More Good News for Gold Owners
Back in August I shared a warning…
Precious metals were heading for a correction.
I was right…
The good news is, based on recent market action I am confident we have neared the bottom for gold.
Today, I want to continue our discussion on gold’s next move.
You should be happy to know I expect a big breakout, and soon. Let’s get right to it.
Follow the Money
If the recent lows for the VanEck Vectors Gold Miners ETF (GDX) get broken to the downside anymore, look out below…
The good news?
Even in spite of the recent correction for gold, money keeps flowing into the leading gold-backed ETFs, as you clearly see in the chart above. When money flow picks up as prices decline, that’s a bullish sign.
In the past, when gold prices pulled back, skittish precious metals investors would often run for cover, pulling money out of gold ETFs.
Investors right now are a lot more bullish and buying the dips.
Look, there are still plenty of fundamental reasons for higher gold prices to come. A rising tide of geopolitical instability in China, Hong Kong, the U.K., North Korea, Saudi Arabia, Iran and now Syria is flaring up again.
Add these threats to the still-unresolved U.S. trade war with China, impeachment inquiries in Washington and the growing mountain of global debt — not to mention the alarming expansion of low- and negative-yielding debt worldwide — and it makes the yellow metal look very attractive right now!
It’s no wonder Citigroup analysts reaffirmed their upside price target of $1,700 an ounce for gold within six–12 months!
If you ask me, I think that’s way too conservative a forecast.
I see $2,000 gold as a much more realistic target, and coming sooner than you think. That’s another upside move of more than 30% for the yellow metal from today’s price level!
After the pullback runs its course gold will surge again much higher.
Here’s to growing your wealth,