Can Gold Go to $2,700?

I’ve only been here a week, and there is already reader mail piling up. I always appreciate people who take the time to not only read my articles, but write back. Importantly, they raise good questions. And the answers to those questions help me … and you.

So, here are some excerpts from letters below.

Jeff W. writes:

Sean, I always enjoyed your reports in the past when you were with Weiss. You always support your forecasts with good information from the field at mining locations to discover the facts, which is important. Good to see you back with Uncommon Wisdom/Weiss.

Thanks, Jeff. It’s good to be back. Keep your eyes peeled for more of my reports from the field. It’s what I enjoy doing. And it sets me apart from desk jockeys who wouldn’t know a mining scoop if it ran over them.

***

Judy writes:

I am so very happy to see you back at Weiss. I always enjoyed reading your articles and know that you are a great analyst. I recently went to (your previous employer) and enrolled. Why? Only because you were one of the analysts. Then last month I noticed that they dropped your name and wondered if they kept you or not. Lo and behold you show up right where I am at — at Weiss (best of the best). Thinking I am going to really like this year; welcome aboard once again. Can’t wait for your good trades.

Judy, I can’t wait to give you my good trades. And keep an eye on our Uncommon Wisdom Daily Afternoon Editions … I have a daily column there called "Mining for Money." If you missed any of those, you can catch up here:

• March 16: Why Juniors are on the Launch Pad

• March 17: Chart of the Week Glows in the Dark

• March 20: Ready to Ride that Uranium Bull?

• March 21: Energy Metal Lights Up!

• March 22: Oil Says: Big Drop Ahead!

• March 23: Gold Bangs Its Head

You can also find me every Thursday in the Morning Edition as well. Plus, keep your eyes peeled for my publication, which will be rolled out soon. In the meantime, you can see that I’m already having a lot of fun at Uncommon Wisdom Daily. It’s good to be back!

***

Ed L. writes:

Uranium: I like CCJ, URA and NXE. A healthy mix, as you put it. What do you think?

Hi, Ed. I’m glad you enjoyed my "Glow-in-the-Dark" commentary about uranium. You’ve got one big producer (Cameco — CCJ), one ETF that’s a basket of stocks (Global X Uranium ETF — URA) and one explorer (NexGen Energy — NXE in Canada). A healthy mix, indeed.

Now, I can’t give individual investment advice. But the two companies are sound, and I’ve already recommended URA. Now we just have to see the uranium bull market that our friends in the industry have been promising us for so danged long.

I think it’s coming, though. Good luck!

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Davis B. writes:

Welcome to the Weiss team, Sean. I followed your (previous newsletter), and liked your performance. Glad you are here to help us out. I really miss our friend, Larry; he was a great guy, and I profited from his wisdom. I feel that gold, silver and other precious metals are on the upside, and should continue. Provided that our president gets the support of our Senate and House members. If so, and he wins his plan to repatriate the many large, rich corporations, with a "holiday tax" gift of 35%: We should see a flood of U.S. dollars back into our economy, and into all commodities.

Hi, Dave. We all miss Larry. He was not only brilliant, but he was a genuinely nice person and a pleasure to work with. So thanks for your kind words.

I agree with you that gold and other precious metals are headed higher. Gold is cyclical. We’re in a new bull market that started in January 2016, and it should have years to run.

But if you’re hoping for good news out of the mud-stuck cesspit that is Washington, D.C., you might have to learn to live with disappointment. Remember when they told us nothing could get done because of a two-party log-jam? I wonder what their excuse will be now …

I strongly believe that gold will likely go higher no matter what Washington does. All we’re talking about is a question of amplitude. Speaking of which, the next letter raises an important question on that.

***

Roger R. writes:

Could gold go to $2,700?

Sure it could. You should know, though, that my intermediate-term target is $1,540. For technical reasons, I think that’s a level that could cause gold to catch its breath. That’s still a long way from the $1,900 high of the last bull market.

The question might be: "Will $1,900 be a double-top, or could gold go to your target of $2,700, or higher?"

Well, all I need to do is look at America’s debt. There is now about $61,000 in government debt per person, or $166,000 per taxpayer. How is that going to be paid off? Especially when the trend of government obligations looks like this?

Source

The government’s solution to this will be to print more money. And that’s like taking the value contained in paper money and running it through a shredder.

You know what you can’t run through a shredder? Gold!

And that’s just ONE of the factors pushing gold higher. We also have global demographics, "Peak Gold" mine supply, and more.

So yeah, I think gold can go higher. Talk to me again when we get to $1,540, and we’ll set new targets.

Thanks for writing in, Roger.

***

Jeanne S. writes:

I have your book, Suburban Survival Guide. It got me started to think along those lines where only lately do I see that I might really need it other than the people in the hurricanes, etc. The future looks dangerous.

Thanks for mentioning my book, Jeanne. I wrote the Ultimate Suburban Survival Guide one year when we had three hurricanes in a row in South Florida. And after every storm, I saw my neighbors lined up at the supermarket to buy goods. Every. Danged. Time. They never learned from one storm to another.

And the book covers all sorts of potential "hurricanes" — financial and otherwise.

Mind you, the whole point of that book is you don’t have to move to a bunker in the country to protect your wealth and family. You can do fine if you prepare in place. A lot of us may find ourselves doing just that in this dangerous world.

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Fritz L. writes:

What happens when the Fed runs out of bullets?

Good question, Fritz. The good news is the Fed is "reloading" right now. It is raising its benchmark interest rate. That way, it can lower those rates again when the next economic downturn hits.

And there WILL be another economic downturn. We don’t know when and we don’t know how severe. All we can do is protect against the hard times and make hay when the sun shines.

And right now, the sun shines on gold.

That’s it for this week. Stay tuned for more — I have so much to share with you.

All the best,
Sean Brodrick

Your thoughts on “Can Gold Go to $2,700?”

  1. Sean,

    in your answer to the question “Why did the price of Direxion Daily Junior Gold Miners Bull 3X ETF (NYSE: JNUG) drop when gold is surging? Does the creation halt affect the price?” you explained how GDXJ is too popular and the managers have too much money that they can invest, similar reason for JNUG . To me this sound like very high demand and low supply which should have driven both ETFs to very high prices (NAV). But it did not.
    What am I missing as the NAV says my logic does not apply.

Comments are closed.

Sean travels far and wide to seek out small-cap values in the natural resource sector. His journey started in New England. As a youth he worked on Mt. Washington, on the cog railroad that runs to the summit. Working on…