Juniors PGEN Marines Update (JMU).
Apr 11, 2016
Junior PGEN Marines Update
- When you fill your junior mining stock rockets with Chow Tai Fook retail jeweller demand rocket fuel, and that happens while top RBC bank econs issue an across the board institutional buy signal for “tier 2” (higher risk) gold stocks….
- Well, please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/04/2016apr11chow1.png That’s the Chow Tai Fook daily bars chart. Where goes Chow Tai Fook, so go your gold mining stocks.
- The breakout, pullback, and post-pullback launch around that symmetrical triangle look spectacular, and once the $5 round number HSR is exceeded, that will add to the cusp of the bull era fun for you!
- Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/04/2016apr11chow2.png That’s another look at Chow, via weekly bars (ignore the daily bars caption). I think it’s headed for $8, and that could see GDXJ almost double again, from where it is now.
- Let’s take a look at some GLDX Gold Explorers Fund rockets this morning. First though, I want to give you some background about real bull and bear US dollar denominated bull and bear markets in gold.
- In the big picture, you should not use gold stocks to try to make fiat currency widgets. It’s a gold bull era, and gold is the currency of that era, not dollars.
- From a practical wealth building standpoint, operating in the real world where emotion is a factor, you’ll make more fiat dollars of wealth trading gold stocks against gold than you will against fiat. Here’s why:
- In a major gold bull era, you will make numerous errors top calling yourself out of gold stocks and into fiat, only to watch gold blast higher, and gold stocks blast higher.
- If, when you think gold stocks are worth a “top call”, you sell them for a solid paper gold entity like SGOL-nyse, and they blast higher (or get revalued by Janet/Kuroda), you are still in the bull era game, rather than standing there stupidly, like most Western gold gurus are now.
- Look back at what all the gurus were saying at $1045 gold in December. They got it all wrong. They got the taper wrong. They got the rate hike wrong. They got their “one more trip down” for gold most stupidly wrong of all. You can’t build market wealth with their stupid tactics and crackerjack box prize theories.
- Real bull and bear cycles in gold, in USD terms, aren’t what most gold investors think they are. Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/04/2016apr11gmb1.png That’s the gold versus US money base chart.
- You can’t just look at the money base alone, to understand gold bull and bear phases. You need to view gold against that base as a price ratio. Real bull/bear phases in gold are very long, and they don’t relate to the drawdowns of the gurus, like the gurus think they do.
- In a real gold bear market like the bear market from the 1860s to the 1960s ($160 to $20, ending at $40) gold falls against the money base, with some rallies like the one day rally of 1934.
- Gold has been in a real bear market against the US money base since 1979, and is now entering a massive bull market. The year 2000 to 2008 gold price rally against the money base was simply a bear market rally.
- Please click here now: http://gracelandupdates.com/wordpress/wp-content/uploads/2016/04/2016apr10gi1.png In inflation-adjusted US fiat, gold, like US T-bond yields (by no coincidence), have been in a 35 year bear market, and that bear market is ending now.
- Adjusted for inflation, the supposed great gold bull market of 2000 – 2011 is really nothing more than a huge inflation-adjusted gold bear market rally, but helped build the right shoulder of a truly epic H&S bull continuation pattern, with a target of $3200+!
- Whether gold rises to the $3200+ target via maniacal institutional buying, Janet/Kuroda revaluation, or both, is unknown.
- To find out what is known, please click here now: http://gracelandupdates.com/wordpress/wp-content/uploads/2016/04/2016apr10gs1.png Gold stocks have been in a bear market against gold for 20 years, and that too is ending now, because the 20 year bear market in money velocity is ending now. The key question is:
- Are you and your junior gold stocks on board, or are you lost in the gold guru world of top calling the Launchpad zone of a bull era?
- Drawing little bear market labels from the prices you bought higher at, to lower prices where gold currently is, doesn’t make that a real bear cycle for gold.
- The reality of what drives gold in US dollar terms is a slightly different than what the gurus think it is.
- The good news is that gold is entering a long inflationary bull era in the West, and a 100 to 200 year love trade mega-bull era in the East. Top calling gold stocks, blowing them out for scraps of fiat, in this environment, is totally insane.
- Gridtime! Let’s take a look at a key GLDX exporer that are poised to do spectacularly well, as the twin bull eras unfold! Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/04/2016apr11ff1.png That’s First Finance, the single largest component holding in GLDX, the gold explorers fund. First Finance is a veritable cornucopia of golden exploration properties! It has spectacular exploration-savvy management. And, as I write this sentence as the market opens Monday morning just after 930am, it’s staging a truly awesome upside breakout that should bring massive institutional interest into the entire gold explorers sector! I’ll be talking more about some of the great GLDX components in video on the website later this afternoon. Let’s hit the gridlines now. I’ll see you there!
Kirk Jr. on the gold explorers bridge, out!