Stewart Thomson of Galactic Updates joins The Insider for a MUST WATCH interview on gold & silver’s BREAKOUT.
Thomson maintains today’s gold & silver BREAKOUT back above $4,000 & $50 is HUGE:
“WE’RE HERE! This could be the LAUNCHPAD - right through to NEW HIGHS!”
Thomson explains Gold TRIPLED the last time THIS Happened…
Key Outcomes
- Gold and silver are viewed as being in a long-term bull era driven by a 40-year US interest rate/inflation cycle and the rise of Asian empires, particularly China and India. 12
- Buy zones are the primary tool for timing entries; the most recent major buy zone for gold was around $3,941, and silver has a significant historical buy zone between $45 and $55. 34
- Market sentiment reached extreme lows recently, with some investors fearing prices could go to zero, which is viewed as a strong contrarian indicator for a potential launch toward new highs. 56
- Long-term outlook suggests gold and silver will become more everyday assets as the US dollar’s dominance is challenged and government debt becomes harder to finance. 17
Market Analysis
- Recent Price Action: Gold and silver jumped after the election, with silver up nearly 5% to $52 and gold up about $140 to $4,080 from recent lows. 8
- Gold as Currency: Gold is treated as a currency that tripled from roughly $1,800 in October 2023 and has since been consolidating. 910
- Silver Volatility: Silver is more volatile than gold because it is not a major central bank asset and has a smaller futures market. 11
- Bond Market Cycle: The current period is seen as year six of a 40-year cycle that began around 2020 and may not end until approximately 2060. 212
- Debt Risk: US government interest payments are already around $1 trillion on a $5 trillion budget; if rates rise to 7-8%, interest could consume up to 80% of the budget, likely forcing money printing. 713
Investment Strategy
- Buy Zones: Investors should establish buy zones in advance based on previous highs and lows, rather than reacting to news. 1415
- Position Sizing: Investors should maintain enough fiat capital to buy into zones and size positions so they can withstand drawdowns without panicking. 1617
- Risk Management: Put options can act as insurance against price drops, but should not be treated as speculative tools. 118
- Investor Psychology: Success requires patience and understanding one’s own risk tolerance; “fake bugs” often over-invest and capitulate during buy zones. 192021
Notable Points
- Asian Demand: China and India are increasingly gold-oriented, and this trend is expected to persist as they become more dominant global powers. 1
- Price Discovery: Shifting price discovery away from the LBMA and COMEX is described as a multi-decade process that is only just underway. 22
- Fiat History: No fully fiat currency in history has gained or appreciated in value over the long term. 23
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