Just as the dollar pulled a “dead cat bounce” to lull everybody back to sleep for the weekend – BAM! Gold & silver ain’t goin’ out like that!

an SD Exclusive:

First this, but don’t take our word for it:

 

 

The US Dollar is under considerable pressure. Week after week, we talk about how the dollar has been going down for the count.  It can only take so many hits.  Gold and silver are the safe haven assets to own through a currency crisis, and for the moment, the precious metals have been on the clearance sale rack since July. At what point do the dollar bulls capitulate? It has been years since the dollar has come under pressure, and the frequency in which everybody is a genius yet bouncing from job to job, including in the financial sector, there are now so few analysts/financial advisers/traders who have seen a bear market, that one wonders if anybody will hear it when it roars?

The pressure is building. Just look at copper and ask these questions:

  •  Is mining supply down for everything, or just copper?
  • How is copper rallying, yet silver price action has found everything except for a bid?
  • If copper finished the quarter with 2nd place overall gains, across all asset classes, second only to crude, then why are the precious metals so far behind?

Here’s a closer look at copper action of late:

 

 

The consolidation is impressive, spanning several months. With the recent 7% gains in just the month of July, is copper set for another leg up, or will it come crashing down to the weakness of gold and silver?

Gold prices have been trading in a $20 range since last week.  Seriously. To the penny. At a price of approximately $1275 going into Friday’s trading action, gold looks ready to either break-out or break-down:

 

 

 

Silver prices are looking very bullish:

 

 

 

Earlier this week, we reported that mining sector 2nd quarter earnings have now hit full stride. Second quarter earnings from the miners have been mixed.  Gold miners seem to be weathering the storm, but silver miners not so much:

 

GOLD CONSENSUS EPS ACTUAL RESULT
Barrick (ABX) $0.2 $0.22 BEAT
Rand Gold (GOLD) $0.74 $0.88 BEAT
SILVER CONSENSUS EPS ACTUAL RESULT
Endeavour (EXK) $0.02 $0.00 MISS
First Majestic (AG) $0.05 $-0.02 MISS

 

The performance of the miners begs a the question:

Are the silver miners no longer able to compete, or is silver under-priced when compared to current market conditions?

On the fundamental front, we have several issues to be concerned with.  ADP Payroll data suggests poor labor market conditions.  According to the most recent report, the manufacturing sector shed 4,000 jobs in July, 2017.  Today is the official Bureau of Lies and Statistics BLS Nonfarm Payrolls report, and as we are now over half a year into 2017, this employment data is perhaps the most important release ever.

We shall not reiterate what a disaster the rest of the economy has become.  The “Stock Market” is at record highs, though the barrage of incoming data paints the picture of a seriously sick economy, and it is perhaps terminal.

 

    • Of course it did, the dollar ponzi game is back on for the tribe!  When the country collapses we can all look to the Federal Reserve, the Wall Street bankers, Soros, Muller and the Deep state of Graham, McCain, the Clinton’s, the Bush Family and know they did this to take more power and their plan is to take over your country !  Wake the F up!

  1. Still trying to figure out the predictive value of Technical Analysis/TA/charts in what are admittedly RIGGED MARKETS.  “Moving Averages”?  “Bollinger Bands”? “Stochastics”? “Resistance”?  “Breakouts”?

    Phew.

    Enlighten me, someone.

    Please?

    • Charts are useless in a fascist market that rigs everything.

      The only thing I see screaming “buy gold and silver” are the headlines here.

      I’m not selling what I bought, but I’m not buying, either.

      In my bracket, I am just trying to become self-sufficient and keep my head above water.

    • In a rigged market nothing is as it seems, that goes along with figures don’t lie but liars figure.  I’ve bought all the way to 34/oz and back to 15/oz.  should the price go to 14 then maybe, but for right now it’s time to prep. for the worse with 153 million Americans unemployed, the cart is kind of heavy!

    • I quit trying to figure it out. Analysis whether technical or fundamental just tells us what the sector SHOULD Do, but nobody can predict. I agree with you that markets are rigged to a certain degree. For myself I just try to do my own research and be very careful whose advice I adhere too. Then do what I feel my heart is telling me to do…….Hope that helps.

    • I do not think anyone can predict. All analysis whether technical or fundamental just indicates what the sector SHOULD DO. I agree that all markets are rigged to a certain degree. Your probably better off doing your own research, and be careful whose advice you adhere too. It may help to find out about the history of money, then do what your heart tells you.

    • Me too. How can all this possible expert B.S. work in a rigged market? And I follow it daily and know for a fact rigged. If  Treasuries  are coming up for auction, I know suppression coming, and it does without fail. How can you chart a rigged market you bogus forecasters?

  2. The Dollar is up, so in the good old days, Gold & Silver would go down.

     

    Interesting to see ‘THEM’ scramble to save their ‘PONZI’ Paper & Digital scheme. as people are heading for the EXITS. 

    • get over we know the market is rigged part. The entire world knows that who follows precious metals. I sense that the manipulation takes more for the same effect. At some point leverage and credibility of the markets is lost and the explosion of price discovery happens. My opinion is very soon, but the crooks have run this market since most of you were born. The truth you come to is that the U.S.A. is the most corrupt entity in world history , raping the entire world of it’s wealth with a corrupt fiat system that is very soon to be overcome. We were gold standard post WW2, then petrodollar mid Nixon. We are losing reserve currency status daily, not to mention our real debt. I think precious metals and crypto’s are the places to be. Hard times a’ comin.

  3. A bullsh*t non farm payrolls report has given them the excuse to hammer silver again. Will this never end?

    How can losing full time jobs be a good thing?

    in July 393,000 part time jobs were added, offset by a drop of 54,000 full-time workers.

  4. The dollar has been loosing value but PMs failed to respond. The dollar then recovers slightly and PMs get hammered.

    Is it time to bring out Andrew Maguire again for some reassuring words?

    • Yes, the US$ has been losing value over the past 6-7 months.  YTD the US$ is down about 9% while gold is up about 9%.  MarketWatch has data on this that is worth viewing.

  5. The Stupid SD always puts the wrong articles at the wrong time on the screen so always do the opposite of stupid SD does or says. Contrarian works.

    Now if the article above is correct, the stupid evil J witch at the F F Reserve using pony job numbers to influence $. All the government numbers are fake  & phony and have been fake since the 1980 (started under green monkey). Do not bother or pay attention to what government says or does. This is a worthless bankrupt government. How much do they owe?

    Jim Willie is correct. Pretty soon, no one will pay attention to U.S and its lies. Just buy on dips, within the next 6-7, the death of U.S and its economy will be declared. I believe the $ will be 1/4 of what it is today. We are now witnessing an abc rally (do a search of DXY Elliot wave). The $ bears must be neutralized first. The lies in the past 20 years will catch up to assholes soon.

    • That’s the theory.  But sometimes, especially in strong bull markets, the only way to make any money is to buy high and then sell even higher.  As Yoda would say, “Fraught with danger that path is”.

       

  6. Stacked two rolls of ’11 and ’13 ase’s at spot +$2.50 at lunchtime. What a gift buying at these deflated prices. Purchased with cold cash, no trail for Uncle Sam to see. I like being the invisible man. Suede name used, like an actor.

    Got to keep on stacking the silver shiny phyzz. I get a hard on every time I make a score on the silver shiny phyzz… no blue pill needed. My wife is the beneficiary of this natural response. .. .. .

    Adios amigos

  7. Stacked two rolls of ’11 and ’13 ase’s at spot +$2.50 at lunchtime. What a gift buying at these deflated prices. Purchased with cold cash, no trail for Uncle Sam to see. I like being the invisible man. Suede name used, like an actor.

    Got to keep on stacking the silver shiny phyzz. I get a hard on every time I make a score on the silver shiny phyzz… no blue pill needed. My wife is the beneficiary of this natural response. .. .. .

    Adios amigos

  8. “We shall not reiterate what a disaster the rest of the economy has become.”

    The economy is bad, especially for the working class and the poor.  Vast sums have been hoovered up by a small number of extremely wealthy families leaving the masses to struggle over the few crumbs that are left.

    Banks sell government debt so naturally the banks are held in high esteem by government and therefore protected.

    The system has been twisted to support the mega wealthy, banks and government leaving precious few resources available for street level economic activity and it’s getting worse because so much is being sucked out of the economy to support government.  Government debt is bought up by the wealthy, much of it in the form of tax free government bonds.

    The working stiffs pay taxes to government that are in turn funneled to the wealthy as tax free interest payments on the government debt they hold.  It’s good work if you can get it.

    • As has been written… “It was the best of times, it was the worst of times.”.  Which of these a person has directly correlates with the amount of money they have to support themselves and their family.  A 1930s style deflationary depression, for example, is often described as being “the worst of times”.  Yet, for those with money, it is actually the best of times because money is dear, goods are plentiful, and their money goes a lot further than it normally would.  Additionally, desperate people often sell substantial assets for rock-bottom prices that those with cash can scoop up and profit from immensely when the economy rebounds.  A tremendous example of this was the stock of Electric Boat Company that zoomed 50,000% from about 1936 to 1944.  The end of the Great Depression and the fighting of WW-II combined to make this submarine building company zoom to MUCH higher levels than it otherwise would have.

       

  9. I think every market is controlled and manipulated not just PM’s, but it can not go on forever. When the next crash happens, not if but when and it could be ugly. The true value of your PM’s will show its worth.  Hopefully everyone is prepared.

    • Agreed @Lewis

       

      It is my thought that everything that can be manipulated for someone’s unearned gain IS being manipulated for their unearned gain.  It is in the nature of some to want much in return for very little.  The secret to financial success, therefore, lies in finding ways to prosper in spite of this.

      Most crashes are ugly and the next one could well be a real doozie.  Having some cash, PMs, food, water, seeds, gardening skills, meds, and water purification equipment could be vitally important.  Some way of protecting ourselves and what we have from those who never “wasted” a second worrying about such a possibility is also advisable.

       

  10. Only one problem here, if USD is not your local currency and you’re located in S.E.Asia/Oceania.  For me my historical PM stack USD price average is above current prices but because of USD weakness I need a USD gold price $80 above my average to break even!  Members of the @JOHNGALT tribe are even worse off as the AUD has appreciated 9% in the last 52 weeks.

    Yes my stack still weighs the same and is all still there but I want to liquidate a chunk this year for a land purchase and somehow it feels like a cruel irony that unless we see a sizeable spike in the USD dollar and/or PM prices I’m looking at a significant loss despite spot price being above my average purchase price.  I was always aware that putting my mid-term savings into the stack was a speculative move so not too put out by this but nobody likes to lose money.  As for the PM’s that will remain in my stack I don’t really worry about the current daily price or exchange rates.

     

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