Last week, the price of gold closed at a new all-time again this year and despite that fact the masses don’t care.
You can see this in the search data for gold on Google.
Google trends shows that it has not gone up at all despite the big rally to new all time highs.
The interest in gold among the masses is still lower than it was to start the year.
All they want to hear about is Bitcoin.
There are now thousands of Bitcoin gurus out there promoting crypto and millions of people who want to hear the technobabble reasons they give them to believe that Bitcoin is changing the world – when still no one uses it as money and it has failed as a store of value, but they tell people that they can get rich quick with it.
Here is just one of the gurus talking it up.
People like to buy into markets AFTER They have gone up a lot and for months and few get in at the start of a move.
That’s why just about no one was bullish on the stock market in the first few months of 2023 and why the only ones bullish on gold now are the few that have been following it already for years.
And when bull markets start many simply don’t believe it’s happening.
And so you also have Bitcoin gurus saying the gold rally isn’t real too, as they make their increasingly wild Bitcoin price predictions, as they compete with each other for the attention of the masses, and in hopes that the Youtube algo will push them to the top.
The best time to buy and invest something, though, is not when everyone is hyping it, but at the end of a stage one basing process or at the very start of a stage two bull market.
Here is the chart for gold.
As I wrote the other week, gold is part of an overall commodity complex and when gold starts a new bull market it is typically a sign that other commodities are going to do so too. Gold is usually the first commodity to go up.
Here is the CRB commodity index.
Silver has not broken out yet and is still below its $26.00 resistance point.
A simple trade is to buy silver below $26.00 and accumulate.
Anyone can do that.
Anyone can spend $25 and buy an ounce of silver.
Here are some other ideas for you.
One ETF I bought is BCIM.
It is an industrial metals ETF that holds copper, aluminum, lead, nickel, and zinc.
Note: this ETF only has a market cap of $22 million.
Hardly anyone has bought it, so it doesn’t do much daily trading volume.
The idea of an ETF like this just sounds so boring to people.
However, as you can see it is in a stage one base, with its 200-day Bollinger Bands tightening.
A weekly close above $22 for this ETF would complete the base and should signal the start of a stage two bull market for it.
Mining stocks typically go up more than gold in a gold bull market.
The GDX gold stock ETF has a similar chart to that of silver.
I own a position in GDX.
As for other sectors in the market, if you can recall, I wrote about utility stocks back in December.
That sector is breaking out now too, as you can see from the XLU ETF.
One individual utility stock that I own is D.
Dominion Energy is paying a dividend of over 5%.
Another utility stock I own is UGI.
UGI pays a dividend of 6.11%.
This is a sector that very few people are interested in, because it sounds boring to buy utility companies.
They aren’t involved in AI or crypto, the two fads of the moment.
Instead they have stable earnings – because people have to use energy all the time.
Utility stocks tend to go up at the end of interest rate hiking cycles and to continue to go up as the Federal Reserve lowers interest rates, because the stable dividend payouts become attractive in such times to investors. They are a defensive sector that historically goes up at the end of part of a bull market and during a bear market.
I cannot predict to you at what price this gold price rally will come to an end.
I could say it’s going to $10,000 to try to talk like a Bitcoin guru so people will pay attention to it, but I’m not going to do that type of thing.
No one makes money by betting on predictions – and making them like that is misleading.
You make money by trading and investing in trends, managing your risk, and making changes when the trends change or you see a better opportunity.
That’s it.
Everything else is a bunch of BS.
How much Bitcoin and crypto is the Central Bank of China buying?
Zero.
There is nothing new happening in the financial markets.
There is nothing new about crypto.
Just about everything that happens has happened before in one way or another.
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-Mike
