Getting Ready for Gold

The following chart was put out by SHTFplan.com on May 20th along with the following notation:  

The markets are adjusting to a growth-scare and a recession, both of which are extremely bullish for gold, so much so that when this happened last, gold stocks were the best-performing asset class in the world for seven straight years!Smart Money wants to know if the U.S. economy will need to undergo a real cleansing in the form of a recession for balance to restore. While it debates these, mining companies continue to make a killing and will be immensely profitable for the foreseeable future. SHTFplan.com is using this as a promotional piece to sell a report but certainly conditions do seem ripe for gold and silver to finally turn.

S&P GSCI is the first major investable commodity index. It is one of the most widely recognized benchmarks that is broad-based and production weighted to represent the global commodity market beta. The index is designed to be investable by including the most liquid commodity futures, and provides diversification with low correlations to other asset classes.

On May 18, Michael Oliver put out some guidance to his subscribers, suggesting that if certain price hurdles were met by Friday, May 20, it would be very positive for gold and silver. And as it turns out, both of those monetary metals exceeded levels Michael suggested his bullish subscribers should like to see. Specifically, he suggested that if gold could rise above $1,834.80 on the July futures contract, that would be positive. In fact, June gold closed at $1,842.10. For silver, Michael’s momentum and structure models told him a Friday close on the May contract above $21.54 would be positive for “poor man’s gold.” Silver closed at $21.66.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.