market.

The lack of conviction gold stock investors have in the trade really is amazing. Despite the most positive fundamentals ever for gold, fear is far more pervasive than greed. Imagine what the market will look like when larger gold stock investors actually turn bullish on gold. 

Related trading instruments: SPDR Gold Trust ETF (GLD),Market Vectors Gold Miners ETF (GDX)

Gold Is One Of The Best Bargains One Can Buy

If you think the price of gold is expensive now that its above $1,700 wait another week and see how expensive it is. In relation to the amount of money the Federal Reserve has already printed, and the amount it's about to print, gold at today's price is one of the best bargains one can buy.

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ)

All The Government Is Doing Is Printing Money

Nobody should be getting a check from the government because the government doesn't have any money. All the government is doing is printing money and they're destroying the value of everybody's savings.

Related trading instruments: SPDR Gold Trust ETF (GLD)

Gold: How It Reacts During Crisis

During the 2008 financial crisis, gold fell about 25 percent and took seven months to make a new high. This time gold only fell about 15 percent, and may make a new high in under a month. This shows how much greater this financial crisis is, and how much more reckless current Fed policy is.

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX)

Gold Will Skyrocket

Gold is falling because investors are clueless as to what is coming. Their mindset is similar to that of central bankers. They have no idea how bad the consequences of the current monetary and fiscal policy mistakes will be. When they figure it out en masse, gold will skyrocket.

Related trading instruments: SPDR Gold Trust ETF (GLD), iShares Silver ETF (SLV), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ)

Investors Don't Believe The Gold Rally

As gold nears a 7-year high, gold stocks continue to lag. Investors don't believe the gold rally, as they attribute it to temporary safe-haven buying. But geopolitical risk will remain elevated for years as Fed policy, the main driver of the rally, gets even more reckless.

Related trading instruments: 

Newmont Mining (NEM), Goldcorp (GG), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD)

India Is Buying Gold

India has joined countries like Russia and China buying gold in an attempt to diversify reserves away from the US Dollar:

"The Reserve Bank of India has jumped on the gold bandwagon. Since December 2017, the Indian central bank has added 50.4 tons of gold to its reserves. India bought 8.2 tons of gold in January and February of this year and analysts project that pace to pick up. India’s gold reserves currently stand at a record high of almost 609 tons, according to data from the IMF."

Related trading tickers: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ)

Russia Continues Buying Gold

The Russians bought more gold last month as they continue to try to minimize exposure to the US Dollar.

"The Central Bank of Russia added another 18.7 tons of gold to its stash in March according to a press release last week. This boosts the country’s gold reserves to 2, 167.9 tons or 69,700,000 ounces. Gold now makes up about 18% of the Russian central bank’s reserves."
- in Schiff Gold

“Vladimir Putin’s quest to break Russia’s reliance on the US dollar has set off a literal gold rush.” 
- in Bloomberg

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ)

Precious Metals: Silver Will Rise Even More

Look at last time. Silver went up to $50 per ounce from $3 to $4 an ounce in 2000-2001. Gold went to $1,900 per ounce, but silver went to $50 per ounce. It was a much bigger percentage gain. If I am right about gold going to $5,000 to $10,000 (per ounce), I am sure the percentage gain in silver will be even bigger.

If The Fed Comes To Rescue, Gold Will Rally

What people don’t understand is how much worse the economy is going to become once the Federal Reserve comes to the rescue. Gold is going to go through the roof.

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX)

Opportunities To Invest In Emerging Markets, Foreign Currencies and Gold

If you're an investor, it's an opportunity to invest more in emerging economies, in foreign currencies, in precious metals. Obviously the gold market is being suppressed a bit by the strength of the US Dollar but as the US Dollar surrenders those ill-gotten gains that is going to be particularly good for the gold market.

Related trading instruments:

• SPDR Gold Trust ETF (GLD)
• Market Vectors Gold Miners ETF (GDX)
• Newmont Mining (NEM)
• Barrick Gold (ABX)

Further reading:

The Next Bear Market

Inflation Is Going Dramatically Higher

US Dollar: A Bear Market Rally

Video: Ray Dalio @ Google Talks

Gold: Ever Tightening Supply

During the Squawk Box interview, US Global Investors CEO Frank Holmes noted that the massive money-printing around the world has made gold an important part of an investment portfolio. Holmes also mentioned the ever tightening gold supply.

Related trading instruments: 

• SPDR Gold Trust ETF (GLD)
• Market Vectors Gold Miners ETF (GDX)

Gold: A Tight Trading Range

If you look at the gold chart the range is really getting compressed. We're not breaking out but we're not breaking down. It's getting narrower and narrower, we're really consolidating.

Related trading instruments: 

• Market Vectors Gold Miners ETF (GDX)
• Market Vectors Junior Gold Miners ETF (GDXJ)
• SPDR Gold Trust ETF (GLD)

The Anti-Dollar Trade

I am totally all-in on this anti-dollar trade and and so this type of sentiment by retail investors on top of all of the other economic indicators market indicators that I am seeing simply cements for me how right I ultimately am on this investment strategy.

Related trading instruments: 

• Market Vectors Gold Miners ETF (GDX)
• Market Vectors Junior Gold Miners ETF (GDXJ)
• SPDR Gold Trust ETF (GLD)

Did Kudlow Put In A Floor For Gold Prices?

Larry Kudlow shares his views on gold and the US Dollar.

Related trading instruments: 

• SPDR Gold Trust ETF (GLD)
• Market Vectors Gold Miners ETF (GDX)

Bitcoin Is Nothing Like Gold

Bitcoin is nothing like gold despite the fact that you have all this terminology that was deliberately used to make it sound like gold. You mine Bitcoin, right? No,  there's no mines, there's no pitchforks there's nobody out there, there's no mine right? But you create them but they said it's mining and there's miners to make it sound like gold. They make the Bitcoin look like gold, it's color it looks like a coin made of gold. That's done for a reason. To create the false impression that you're buying something like gold.

Gold Needs To Clear Overhead Resistance

We got above $1350 last week but we couldn't hold it. I think we really need to go above $1400 to really clear away this overhead resistance the only trend that really continued was the bond market continuing to go down it's pretty much a daily affair.

Related trading instruments: 

• Market Vectors Gold Miners ETF (GDX)
• Market Vectors Junior Gold Miners ETF (GDXJ)
• iShares Silver ETF (SLV)
• SPDR Gold Trust ETF (GLD)

Inflation Is Good For Gold

A $12 decline (in gold prices) turned into a $25 rally what is that showing that as the idiot morons robotic sellers when they see higher than expected inflation sell the dollar people who use their brains are starting to dip to think and actually come into the market and say wait a minute I don't care what these algorithms or computer programs say inflation is good for gold.

Related trading instruments: 

• SPDR Gold Trust ETF (GLD)
• Market Vectors Gold Miners ETF (GDX)
• Market Vectors Junior Gold Miners ETF (GDXJ)

Inflation Is Bullish For Gold

The stock market should be affected by higher interest rates but no, they don't care but they somehow think it's going to be bad for gold. But the reality is higher inflation is great for gold, that's why people buy gold as it's a hedge against inflation. So the more inflation the more demand there is for gold.

Related trading instruments: SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), SPDR Gold Trust ETF (GLD)

The Implications of the US Dollar Weakness

On a recent tweet, Peter Schiff highlights the recent moves in crude oil and gold and the implications of the US Dollar weakness going forward: 

"Gold closed above $1,300 an ounce for the 1st time in 5 years, oil closed above $60 per barrel for the 1st time in 4 years, and the U.S. dollar fell the most in 14 years. Interesting that no one is worried about what this implies for inflation or interest rates in 2018!"

Related: SPDR Gold Trust ETF (GLD), United States Oil Fund LP ETF (USO), Nymex Crude Oil Futures