Gold Update

Gold has had a quiet year so far in 2017, but that may be about to change. In my August Investor Letter, I noted:

Gold is setting up for a big move, so let me lay out my expectations for what I believe will happen over the remainder of 2017 and beyond. Gold’s first task is to break above $1,300, which I expect will happen in August or September. A break above $1,300 would be significant for a number of reasons. Gold made a series of higher lows in 2017 since the washout decline to $1,124 in December 2016. Gold trading above $1,300 adds support to the view that the bear market in precious metals (2011-2016) has ended and a new bull market has begun confirmed by a rising trend in the gold price.
— August 2017 Investor Letter, Secure Investments
 
 

Gold has rallied sharply in recent weeks and is now just $10 away from breaking above $1,300; so far so good. I my latest report, I also outlined my longer-term expectations for the precious metals.

A break above $1,300 would also be significant as it would confirm a break out of the longer-term triangle consolidation that has been in place since gold topped at $1,923 in 2011. Once we get a good close above $1,300, I expect a sharp run higher towards $1,400 or $1,500 before the next consolidation. $1,500 represented strong support in 2011 and 2012 before it gave way in 2013, so I expect gold will take some time to get back above that level. After $1,500, I expect gold will challenge and ultimately exceed the all time highs above $1,900, probably in 2019. Once gold clears $1,900, I believe the bubble phase in precious metals will begin and gold will have a monster move higher in an epic bull market that will be a sight to behold..... but let’s not get ahead of ourselves. $1,300 in August/September, $1,400-$1,500 by year-end and $1,900 in 2019, which is 50% above today’s gold price.
— August 2017 Investor Letter, Secure Investments

On Thursday 10th August, gold broke out above its 6-year declining trend, which is a very significant move and again, in line with my expectations. Defensive assets (precious metals and government bonds) are starting to outperform again and the stock market looks quite vulnerable. Patience will be rewarded and opportunities will present themselves in the months ahead for Active Asset Allocator and Gold Trader investors.

 
 

Gold Trader Trade 16 is still live and currently +2.3% (Gold PowerTrader Trade 16 +4.0%). 

For more information on this exciting new strategy for Secure Investments, or to open an account, please contact Brian Delaney at 086 821 5911 or brian@secureinvestments.ie.