Will Gold’s Breakout be the Pin that Pricks the Crypto Bubble? Ep. 254

Summary: Gold and gold stocks are moving to new highs as the dollar index continues its slide. Although some connect this move to market jitters over the outcome of the upcoming James Comey testimony, economic factors are a more likely the force behind the move.  Moves in gold stocks have been telegraphing gold prices more often than not, and gold stocks have a plenty of room to move to even reach its highs of earlier this year.

  • Many of you probably expected me to do a podcast yesterday as a result of gold’s move to new highs for the year
  • And the dollar’s move to new lows
  • I happened to be traveling to Toronto, so I decided to wait until I got back to Connecticut where I can do the podcast from my studio
  • So we had the price of gold up about $15.00 yesterday, and of course the price of gold has been creeping higher and higher ever since its correction
  • And by the way, I think I did a pretty good job of nailing the correction itself
  • I said it would be a very shallow correction
  • I’m pretty sure I nailed the bottom
  • I did a podcast when it looked to me that the gold stocks were confirming and end of the correction in gold
  • Gold did rally, and initially gold stocks rallied, too, but then gold stocks came back down and almost re-tested their lows, didn’t quite do it
  • But the price of gold never came back down
  • And yesterday, the price of gold hit a new high for the year
  • It reversed all of the correction and then went on to higher highs
  • Yet gold stocks are not even close to where they were a few months back
  • In fact, the smaller gold miners, if you look at the GDXJ, I think this think could move up 35% or so
  • But what we did get yesterday was finally a big move up in gold stocks
  • Most gold stocks were up 4-5%
  • I did notice some of the stocks I own up 8-10%
  • So this was one of the biggest up days that gold stocks have had in a while
  • In fact, we got a little bit of a warning about that the day before
  • I’ve been watching these stocks very closely
  • What I had noticed is that gold stocks were selling off every day into the close
  • After bitcoin initially got its high, like $2900
  • Within a couple of days it was back at $1900
  • It dropped $1000 in a day or so
  • How much volume did it actually take to do that? I don’t think very much
  • So, if I’m right, if all of a sudden gold and sudden gold and silver break out
  • And now there is more enthusiasm
  • – I’ve heard people say gold and silver are manipulated so I’m buying cryptos because there is no manipulation there, and you can really get appreciation
  • Because the central banks are not letting gold and silver go up
  • Once they see it go up, that attitude could change

Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.



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