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Precious Metals, US Dollar: How It All Relates – Part I

Commodities / Gold & Silver 2019 Sep 11, 2019 - 04:59 PM GMT

By: Chris_Vermeulen

Commodities

The recent movement in the precious metals markets, an incredible 33% upside price move since August 2018, has reflected an increased level of fear and greed throughout the global markets.  Particularly, throughout the foreign markets.  Precious metals, specifically Gold, has skyrocketed to some of the highest levels in recent times as foreign currencies devalue against the US Dollar.  Still, consumers, institutions and central governments/banks are buying as much as they can right now.


12 Month Capital Shift Seen in Currencies

As we have been suggesting over the past 12+ months, a capital shift continues to play out in the global markets where capital is actively seeking the best, most secure locations for investment and we believe that will result in strength in mature global economies.  Take a look at this chart of various foreign currencies to understand how this capital shift process is really playing out across the globe. Be sure to opt-in to our Free Trade Ideas Newsletter.

Japan, Canada, Switzerland are all experiencing moderate price weakness against the US Dollar – yet these mature economies are fairing better than many others.  The relationship between the EUR and the GPB appears to be relatively stable as both currencies have dramatically weakened over the past 16+ months – almost in perfect alignment.  Comparatively, the other currencies within this display have experienced dramatic price weakness over the past 4+ years in relationship to the US Dollar and their associated PAIR currencies.

Gold Price Comparison In Other Currencies

The recent upside price move in precious metals exasperates the issue of localized consumption/acquisition of Gold/Silver as pricing pressures continue to push local pricing higher and higher.  We are still very early in the bullish price cycle for precious metals.  As increased fear and greed enter the markets over the next 15+ months, we believe the scramble to acquire physical metals and market positions will continue to increase even further.

These Gold Price Comparison charts, below, show just how dramatic the upward price move has been for foreign investors in local currencies.  In US Dollar terms, Gold has risen just over 33% (approx: $350 USD).  In Canadian Dollar terms, it has risen 30% over the past year (approx: $475 CAD).  In Australian Dollar terms, it has risen just over 34% (approx: $590 AUD).  In Chinese Yuan terms, it has risen just over 36% (approx: $$2,965 CNY).  In Indian Rupee terms, it has risen just over 29% (approx: $2,545 INR).  The reality is that precious metals have gotten very expensive for foreign investors in local currencies – and this is just starting to the metals rally.

The primary reason for this is the continued capital shift that has been taking place over the past 2 to 4+ years.  As the global markets entered a period where commodity prices started collapsing (2014 in Oil), the global markets started shifting away from emerging markets and risky assets/investments.  The hunt for more secure investment sources was on. 

When Oil bottomed in early 2016, a reprieve in investor sentiment settled into the markets where expansion into more risky assets took place.  All of this changed with the top formation in the US stock market in early 2018 and the downside price rotation in Oil in October 2018.  Now, as precious metals start to rally and clearly illustrate that fear and greed are entering the markets, the continued hunt for secure, mature economic environments continue at a record pace.

In Part II of this research post, we’ll highlight why we believe the global markets are just starting a dramatic shift that will likely continue to unfold throughout the next 24+ months and why we believe it is important for all skilled technical traders to understand the risks that are present in the current global markets.  This is not your simple trending global market any longer (think pre-2014) – this is a BEAST.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. 

I have had a series of great trades this month. In fact, over the past 20 months, my trading newsletter portfolio has generated over 100% return when compounded for members. And we locking in more profits on Tuesday with the Russell 2000 index. So, if you believe in technical analysis, then this is the newsletter and market condition for you to really shine.

Be prepared for these price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our  Wealth Building & Global Financial Reset Newsletter.

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. 2020 Cycles – The Greatest Opportunity Of Your Lifetime 

FREE GOLD OR SILVER WITH SUBSCRIPTION! 

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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