Jordan Roy-Byrne: We are in a Gold Bull Market that may well last 20 Years
Collin fills in for Kerem and interviews Jordan Roy-Byrne about the potential for a new bull market in gold. Jordan is not sure how long this particular move will last, but it could be a big move that lasts at least the next six months to a year.
Jordan has said previously, “The market will move when the Fed cuts rate because gold rises with declining interest rates or rising inflation rates.” He says, “This is now playing out exactly as it should, but it’s too early to determine how long it will last. The days of a thousand dollar gold is long gone. We are just at the start of something that is going to be historical and last the next fifteen plus years.”
When real interest rates go negative, large funds start looking for a better investment than treasuries, and that’s what can really move the gold market. We need to confirm the break-out in gold, and once we see that more money should come into the sector. It may take a couple of months for the juniors to really start moving, but there are some real potential winners in the juniors.
In a few years, inflation could set off a very long-term gold market as countries inflate away their debt. This happened in the late 1940s where inflation ramped up, and treasury rates remained very low, and they had double-digit inflation to get rid of the debt. Jordan’s new book charts what percentage of the US budget will end up servicing the debt. Inevitably the same thing will happen again today as in the 1940s resulting in a low Fed funds rate while inflation runs higher and higher.
Time Stamp References:
0:45 – Jordan has a new book out.
1:45 – 6-12 Months of Bull Market.
4:00 – Market is playing out as expected.
5:30 – Money should flow to juniors.
8:30 – Funds will eventually move the market.
10:30 – Mid-40s to Mid-50s double-digit inflation.
13:30 – Spiraling inflation will move the gold market.
16:30 – Today’s prices will look dirt cheap.
Talking Points From This Week’s Episode
• Now is an excellent opportunity to get gold equities cheap.
• Spiraling inflation is coming in a few years.
• Gold will head to 3k+ and silver to fifty.
• Imagine where the juniors will be when gold is breaking 2k an ounce.
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 which emphasizes market timing and stock selection for precious metals investors.
Jordan latest book “The Coming New Bull Market in Gold” can be found for free on his website: https://thedailygold.com