SD Midweek Update: Want to know why gold & silver prices refuse to head much lower than $1300 or $15? Here’s why, and what it means going forward…
Let’s talk about price, and we could be talking about the price of anything.
It could be the price to bribe your way out of a speeding ticket.
Or we could be talking about the price for winter jackets.
It doesn’t matter what thing we are talking about.
We could be talking about goods or services.
Everything in this world is for sale.
So everything has a price.
It’s really that simple.
Here goes –
Prices of things are constantly going up or going down, looking for some natural state of balance between buyers and sellers.
Of course, extremes can exist where price neither goes up nor down, such as when there are no buyers, the price is $0.00, and when there are no sellers, the price is $.01+infinity.
But aside from the extremes, price is always in a constant state of change.
There is a variable, however, when talking about prices going up or going down.
That variable is time.
Like this: If silver were to flash-crash in price to $5, price wouldn’t stay there long because there would be a natural imbalance, and quite literally every single available ounce on the planet would be scooped up in a matter of minutes if not seconds.
However, if the price of silver drops from $16 to $15, price can stay at that $15 level for quite some time.
Here’s the thing: People are always buying and selling silver (or anything for that matter), and each person has a different motivation for buying the white metal.
As the price of silver heads lower, more people become motivated to buy.
And I think we are seeing a bunch of motivated buyers right now.
What can we look to as clues which would prove me right?
Less than 3-months into 2019, the US Mint sold out of American Silver Eagles.
Additionally, silver’s big brother, gold, was purchased by governments and central banks around the world in 2018 with a frenzy not seen in some 50-years.
Those are just two of the clues off the top of my head.
But it goes to show you that as price comes down, more buyers enter the market.
How does all of this relate to what is happening to gold & silver prices right now?
With shallow pullbacks in price, we’ve seen a steady stream of buyers coming into the market and buying-up actual metal, and this buying of metal ratchets-up as the cartel ratchets-down prices, and, in my opinion, we must be at the point where supply is in such a delicate state of “just in time inventory” that the slightest downside movements in price are met with, at the very minimum, equal and opposite reactions in buying.
In other words, plenty of buyers are recognizing the value of investing in gold & silver right now, so this current “correction” in gold & silver prices is more likely to play out over time rather than over price because there is constant and steady buying with each incremental drop in price.
And since this point is important, let me say it in a different way: There is a sale going on in gold & silver right now, only it’s not a sale over price, but a sale over time, in which price is not rising, for some (unknown) length of time.
That is one convoluted way of saying in March of 2019, people looking for a pullback in price in order to make a purchase are focusing on the wrong thing, and instead, people should be focusing on time with the question being, “how much longer will I have to buy silver at $15.50 or gold at $1300?”.
‘Cause price ain’t goin’ much lower, and the “unknown” is how long we have before prices start rising again?
This dynamic of correcting over time instead of correcting over price is very bullish.
The bottom line is that buyers are stepping up to the plate.
Only as cheap as gold & silver prices have been.
It’s like some Major League player at bat.
Only instead of swinging at pitches.
He gets to play tee-ball.
It really is that easy.
Prices have held.
And will hold?
I think yes.
Speaking of being on hold, the gold-to-silver ratio has been held between 84 and 85:
It’s ironic, because in addition to allowing us to stack on the cheap, the cartel hates silver so much that in order to try and hold silver back for as long as possible, the cartel is literally digging its own grave by keeping the gold-to-silver ratio at such an extreme for so long.
Gold is back above $1300:
We’re looking like we should finish out the week on momentum, which would give us another crack at $1350 either this week or next.
And why shouldn’t gold?
Ah yes, that pesky little thing is still a thing even if the MSM including Zero Hedge has temporarily stopped reporting on it.
Cold War 2.0 ramp-up?
Yup, and we’re simultaneously fighting both China and Russia.
Government & central bank money printing at full speed?
The petal’s to the metal.
I could go on and on, but there is a point here: Gold & silver are one event away from a massive upside surprise that catches everybody off guard.
I think it happens very soon.
Silver poked its head above $15.50 this morning:
I think that once we get north of $17.50, it will be off to the races.
The only problem is getting north of $17.50.
That is to silver as $1375 is to gold.
Palladium is north of $1500:
Palladium’s consolidation looks to be completing, and it looks like we could see another surge in price to the upside.
Platinum has surged back above both major moving averages:
Platinum has tons of room to run once it breaks to the upside.
Copper is building strong support at $2.90:
The hard part will be getting through resistance between $3.05 and $3.10.
Crude oil looks like it wants to break-out:
I think we are about to see a big move higher in the price of crude oil.
The stock market was manipulated higher on Monday so all the Fed apologists and propagandists could get their rocks on:
Forget Fed “credibility” because there is a whole generation, which is basically being ignored right now, that thinks the Fed is completely illegitimate and totally unconstitutional.
Furthermore, the era of being pacified wussies in the face of continued oppression, in my opinion, is coming to an end, even if only in small percentages here and there.
It would be unwise to not think of this most recent stock market rally as “the last hurrah”.
People talk about peak gold, peak oil, and peak Trump, but let’s not forget about peak complacency:
Just like the Fed will soon be blindsided and thrust into a fight for its very existence, stock market investors are about to be blindsided by volatility.
Yield on the 10-Year Note is falling just as I forecast:
I think we go lower until the bond market blows-up, and I think yield really starts dropping once the stock market starts falling again.
When will that be?
Whenever the corrupt bastards pulling the strings think will be the best time to bring max pain to America for the 2020 election.
Looking back to early January, it’s easy to see why many people think the dollar is in a bull trend
However, I see a massive topping process in the dollar, and I think the next big move is lower, not higher.
What can we conclude as we move into mid-March?
Gold & silver prices are correcting over time.
Which means the downside is limited.
The question is, for how long?
I don’t think much longer.
If we get a surprise.
It won’t be lower.
It’ll be higher.
– 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.