by Craig Hemke, Sprott Money:
Since late May, the price of COMEX Digital Gold has been on a tear with a rally of over $200. Will this surge continue? Perhaps more importantly, can this surge continue?
First of all, and so that we’re on the same page, none of this should come as a surprise to regular readers. Since last November, we’ve been stating that 2019 would show the best gains for the precious metals since 2010, and we are now well on our way. Here are two links to review, the first from January, the second from May.
Regarding price, here’s a relevant section from the article posted on January 15, 2019:
And this from the article posted in May, written during an $80 price decline, practically begged you to hold fast and not allow yourself to be shaken out and scared off:
So now here we are in early August and what has happened?
• The Fed has indeed capitulated. They have already cut the fed funds rate once, and their program of “Quantitative Tightening” has been prematurely halted.
• The global economy is demonstrably slowing, and central banks are reacting with promises of more rate cuts and fiat creation.
• The global bond market is soaring, with the total global amount of negatively-yielding debt now exceeding $15 TRILLION.
• In late June, COMEX gold broke out of a six-year price range by surging through $1360. It’s now around $1480 and rising due to this week’s trade tensions.
So, what’s next? That’s a tough question. Why? Because The Banks remain in charge of the fractional reserve and digital derivative pricing scheme, and as such, they will continue to intervene and attempt to force resistance and reversals… particularly when the speculating hedge and technical funds get overly excited and amass huge positions in COMEX futures.