- the source for market opinions


June 3, 2019 | Psychology is Changing towards Gold! Why?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

The last couple of weeks has resulted in a change in psychology for our precious metals.This seems obvious to me as I watch what our pundits and investors are saying publicly. Gold has been in the doldrums for years (since 2011) and its psychology has been negative since 2011. But all is changing as I write this missive.

Gold (and soon silver) will become real safe-havens for millions of investors. The virtual system (our digital stock markets) are crumbling and this means that investors are seeking safe-havens for part of their savings. Stocks are in a bubble, bonds are in a bubble, real estate is in a bubble, and trade has serious obstacles to overcome.

This means that we could witness a sharp increase in the price of spot gold going forward. I assume that our authorities will try to temper the rise with suppression schemes (at various points). This means volatile precious metals markets going forward. But our central authorities may allow a sharp rise prior to the coming Reset.

What moves markets is psychology. Money is a psychological game at the core. This means that what was in vogue during the asset bubble phase (2008 – 2019) may not be in vogue during the Reset phase. My sense is that spot (digital) gold and silver are at or near a bottom as I write this missive. The trend going forward is UP.

Investors realize that our central banks are pushing on a string with their interest rate policies. The drop in rates is not turning around our economy. Sentiment is changing and this means that a recession is on the horizon. The coming recession could already be in motion as I write. But the reality of this recession may not appear for a few more months.

The DJIA hit a market low of 6,469.95 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high. The bear market reversed course on March 9, 2009, as the DJIA rebounded more than 20% from its low to 7924.56 after a mere three weeks of gains. We are now nearly 123 months since the low point on the Dow Index. This is a record (for the Dow) which exceeds all history.

My sense is that sentiment is now changing and the BULL market in stocks is over. The highs have been reached and we could see a major crash in these indices this year. Again, all markets are psychological and emotional. Sentiment changes suddenly. I sense that this change is happening as I write. Expect some major volatility going forward. The lows in our precious metals may be now. Prepare to witness some sharp gains later this year.

Think for yourself to discern what is happening. My sense is that a major turning point in our markets is near. Our central planners will come forward with new policies in the coming months. I expect lower interest rates and more counterfeiting of our dollar. The tools in the chest of our central planners consists mostly of counterfeiting our virtual currencies to cover-up the flaws within our system. We call this QE. Watch for new evidence soon.

I am:

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

June 3rd, 2019

Posted In: Kingdom Economics

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.