Is silver finally ready for the explosive move that will thrust the precious metal into the $40s?
(by Half Dollar) The Domestic Terrorist Organization (unofficial) known colloquially as “the Fed” conducts its 2-day, September FOMC meeting this week.
On Wednesday, after the meeting, and presumably after a bathroom break, the Fed’s leader, Jerome Powell, will read the Fed’s prepared statement and conduct a press conference at 2:30 p.m. EST.
Most likely the press conference will be virtual again, as-in, online only, for it’s much easier to accidentally “drop” a “bad connection” when only one or two people control the Fed’s virtual gateway and most likely one of them is an intern, because, well, why the heck not?
If the Fed can get reduced priced labor, kinda like ‘Ol Half Dollar can get reduced priced meat, it will.
The markets, or at least the CME Group anyway, are not near certain of the Fed’s move on interest rates, but rather, they’re dang certain:
And not only are the markets dang certain, but they have been for quite some time.
Ahh, the hubris of certainty.
Now, for all of the talk about this “stock market crash”, I’m not really seeing it:
The Dow is barely down five percent.
And we know the Fed isn’t “going negative”, so it’s not like the stock market has to fall into the big interest rate decision on Wednesday, as if they’re somehow undecided on rates right up until just before 2:00 p.m. when the statement is released to the public in order to to give the illusion of the Fed making a proactive or reactive rate cut.
By “proactive” I mean one of the Fed’s newly so-called “insurance” rate cuts, as the Fed spun-it when they “cut” rates into the bestest, most greatest economy ever, and by “reactive” I mean, as Powell puts it, no pun intended, or whatever, “to maintain proper market functioning” or something similarly nonsensical to that extent.
The VIX has been walked back down after everybody got all excited last week:
I wouldn’t expect much action over the next couple of days, but then again, expectations in 2020 don’t really mean anything, unless, of course, you apologize for, enable, or armchair quarterback the Fed, and then, well, “expectations” is one of your absolute favorite words.
It’s possible to get a leg down in interest rates even if yield on the 10-Year Note remains in a sideways channel between, call it, 0.6% and 0.7%:
That is to say, as inflation picks-up, “real interest rates” become even more negative without “nominal” interest rates rising.
“Look out below!”.
Yeah, I know.
Pop culture is stupid and whenever I attempt to be mainstream, it makes me look even more so than pop culture itself.
I’m in a rut.
And I’m angry.
But I digress.
It’s funny watching the crude oil bulls all dumbfounded about copper:
The lack of understanding between “money” and “unbacked, debt-based fiat currency dependent on exponential, unsustainable growth” is astonishing, and in the case of copper, it has to do with Gresham’s Law and nothing more, but since so few understand what is going on, much more pain will be felt until we return to honest money.
Side Note: Copper is “honest currency”, not “honest money”.
Side Note to the Side Note: Only Gold & Silver are “honest money”.
Side Note to the Side Note to the Side Note: Said differently, Gold & Silver are specifically named our money in the United States Constitution.
Rumors are that China is picking itself back-up and actually beginning to recover:
The question is this: How much will the increasing demand and consumption of crude oil in China offset the intentional economic collapse of the United States?
I said it!
Well, I asked it in the form of a question anyway.
Here’s the thing: People need to start thinking differently, but most won’t, and that’s just the way it is, for while thinking differently about China is optional, unless you have a personal stake, of course, thinking differently if you happen to find yourself in the economic collapse zone is mandatory if you want to not just survive but to thrive.
Palladium is ready for its break-out from the cup-n-handle chart pattern:
Yeah, I know.
Palladium is ready for whatever the cartel wants!
Platinum is a no-brainer for deeper-pocketed investors:
Seriously and seriously.
Silver is the actual no-brainer for every single person on the entire planet:
Seriously and seriously, for silver is the one thing, you know.
The paper gold-to-silver ratio begins this week where it left off last week, with a 72-handle:
All the cartel has done, however, is to set-up the ratio to blow-through the 60’s and thrust into the 50’s with authority.
Of course, in being so bold, I’m assuming silver gets to moving very, very fast here, relative to gold:
I think we can, and it’s even likely we’ll see silver thrusting into the $40s with gold somewhere between $2,000 and $2,150.
Silver is, after all, a country mile from its all-time record highs, and silver does, after all, have a heck of a lot of catching-up to do to gold.
Even after the spectacular run so far in 2020.
And when adjusting for inflation since 1980 or 2011?
One heck of a lot of catching-up to do indeed.
Thanks for reading,
Paul “Half Dollar” Eberhart