Ouch… this has surely been a painful week for most investors. Stocks, Oil, Silver and Gold got whacked. Short-term it’s the elections and Covid Wave 2 that has all of us a little crazy. Volatility is likely to continue.
However, almost every Gold analyst remains optimistic about the latest Gold bull market we find ourselves in. Long-term Gold is almost guaranteed to continue to make Impressive gains. Short-term Gold has been moving down into “buy on the dips” territory. But we are not there yet.
This week Stocks have been hit again with “pandemic panic” selling. Wave 2 of the Covid pandemic spread across Europe and now into the U.S. We believe that it’s inevitable that the traditional winter flu season would also increase the number of Covid flu cases. Apparently, this notion hit traders with a surprise this week. Go figure.
What’s very interesting about recent sell-offs is how panic selling takes everything down— well, almost everything.
This is an ugly chart of recent days. But it’s what happens. I would like to tell you Gold rises immediately as Stocks fall, but that’s not what happens usually.
The markets move together in a serious downturn— like a 900 point intraday drop we saw earlier this week. Gold held steady until it didn’t.
Long-term the direction of Stocks will eventually act as a catalyst for safe haven investors. Stocks down, Gold up will happen over time.
We believe Gold will surpass $2,000 an ounce, in a breakout. That may come after another massive “monetary inflation” push of fake money into the Covid pandemic economy has passed Congress after the election.
Fake Money is Always Good for Gold
Another $2 Trillion may be exactly what Gold buyers will want to wait for right now. Post election, whoever wins, another Trillion or two will have far more impact on Gold (and Silver) than whatever the markets will do around this election.
Looks like volatility will continue until well into 2021. Hang on, there will be great buying opportunities ahead.