Real Estate
Toronto’s residential housing market showed no signs of cooling last month, with the average sale price soaring a record 33 percent from a year ago, pushing the cost of a detached home in the heart of the city to almost C$1.6 million ($1.2 million). In Toronto and surrounding suburbs prices climbed by a third in every major housing category, including townhouses and condominiums, as demand rose and listings failed to keep pace, according to figures from the Toronto Real Estate Board.
As the first quarter ends, losers outnumbered winners when it comes to commodities—undoubtedly much to the disappointment of those who expected the sector to build on last year’s bounce.
“The first quarter of 2017 has been disappointing, especially after last year’s brief, but promising rebound from a 5-year downtrend, as commodities just haven’t managed to gain any traction into the post-[U.S.] election year,” said Adam Koos, president of Libertas Wealth Management Group.
Apr 4, 2017
- The spectacular price action of gold within what I’ve dubbed the “Uptrend of Champions” continues to be impressive. I’ve suggested that the rally is poised to accelerate, and that’s clearly in play.
- Please click here now. Double-click to enlarge.
- Gold is poised to surge through the minor $1270 area highs and race to my $1315 target.
- All lights are green for gold, and for silver the lights are even greener. Please click here now. Double-click to enlarge.
- I think the caption on that chart says all that any silver investor needs to know right now. There’s a beautiful symmetrical triangle pattern in play. While the bears are probably sleeping this morning, silver is attempting an upside breakout!
- I would ask the entire Western precious metals community to think hard about how positive most institutional analysts are about gold right now. There’s a reason for their confidence, and for their very positive liquidity flows into the precious metals sector:
- Fundamentally, gold is being powered higher by excellent demand in India (the world’s biggest wedding season is in play), institutional investor concerns about the US debt ceiling (the next deadline is April 28), strong growth in China, and by the populism wave that is sweeping through most of the Western world.
- That wave of populism is lead by the charismatic leader of America, Donald “The Golden Trumpster” Trump. The Golden Trumpster has differentiated himself from other politicians by attempting to do things he said he would do…after being elected.
- Most Trump fans are focused on his charisma and his purported ability to overcome the peaking business cycle with tax cuts for ageing Americans who currently can’t afford a $1000 trip to the hospital emergency room.
- To put it mildly, I’m a bit skeptical about that, but I’m very interested in his campaign promises to make US government debt creditors take a “haircut”. I’m also focused on his clear commitment to a lower US dollar.
- On that note, please click here now. Double-click to enlarge.
- The “risk-on” US dollar is disintegrating against its risk-off counterpart, the Japanese yen. The world’s biggest liquidity movers are big bank FOREX traders. Clearly, they are showing major concern not just about the dollar, but about the general level of global markets risk.
- Gold is benefiting, and as inflation becomes bigger on their list of concerns, silver will move relentlessly higher. I refer to gold as the world’s ultimate asset and I speak of silver as “gold’s energetic little brother”. That’s because when inflation is in the air, silver tends to act like a well-behaved kid in a candy store!
- In time, the Japanese central bank will be forced to abandon QE like America did, and raise rates too.
- When that happens, I expect the dollar to go into literal free fall, and gold should blast above $1900 with ease.
- To view another key dollar chart, please click here now. The only FOREX chart that is arguably more important to gold investors than the dollar-yen chart… is the dollar-rupee chart.
- That’s because the world’s most powerful gold buyer class are India’s “titans of ton” citizens. The dollar has been tumbling against the rupee since late 2016, and that’s when gold began its “Uptrend of Champions” price action against the dollar.
- The bottom line is that the tumbling dollar increases the gold purchasing power for Indians. They are using that power now, to buy more gold!
- Please click here now. Double-click to enlarge. That’s a big picture dollar-rupee chart. It’s probably the most horrific looking chart on planet Earth right now. The US dollar is ready to incinerate against the rupee, creating a massive surge in Indian gold purchasing power.
- India’s government is lead by a Napoleon-like figure, Narendra Modi. He will come under immense pressure to cut the gold import duty as the rupee mauls the dollar, and the trade deficit becomes the surplus I have predicted. My statement that “All lights are green for gold!” may go down as the 2017 understatement of the year.
- A cut in the duty combined with the rise of the rupee should push Indian demand towards the 150 – 200 tons a month marker, powering gold towards the $1900 area highs in the next few years. I expect the US debt crisis to enter its “endgame” stage just as that happens. That should create a short term parabolic price blast above $1900, to about $2500.
- I’ll talk more about that $2500 target price in the weeks ahead. As demand rises relentlessly both in the West and the East, there’s more great news for gold stock enthusiasts, which is this: Mine supply appears to be near a peak! “2016 marks the third consecutive year of falling year-on-year growth rates and we maintain our near term forecast for mine supply to decline in both 2017 and 2018”. – GFMS Gold Survey 2017.
- Against this background, gold stocks and silver stocks are poised for a truly spectacular year in 2017, and even more so in 2018. The price action so far is likely just a taste of the coming upside fun.
- Please click here now. In early morning trading, GDX has raced to the upper part of a rectangle. It seems poised for an imminent breakout and rally to my $26 target. I’m a relentless buyer of GDX on every $1 decline. Here’s why: Inflation is set to break out to the upside. Indian demand is empowered by the now-mighty rupee and the world’s greatest gold investor demographics. A looming US government debt crisis endgame lurks horrifically in the shadows. The bottom line: A rally to $26 for GDX will not mark the end of the gold stocks price action on the upside. It’s only the beginning of what I have suggested is not just a bull market, but a real bull era!
Thanks!
Cheers
st
Apr 4, 2017
Stewart Thomson
Graceland Updates
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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
Are You Prepared?
The overwhelming view within Europe is that the dollar is about to make a big move to the downside. We warned that the dollar would decline basically to retest the uptrend line. Failing to get through that technical level and bouncing off it, is technically a very bearish signal for the Euro – not the dollar. That technical resistance for this second quarter stands now at 10870 where we reached intraday 10906 last month. Last week provided an outside reversal to the downside. Now a weekly closing below 10493 will warn that the dollar can rise very sharply.
How do you depress the physical gold price? It’s quite easy… you throw $10 trillion paper dollars at it. Not only did global paper gold trading amount reach a new record in 2016, it surpassed the previous year’s total by nearly 50%.
This is simply amazing when we look around at the staggering amount of insanity taking place in the financial markets. With the economic and financial markets sitting at the edge of the cliff, it would seem prudent for investors to curtail their highly leverage bets in the “Paper Gold Casino” and buckle down by purchasing real physical metal.
Unfortunately, the Mainstream media and the Financial networks have totally lobotomized investors by removing the following vocabulary from the mushy substance between their ears….. Wisdom, Prudent, Long-term, Safe-haven and Gold-Silver.
With the advent of twitter, wisdom today comes down to reading no more than ONE SENTENCE. Anything longer than that is a complete waste of time when it is better spent sitting in front of six computer monitors trading digits. Forget about investing one’s money to build up a real company, when it is more stimulating to try and SCALP tiny profits by trading stocks all day fueled by a half dozen monster energy drinks.
This is called progress…… a giant leap forward for mankind and technology.
Global Gold Exchange Notional Trading Amount Hit New $10 Trillion Record In 2016
According to GFMS newly released 2017 Gold Survey, total global exchange notional trading amount reached $9.8 trillion in 2016. This was up 46% from $6.7 trillion in 2015. These figures were based on the total amount of “volume in nominal tonne equivalent” traded on nine exchanges. For example, here are the top four exchanges annual gold traded quoted by GFMS:
- COMEX = 179,047 tonnes
- SHFE = 34,760 tonnes
- SGE = 11,793 tonnes
- TOCOM = 8,541 tonnes
The total amount of paper gold traded on the nine exchanges in 2016 equaled 243,000 metric tons versus 180,000 metric tons the previous year. I took these values and multiplied them by the average annual gold price to arrive at the figures below. I also compared these figures to the total amount of physical gold retail investment for each year (source GFMS 2017 Gold Survey):
As we can see, the global exchanges traded a stunning $9.8 trillion worth of paper gold last year versus $42 billion in physical gold investment. This turns out to be 233 times the amount of paper gold traded for each ounce of physical gold purchased.
With this sort of trading volume, the Monster Energy Drink Stock (ticker MNST) looks like an excellent investment opportunity. And why shouldn’t it be? The Monster Energy Drink stock price has surged nearly 10 times from $5 in 2009 to $46 currently. While this may seem like a good stock to invest in, I am waiting until they sell Monster Energy IV’s that you just stick in your arm so you can continue trading without wasting waste time knocking down 5-6 individual cans.
We must remember… TIME IS MONEY.
So, the question is this…. what would happen to the physical gold market if a small percentage of the Monster Energy Drink traders purchased physical gold instead of the millions of contracts traded on the exchanges. According to GFMS, total gold trading volume just on the COMEX last year was a stunning 58 million contracts.
Annual Global Gold Exchange Trading Volume Also Reached New Record Of 7.8 Billion Oz
Furthermore, if we look at the total amount of paper gold traded on the nine exchanges in 2016, it also reached a new record 7.8 billion oz:
Not only was the 2016 total 7.8 billion oz paper gold trading volume 34% higher than in 2015, it was 76 times higher than the 103 million oz of world gold mine supply. I decided to add the paper gold trading volume during the 1970’s when the gold futures markets began. During the first year of gold futures trading in 1975, a total of 84 million oz (Moz) were traded. However, by the end of the decade and as the gold price shot up towards $850, total paper gold trading surpassed one billion oz in 1979.
Again, what would have been the reaction to the physical gold market if investors purchased more physical gold in 1979, than the one billion ounces of paper contracts?? Well, I will tell you what I think from some wisdom from Jim Rickards. I listened to Jim Rickards interview with Greg Hunter today and he had some very interesting things to say. One of Rickards interesting tidbits was that Americans own about one ounce of gold each versus the typical poor Indian farmer who has acquired kilos of gold.
So….. when the FAN FINALLY HITS THE COW EXCREMENT, the wealth of the world will move from WEST to EAST as Americans are forced to pawn off the remainder of their gold jewelry for much needed MONSTER ENERGY DRINKS.
GOD HATH A SENSE OF HUMOR.
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