Summer Doldrums

It’s no secret that everyone loves summertime and the summer holidays often planned during those months. That wonderfully relaxed pace, ice cold drinks on a sweltering hot patio, sun beating down day after day giving us this numb sense that all is right in the world. But this post isn’t about longer days and that overwhelming urge we all have to cut out of work early and catch those last couple hours of sunlight. It’s about the phenomenon traders refer to as “summer doldrums”.

This is a time of year when markets are lightly traded, the usual market makers are on holidays or taking an early or extended weekend. These conditions all add up to a market that tends to act uncharacteristically and often moves in one direction or the other are much more exaggerated. Although, it is impossible to identify exactly when these exaggerated moves are going to occur or why I personally like to exploit those opportunities whenever they arise. Currently, gold and silver are suffering their 7th consecutive week of decline and very quickly approaching if not already in oversold territory. I should remind you, our company (International Gold Vault Ltd.) doesn’t charge costly commissions and offers a very competitive spread meaning the opportunity to exploit and profit from these conditions is quite favorable.

One factor to consider is the unpredictability of President Trump and his current/very public global trade war agenda. I get the impression that he’s making every effort to turn the world against the U.S. and its privileged currency. When we look at the insurmountable debt load in the U.S. (currently $21.2 trillion) what would be the best avenue to solvency perhaps Insolvency? If Trump can convince the world to turn their back on U.S. dollars as a trade currency, governments worldwide will have an alternative to costly dollars to conduct trade. The likely outcome, an inherently weaker U.S. dollar.  I believe an extremely weak U.S. dollar would enable Trump and his team to negotiate the current U.S. debt obligations in an orderly fashion unlike the situation in Venezuela which has spiraled out of control. (Venezuela was the richest country in South America 2001 now with 25K% inflation the countries virtually insolvent) "boy, that escalated quickly".

​​The challenge for Trump and his team is to instigate a loss of confidence vote in the dollar, negotiate global debt obligations and simultaneously have a plan in motion to renew confidence in a “new dollar” most likely backed by some percentage of gold and tied to the IMF’s currency utilizing “distributed ledger technology” aka blockchain. Even a slight surge in global gold demand would send prices significantly higher and in short order. Physical gold supplies are very tight, Jr. mining companies have been under pressure for the last 6 years limiting production. Get ahead of the crowd, early is much better than late so position yourself now. Don't wait. 

Sound a little far fetched? I'd recommend everyone read James Rickards books “Currency Wars”, “The Death of the Dollar” and pre-order his latest due out October 30, 2018 “Aftermath”. I’ve ordered mine!

Interested in learning more about International Gold Vault Ltd. and how you can take get started visit our site www.internationalgoldvault.com 

Enjoy your summer!
 
Written by Rob McInerney