Fresh statistics show that US gold jewelry demand is now about five times the size of US gold coin and bar demand. Back in 2014, I predicted this would occur, and it’s happening on schedule.
What’s particularly interesting is that mine supply is barely growing and likely peaking, while US, Indian, and Chinese gold jewelry demand is growing at about 6% – 8% annually.
This growth is relentless. Global jewelry demand is now more than 50% of total gold demand. I expect it to reach the 75% marker in the next decade, and it’s why I coined the term, “gold bull era”.
Excitingly, I’ve predicted that US gold jewelry demand will rise to about 40 tons a month during the next ten years. Investors who understand the basic math of compounding should realize that growth of 6% – 8% a year in gold jewelry demand versus flat mine supply is a very basic recipe for vastly higher prices.
That’s a look at some serious “American muscle” in the jewelry sector.
While most gold mining stocks in North America look somewhat pathetic against gold bullion, the jewellery stocks look like superstars.
Tiffany has blasted out of a gargantuan inverse head and shoulders pattern against bullion, and I think all gold stock enthusiasts in America should consider adding it to their portfolios.
Tactics? Buy some now and buy more on any dip towards the massive neckline zone!
What about gold itself? What is the most likely scenario in the short and medium term? For the likely answer…
Double-click to enlarge this key December futures gold chart.
Note the panic decline to about $1170 in mid-August. The rally of about $50 to the $1220 minor resistance was followed by a gentle swoon.
That’s typical action during the formation of double bottom patterns. An initial panic decline on high volume is followed by a rally and then a second low volume decline occurs. That’s exactly what is happening now.
