SD Friday Wrap: Hope & hype, like Thanksgiving leftovers, are nearly spoiled, but people keep eating them up! We also found something mind-blowing…
Stay the course!
Find the intestinal fortitude!
All good things to those who wait!
No pain, no gain!
It’s always darkest before the dawn!
There’s light at the end of the tunnel!
Which ones am I missing?
There are probably a thousand cliches to explain the situation gold and silver investors find themselves in.
Now, don’t get it twisted – if you are a new investor, or if you have money to invest, now is an awesome time to be getting in on the precious metals, and this is especially true for silver.
From time to time I like to bring up this truism, because it will matter:
Average price for 3 of the 4 precious metals (gold, palladium, and platinum): $1,050
Average price for all 4 precious metals (gold, palladium, platinum, and silver): $800
Price of silver: $14.25
And let this sink in: Silver is a precious metal.
Want to see something that will really blow your mind?
I’m not kidding.
See for yourself:
Imagine that for a second.
One troy ounce of fine silver costs about $14.25, plus a small premium for the “coin in hand”, yet somebody paid $14.99 for literally nothing, plus $3.50 for shipping.
Let that sink in real good too.
You know we are close to the end of this monetary insanity when somebody pays more for nothing than you and I can pay for an actual ounce of physical silver in hand.
Silver is so precious, that there is not even enough of it to give every person on earth one single ounce.
Judas sold-out Lord and Savior Jesus Christ for 15 ounces (“30 pieces”) of silver (about $215 in today’s dollars).
Silver is specifically named and required to be our money (along with gold) as written in the US Constitution.
Yet people are so out of tune, and so out-of-touch, that people are literally buying nothing on ebay for more than they would pay for one ounce of a precious metal.
Think about this too: According to all those people out there who are not silver investors, it is the Silver Bugs who are the crazies!
What kind of sick and twisted world do we live in?
If you are willing and able to continue to stack here, the monetary/capital gains and profits that will be reaped when the rich get “gold fever”, and the people, by extension, get “silver fever”, are going to make those Bitcoin paper gains look like something you get from a grimy gumball machine at Wal Mart (of course, you actually get a piece of gum from the machine, so it is not really like that at all – sorry for the bad analogy).
The people will get “gold fever”, and the people will get silver fever.
At least 5,000 years of human history proves it, time and time again. I don’t know how to say it any differently, but I’ll try: The people will return to gold and silver because the people always return to gold & silver. Just like those sea turtles that hatch on the beach and instinctively know which way to head in order to reach the ocean, so too the people instinctively know to move into gold & silver.
All the people have to do is hatch.
And they will.
On silver’s monthly chart, we can see silver’s double-bottom:
People say silver is going to double-bottom.
Um, silver already has.
On silver’s daily chart, we can see it has now been 3.5 months with the price under $15:
Which is only brutal if you’re unable or unwilling to stack.
If you’re a stacker – this is an absolute gift horse.
Since I used up my weekly allotment of cliches at the beginning of this article, I’ll just say this – you know what they say about gift horses!
I have been saying that silver is cheaper than dirt, but quite literally, silver is cheaper than nothing!
Of course, that low silver price explains the gold to silver ratio:
If anybody is undecided on which metal to purchase, if you like to use history as your guide, then the answer is clearly silver.
It’s called “arbitrage”.
Gold has held up on the daily chart:
Gold regained its 50-day moving average this week and has stayed above it.
On the monthly chart, we can see gold has not double-bottomed:
In fact, that’s a stealth uptrend on the monthly chart.
Here’s the thing: Gold and silver will in fact re-assert themselves. It is only a question of when, and a question of how far they climb in price?
OK, “Hey Half Dollar, people say gold & silver aren’t investments, but they are more like insurance, or currencies that you hold!”.
Well, you can think of gold & silver as insurance and as currency, but they are indeed investments.
Because the price has been suppressed for so long, that once the cartel loses control of the price suppression schemes, gold and silver will truly rocket higher in price.
OK, “Hey Half Dollar, that’s wishful thinking. They can just keep on smashing gold & silver forever!”.
They can keep on smashing the paper price until the time comes when the paper price is meaningless. The $1 on the American Silver Eagle is currently meaningless, is it not? I mean, I’ll be danged if I can buy an American Silver Eagle for $1. Last I checked, they’re right around $17.
So no, they can’t keep on smashing price forever, because gold and silver are real things, and, they’re precious.
My point is that fundamentals will matter.
I can show my point with palladium:
Record high just today!
You see, the palladium market is blowing-up because of the palladium physical supply shortage, and one day that will be gold & silver too. Palladium is showing everybody that when push comes to shove, the manipulation of markets always fails.
Like I said, it’s only a question of when?
That is the $64,000 question, and unfortunately, ‘Ol Half Dollar doesn’t have an inside line to the cartel, so knowing when the paper market blows up is something that only a few people know.
And the cartel doesn’t like me.
Much less would they tell me.
So unless you are part of the cartel, it’s best have your stack now before the paper manipulation scheme blows-up. If you wait until the market manipulation has already ended, you will be too late. We’ve seen how quickly prices of “assets” can move in such little time, and when the prices of gold & silver can no longer be suppressed by the cartel, you and I will see exactly why the’re called “precious”.
Platinum lost its 50-day moving average and then some:
If the market hope and economic hype I alluded to in the title continue much longer, then we may see a double bottom on platinum’s daily chart.
The commodities are mixed.
Copper lost and then regained its 50-day moving average:
Copper must really like to polka with the blue line.
Crude oil, on the other hand, is clinging on to $50 for dear life:
Crude oil is down year to date, it is down over 34% from its peak on October 3rd, and it just hit a fresh 52-week low yesterday.
Interestingly, the crash in crude oil only correlates to a slight rise in the dollar:
Crude peaked on October 3rd, and on that same day, the dollar index was right at 96. Right now, we’re barely over 97 on the index, so the 35% crash in the price of crude oil was only met with a less than 2% rise in the dollar.
The dynamics in the markets are certainly getting interesting!
Yields on the 10-Year Note have continued to fall:
Could there possibly be a little Exchange Stabilization Fund intervention going on to keep yields down?
I think so.
Because yields helped pull off a save in the stock market:
But death cometh to the Nasdaq, so all that is really going on is some artificial life support.
Which was helped by the VIX:
Not a care in the world right now.
I’m so glad there is nothing but rainbows, unicorns, and world peace, all around the globe.
Total joy to the world!
Yes that was sarcasm.
OK, “Hey Half Dollar, how come you talk about the stock market, but sometimes you show the Dow, sometimes the S&P 500, sometimes the Nasdaq, sometimes the Russell 2000, and so on and so forth?”.
Think of it like this: There is this thing called the Bible, but there are several types of Bibles – the King James Bible, The Living Bible, the New International Version Bible, and so on. So it is OK to say the “stock market” and pick and chose the underlying index depending on the situation. That is what I do. In the example above, I chose the Nasdaq because it is the closest index to putting in a “death cross”, where the 50-day moving average falls below the 200-day moving average. That’s very bearish, and it is about to cross. We’ve already seen the cross on the Russell 2000, and the Nasdaq is likely the next one to show the cross.
You can also think of it like this – Generally, there is the stock market, which is a type of “index”, or a grouping of stocks. So the Nasdaq, in our example, is the index – the market. The main feature of the Nasdaq is that it is “tech heavy”, meaning there are a lot of tech and tech-centric companies in the index, and the Nasdaq, in and of itself, is just one example of a “stock market”.
Anyway, I hope that convoluted explanation helped anybody who hears the words “stock market”, “Dow”, etc, but doesn’t know what they mean, and how or why they are interchangeable?
I used the phrase “Market Hope and Economic Hype” in my title of today’s Friday Wrap.
I used that phrase because that is what we are still seeing coming out of the mouths of the MSM propagandists and the globalist leaders (i.e. central bankers and politicians).
There is a bunch of hope in the stock market right now, especially coming off of Fed Head Powell’s most recent “dovish” speech from Wednesday, and there is a bunch of hype in the economy right now, especially in line with my Peak Trump theory.
Here’s the thing: Hope and Hype can only last for so long.
The hope in the stock market and the hype in the economy have lasted much longer than I thought they would have, but that’s the thing about the market and the economy – it’s like that famous saying – “markets can stay irrational longer than you can stay solvent”, and that famous saying is applicable here.
But since we understand the meaning of that famous saying, we will not succumb to its fate.
We will stay solvent, we will wait it out, and we will be financially rewarded for it.
Life doesn’t offer many “opportunities of a lifetime” like we have now.
The stock market will start falling and then crashing again.
The economy is a complete fraud and a total sham.
The people will return to gold and silver.
We know these things to be true.
Throughout all of history.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.