One wonders how much longer the S&P 500 can trade at nearly double its earnings valuation and Gold at nearly half of its currency debasement valuation. Reversion at some point shall be nigh. And historically, ’tis always arrived.
Real inflation-adjusted gold prices remain far from their peak. While $2,100 gold is high, its January 1980 peak translates into $3,355 in today’s dollars per the intentionally-lowballed CPI.
The rally is sucking in the holdout FOMOs who, one by one are falling for the duel pleasantries of a softening Fed and by extension, a Goldilocks-like “soft landing” scenario for the economy.
You're about a 50% bounce in the market, as the market got overdone on the downside and now it's looking for its footing. The footing's been found temporarily, you're in an uptrend.
Those who followed the Fed to their detriment (and do not now heed my warnings) will likely continue to do so and assume that their lowering of rates will automatically mean that the stock market will continue to rally.
So if we take a look at the daily bar chart, the market was capped to $2150, the correction low back into the $1990 area, and you've made a good $50 correction.
This isn’t a time to buy more gold when gold likely continues to rally. Buying mine stocks produce fiat profits in a short time. Then, these profits can be converted from fiat to gold!
Gold’s pre-Christmas five-day gain at least by historical comparison is a great gift for the yellow metal going into next year. Joyeux Noël! Give the gift of Gold!
