Gold mid-tiers’ Q3 2024 fundamentals
All-time-high gold prices combined with relatively-contained costs catapulted unit earnings to another epic record.
1. $1424 or $1315? Which price does gold touch first? Gold is leaping higher this morning, up $9 to approx. $1375.
2. My unchanged view has been that gold takes out 1424 first, and I bought into the lows at 1315, all the way down in a pyramid formation of buys.
3. The reason I feel gold takes out 1424 first, and have stated it without wavering, is that technically speaking, any consolidation has a 66% chance of continuing (consolidating) the direction price was moving in, when it went into the consolidation.
4. The simple fact is that gold was rising into 1424, so there’s a 66% chance it breaks upside. I personally put the odds at 60%. My buying into 1320 has nothing to do with whether gold takes out 1424 or 1320 first. I actually hope 1320 breaks first, so I buy more gold. More wealth.
5. In one way, I’m the only perma big picture bear in the gold community. Because I view gold as the only wealth, as the only money. The lower the price wealth and money is, in terms of paper credit, the more I buy. If you could get a Rolls Royce for less money, is that a good thing or a bad thing. Know what gold is. Know what the opponents of gold are. Know their heart. It is black.
6. The question the gold community needs to ask yourself is, do you want more wealth, or more credit? The mechanism of wealth building is not to guess when you might get to use credit paper to buy more wealth, but to make one hundred percent sure that when the opportunity does present itself, you are there, on the buy. Buy professionally without fail as each opportunity presents itself, as you just did into 1320. Or should have “just did”.
7. A move down to $1225, if it happens, which I doubt, is not a problem. It’s a gift. Take it. Take your wealth.
8. If you have bought gold in the bottom $250-400 area, you need to think very carefully before ever selling that gold, before trading that wealth for credit.
9. Some fans of photocopied credit tell you that wealth (gold) “doesn’t pay any interest”. Look, I told you that 2010 was the year gold takes of its mask and goes on the aggressive, and told you that emphatically. Price rise in Gold based on photocopied paper credit measurement is only 1% of what I was talking about.
10. My response to those who say gold doesn’t pay interest is: “You’re a pathetic market loser, a failure who can’t buy weakness in the ultimate wealth, and the popsicle stick foundation of your credit-issuing clown act is: usury. What a joke. Go back to your photocopiers, toilet paper rolls, and your freedom-destruction fan club. You’re a price-chasing bustout. Scram.” Don’t let price-chasing cowards and freedom-robbers push you around. Those who push on Gold find Gold can push back “only” a billion times harder than all the paper credit issued in the world combined. Never forget that reality. Do not disrespect Gold or you will pay a major financial penalty.
11. Likewise, if you are buying Uranium now at “Gold $400” pricing levels, you want to think carefully before donning the hamburger flipping uniform the banksters are offering you.
12. Never trade out a core position in a major asset to “get it back cheaper” in terms of paper credit. Attention wealth builders: Here’s the Uranium chart, click here now to view: Uranium Daily Chart Technicals
13. You can’t really understand what is going on here (or in any market) unless you look at the daily chart within the confines of the weekly chart. Here it is: Uranium Weekly Chart. What you are looking at is a massive basing formation that is over two years in size/time. As a bull market moves forwards, technical indicators like RSI (Relative Strength Index) are going to become overbought from time to time. The great error made by investors is to liquidate core positions because price might sell off. That’s what is better termed “top calling”.
14. Top calling is arguably the single greatest core position wealth destroyer that exists in markets. Yes, Uranium is overbought on the weekly chart now, just as GOLD was overbought at $330 after it rallied from $250. Looking back, how have the Fools Gold Top Callers done against the Golden Wealth Builders from $330? Glad you sold out at 330? Many never got back in. Make technicals answer to you. Not the other way round. Be very judicial in the amounts of a major asset that you liquidate in anticipation of (or during) perceived market corrections.
15. If you bought Uranium core positions at these prices or lower, you do not liquidate them now, even if you know for 100% sure price is going lower, which you don’t. Yesterday was a perfect example of price continuing higher in an overbought condition when it was “supposed” to fall. It has occurred in Gold a zillion times since the bull began. It will be the same for Uranium. Notice that the key $8.48 high has already been taken out with the move to $8.52 on this run. Many of you have enormous wealth; dumping core positions also has tax ramifications that the teckie crowd can’t relate to. The lowest prices with a major asset are the safest prices. That base formation on Uranium targets the $12 area, just based on price alone. Factoring in the time of the base formation, and the $15-20 zone becomes very realistic.
16. Do not chase price with a demonic mindset that it is “getting away”. While core positions must be held, even when the top callers tell you to sell what you have to the banksters “before you lose all your credit with the Gman”, you must also exhibit a similar iron hand of patience, in regards to entering into new trading or core positions. My instruction to you is: Let price get away, as it was supposedly doing at $1387, the point where I identified a “loss of market sanity” in the gold community.
17. Natural Gas is another “untradeable at higher prices” asset. As price turns and begins a major bull market I will decrease my trading of natgas drastically. Natural Gas is arguably the world’s most volatile commodity, and professional investors, never mind amateurs, stand to meet the ultimate whipsaw as price goes higher. Your only protection in NatGas is to ensure your buys are at the lowest possible prices. Guessing at market bottoms or turns is insane. Get the wealth now. As price goes higher, leave it alone. Don’t pick your NatGas nose with trading, or you will find the nosebleed you get looks like a red Niagara Falls.
18. It’s possible that even if the supposed head and shoulders top formation on gold activated, the gold stocks indexes could blast higher anyways! Here’s a look at the supposed head and shoulders on bullion: Gold Bullion Daily Chart. Price has already taken out the downtrend supply line this morning, and a move to 1390, and arguably just 1385, could be viewed as negating the whole supposed top pattern! Why? Because that is the right shoulder high area, a violation of the right shoulder high on the upside negates the pattern. Some technicians view such an action as a buy signal! The red “neckline” is not to be feared. A violation of that line on the downside is a gold wealth accumulation signal, not a “hand your gold to the banksters now” signal. There is nothing to fear, not even fear itself, when it comes to gold!
19. Does anyone know how significant the price of gold bullion now is, for gold stocks? Even if the indexes (GDX, GDXJ, ZJG.to) fell, many individual stocks will pop higher anyways. The next golden popcorn to pop…could be yours!
20. There is NO strategy to employ now, other than buying gold stock, both indexes and individuals, if they move lower. Blowing out core gold stock positions now, in my professional opinion, in all seriousness, is at least one thousand times stupider, from a possible reward perspective, than blowing out bullion as it pulled back from 1045, after launching from what I termed “Michaelangelo’s head and shoulders pattern”. Here’s why: We are at a totally different point in the crisis now, yet Elmer Fudd Public Investor and the Institutional Fundsters are not getting the picture. Gold stock is a leveraged play on gold and gold $1400 is rocket fuel. We are vastly closer to a currency crisis now, and potentially a partial hyperinflation, so gold stock is a near-infinitely better buy now than it was then, from a fundamental macro perspective, although not from an absolute price point perspective.
21. Meantime, Elmer Fudd Public Investor crawls on his knees to the banksters, grovelling for his 4% a year payout on a $100,000 roll of the Gman’s T-bond toilet paper, buying after it’s marked up to $130,000 by Dr. Pinocchio. Think carefully about what I’m saying, it is not a joke. I wouldn’t pay more than about 80 grand for my first roll of the Gman’s t-bond crap paper, and odds are about 90% that I will pay that 80k, as the public busts out of their toilet paper bonds and onto the bread line in total failure. Again.
22. You are told by Fudd that Gold doesn’t pay you any interest. Hey Fudd, take a look at the Gold Community’s “interest” on bullion: It’s called GOLD STOCK, and the “if you are interested!” rate could be about 1000% over the next 12 months, while you hit the breadline! The Gman plans to pay you your interest on his toilet paper bonds in bread crusts. You wished for usury. You got it. Enjoy the fruits of your pathetic price chase. Do any of you understand what each $50 move higher in bullion above 1424 means for the bottom line profits of gold mining companies? Do any of you understand that the bond market is on the verge of implosion and how major that is for gold on the upside? Do any of you know how close we are to a US dollar currency crisis in response to the bond market crisis? Forget the microscopic top calls on the ultimate asset, or you are going to get buried by the Gold Punisher, alongside the rest of the cowards and price chasers.
23. Here’s the Supermonster Cup & Handling action on the GDX weekly chart. Click here now to view the gold stocks rocket sitting on the launch pad.
GDX Weekly Chart Pullback to Launch Pad.
24. Target: GDX 100. That pullback is the buying opportunity of a lifetime. You’ve been told by Golden Rap Star Eminem: Do not blow this opportunity! You’ve seen the effects of Bullion $1400 on a large group of individual gold-related stocks. As we move towards bullion $1500 the whole show is going to experience liftoff. Are You Prepared? Well, put your space helmet on and get prepared, and remember, Gold $1225 is unlikely to happen before Gold $1500. But if it does, you better understand that it’s a gift. In China, you lose face if you refuse a gift. Don’t refuse the gift of gold, or you won’t like the face slap that follows!
Special Offer For Website Readers: Send me an Email to [email protected] and I’ll rush you my “Gold Does Pay Interest!” report! I’ll be covering a mindboggling 100 gold juniors that you have sent me over the past year with specific buy and sell points for every single one. How’s that for an interest payout?! Thanks! st
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Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 Canada
Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
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