BullMarketRun.com

Gold rocketed higher overnight, taking Silver with it, as the political establishment in the United Kingdom got shaken to its knees with voters rebelling and deciding in a referendum that the UK should leave the European Union.

As of 6:45 am Pacific, bullion is up $61 an ounce at $1,317 while Silver has surged 57 cents to $17.81.

Politically and economically around the world, it’s hard to imagine a better scenario for Gold right now.   Would you rather put your trust in governments and central banks, or Gold?

The first casualty of last night’s vote was British Prime Minister David Cameron who announced his resignation.   “I will do everything I can as Prime Minister to steady the ship over the coming weeks and months but I do not think it would be right for me to try to be the captain that steers the country to its next destination,” said Cameron.  The country will have a new Prime Minister before the Conservative Party conference in October.

Once again, the Venture got it right on Gold.  When bullion corrected during the last half of May, the Venture held steady and remained within its upsloping channel before pushing to a new 52-week high.  In recent days, as bullion pulled back almost 5% from a 2-year high near resistance at $1,320, the Venture simply shrugged off that weakness as well – another clue that bullion’s charge north would probably quickly resume.

Despite a 417-point drop in the Dow through the first 15 minutes of trading this morning, and a 175-point plunge in the TSX, the Venture is up 2 points at 712 while the TSX Gold Index has surged 17 points to 244.

Ever since the Fed’s first rate hike in nearly a decade last December, and Janet Yellen’s very bad read on everything from China to the U.S. economy, it has been a wise strategy to buy and hold on to Gold (and Silver) stocks.  That’s not about to change anytime soon.  This applies to producers and high quality juniors.  Fortunes will be made in this sector.

Gold exploded by as much as $100 overnight, touching $1,360 before pulling back.  Bullion will now try to get comfortable above $1,300 with the next Fib. resistance at $1,320.

Longer-term charts suggest that Gold has the potential to more than double in price over the next couple of years, a scenario that should be more plausible to many investors today.  Additional global seismic shifts are on the way.

John’s most recent secular Gold chart from 2 weeks ago showed that a powerful “Wave 5” pattern is now in progress with the yellow metal expected to ultimately push to new all-time highs well above $2,000 (U.S.).