David Skarica: Gold To Test 2011 Highs, Look for Fall Breakout
David discusses the volatility in the market and the reasons for a coming decline. A fight over the budget, tax cuts, or the debt ceiling could create further problems. The technical foundations of the market have been crumbling in recent months. Gold is doing well although a bigger rally has not happened since the general market has held up.
Gold stocks performed well in 2015/2016 due to the markets falling but have lagged in 2017. Investors are less inclined to put funds in gold and precious metal stocks when the markets are performing well. In 2003 gold really took off when the Fed began to cut rates so we are looking for that trigger event again.
For gold, there is resistance at 1350-1370 which needs to be broken however this gives you time to average in. Any fall in the market will be met with further liquidity in PM’s. We could have a very good gold market this spring. We could be back at 2011 highs surprisingly quickly if it breaks out this fall.
We’ve had a recent topping pattern in the dollar. The Fed is unlikely to raise rates and Europe looks like they will taper. We are at the 91/92 dollar support level if it heads below that we could be in the mid-80’s.
David discusses Walbridge (TSE:WM), Mexican Gold (CVE:MEX), and Triumph Gold (CVE:TIG). He discusses how each of them has some fantastic prospects and their future potential.
Talking Points From This Week’s Episode
• Gold is doing well but is waiting for a general market correction.
• US dollar may continue decline if the 91/92 support level breaks.
• Canadian dollar may be hit hard by the housing collapse, may require rate cuts and stimulus.
• He thinks the cryptocurrencies are in a bubble it’s wise to move some profits into gold.
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.