SD Friday Wrap: The cartel had awesome cover to smash gold & silver this week, but in the end, the metals finished with the upper hand…
Editor’s Note: These charts were set-up before 11:00 a.m. EST on Friday, January 10th, 2019, and do not include price action after that time, unless otherwise stated.
Please excuse a shorter than usual Friday Wrap.
I’m making the final edits to an awesome interview with a returning guest that I plan on releasing tonight, recorded yesterday afternoon, and there’s something very special in that video that I haven’t ever done before, so please do be on the look-out for it soon!
In the meantime, here’s today’s Silver Doctors Live:
They really don’t want this information getting out!
And to think, we we’re on the brink of World War 3 in the Middle East earlier in the week, yet now it’s all magically better?
Gold & silver, however, are not fooled as easily fooled as the cartel would like them to be.
I”m checking the charts at 4:15 p.m. EST on Friday, and I can see the metals holding on and hanging in there:
That chart is the only one I’ve set-up this afternoon, but I wanted to show that gold & silver are ending the day with some strength, especially gold.
The gold-to-silver ratio popped coming off of Wednesday’s smash:
It’s almost like the cartel is playing ping-pong between 82 and 89, but the next time we fall below 82, I think the bottom could really fall out of the ratio.
Furthermore, the trend isn’t really bullish or bearish one way or another, but rather, the trend is that we’re range-bound in, a choppy, side-ways action.
Notice what happens every time the GSR gets to 88.67 or higher, however.
Past performance may not be indicative of future results, but are they really going to take the GSR back into the 90s here?
I don’t think so, for too many stackers and other smart investors understand the gold-to-silver ratio arbitrage and the opportunity it presents to get free gold at the end of the cycle!
I have to admit, I thought silver would blow-through $20 this week like a couple of SUV’s got blown through close to the Baghdad airport last week:
And then world peace happened.
Silver is not convinced, however, as evidenced by the white metal sitting north of $18.
OK, “Hey Half Dollar, you don’t get it man, silver just pulled-back because it was extremely overbought!”.
Well, I’m not buyin’ that argument, because if the cartel can smash, they’re gonna smash, and they had the perfect cover to smash this week with all of this new-found peace, love and happiness, but, even if I did buy that argument, assuming silver was overbought, we’re no longer “extremely overbought”.
Gold, as it has been, is looking better than silver, and quite frankly gold’s not looking bad at all:
Of course, with gold surging above $1610 and hitting multi-year highs, and on volume, it’s easy to see why they brought the hammer.
Could losing control of the gold “market” be the reason why President Trump stood-down from escalating things further against Iran?
That could be a reason, and we talked about it during today’s live-stream, in addition to other reasons why President Trump chose to de-escalate.
So here we are, right back with palladium doing it’s own thing:
Palladium is the perfect, real-time example of how things can become “extremely overbought” and stay there to the technical analysts’ disbelief.
If tensions flare-up again in the Middle East?
Platinum started rising again before silver did:
Which tells me the cartel had to back-off of platinum somewhat to focus mostly on gold and especially silver.
There is some pretty high risk of Iran attacking oil processing facilities, and there are also oil tankers choosing to not move down the Strait of Hormuz, and yet, well, this:
People are likely shorting the crap out of crude oil right now, and I think they’ll get their faces ripped-off.
Copper is still consolidating at $2.80:
People have been talking for years about how copper is going to plunge in the next recession, but for several reasons I’ve mentioned before, I don’t think the bottom falls out of copper.
The timing of President Trump’s Tweets about the stock market is a sight to behold:
Trump’s the only person on earth who doesn’t watch the stock market but Tweets about it one minute after something significant happens!
Of course, when you smash the VIX below 13, it’s not hard to ramp the “markets”:
Everybody was fearing the start of WWIII just days ago, and now, there’s not a fear in the world!
Does it not?
Yield on the 10-Year Note is up very slightly:
If we truly have world peace out there, and if this is indeed a new-found risk-on environment for US stocks, yield would be spiking.
Since yield is not spiking, does that mean the bond market, like gold & silver, has doubts that the US-Iran Crisis has truly been de-escalated?
The dollar tagged its 50-day moving average today:
If we get rejected here, it’ll be hard to make the case we’re not in a downtrend.
What’s the bottom line this beautiful but cold Friday in early January?
For many reasons, I don’t think we’ve truly “de-escalated”.
It looks like gold, silver & the 10-Year don’t either.
US stocks are back in party-hardy mode.
Question is, how will the party end?
I think they’ll crash the party.
It will end in disaster.
If we are lucky.
And if not?
– 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.