How crazy is this going to get? That's the question I am asking as one of the biggest bulls on Precious Metals over the last decade or so...but even for me this is looking pretty extreme. We knew that $4,000 USD was going to be the next big target for Gold but experienced stackers like my friend @silverd510 last month was calling for it to be reached in 2026. I thought it might be more like December this year. But could it actually happen today and it might turn out we both weren't bullish enough!?
Source
I did have success calling an interim top earlier this year at $3,500 USD and got the follow up consolidation right too, but I thought Gold might have found another short term resistance level at $3,700 USD only a few weeks ago. That level held for only a very short time before the price action blasted through it. Now here we are on a string of green candles reaching for that next seemingly outrageous target.
Why? You might ask. Well, market is what market does. Maybe we are in that stage of a melt up where at first it happens slowly and then suddenly. Maybe people are panicking about the US Government shutdown or maybe it's more about the new Japanese Prime Minister and the apparent "Bondquake" over there. The political crisis over in France is probably not helping, but these all seem like sideshow attractions and in times gone by the Precious Metals markets would tend to shrug them off. Maybe the real story is the one @kerrislravenhill pointed out to me the other day with Morgan Stanley now recommending 20% allocation to Gold...
Are the floodgates opening? Is it finally time for Gold to be repriced properly? It might just be. For me though, I am taking a little bit of profit here because I can see the $4,000 USD level being defended and if the market is Overbought then maybe I can get some of my paper gold back cheaper later. Sure it's a risk the market will run away from me but it's never a bad idea to be locking in some profits when markets start getting carried away.
Doing a quick check, the time is after 9 PM PST and the ask/bid is $3970/3975 USD. I expect $4k to be fiercely defended. Perhaps it may even break that number but it will not close on that. I'll be expect more sideways action, perhaps a sizeable push down or two.
I admit, I've been playing some of the paper game mainly because I'm tired of the 2% interest paid on my GICs that just don't cut it. Making a better return than rolling over GICs.
At this time my phiz gold stack is worth more than my silver stack.
!PIMP
Paper is definitely easier to trade for me. I think you're right about $4K being fiercely defended but we are about to find out!
Congrats on the phiz stack. Sounds like you're very well balanced.
4K broke like a knife through warm butter 🙂
Silver back above $50
8:05AM Friday morning EST 😃
Gold
Silver
Spot Silver price now $2.00 above contract price! Interesting indeed!!!
!PIZZA !BBH !ALIVE
This is completely unprecedented. At this point 5K isn’t out of line….. If this continues fiat is going to fail worldwide
We have known for some time that fiat would fail worldwide. Just still a bit surprising to see it happening in real time.
Very true. I guess it’s game on….
Just sittin' here with my tinfoil hat on, watching the world go to shit.
I don't think France has much to do with gold pump... But 4000 is a very good price, maybe it's good time to take some profit
Gold’s rally is getting wild feels like we’re entering that “it happens slowly, then all at once” phase.
It is absolutely true that people cannot believe that the price of gold has become so high and the difficulties for some people here have increased. In our city and in our country, it is a custom that marriages are not held without gold, and the price is so high at the moment that it has become impossible to buy gold and can be seen going up to $4,200.