This article was contributed by James Davis with Future Money Trends.
July is the month of my birthday so it always has a SPECIAL PLACE in my heart, but July 2020 really TAKES THE CAKE. This was silver’s BEST MONTH since… 1979! It was gold’s BEST MONTH since 2011!
We alerted that when gold was THIS OVERBOUGHT in previous times, it had a tendency to suffer a price correction FAST AND HARD.
From a technical analysis perspective, what we measure is the RSI, which stands for Relative Strength Index, and right now, gold is TICKETING ITS HIGHEST PRICE since the year 2000!
In the last 40 years, which is over 14,500 days, gold has only been THIS OVERBOUGHT in about 15 occasions – that’s 0.1% of the time.
Courtesy: U.S. Global Investors
In previous instances, this SPARKED A SELL SIGNAL and gold’s price went down.
But, as you can clearly see by the fact that gold is at an ALL-TIME HIGH, overbought signals within the context of a bull market are really buying opportunities.
One could have purchased in each of these times at the MOST EUROPHIC moments and still be up significantly.
Gold is in a bull market and there’s NOTHING INHERENT that will reverse that trend.
No matter how you look at this, the path ahead is QUITE CLEAR: gold is headed UP.
The metal is up 29.6% so far in 2020, which is its BEST YEAR since 2010, when it closed the year up by 29.2%. In other words, this is gold’s BEST-EVER year since I was born.
Many feel that this is a STRONG ARGUMENT for why the bull market is close to over – they KNOW NOTHING and I want to show you what markets are pricing in and why we could YET SEE an additional 8% upside potential this year, bringing gold towards $2,160/ounce.
- Real Negative Yields: COVID-19 sent trillions of dollars back to MONEY MARKET accounts. These Baby Boomers are not going to reenter equities so soon. They’ll look for income and yield, but also inflation hedging.
Bottom line: the 10-year Treasury bond, which is the BAROMETER of the asset universe, is now generating its lowest return ever – A NEGATIVE 1%.
Courtesy: U.S. Global Investors
As you can see, the last time this happened was 2012. Right after, it shot back up to positive territory. How did it do that? The FED wasn’t raising rates…
In 2012, what had happened was rates went from 1.47% at the lows to 3.00% at their highest. The bond currently generates 0.55%, so even if IT DOUBLES like it did in 2012 and goes to 1.10%, when one subtracts inflation (CPI), we’re still in NEGATIVE TERRITORY.
Negative rates are here to stay, and so is the precious metal bull market.
- Dollar Breakdown: It’s a USD bear market – FACTS ARE FACTS!
This bear market has just begun, so on the low end, it has 3-4 years ahead of it, but it could be as much as EIGHT YEARS.
In that kind of environment, silver’s spot price could reach $84/ounce!
Courtesy: Zerohedge.com
It’s not EVEN FUNNY how bullish FutureMoneyTrends.com is on silver.
In 2002, gold surged by 25.6%, followed by an additional 15.9% in 2003, 17.8% in 2005, and 23.2% in 2006. Total that up and you’ll arrive at an 89.3% return over five years.
GLORIOUS DAYS are coming and all you can tell your neighbors, coworkers, and friends who DIDN’T LISTEN is that it’s not TOO LATE.
The biggest profits are yet to come.
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