Gold is back on everyone’s radar

May 11, 2021

by Gerardo Del Real

Gold is back on everyone’s radar.

And while I don’t have any doubts that the shiny yellow metal is consolidating before rocketing to new all-time highs — like copper just did — I’m not convinced the latest move is that breakout. The reason is simple, as global bond yields continue to rise, I believe rates in the U.S. will follow in the near-term. And thus far, gold has shown an inability to rise alongside rising yields.

It will eventually.

And eventually the dollar will do what the dollar has been doing for decades: Lose more and more of its purchasing power.

Investing titan Stanley Druckenmiller agrees telling CNBC this week:

"The Fed will have to monetize it. I believe it will have horrible implications for the dollar ... it's more likely than not within 15 years we lose reserve currency status."

He added that:

“In six weeks last spring we did more QE, purchased more treasuries, than we did the entire time in the nine year period from 2009-2018.”

Let that sink in.

I don’t believe it’ll take 15 years before the market forces a reset, but the multi-decade trend is clear regardless.

The trend is one that will accelerate and the table is being set.

All of that bodes well for real assets and doesn’t bode well for savers.

Get in the game or have fun staying poor (I think that’s what the cool kids say.)

Crypto meme jokes aside, there’s a lot of data to watch this week.

I suspect I’ll either be wrong about gold not being ready to run (And I’m hoping I'm wrong.) Or it will break down one more time.

I don’t believe the sideways trading pattern we’ve seen of late continues.

Silver may be leading the way and I encourage everyone to look at what happens if it can break the $29.14 level convincingly.

Copper is due for a pause. Uranium stocks are, too.

But expect that pause to be temporary and an opportunity to add if you haven't already fortified your copper and uranium portfolio.

A lot to do and the markets are providing opportunities within clear mega trends that you have to take advantage of.

Get it done. Starting right here with gold.

Let's get it!

Gerardo Del Real
Editor, Resource Stock Digest

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Resource Stock Digest, Junior Resource Monthly, and Junior Resource Trader. For more about Gerardo, check out his editor page.

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