Bond Meltdown Will Be Great For Gold

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October 24, 2018 7:01am NYSE:GLD

NYSE:GLD | News, Ratings, and Charts

From Adem Tumerkan: In this interview, Jaime Carrasco notes he feels that recent market activity is a good signal of what is coming. He says, “There aren’t many safe havens left, and one of the few is precious metals.”

He mentions the Comex chairman commented that gold should be above $5000. The paper market has been suppressing the price of gold through derivatives. People need to understand they are living in a complete facade and when this game is over, there will be a re-balancing.

Some country is going to peg their currency to something that can be trusted. Central banks are buying gold and people are waking up as bullion premiums are starting to rise.

Jaime feels that the ten-year will continue to rise and that major tremors are coming. The bond market is the real market because it’s so much larger. Interest rates rising are increasing the cost of debt and put further downward pressure on the Dow.

The next few weeks will be crucial as he thinks the Republicans may take the house. Jaime feels that Fed policy is in line with Trump’s objectives which is to unwind this debt event. He says, “I see Trump as the king of bankruptcy.” Trump will then have full control and what happens when Trump doesn’t play ball.

As interest rates rise they will lose control of the currency trends, and it will devalue. Mr. Carrasco thinks investors should be prepared for even worse markets than in 2008. The longer it takes for gold to rebound the higher it will go.

The SPDR Gold Trust ETF (GLD) rose $0.04 (+0.03%) in premarket trading Wednesday. Year-to-date, GLD has declined -5.87%, versus a 2.94% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #1 of 35 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of Palisade Research.

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