New Sharia Gold Standard Won’t Ignite Bull Market …

Don’t believe everything you hear and read about gold these days. It’s just not yet prime time for the precious yellow metal.

If it were — gold would have held my important cycle low point at $1,245 on October 5. It did not. If it were prime time for gold, it would have rallied when Trump was elected, due to the inflation expectations of many of his policies. It did not.

If it were ready for prime time, gold would have already rallied on the recent approval of a gold standard in Sharia, Islamic law. It did not.

And if gold were ready for prime time, miners would already be taking off to the upside again. They are not.

Don't get me wrong: Precious metals and miners will again explode higher!
Don’t get me wrong: Precious metals and miners will again explode higher!

Don’t get me wrong: The time is edging ever closer when the precious metals and miners will again explode higher. It could be soon, or, it could be from below $1,000 gold in the first quarter of the new year that’s coming.

Either way, longer-term gold is heading to $5,000 an ounce, minimum, and most senior miners will at least triple while many junior miners will quintuple and more.

Silver, copper, platinum and palladium will all follow. But gold will experience the most stable gains. It’s more of a monetary metal than the others, though most governments are working hard to eliminate it as such.

The key is being patient and separating the wheat from the chaff. All markets have their time in the sun, and it’s the major macro-economic cycles that drive them.

Right now, the macro-cycles are still largely targeting the imploding sovereign debt markets in Europe, Japan and the U.S. That will continue for years.

In turn, it’s driving most money into either cash or mostly, a handful of the biggest U.S. blue chip stocks.

However, once the Dow Industrials and S&P 500 take their inevitable breather — coming soon — I strongly suspect we will see a big shift back into the precious metals.

Be patient and follow my lead. There’s oodles of money to be made in the precious metals and in the mining sector.

Stay tuned and best wishes,

Larry

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader. Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

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Comments 25

Mario Giorno December 7, 2016

Larry, When I look at the overall market cycle that includes all asset types/classes it still seems like commodities still have to go lower before a true commodities bull market resumes. Looking at the commodities market on the whole when do you see the bottom setting in and a rising wave of commodities prices long term? TIA, Mario Giorno

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jerome e December 7, 2016

What will we do as investors when gold hits 2000,3000 per ounce....the us dollar will be worthless then, so what if we want to sell........where do we go then?

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Eh?? December 7, 2016

Doesn't make sense...big miners will only triple despite gold at 5000? Throughout history miners have outperformed bullion in big way, in particular during the final leg of the secular bull run. Now if you say 'triple from their all time highs' that'd make sense.

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Jacob December 7, 2016

Based on your early November positive signal, I have already established a starter position. I was planning on legging in further if/once the rally started, but as you have subsequently pointed out, Gold has retraced and did not hold the floor. So I am down a bit. You are not implying I should take the loss and get out are you?

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Eli December 8, 2016

I have a friend with a very good record at trading based on charts. Take a look at how bad the chart is here, and it seems gold has a long way still to drop: https://verifiedinvesting.com/uploads/files/GDXJ%20going%20lower.png

Mike D. December 7, 2016

Will trump be able to balance the budget and will Ryan and Company privatize Social Security and Medicare? If you think these two things can be accomplished I believe there's more hope for the US dollar? Your thoughts

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Efrain Velasco December 7, 2016

Thanks for your insight Larry. I picked up on the Sharia Law article recently and was left looking for additional insight as it seemed to be a non event in gold.

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ron goddard December 7, 2016

yes larry it seems that timing is 'everything' in the investment game. i wonder if hillary's comeback in a few days will make a difference? there are foul plans afoot as you read.. time will tell and everyone will be the wiser after the 'event'.

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IwanS December 7, 2016

Martin Armstrong's forecasts too have mentioned the possibility of gold falling below 2015's lows...possibly breaking $1000/oz in Q1 2017 before reversing to march to new highs in the years to come. How low will gold end up moving?

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John December 7, 2016

Though many do not believe in PM market manipulation, just look at the charts, the spikes, the drops, and the fact that Deutche Bank has already been fined and is rolling over on other banks that have manipulated PM's in the past 5 years, then you don't have much choice but to believe that both technicals and fundamentals mean nothing when there is no such thing as a free market. When a specific technical does not seem to hold true anymore, technicians just develop another to take it's place. Another that applies to today until it no longer applies and another is developed. So where is the market headed? When physical buying so far outweighs the efforts of downward manipulation, or there is little to no more gold in the COMEX, we will see a spike that hopefully bankrupts all the illegal paper sellers (manipulators) and sends them to the poor house where they belong.

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Interesting December 7, 2016

Still in all I will still continue to purchase gold coins or bars. The fact of the matter is why so many nations take steps to guard their gold in places like Federal Reserve Nyc

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Reagle Moss December 7, 2016

Talk about money moving to the US stock markets! Look at the volume of SPX for the last 3 days. The average volume is .6 Billion shares per day. The last 3 days have averaged 2.4 Billion shares. That's about 4x times the regular volume. If you multiply that excess volume of 5.4 Billion shares by the value of the SPX or $2141 it comes to almost $12 Trillion extra money buying into SPX in a matter of 3 days. That's a lot of money in anybody's book!

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Edward Gasior December 7, 2016

Can you be a bit more specific It could be soon, or, it could be from below $1,000 gold in the first quarter of the new year that’s coming.

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$1,000 gold December 8, 2016

i like those words, "below $1,000 gold." i can remember when everyone doubted me.

george bloom December 7, 2016

i am sorry , but to judge this quickly about the change in sharia law is well, to me, laughable. no disrespect, as i am i want the proof of the pudding to develop in the cash market, actual demand and sales, which i believe they will. after reading about goldcore, i believe they will be a big part of the story. you may or may not be correct about sub 1000 gold. i doubt it occurs as i doubted 2250 gold when gold was 1800. i play between the 20 yard lines, plenty of room to reap profits.

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gordon December 8, 2016

I am a big fan of yours Larry but a bigger fan of the GATA people who believe the gold market is fixed to the hilt. 4 or 5 recent positive events for gold turned negative fast to fast in my humble opinion. I think gold investors were set up. Watching the Kitco chart when the drops came they were straight down no zig zag. Some of the rotten apples in gold manipulation are being exposed one bank just paid a 60 million dollar fine and offered to squeal on other banks involved. I still think there is a bushel basket full of rotten apples yet to be uncovered. They hide their tracks well and have many nefarious tools to use. They are the ultimate burglars.

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N B B December 8, 2016

If I may, this tidbit of data here is in regards to your article on the upcoming economic "Tsunami" that you so kindly have afforded to your readers. In terms of its accomplishments, except for a couple of items, I agree with you completely. Indeed, the upcoming economic tsunami will be massive. Speedily it will rove this Globe across and wide. However, the data I have from infallible sources on the matter say that there will be swift and abrupt Global economic collapse. It will be such that in comparison to the 2008 so called financial crisis it will be unstoppable and speedily transmittable. With unprecedented velocity it will swirly traverse across all economic boundaries. It will be thorough. It will be especially speedy and indiscriminate. This time around there will be nothing left standing on its way; if any, very little. For those who are waiting for it, i.e. waiting to be afforded the investing arena for opportunistic gains (transfer of wealth) as the one we have seen in 2008 - 2009, they will be hugely disappointed; that is if they will endure its mammoth and sweeping force. When it will commence in the open and for all to see, in a very short frame of time (days - weeks), nearly all of this riveting Earth's life-forms will cease to exist. The extermination of species (animal - plant) will be epic (inconceivable in scope). At such upheaval time, neither money (regardless of denomination) nor gold will be of value or of use whatsoever.. Indeed, at such time, or at least at the event's onset, it is logical to assume that the Globe's armies (police and military forces) will receive orders to shoot at the beleaguered civilian populations, and in the beginning these forces will engage in indiscriminate massacres. Soon after however, with unparalleled ferocity and across this Globe's landscapes, these forces will turn their weapons at their own bosses -- in particular, against the plutocratic sectors, regardless of creed. For the enduring few, the exodus and above all the passage to a small place safe and fertile enough will be taxing in the extreme. At this extremely taxing intersection in time, the only item (commodity) that will have value is seeds. I am not a clairvoyant (never have been, I don't even believe in them) nor am I an economist, I don't believe in them either. I am a field researcher of difficult and secretive matter. I work for a team involving flawless and ultra proficient investigative researchers, among them a shrewd professor. This astute Professor is the director of my immediate and brilliant superior. Contrary to I, I have never known these parties to ever err - ever. I have been afforded the chance to read (part of it) their 'Case File' on this economic "tsunami" event from the future. As I said, these parties are particularly assiduous in their research, they can venture to places that are quite impenetrable to most others. If they are mistaken on this especially serious issue, it will be the first time, to my knowledge. Of course, and while unlikely that they will be mistaken, nevertheless, everything is possible. Indeed, your predicted "Tsunami" is on its way in my view, however, its dimensions and morphology will surprise even the most cocky amidst the human settlements.... The tsunami of your description will be way bigger than anyone can possibly visualize; both in size and impact -- it will be twofold -- it has a twin I believe, just as cruel, if not more. No, it will deliver riches for no one I am afraid -- just state of poignancy and shock in abundance...... N. B. B "While it makes others rich beyond their wildest dreams. It would result in an economic catastrophe of epic proportions. In other words, it would be a TIDAL WAVE of economic change. This financial devastation will radiate outward from its source at an alarming speed until every civilized human being on the planet is affected. Because the police, the National Guard and the army will be patrolling the streets in tanks warning people to stay inside or risk getting shot. The government will not be your friend at this point. The government will NOT be your friend at this point. It will be your mortal enemy."

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Sandor December 8, 2016

How is Paul Krugman doing anyway?

philip g December 8, 2016

PERFECTLY WRITTEN...TOTAL GOSPEL...everyone needs to understand and study your words... This is G-D'S choosing because just as the GREAT FLOOD took place,because of our sins, this too will be another NEW BEGINNING. If you have a moment please respond directly to me. Thank you.

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Stephen Molinelli December 8, 2016

NBB - I hope your food and ammo is stockpiled. God bless Mr. Doom & Gloom

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Fred M Starkey December 8, 2016

I thought you had a turn for December? A bottom: minor counter rally? Silver runs low to low at 18 weeks: spot on again: your timing ?

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len December 8, 2016

what hath paranoia spawned??

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Ken Gutsch December 9, 2016

One of our greatest failures in life is the extent to which we speculate . . . .

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adrian December 9, 2016

Dear Larry, See how the gold miners are breaking down today, the 9th, this is a classic Elliott wave double zig zag. It is a wxy move. The good news for people, who already own them, is the move is nearly over and then they will rocket in value. Probably some time in January. It will coincide with a top in the dollar. Best wishes, Adrian.

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gordon December 10, 2016

If you follow the news you will have noticed that in the past nuggets of good news were indispersed with lots of negative news. Now the good news has taken over entirely my how the economy has shifted gears so fast. Take personal stock around you have things gone so positive so fast or is it the Trumpeteers blowing a loud horn in your ears constantly through the crooked media.

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