Silver has blasted higher in the last couple weeks, far outperforming gold. This is certainly noteworthy, as silver has stunk up the precious-metals joint for years. This deeply-out-of-favor metal may be embarking on a sea-change sentiment shift, finally returning to amplifying gold’s upside. Silver is not only radically undervalued relative to gold, but investors are aggressively buying. Silver’s upside potential is massive.
Silver’s performance in recent years has been brutally bad, repelling all but the most fanatical contrarians. Historically silver prices have been mostly driven by gold, with the white metal amplifying moves in the yellow metal. Silver has generally leveraged gold by at least 2x in the past. And rarely silver skyrockets as higher prices and bullish sentiment feed on themselves in powerful virtuous circles fueling huge gains. Full Story
Last weekend, the important point of note was that silver had basically run out of room. It had a series of 1’s and 2’s set up for it to “melt up,” but it had to do so rather soon. Well, this past week, I would say that silver finally followed through and it took it directly to the level at which I noted on the chart was our next major resistance level. In fact, we were almost able to top tick the high of the week right at our resistance point, at which time I sent out an alert when I suspected that a pullback was imminent. Within minutes after that alert, silver began its pullback within wave iv. Full Story
The trouble is, home prices are so inflated that first-time buyers, even those with good jobs, have been priced out of the market. The fortunate few employed by Google, Facebook, Amazon et al. who can theoretically afford to buy a home in the Silicon Valley, Seattle or L.A. are understandably skittish about paying top dollar in a bull market as mature as this one. They can see what the rest of us see — i.e., a pronounced economic slowdown in China and Europe that is certain to spread to the U.S. As long as they believe there’s no great rush to buy, home prices will continue to weaken. Full Story
Someone asked me yesterday what triggered the sell-off in tech stocks in early 2000. I said, “the market started to shit the bed for no specific reason other than it stopped going higher and decided to go south. The Fed jawboning was not nearly as pervasive although Greenspan was good at ‘talking’ stocks higher. The President then never cheered on the stock market like Trump does. At some point, no one can for sure when, this stock market is going tip-over – it’s just a matter of time…” Full Story
The bull market has been chugging along for more than ten years, so there’s little point in pretending we know precisely where or when it will end. However, neither should we ignore the fact that the Dow, having traded as high as 27,399, is mere millimeters from a key ‘Hidden Pivot’ resistance at 27,463. As a practical matter, because this is a logical place for a top of at least middling importance to form, we can lay in a small put position just to have a horse in the race. Full Story
Expected interest rate cuts by all the central banks is supporting gold at the moment. European central bank is expected to cut interest rates in September. Trade war theme is still there. In short, all the factors are bullish for gold. Investment demand is on the rise with passing of each week. Full Story
The best performing metal this week was silver, up 6.40 percent on perhaps a paradigm shift as the investors poured $133 million into silver bullion ETFs on Wednesday, the single biggest inflow in six and a half years. The weekly Bloomberg survey of gold traders and analysts shows that most are bullish on the yellow metal as prices broke through a five-year high and touched $1,453 per ounce on Friday morning. Traders seem to be set on an interest rate cut from the Federal Reserve this month, which is helping gold, even as some better-than-expected economic data was released on Tuesday. Turkey, which often sells its gold, saw its reserves rise by $71 million this week compared to last. Full Story
- Bob Hoye notes authoritarian forms of governance are struggling to salvage the global economy using outdated draconian economic measures. - He and his colleague define 3 key measures of market bubbles: momentum, pattern and sentiment. - Financial history rarely repeats, but it certainly rhymes according to our intrepid duo. - History reveals that financial market manipulation and human psychology combined with leverage rarely ends well.
Identifying whether it is a bull or bear market is a more effective method to operate than focusing on individual stocks that may go up or down. Most investors however, are mainly engaged in stock selection and spend little time in deep thought as to the state of the averages. This directly relates to what I consider the most important thing in investing. That is aligning oneself with the primary trend. ....
A word of caution… If you are carrying a margin balance we are now at a time that violent short term corrections can strike at any time. Your objective should be: Be Right-Sit Tight. Don’t get yourself blown out. Full Story
It was rather odd late last week that while gold tried to break higher but failed to, the PM sector forged ahead on Wednesday and Thursday, as we can see on the latest 6-month chart for GDX. Normally, stocks rallying leads to gold following suit, but gold’s price/volume action was not bullish for the near-term, and nor was the action in GDX on Friday, which saw a bearish Harami pattern appear, which is where a large candle the previous day is followed by a small one which fits inside the 1st one This is bearish and usually marks a reversal, and thus probably marks the start of a corrective phase. Full Story
Traders dumped stocks in the final hour on Friday, hinting that there actually is a threshold at which bad news begins to matter. For one, Black Rock, arguably the smartest money on the planet, reported a 7% drop in profits. If they can’t cut it, is there any hope for the rest of us? In the Middle East, Iran was doing more than merely rattling its saber: agents of the mullahs boarded and seized a British-flagged tanker in the Strait of Hormuz, escalating the threat to global oil supplies. The U.S. and Iran continue to insist they don’t want war, but no one is offering any guarantees. Worst of all, the Fed was delivering the kind of news we are supposed to sell: a rate cut of 25 basis points is coming in July. Since investors’ earlier exuberance was focused on rumors of a 50-basis-point cut, it’s a wonder the Dow Industrials didn’t fall by 400 points rather than a mere 68. Full Story
At least the Financial Times now has come clean about its hostility to gold -- as well as to free markets and elementary journalism.
This weekend GATA's friend Chris Kniel of Orinda, California, sent to the newspaper's chief economic columnist, Martin Wolf, the excellent summary of gold and silver market manipulation just written by Bullion Star gold researcher Ronan Manly, "Gold and Silver Price Manipulation -- The Greatest Trick Ever Pulled".. Full Story
A big impulse move that we are currently experiencing right now in the PM complex is separated by several small consolidation patterns that make up the entire impulse leg. Its these small consolidation patterns that give life to a big impulse move because without these little rest stops along the way the impulse move would burn itself out. One should welcome and anticipate these small consolidation patterns as they will help you understand where you maybe within the impulse move. I’ve seen as few as one and as many as four buildout during a strong impulse move. Full Story
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