Gold Price Forecast – Confirmed Breakout in 2019, Most Investors Still AsleepGold confirmed a new bull market in 2019, but most investors remain distracted. Record low gold eagle coins sales support a psychological turning point in 2020.
I’ve made a living being contrary investor. The underlying principle is straightforward: Figure out what the public is doing/not doing and do the opposite.
Why – because the average investor is almost always wrong.
Let me give you an example. In my September 26th report to investors, I noted the most popular stock on Robinhood’s top 100, was Aurora cannabis ticker symbol ACB.
I said, “After peaking at $10.32 earlier this year prices are down to support near $4.50. I see the potential for a large head and shoulder top. A breakdown below $4.50 in the coming weeks/months would imply a test of $1.50 – $2.50.”
That was then…let’s see where prices are today.
Prices reached a low of $1.66.
Surprisingly, ACB has grown in popularity as prices declined, and for that reason, I don’t believe this stock has bottomed.
That was an example of what’s currently popular with average investors. Now, let’s look at what’s unpopular.
Despite the bullish breakout in 2019 and a new bull market in gold, the US mint produced the least amount of gold eagle coins ever in its 33-year history – just 152,500 ounces. Down sharply from the 985,000 ounces struck in 2016 and a fraction of the 2,055,500 ounces produced in 1999 (Y2K scare).
So, what does record low gold eagle coins sales suggest? To me, it’s a clear indicator of what the public is NOT doing; they are not buying precious metals. Moreover, there’s not one gold-related stock on Robinhood’s top 100, and that gets me very excited. It says the bull market in gold is just getting started and we could see a psychological shift in 2020.
Be smarter than the average investor – do what’s unpopular.
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/