The paradigm shift I spoke about last year is unfolding before our very eyes. Precious metals will emerge from this crisis as the premier asset class for investors.
The paradigm shift I spoke about last year is unfolding before our very eyes. Precious metals will emerge from this crisis as the premier asset class for investors.
If you look closely, you’ll notice each decade has a distinct investment theme. As the decade unfolds, one asset class rises to the top and outperforms everything else. Below are some examples.
Of course, it’s impossible to get in and then out at the exact bottom. The transition period from one asset class to another takes several months, sometimes longer – the key is recognizing it. Here’s a clue… it’s happening NOW.
After an 11-year bull market in stocks, the next asset shift has begun. The 2019 breakout in gold combined with loose monetary policy and negative bound interest rates suggests 2020 – 2030 will be a decade that heavily favors precious metals. Gold first, then silver and platinum will follow – palladium likely peaked.
The crashing stock market and global pandemic have triggered sudden and irreversible demand for precious metals. In the US, coin dealers sold out of ALL American Eagle coins (gold, silver, platinum) last weekend. Premiums have skyrocketed. There’s no putting the genie back in the bottle – an unprecedented shift to precious metals has begun.
If gold comes back to test the $1350 – $1400 breakout area, that could be the last great buying opportunity of this decade. By the end of this decade, we expect gold to reach $7,500 – $10,000.
A $7,500 – $10,000 price target for gold sounds absurd, I know. Before you dismiss it, let’s think about the potential triggers that could yield such lofty prices.
Currently, our Gold Cycle Indicator is at 42 and entered maximum bottoming – suggesting gold may be approaching a bottom. I think it could drop further and perhaps reach a perfect score of zero in April or May.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle that will begin to unravel in 2020.