As we approach another Independence Day one has to reflect if things were better under British rule when you take a look at the political landscape. The IRS- a servant of the taxpaying people- has evidently been targeting groups who stand for nothing more than the idea of America and what it was founded on, perhaps purely because El Presidente opposes them. Thank God our ‘beloved leader’ hasn’t taken over the legal system and this isn’t a banana republic with courts under government rule. Yet. Who knows though, what with the police forces becoming more and more militarized…
Maybe it’s because these patriots who dare to speak out have actually read The Constitution and how it claims that gold is the only true currency. Whether this treacherous government oppression comes silently from Federal Reserve money-printing or covertly from IRS targeting conservative freedom fighters, there will ultimately be only one winner in this war of government vs. The People: truth and justice will always prevail, one way or another. And as we see IRS officials taking the Fifth and Fed officials worrying about inflation, perhaps those long-awaited hens are finally coming home to roost.
And in markets too, ultimately there will be winners and losers. Let’s take a look at how you can come out a monetary winner as ‘The Federal Fiascos’ unfold…
Gold is truth, paper money is a lie. As renegade Brits, the Founding Fathers knew as much, which is why they wrote words to that effect in The Constitution. And in the end, gold (truth) will win. But in any war there are battles that are lost on the path to victory…
Here’s the updated long-term chart for the gold-miners ETF: GDX…
As I pointed out last week as I observed what’s happening to the actual metal, the miners are, understandably, in a similar position with that bullish inverted head and shoulders pattern. Only this chart looks closer to breaking above that ‘neckline’ (blue straight line) than the chart of the actual metal. If GDX breaks above $28 this should be the start of a very bullish surge upwards.
Start gathering your shopping list of precious metals mining stocks, ready for the fireworks. And happy July 4th on Friday.
Best
Jim.
The author has an interest in the securities discussed in this article. Source of charts: stockcharts.com
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