The metal that keeps on shining

Image: Mike and Wombo collaboration

This chart is compelling

But this was the gold chart from nearly a month ago.

At the time, I posted it on LinkedIn, with the following explanation:

"After consolidating for only three months, gold is freaking/breaking out a little earlier than expected.

Reason?

1. Powell's put is back. He's finally signalling lower rates
2. Dollar debasement increasing as debt growing faster than GDP
3. Real yield returns decreasing
4. Long bond signalling long term issues
5. U.S. is a net importer of gold (yep, you heard right)
6. Central banks still buying
7. More lindy effect than BTC”

But here’s the latest chart 👇

Where to next?

Feels like we’re due for a correction and consolidation before pushing above $4,000, but I could be very wrong.

As the USD weakens a little, China stimulus dribbles out, yields/rates generally soften, liquidity increases, more money moves around, more loans are made, and as a result more monetary debasement occurs.

That just means that our anti-debasement investment thesis for gold continues, at least at the bullion level. Miners are yet to catch up but they’re moving with some monstrous cash margins evident.

Gold continues up to the right, but probably not in a straight line.

See you in the market.

Mike

With decades of success across six continents, NextLevelCorporate expertly navigates the intersection of M&A, financial advisory, and business strategy—delivering macroeconomically aligned corporate development strategies, with bespoke transactions that bring them to life.

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