|
Good evening, Folks! |
Last minute reminder my next Bullseye Pick of the Week is dropping TOMORROW promptly at 9:20AM EST. We have had back-to-back exciting weeks so make sure you get on this LIST tonight (check back in five minutes if the page is frozen — lots of clicks right out of the gate!). |
And if you read my email yesterday about the recent surge in gold, here is some more great information from our friends Katusa. Be on the lookout tomorrow morning (click this page at 9AM EST) for a key opportunity coming our way! |
Jeff Bishop |
|
Every "Failsafe" Gold Rule is Broken |
China Gold Rush |
Gold is supposed to have a few ironclad correlations — rules that it has followed almost without fail for decades. |
But none of those are safe any longer. Every golden rule has been broken. |
And investors who don't understand why— or the new rules for gold— stand to miss out on a completely new, exploding market. |
Let me give you an example. |
Traditionally, gold has tracked with the total ETF holdings of gold bullion. But in late 2022, the two decided to part ways. |
|
ETFs saw the largest net outflows of gold in a decade—and gold continued to rise. |
The Broken Treasury Rule |
The higher real yields are, the higher the opportunity cost is for owning gold. |
So, there has long been a near-perfect inverse correlation between gold and real interest rates. |
|
Last time real rates were this high, gold was under $1,000. |
Gold should be at death's door. |
But again, starting in mid-2022, the "rule" broke. |
Or consider the USD-gold correlation. The USD is the strongest it has been since 2002, which should mean extraordinarily weak gold. |
|
As you can see from the chart above, that ended in 2023. |
But surely investors are using gold as the traditional safe haven from a highly volatile stock market, right? |
Wrong: Gold ETF VIX is sitting near its long-term low. |
Ten years ago, the Chairman of the Shanghai Gold Exchange explained, "When China has the right to speak in the international gold market, the true price of gold will be revealed." |
The new correlation with gold is with China, not the U.S.A. or EU. |
And China is speaking— starting with the Chinese people. |
Longjiang Bridge Is Falling Down |
Chinese investors who accumulated savings during the pandemic have limited options where to put that cash: |
Housing prices are in crisis, having dropped for ten months in a row; Saving accounts pay little, with the government urging banks to further cut rates; Money can't be offshored due to strict government control; and Equities lose money, with the Chinese stock market down nearly $5 trillion in the last three years.
|
In that environment — complemented by disinflation and income uncertainty — gold is one of the few good options. |
But it's not just about finding a place to deposit savings. |
In April 2022— right when the golden rules started to break— the Chinese Consumer Confidence Index plummeted. |
|
It was a far bigger drop even than when COVID hit. |
And it marked the beginning of the Chinese gold rush: Chinese people started to funnel their wealth outside the fiat system. |
While Western investors are profit-taking and ETFs are shedding gold, Easterners are buying into the surge: |
"Chinese speculators have really grabbed gold by the throat."
– World Gold Council chief market strategist John Reade. |
It's not just retail Chinese investors. Traders and speculators are getting in on the action, too— in far greater numbers than their Western counterparts. |
|
|
And that 175-tonne (5.6 million ounces) rise is almost exactly the same as the dip in U.S.-based ETFs. |
Are you following this yet? |
Speculative money in an emerging market like China can now dramatically move the price of gold. |
And that's just retail investors. The real heavyweight, and the place Chinese investors are taking their cues from, is the Central Bank of China. |
China Is the Captain Now |
It's no secret that central banks in developing markets are buying up gold at a record pace—more than 1,000 tonnes (32 Million ounces) per year. |
But the leader in those purchases by far is the Central Bank of the People's Republic of China. |
China added 225 tonnes (7.2 Million ounces) of gold, worth over $16 billion, to its reserves in 2023. It's the highest annual increase in China's gold holdings in the last half-century. |
And it means that the Chinese government is buying ~8% of gold production every year. |
China's total gold reserves stand at 2,235 tonnes (71,520,000 ounces of gold) — or 40% more than all gold ETFs combined. That is over $164 Billion worth at today's gold prices. |
Let me be clear: This isn't an investment play. |
This is China shifting away from USD assets and into gold. |
|
The uptick in buying began shortly after the United States weaponized the USD against Russia. |
The use of the USD as a geopolitical instrument stunned China—and they are reacting decisively to reduce their vulnerability. |
This is China fighting back. And China's weapon against the USD is gold. |
Gold is not subject to sanctions or confiscation risk. And it's in high demand by any developed country. It's the ultimate asset. |
The move has created a brand new golden rule: |
China now has pricing power over gold. |
And they're exercising it as we speak. |
In fact, there's a near-perfect correlation between one of the most important Chinese financial instruments – and gold. |
Understanding the new gold market requires throwing out every rule you've heard. |
Because this time is different. |
KR SPECIAL SITUATIONS ALERT |
Monday June 3 at 9am EST Pre-Market Open |
Katusa Research is releasing the name of a gold stock before market open tomorrow… |
That has accumulated a strong base of resources across its exploration stage projects. |
About 30 minutes before market open… |
You'll get the name of the stock, the ticker… |
And the Rule Breaker chart we're watching closely. |
Bullseye Trade readers can access it HERE on Monday. |
(Make sure to refresh that link right at 9AM EST). |
Best regards and see you in the morning! |
Marin Katusa and the KR Special Situations Team |
|
|
Questions or concerns about our products? Email Support@ragingbull.com © Copyright 2022, RagingBull |
|
|
DISCLAIMER To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer |
|
|
*Sponsored Content: If you purchase anything through a link in this email other than RagingBull services, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything. We believe in the companies we form affiliate relationships with, but please don't spend any money on these products or services unless you believe they will help you achieve your goals. | FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. |
|
|
RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. |
|
|
RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. Employees, owners, and other service providers of https:// ragingbull.com or RagingBull.com LLC are paid in whole or in part by commission based on their sales of Services to subscribers. |
|
|
RagingBull.com, LLC shall be entitled to recover attorneys' fees, costs and disbursements. In the event that any suit or action is instituted as a result of doing business with RagingBull.com, LLC and/or its affiliates or if any suit or action is necessary to enforce or interpret these Terms of Service, RagingBull.com, LLC shall be entitled to recover attorneys' fees, costs and disbursements in addition to any other relief to which it may be entitled. |
|
|
WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services except possibly by advertisers in this email. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. |
|
|
Tidak ada komentar:
Posting Komentar