Gold = Conflcit = Energy = Platinum
Regular readers of my articles will know I like to doodle on charts and that over all my simplistic crayon technical analysis has a tendency to give a useful guide.
This is because I like simple situations and simple charts simply show the simple outcomes of the big picture driving prices. I also like long term charts because they defocus short term noise and reveal the long term trends where the big money is to be made.
So this is a rendition of the above.
In my book of chart setups you couldn’t really get a more bullish chart, but if you threw the chart away and looked at the fundamentals you would have to say there are also super bullish.
In true internet troll style I’ve been saying Gold is for War, but dialling that back you can certainly say ‘gold is for conflict’ and if you do its hard to guess the top of this bull market. I set it at $3500 initially some time here but moved it to $5000 when the chart unrolled. This is the destination in my mind now. From the chart you can see the market expects a possibility of a lot higher, but it’s a probability not fate. A chart is just a time decayed summation of all needs and expectations and the theory goes that the hive mind of a market is a pretty good guesser. A chart is just a record of the evolution of the hive minds thinking and my interpretation of it is very bullish for Gold and sadly a bit bearish for humanity. Sadly the value of gold is often the inverse to the value of life and as the tempo of conflict rises so does Gold. Yet as only markets speak truth to power I’m happy to participate.
I’ve been talking about Platinum here and I hope you took note as it has rallied.
This is a chart from the article on May 15th.
This is what happened next
Its still good and so is Silver and Palladium. With my Internet troll hat on I’ll say Platinum with going to parity with Gold. It might not exactly happen but you get the inference. Gold = Platinum was a long term lock and with less than 200 tonnes of Platinum (and for that matter Palladium) produced a year, why wouldn’t it now go back to that sort of level as the planned banning of internal combustion engines is evaporating. Not everyone has got the memo but energy demand/production is going 10x in the next 20 years and that heralds a new era. The why? AI is why. There is no limited to the demand for intelligence, AI = energy + silicon and there is no second place. So the Energy-Kraken is unleashed, cannons be dammed as the periodic table comes back into fashion.