the bull market continues unabated. The gold price in euros has risen by 20% since the beginning of the year and has just given a new technical buy signal. As expected, profits are even higher on selected mining stocks. Nonetheless, my long-term indicators signal that we are still in an early stage of the bull market and that much bigger gains are imminent.
Big wins on selected gold mining stocks
On the way up, there will of course be corrections that can be quite severe, especially in this volatile sector. But that doesn’t change the very positive outlook for our mining stocks. In addition, I use our price band indicator to at least partially realize profits if that seems advisable from a medium-term perspective.
Gold price per ounce in $, 2019 to 2020
The gold bull market is largely ignored by the media. That is a very good sign. Source: StockCharts.com
EU masquerade ball decides new debt orgy
At the most recent EU masquerade ball, the EU heads of government agreed on a so-called “reconstruction fund” of 750 billion euros. Since there was neither a war nor a natural disaster, nothing that could be rebuilt was naturally destroyed – apart from the common sense of most politicians and the debt policy limits that the EU had set up to now.
The EU’s direct debts for the first time are praised in the media as a paradigm shift and even celebrated as a big hit. This is actually a litter – under whose weight the German taxpayer has to suffer. It is another big step into the European Debt Union, which guarantees the continuation of the completely dubious sovereign debt policy.
EU debt union is bullish for gold
For gold, this development is bullish all round. Because all major monetary devaluations were accompanied by a sharp rise in government debt, which was largely financed by the central bank. The whole world is on this path. That is why the gold price has reached record highs in almost all major currencies. And it will continue to rise.
As a German taxpayer, you are one of the losers of this debt policy. You can protect yourself with gold. You can even benefit from it with selected mining stocks. You can read which mine shares you should definitely buy now in my crisis-proof Investing letter.
I wish you a nice weekend,
Claus Vogt, editor-in-chief, crisis-proof investing
P.S .: The speculative bubble on the US stock exchange is now bigger and wilder than at the height of the year 2000. Be careful.
P.P.S .: If you want to find out what is going on behind the financial markets every week, please request the free Claus Vogt market comment here today simply with your email.
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