JP Morgan once said, “Money is gold and nothing else.” He may have been on to something… is 2024 the year to *invest* in gold? Chris Vermeulen, Founder and Chief Investment Officer of Technical Traders LTD thinks so… 

Is 2024 the year to invest in gold? This Investment Officer Thinks So…

JP Morgan. One said money is gold and nothing else and he may have been on to something is 2024 the year to invest in gold. Well, joining me now from Canada to help break it down is founder and chief investment officer of technical traders that Chris from you and Chris. Thanks so much for joining. Thanks for having me. We covered earlier this week that gold was right near a record high. Do you think that gold is an attractive buy right now? I do gold has been on a tear for quite a while. It's uh I just had a multiyear consolidation uh really since the, the 2020 highs. Uh but it's a bold flag pattern. Now, I'm a technical analyst. I follow price action and the chart pattern is pointing to much higher pricing right now. That's trading around $2300 an ounce. I think we could see this run all the way up to about 26 2700 over the next month or two going forward. And it's definitely an interesting move. We're starting to see silver break out of a multiyear base. We're seeing gold and silver miners as well. So these are good confirming indicators that money is starting to move into this space. Interesting. Now, what's behind this? Well, I think there's a lot to it. I think um I think we're seeing a lot of countries stockpile of gold. Uh The general public is not interested in gold whatsoever and it's one of the reasons why I think we see silver down about 50% from the highs, gold miners and silver miners are down about 50%. The general public really has no interest. I think a lot of people are caught up in, in a, I they're caught up in Bitcoin or cryptos. Um I think there's a lot of opportunity going forward. I think right now people are getting a little bit nervous. Gold is seen as the global kind of defensive safe haven play. I really like gold and gold is holding up better than the other metals simply because it moves slower. Uh It uh it's seen as a global safe haven. So a lot of countries and individuals, if you had to get something other than, you know, stocks or bonds, those investors will be like, well, maybe I'll buy some gold. It's the first thing that comes to mind and because it's expensive, people tend to buy gold and then they keep it and they never sell it. So gold just keeps creeping up with very, there's not a whole lot of demand, I don't think for gold at the moment. I think there's gonna be a huge opportunity as it starts to pick up speed where the general public starts to get interested. I think the average amount of gold in people's portfolio is like less than a fraction of a percent. It's very tiny. And back in 2011, 2012 when gold was hitting highs, it was about 3.5 4% of the average portfolio. So there's a lot of upside potential. And really right now, I think it's just creeping higher because there's just global fear that I think where maybe the economy might be slowly coming to an end, the stock market may be coming to an end and people are moving to physical assets and this is what we see near the late stages of a of a bull market when it's about to end recession starts to come. We see gold silver miners, we even see energy and energy stocks come to life and lead the way and they are, they're top of the list of top performers, they're coming back and rallying. So this is a sign people want to move to a physical asset and they're starting to protect themselves from some equity exposure. Is that your view that a recession is on the horizon? I feel like it's coming. I mean, I'm not an economist. I follow price action strictly, but I, I can see things starting to slow and if we peel the market back layer by layer. Uh the majority of stocks, if you look at the equal weighted sp 500 for example, is really just really coming up and touching a double top. Right now, if we look at the Russell 2000, which is a much larger broader basket of stocks, they're far from the highs. Most individual stocks are struggling. They're in down trends, they're really in a bearish pattern, meaning they're, they've been consolidating, taking a sideways pause before they continue lower. And so people who have a portfolio full of stocks, they're not actually seeing these all time highs in their accounts. It's really just the, the major index is heavily weighted by technology. Technology is actually starting to run out of steam and I believe, I believe we're going to go into a recession. I believe the stock market has only got a couple of months left potentially before it really rolls over. And there's other indicators that, that mentioned that which is we're seeing money move into commodities, we're seeing the dollar start to firm up. Um I, I think we're, we're, we're getting very close to, uh the market is starting to stall and everybody is very bullish right now. And that's also another indicator that, uh you know, we're kind of in this nosebleed territory for equity pricing, in my opinion. Uh The seven big tech companies, most of them have bearish patterns, apples very close to a huge breakdown. So is Tesla. Um everybody's piling into NVIDIA, people who have never traded before buying it on their mobile apps. I I know a bunch of people who are doing this so we're up into this Frothy area A I is now seen in toothbrushes. Uh magazine covers are like ride the bull get into the bull market. I mean, these are all signs that, you know, it's really just the media is pulling a lot of people into this market. But people don't realize the SP 500 NASDAQ is not really the true health of the market. It's just two indexes driven by a bunch of big tech. So talk to me more about the charts and the patterns that you're following that could indicate this across different sectors. Well, I think uh I like to look at it. There's, there's different money flows so that everything in the financial sector in the markets are connected in some way. If one asset is going up, there's usually some other asset going down. And we are really seeing money flow into defensive sectors. We're seeing consumer staples, uh do very well. We're seeing uh utilities, we're seeing health care and I, I call those defensive sectors simply because no matter what happens, if we go into a recession or the stock market falls, we still need electricity, running water, we need food, we need health care, all of those things and, and money is starting to flow into those. And it's also flowing into precious metals, physical commodities. Um And, and the patterns that we're seeing here are simply the stock market in general. If you were to look at the broad market is really forming a major topping pattern from a technical standpoint. And that topping pattern is considered, I call it a stage three topping phase. Um, after this, when it does eventually break down, uh, we, we're going to go into a big recession, uh, a big market correction of potentially 3040 even 50%. Now, I'm not one to always scream the sky is falling, but we are getting set up for something very, very big. And, um, I think we will see interest rates eventually fall as the stock market starts to break down and bonds will become actually a very good play. But there's a lot of little interworks that are giving us warning signs that the stock market is running out of steam. The economy is slowly slowly starting to run out of steam as well. Interesting. What does this mean for other metals like silver, uranium, other commodities that you're following? Well, this is a strong time for commodities. I, I believe we're going to see probably a multiweek multi month rally in the commodity space right now when the stock market, if and when eventually a whale go into a bigger correction. When that happens, it pretty much pulls everything down with it. I like to look at the stock market like the ocean tide. When the tide goes up, it lifts all boats. When the stock market goes up, it lifts pretty much all stocks and assets. But when the tide is going down, the stock market, we're in a bear market. Everybody is net sellers. They're scared. They're dumping shares, they're forced liquidation to sell even commodities that they love or simply because of margin calls, everything goes down. So I like commodities. I think the stock market could actually still rally and have one more big push up into May. Uh But overall, once the tide turns and starts going down, we will see uh silver and uranium and we'll see everything pretty much get pulled down with it temporarily. Now, I think precious metal space will hold up very well, especially gold. Uh We saw this back in 2007, 2008. Gold started a very big rally uh just months before the stock market uh put in a top and even when stocks started to fall, we saw gold, silver and miners continue to rally and that is a big warning sign and we're starting to see that right now. That's, that's kind of like the last straw that I, I think before we actually see the stock market roll over. All right, Chris, for me and uh founder and chief investment officer at technical traders, Chris, thank you.