Gold, Energy & Tech Stocks

The gold markets have been moving sideways over the past few years leading to a general lack of interest in the yellow metal. However, Michael Oliver's momentum work has shown that gold shares are in the process of breaking out, even if that isn't noticeable in the price charts. Time after time whether in the gold markets, equities, or debt markets, Michael's momentum work has provided a timely clue in terms of market direction. So while the gold bullion market continues to build a base, Oliver's momentum work is suggesting professional investors may be exiting the S&P and entering a long ignored gold share market. I will be interviewing Michael on my May 21 radio show https://www.voiceamerica.com/Show/1501 at 3:00 PM NY time. Check out Michael's work at www.OliverMSA.com

The chart on your left which shows actual and projected annual U.S. Federal deficits displays a major reason why the price of gold as measured in US dollars is destined to rise dramatically. During the past several years, gold has been an unloved asset category. But as the dollar's purchasing power continues to decline, an ounce of gold remains an ounce of gold. What does the dollar do? Its purchasing power declines dramatically thanks to Keynesian economists who have have encouraged western governments to live beyond their means by deficit spending. In theory, policy makers were supposed to run surpluses during years of growth but that hasn't happened since Joseph advised the Egyptian government of an impending famine in the book of Exodus. And so as projections in this chart show, the U.S. is going to need to monetize debt used to fund America's ever expanding socialist government causing the dollar to lose purchasing power vis-a-vis gold that forever retains its purchasing power. Links to daily stories here tell of the ongoing demise of the dollar. Pay attention!