Jordan Roy-Byrne: Gold to Hit $20,000, Silver to Reach $1,000!
Collin returns to regularly host the show along with Tom in what appears to be an exciting new bull market. Jordan discusses GDX and GDXJ’s performance over the past year and how it is indicative of a bull market. Gold stocks are looking increasingly good, and the recent rebound in gold from $1450 has been astonishing.
The critical difference between now and 2008 is in the amount of debt creation and intervention. Currency is being funneled to households, individuals, and small businesses. This type of stimulus did not happen back in 2008, and this may soon bring inflation. The government is taking a more active role in the economy, so deficits are going to expand dramatically. At some point during the next expansion phase, we will see inflation pick up and accelerate.
Gold against foreign currencies is doing very well while hitting all-time highs in most countries. Today the fundamentals are looking very good as we are at zero rates; we have helicopter money, bailouts, and real interest rates are now negative. Gold historically does well in this type of environment, and silver will do well when inflation expectations begin to rise. Gold is rock solid right now, with low oil prices being good for mines. If you are a producer, your local dollar equivalent prices for labor and expenses are excellent.
The sentiment is improving quickly for gold, and past predictions from people like Rob McEwen and Peter Schiff look increasingly realistic. The beginning of this year appears to have been a great buying opportunity, and we have already had a correction that removed a lot of weak hands.
If you look at the monetary base and historic market peaks in gold, all these things point to gold moving to five figures. When gold reaches $1900, we will have a cup pattern and a measured upside target past that would be $2750.
Talking Points From This Week’s Episode
- Signs of a definite bull market.
- Helicopter money and future inflation.
- Gold is doing very well against all currencies.
- The sentiment is improving, and gold could move to five figures.
Jordan Roy-Byrne, CMT, MFTA is a Chartered Market Technician and Master of Financial Technical Analysis who is a member of the Market Technicians Association. He is the publisher and editor of TheDailyGold Premium, a publication that emphasizes market timing and stock selection for precious metals investors. You can find out more about his writings and premium services at thedailygold.com