David Skarica: Gold Set to Break $2,000 in 2019
David discusses the dollar rolling over, and it’s recent weakness and how it compares with past declines. We could see a continued dollar decline with a rise in stocks and a stagflationary period taking hold.
He likes the current gold chart. The last time we saw something like this was back in 1998 and when it broke out in 2002 and kept running to $2000 an ounce. Once again we have a four-year base, and the longer the base, the more likely the corresponding rise. This should be the start of a major run and $1500+ gold by summer is possible.
Gold stocks are lagging likely due to outflow from the ETF’s due to the various bubbles. Juniors have yet to move along with gold so there exists many good opportunities in the space.
Inflation is not yet being reflected in the price of gold. There are many other asset bubbles for example in real estate, stock markets and cryptocurrencies where inflation is showing up. Normally gold is seen as a safe haven however most investors are not currently interested. Every time the Fed prints money it flows into a different sector, this next cycle could flow into real assets.
He examines cryptocurrencies and expresses concerns with bitcoins recent parabolic moves. Parabolic moves usually result in parabolic declines after a top. If bitcoin breaks below 9200, then we may end up at 5 or 6 thousand by March.
Talking Points From This Week’s Episode
• The dollar appears to in decline and this could be the start of a multi-year trend.
• Gold could run towards its previous all-time highs, with 1500 by summer.
• Mr. Skarica discusses three different juniors in the gold sector with potential.
• Crypto fundamentals look bubbly with a potential for a continued decline.
David Skarica is the founder and Editor of Addicted to Profits, a popular newsletter known for its stellar performance in both up and down markets. Skarica entered the financial markets at a very young age and, at the age of eighteen, became the youngest person on record to pass the Canadian Securities Course. He is a regular speaker at trade and investment conferences in Canada and is a guest on the Business News Network (BNN), Canada’s flagship business broadcasting network. His work has appeared in publications such as the Bull and Bear Financial Report, Barron’s, Investor’s Digest of Canada, and Canadian MoneySaver. Skarica also writes Gold Stock Adviser, an investment newsletter for the conservative media outlet, Newsmax. David’s newest book, Collapse, is available on amazon.com.