Investors & Traders Just Can’t Dump Their Gold & Silver Fast Enough After June 2019 Jobs Report SMASHES ALL EXPECTATIONS!

Gold & silver’s “sell-off” has afforded stackers with a flash sale. Here’s what happened, and here’s why the flash sale may not last all that long…

As per usual, people just had to sell their gold and silver as soon as the June jobs report hit the tape at 8:30 a.m. EST:

Because who the heck wants to own barbarous relics anyway when the economy is “booming”?

Yes, that was sarcasm.

Here’s the skinny from the BLS’ Employment Situation Report about the employment situation in June, 2019, released this first Friday in July (bold and bold added for emphasis):

Total nonfarm payroll employment increased by 224,000 in June, and the
unemployment rate was little changed at 3.7 percent, the U.S. Bureau
of Labor Statistics reported today. Notable job gains occurred in
professional and business services, in health care, and in transportation
and warehousing.

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The labor force participation rate, at 62.9 percent, was little changed
over the month and unchanged over the year. In June, the employment-
population ratio was 60.6 percent for the fourth month in a row. (See
table A-1.)

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In June, average hourly earnings for all employees on private nonfarm
payrolls rose by 6 cents to $27.90, following a 9-cent gain in May.
Over the past 12 months, average hourly earnings have increased by 3.1
percent. Average hourly earnings of private-sector production and
nonsupervisory employees increased by 4 cents to $23.43 in June. (See
tables B-3 and B-8.)

*****

Stand by for a Tweet on “JOBS, JOBS, JOBS!” (maybe I get the exact wording right this time).

Here’s the mainstream media propagandist take on the report, via Bloomberg (bold added for emphasis):

U.S. hiring rebounded in June and topped all estimates of economists, a sign of labor-market strength that may ease calls for a Federal Reserve interest-rate cut.

It’s a really, really strong report across the board,” Torsten Slok, Deutsche Bank chief economist said on Bloomberg Television.

Thank you for your wonderful analysis Mr Deutsche Bank CHIEF ECONOMIST.

So awesome for Bloomberg to have you on, because, well, your bank has adapted so well to the “economy”.

Yes, that was sarcasm.

Here are some charts from ZH:

The number of jobs (created):

The economy is just booming!

Yes, that was sarcasm.

Change in wages:

Good thing we can buy so much more stuff with our surging wage growth since there’s no inflation anywhere to be found.

Yes, that was sarcasm.

The unemployment rate:

Give a little up-tick, but not too much!

Yes, that was sarcasm.

Actually, that one wasn’t.

No matter what the number ends-up, it’s always “bad for gold”.

SIDE NOTE: The cartel must truly be in sheer panic with the gold & silver markets right now, because a “bad” jobs report would have supported the case for a rate cut, but a “super-duper awesome” jobs report is “bad for the stock market” because it means the economy is “booming” and therefore the Fed needs to get like a hawk.

Since this month is a super-duper awesome number, here’s why it’s “bad for gold”.

The propagandist narrative goes like this: With such a booming economy, the Fed will be tighter with its monetary policy, meaning instead of cutting interest rates and printing money, the Fed will be like a hawk, ensuring only the very best can get access to credit, and there will be a price to pay for getting that access.

Here’s the thing: The Fed is already ultra-loose with its “easy money” policies. We are now in the longest expansion ever, yet we are in “emergency” monetary policy mode.

Secondly, no matter what the Fed does with interest rates and no matter what the Fed, or the government for that matter, say about inflation, real interest rates are negative, which means “buy gold” eight days a week.

So yeah, just an attempt to smash.

However, I don’t think the metals stay down for long.

The cartel has been having trouble this week, and we know the knee-jerk is not always the eventual direction of the move.

If there is a knee-jerk down when gold is at mult-year highs, then this is a “dip buying opportunity”.

So I think the dip will be bought because I think the cartel is losing control of the market.

The opening bell hasn’t even rung yet for the official open of the “markets”.

This week is critical, and I think the most important so far in 2019.

And there’s a lot of trading day left to see how this plays out.

We know the cartel would love gold to close below $1400.

And the cartel would love silver to close below $15.

If we are in-fact in a bull market, and I think so.

Then this is a great opportunity to stack.

In their quest to maintain control.

We have the advantage here.

When it all goes “poof”.

Gold & silver stand.

And stand tall.

Oh yes.

They.

Will.

Stack accordingly…

– 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.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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