‘Stacking’, The Right Thing?

“One ounce of gold for half kg of salt”

That’s what it cost for salt during the reign of the Khmer Rouge, as reported by a Cambodian in the comment section at this link.

One-half kilogram, is roughly 1.1 lbs., or 17.6 oz.

One ounce of gold for about 18-oz. of salt … sounds about right … if you’re starving.

Salt is essential for life; gold, not so much.

Strategy, First

This site’s primary focus is strategy.

It has adhered to the premise (for years), we’re in a situation that mimics Genesis 41

That means, it’s the corn and the grain, i.e., food, first, then gold and silver (not advice, not a recommendation).

A brief list for further review is, here, here, here, and here.

The ‘Price’ of Salt

For the ‘stackers’, consider this:

In our example above, the commentor said their family survived in part, because they had “100kg of salt”.

That amount equates to about 220 lbs.

Converting 1oz gold for (roughly) 18-oz. salt, at today’s gold prices, is about $392,000 ‘worth’ of salt.

When they came out other side, the salt may have been gone, but they had the gold. 🙂

Now, moving on to the chart.

Gold (GLD), Weekly

Gold is at a critical juncture.

We’re either in a potential ‘throw-over’ on the wedge formation (with reversal) or about to pressure higher into all-time highs (not advice, not a recommendation).

We see a rising (terminating) wedge, along with a decline in volume (thrust).

We’re at The Danger Point®

Gold’s price action does not need much of a push to go either way.

Then, The Dollar

Recall, from the dollar update (link here), there’s a possibility for it to decline from current levels; potentially setting up a Wyckoff spring condition.

A dollar decline would naturally provide a likely correlation for gold rising into new all-time highs.

If either one happens, there’s probably going to be panic.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279