Mr. Armstrong, Gold rallies with each political event and then falls
back when the event is over. It is not in a sustainable relentless bull
market as was the case in the 70s. Almost every stock market has
outperformed gold since 1980. This has made me wonder if something is
different. Here in India the younger generation do not buy gold and
simply no longer look at it as a safe haven as the older generations.
When I travel to the USA, I notice the younger generation pay with their
cell phones and are not even interested in paper money. In Europe, the
younger generation is also disinterested in gold. Could it be that gold
is becoming obsolete as the horse and buggy?
gold is still relevant for the older generation. It should rally right
now and the month-end closing was very bullish into September, but not
yet a breakout. To be impressive, gold must exceed the 2016 high of
1377.50 intraday. To show real strength into early 2018, we must close
above 1393. A closing above the 2016 high would reflect a rally into
2018, but warn that we are more likely going to fall back once again.
The rally in gold simply because of the dollar is not sustainable
Nevertheless, indeed, over the course of generations, the ideas and
trends of one generation are eventually replaced with new trends. Just
look at art. The paintings of women by Rubens were always robust. If you
were thin you were considered poor. In Asia, girls try to whiten their
skin because darker skin implies you are poor and work in the fields
whereas in the States girls want to have a tan. Trends changes as do
fashions over time. Investments are the same. The big investment up
until 1907 was railroads and industrial stocks were considered risky
ventures until the automobile change that perception.
The older generations are much more focused on gold and privacy
issues than the younger generation. When I talk to someone in their
twenties, having to travel and subjecting yourself to searches is
normal. This is how it is to them. They do not understand Snowden.