What has been a great week so far has just turned into the Niagara Falls of Gold & Silver. Here’s an update…
Silver down 3.86 percent from yesterday’s high and squarely in the sideways channel of pure agony:
- Stock market – DOW down 1% (265 points)
- Crude down 2.3% ($65.35)
- US Dollar still basically unch (unchanged)
- 10-Year Yield dropped below 2.9%
Silver is just getting absolutely hammered:
Why is silver getting the beaten into a bloody pulp today?
Something very, very big must be ready to pop off in the world of geo-politics, the economy, or the banking sector.
That was and this is by no means any forecast or speculation, just to make a point.
This happened on a Sunday summer night:
But that’s when bad news comes out, generally speaking.
And resets happen.
- Gold – Recent happened in 1933/1934 (confiscation to Gold Reserve Act of 1934)
- Silver – Silver demonetization in 1965
- Gold – Nixon closing the gold window in 1971 (38 years after the confiscation)
- We’re now 47 years since Nixon closed the gold window and there is massive debt around the world that can’t possibly be paid back.
In other words, we’re overdue for a reset.
Gold & Silver just plunged into the red on the week.
Silver is now down 3.5% yesterday’s peak $17.35 to the 16.76 low:
The dollar isn’t spiking, just a straight-up smashing of the metals:
Heavy pressure has been applied to gold & silver from about 8:00 a.m. on:
At first the pressure wan’t enough, so they ramped it up:
Here’s a look at the volume spikes on a 3-minute chart:
Markets just opened.
Looks like gold & silver are about to take another leg lower.
Stocks down, bond yields down (meaning there is bond ‘buying’), crude down, a sea of red in the mining shares.
Analysts will probably come out saying it’s the “quad witching”.
Here’s the definition, from investopedia:
DEFINITION of ‘Quadruple Witching’
Quadruple witching refers to an expiration date that includes stock index futures, stock index options, stock options and single stock futures. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September and December. Much of the action surrounding futures and options on quadruple witching days is focused on offsetting, closing or rolling out positions, as well as arbitrage trades, with the result being elevated volume, particularly in the last hour of trading.
Manipulation deniers and apologists will say “traders are taking this week’s profits in gold & silver to cover losses elsewhere”.
Regardless, one reason you know it’s manipulation and price suppression of gold & silver is the dollar is basically flat to slightly down from yesterday:
Sure enough, here’s the next leg down:
Silver, for example, is down 2.75% from yesterday’s peak to this current trough.
But remember, starting last July, silver eventually went on a nice rally of 20%.
Friday Wrap will be released at 6:00 p.m. EST as always.
Consider this dip an opportunity.
In bull markets, investors “buy the dip”.
We’re in a gold & silver bull market.
It began in December, 2015.
Here’s comes the next leg down.
Wherever they end up, these metals won’t stay down for long.
– 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.