SD Midweek Update: Gold & silver prepare for their next moves higher, which will likely happen sooner than later because, well, these roses smell nasty…
I was going to write an “alternative” State of the Union.
Because we are currently all being subjected to a warped sense of reality that even the most intelligent of awake people likely finds perplexing if not down-right amusing.
But it is of no use in making the effort.
Why is it of no use?
Well, half of the nation is incapable of forming a rational argument defending or opposing anything of importance.
And the other half of the nation?
The other half is so drunk on the Kool-Aid that we could have just overthrown a sovereign nation’s government, we could have decided to keep our military in the Middle-East forever engaged in endless wars, and we could have also just seen Washington DC’s non-finest in prime-time, kicking-off their 2019 Wrestle-Maniacs World Tour, in preparation for the main event, which is the 2020 US Presidential Election.
Wait a second.
All of those things did just happen.
I think I’ll call it a “Bi-dimensional reality”.
It’s a thing.
It’s like “virtual reality”.
Only everybody knows there’s only one thing virtual reality is used for.
And it’s like “augmented reality”.
Only everybody understands what the Pokemon Go Field-Testing was used for.
So this is “bi-dimensional reality”.
I’m pretty sure nobody knows anything about bi-dimensional reality because I just made the term up. I made it up because, well, the term “parallel universe” was already taken, and even if it was not taken, I think philosophy is kind of, well, see Smith College for more of what I think philosophy is.
So I’ll write a Summary Alternative State of the Union in one sentence –
The United States of America is the Titanic, and the Titanic hit the iceberg many hours ago.
Many, many hours ago.
I hope my summary is clear, and that my point sinks in?
No pun intended.
Because economic collapse and the death of the dollar are not jokes.
Right now there are plenty of lifeboats (gold), and there are plenty of life jackets (silver), but let’s all understand what is about to happen: The Titanic is going to sink.
And it won’t be a pretty sight.
In fact, I’m pretty sure in the Hollywood movie about the Titanic, you know, the one starring that one guy and that one gal, there was some chaos of sorts after the Titanic hit the iceberg, and chaos all-the-way up until the last people aboard the Titanic were either dead already, or, by luck, skill, Divine Intervention, or whatever you want to call it, were alive and just trying to get warm and dry.
I do not want to see anybody go down with this ship.
Although I’m sure that most people will.
That is the true State of the Union in 2019.
And the State of the Union stinks!
The gold-to-silver ratio is still giving stackers a wonderful arbitrage opportunity:
Personally, I think whenever the ratio is above 75, the decision of what to stack is a no-brainer.
Unless, of course, you’re a big-baller.
Silver is having its pullback as I type:
I think the pullback will be shallow and not long-lasting.
I also don’t think we’re going back down to the 200-day moving average.
To the contrary, I think my upside surprise is coming very, very soon.
Gold is also in the midst of a healthy pullback:
Like silver, I’m not expecting gold to stay here for long.
Palladium looks like it wants to break-out again:
Palladium’s price action is nearly text-book bull market performance.
Although platinum wants to low-five its 50-day moving average:
Regardless, it is hard to argue that platinum has not carved-out a bottom over the last several months.
Copper looks just as I thought it would:
Not only is it important for copper to successfully take-out its 200-day, but copper also needs to get as far north of $2.80 as possible.
That’s some serious technical resistance at $2.80.
Crude oil is consolidating:
I think crude oil is about to rip higher.
Here’s the thing –
Well, two things: China & Russia.
They are one in the same.
If China and Russia are siding with Maduro in Venezuela and not the US-pushed regime change poster-boy Deep State up-n-comer Juan Guaido, which China and Russia are siding with Maduro, and if there are trade tensions between the US and China as well as with the US and Russia, which they’re certainly are tensions, including a trade war and economic sanctions, and if China and Russia are getting out of their US dollars, which China and Russia are in-fact getting out of, then wouldn’t it make sense to buy up as many real things as physically possible with that worthless US debt-based fiat?
Of course it does.
In fact, governments/central banks around the world just bought the most gold in 2018 than they’ve bought in 50 years.
That said, not only do I think gold & silver are about to break-out to the upside very soon, and with a very hardcore break-out, but I also think that inflation is about to really ramp-up.
Of course, the stock market is a total money-printed fraud at this point:
It’s easy to do, you know, when you don’t even have to actually print the money anymore.
You can just double-click it into existence.
And then buy-up the major indices and ETFs.
It’s not rocket science, it’s just the same-old lame market manipulation that’s been going on for quite some time.
Speaking of lame, that would be the complete and total absence of fear from the stock market:
Of course, that’s all an illusion too.
Why is it an illusion?
Because the VIX can be manipulated just as easily as the stock market.
I’m still looking for the yield on the 10-Year Note to keep falling in the short-term:
Who in their right mind would lend the United States government money for 10 years at 2.68% is beyond me?
And I get it too.
Certain institutional investors must purchase US government bonds.
US bonds are held as “risk-free” tier 1 liquid assets.
And so on and so forth.
Of course, all of that is premised on the US dollar reigning supreme forever and ever.
Speaking of the US Dollar:
The peak in the dollar index was 30-something days ago.
Which is another way of saying a “death cross” is coming to the US dollar.
Which is another way of saying that gold and silver, in dollar terms, may be just about as cheap as gold & silver are going to get.
And I’m talking about right here, right now.
That pullback everybody is expecting?
That pullback in gold & silver?
We’re having it.
I don’t think the price drop will be very deep.
Nor will it last much longer.
– 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.