Ten Glittering Reasons to Buy Gold Right Now

They can’t keep it down for much longer. [The Rude Awakening] November 02, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Ten Glittering Reasons to Buy Gold Right Now [Sean Ring] SEAN RING If you read yesterday’s [Monthly Asset Class Report]( you could feel my anger at the gold price action that ended the month. We were so close to closing over $2,000 on the monthly charts for the first time. But something - we can’t say what (even if we know) - clubbed gold over the head right before the close. I suspect it was the Fed’s minions on Wall Street who dutifully sold to keep the world under the delusion - for just a bit longer - that the USG hasn’t lost control of its budget, money supply, or senses. But as my good friend and colleague Alan Knuckman said, “The longer you hold something down, the more furious the breakout will be.” And he’s absolutely right. But before I elaborate, a quick heads-up for you: Tomorrow, my friend and frequent Rude contributor Byron King will be on [Rickards Uncensored](. No one knows the intersection of the military, energy, and mining like Byron. Join Byron and Paradigm Press Executive Publisher Matt Insley for an in-depth session on gold, oil, and the situation in the Middle East. [We hope to see you at 10 a.m. ET tomorrow!]( Now, I will give you ten great reasons to buy gold right now if you haven’t already. Then, I will show you some charts that will strengthen your gold resolve. Ten Great Reasons to Buy Gold Right Now - Wealth Preservation: Gold has been a long-standing store of value that retains its purchasing power over time. It can be a safety net against inflation and currency devaluation. - Hedge Against Crisis: Gold often performs well during inflationary periods but not perfectly. It’s more of a “crisis hedge” than an inflation hedge. When investors anticipate the value of money decreasing rapidly, gold often increases. And while Jay Powell’s monetary policy has tightened considerably, Congress’ ludicrous fiscal policy has not. How much more money is going to Ukraine, Israel, and Taiwan? When will war games turn into war? - Diversification: You don’t have to back up the truck and put everything into gold. Just adding gold to a portfolio provides diversification, which reduces risk. It often has a negative correlation to stocks and other financial instruments. - Safe Haven: During geopolitical tension or economic uncertainty, investors often flock to gold as a safe haven asset. Ukraine was already a messy situation, but Israel and Hamas have taken that messiness to a whole new level. - Liquidity: Everyone loves gold and is a buyer. It’s a highly liquid asset that can be sold quickly and easily if needed, which can be beneficial in an emergency. - Capital Appreciation: While gold is often viewed as a wealth preservation tool, there's also the potential for capital appreciation, especially during market conditions like high inflation or geopolitical unrest. And with the technical outlook I’ll explain later, this is the perfect moment to make your first purchase—or additional purchases. - Tangible Asset: Unlike stocks and bonds, gold is a tangible asset that some investors find appealing. Dig a hole in your backyard and throw your gold in it. Just don’t tell anyone you’ve done that. - Central Bank Buying: Central banks worldwide hold gold as part of their reserves, which can provide security and confidence in gold's value. And they’ve been buying a lot lately. I’ll elaborate below. - Historical Performance: Gold has a long history of holding value and has been a sought-after asset for millennia. - Low Volatility: Unlike many other assets - Bitcoin comes to mind - gold often has lower volatility, providing a steadier investment over the long term. Let’s elaborate on some of these points. [[LEAKED MEMO] AI Opportunity]( A leaked memo from Google on AI could prove that it's [the biggest opportunity of the decade](. 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On a y-t-d basis,central banks have bought an astonishing net 800t, 14% higher than the same period last year. [Central bank demands] If the CBs are buying, shouldn’t you be? Retail Buying My friend and colleague Dan Amoss posted this in our editorial channel yesterday. This chart is from Michael Hartnett of Bank of America: [First Flow To Gold] Dan wrote: I've often noted that when the RIA/financial advisor channel wants in on the bandwagon, they buy GLD and chase momentum. When GLD outpaces gold futures on an intraday trading basis, the authorized participants create "new" GLD shares and buy the underlying gold for delivery to GLD custodian vaults… I expect these flows to be more frequent and long-lasting as stocks are choppier in a higher interest environment. This month saw the first inflows since May 2023. It could be the start of a new trend. Now, let’s quickly look at the technical picture Monthly Gold [Monthly Gold] We’re so close! We didn’t close above $2,000 for reasons you’ll soon see. But as my good friend and colleague Zach Scheidt says, “There’s no such thing as a triple top.” He’s right. Think of this as a three-year consolidation pattern. It’ll break up, and when it does, it’ll be glorious. Daily Gold [Daily Gold] After a staggering hit on the monthly close (below), gold has had a rough few days. The 50-day MA will rally above the 200-day MA, following the next upward thrust in price. The next stop will be $2,150. Then $2,350. And then the inflation-adjusted highs of $3,000. After that, the sky - or government and central bank incompetence - is the limit. And quite frankly, those two things seem unlimited lately. Five Minute Gold Dave “Resourceful” Gonigam of Paradigm Pressroom’s Five Bullets fame posted this yesterday, as well. It shows what happened near the close as gold headed over $2,000—dirty, dirty bastards. [5 min gold] Wrap Up God loves you. Wanna know how I know that? He’s giving you yet another opportunity to buy gold if you haven’t already. Three times, gold has bumped its head on $2,000 and relented, giving you a chance to get in. Be brave and make the move now. There probably won’t be a fourth chance. You don’t have to spend everything. Just enough to protect you and yours. Instead of “Good luck,” I’ll say, “Bon courage!” You don’t need the subtitles for that one. Have a great day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( In Case You Missed It… October 2023: Monthly Asset Class Report [Sean Ring] SEAN RING Dear Reader, Happy Hump Day - especially if you’re a gold bug or crypto bro! This month, things got back on trend. Equities fell quite a bit, especially the IWM’s small caps and the Nazzie. But let’s talk about those alternative assets. Gold and silver were crushed at the end of last month. (No idea who did that… 🤥) But somehow, gold staged a resurrection worthy of Steve Jobs’ Second Act. We just missed closing above $2,000 on the monthly charts for the first time. If you ask me, the “vested interests” pummeled gold at the end of the day to ensure the algos wouldn’t mindlessly buy all day today. Think I’m crazy? How about this: [chart] That’s the chart of the Dec Gold future. It was about to rocket, then got crushed going into the afternoon. That guaranteed a close below $2,000 on the monthly charts—dirty bastards. And crypto? Well, Bitcoin shot the lights out. The Bitcoin Maximalists will be insufferable for another month. That chart is nuts. You’ll see it below. Without further ado, let’s get into the charts. S&P 500 [chart] Well, we fell straight through the 200-day moving average, though we’ve had a nice rebound the first two days of the week. I wouldn’t be surprised to see more upside, but the downside risks are far more significant. The bearish price target now looks like 3750. Nasdaq Composite [chart] There’s been more downside on tech. We’re not in bear market territory yet, but we’re heading that way. The next downside target is 12,050. Russell 2000 (Small caps) [chart] We hit the 162.50 downside target I set last month. This week, we’ve seen a bit of a respite, as in the majors. If we break down through this level, 149 is our next target. If we break to the upside, we could head back to 197. My view is to the downside. The US 10-Year Yield [chart] Okay, the 10-year continues its rise, and I don’t think it’ll go anywhere but up for the time being. Another 29 basis points to the upside, briefly breaching the 5.0% mark, before backing off. Unless and until Jay Powell pivots, the ten-year yield will climb this wall of worry. Dollar Index [chart] We didn’t hit 108, but give it time. We’re up another point this month because the world needs more dollars. That sounds remarkable, but there’s a dollar shortage in the world markets, and foreign corporations are paying over the odds to get them. A Powell Pivot changes the story, but not yet. USG Bonds [chart] We didn’t hit 80 yet, but we fell off a cliff again. If the US Treasury has to issue trillions of dollars worth, they will be worth less, correct? We may catch our breath here, but I won’t call it a bottom. Investment Grade Bonds [chart] From last month: After being rangebound between 103 and 108 for the entire year, we finally got our break to the downside. Next stop: 96. High Yield Bonds [chart] We didn’t hit 71.5, but we got close. As junk bonds act like equity, we saw a rebound in the last two weeks. I think the bears will win this one. Next target: 67, then onto 62. [Could You Spot These 2 AI Investing Traps?]( Here’s something no one else will tell you about artificial intelligence. Investing in AI… is BS. Almost every investor out there is falling into [2 AI investing traps](. And they’re going to lose their shirts. Before you spend one nickel on AI… [click here to see tech genius James Altucher’s urgent warning to investors](. [Click Here To Learn More]( Real Estate [chart] Indeed, we reached 72 this month, as I said we would. The next level is 64. Energy: West Texas Intermediate (Oil) [chart] “To war! Oil’s down 10%!” Those two headlines don’t make sense to me, and yet, that’s what happened. If war and the economy meet, and war takes a beating this bad, the economy must be awful. Of course, government stats won’t tell you that, and neither will Paul Krugman. But I have a hard time believing oil will stay down for long. But my charts say 73 is the downside target. Ouch! Base Metals: Copper [chart] We’re back down to 3.65. The price looks depressed, so I’ll keep my 3.60 call. Past there, 3.35. Precious Metals: Gold [chart] I hope you held onto your gold. Of course you did! After last month’s monkey hammering, we immediately recovered. It’s a shame we didn’t close above 2,000, though, as the algos would have gone apeshit. Apologies for the simian metaphors. Precious Metals: Silver [chart] Waiting for silver to pop is like Waiting for Godot. I have no further comment. Cryptos: Bitcoin [chart] BOOM! There’s your pop! Bitcoin was up about 25% in October. Not bad, not bad at all. Next stop: 35,650. Cryptos: Ether [chart] The “silver” of crypto. Yawn, for now. Trad Asset Class Summary [chart] It was a crappy month all around. The USD was the least lousy performer, slightly down 0.11%. Commodities as a whole didn’t do much, down 0.47%. The SPX had another down month at -2.21%. And once again, bonds won the “horse’s ass” trophy, registering a -2.69% return. Crypto Class Summary [chart] Thanks to the war, misguided monetary policy, prolifigate fiscal policy, and generally good things happening in the crypto ecosystem, cryptocurrencies had a great month. Bitcoin was up nearly 25%, while Monero was up 15.61%. Ripple was up 14.48%, while Dogecoin was up a touch over 8%. Surprisingly, Ether only registered a 4.73% gain, while Litecoin was up a measly 1.12%. Wrap Up Gold is rising while the equity markets tumble. Bonds stink to high heaven. But crypto… crypto is rising like a phoenix from the fire. Finally, let’s take a moment, courtesy of the Twitterverse: Credit: [@GigBasedTrad]( Have a wonderful rest of your week! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. 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