All That Glitters…

By John Del Vecchio and Brad Lamensdorf

Gold may be poised for a big move.

Precious metals and precious metal stocks have been mired in a massive trading range for a decade.

That may change if gold reaches new highs, which could carry gold stocks to massive gains.

Why?

There’s been significant under investment in gold for a decade.

It’s the old supply/demand curve.

Central banks are buying gold hand over fist.

Take a look at this chart below.

Central bank purchases in 2022 dwarf any other year since 2009 by a mile.

Meanwhile, as central banks are buying up gold, reserves are dropping.

Lastly, gold production needs to catch up to the price of gold.

These factors indicate a perfect setup for a new bull market in gold.

Gold stocks, in particular, rally and then get smashed. Then they rally again, only to get crushed again. At least until now, the fundamentals have not mattered.

However, the central bank buying spree combined with reduced reserves and lagging production can only be ignored for so long…

To learn more about how these indicators can help manage risk in your portfolio, book a call with Brad. You may book a call here.

DISCLOSURE: LAMENSDORF MARKET TIMING REPORT

Lamensdorf Market Timing Report is a publication intended to give analytical research to the investment community. Lamensdorf Market Timing Report is not rendering investment advice based on investment portfolios and is not registered as an investment advisor in any jurisdiction. Information included in this report is derived from many sources believed to be reliable but no representation is made that it is accurate or complete, or that errors, if discovered, will be corrected. The authors of this report have not audited the financial statements of the companies discussed and do not represent that they are serving as independent public accountants with respect to them. They have not audited the statements and therefore do not express an opinion on them. The authors have also not conducted a thorough review of the financial statements as defined by standards established by the AICPA.

This report is not intended, and shall not constitute, and nothing herein should be construed as, an offer to sell or a solicitation of an offer to buy any securities referred to in this report, or a “buy” or “sell” recommendation. Rather, this research is intended to identify issues portfolio managers should be aware of for them to assess their own opinion of positive or negative potential. The LMTR newsletter is NOT affiliated with any ETF’s.  Active Alts  is affiliated with Lamensdorf Market Timing Report. While LMTR uses charts from SentimenTrader, they do not have a financial arrangement with SentimenTrader  Past performance is not indicative of future results.