SD Midweek Update: There is a ton of uncertainty regarding the metals right now, and that’s a good thing…
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They’re all around us.
And they’re not just with gold & silver.
Confused about politics and geo-politics right now?
You’re supposed to be.
Confused about the economy and the markets right now?
You’re supposed to be.
Confused about gold & silver right now?
Even though the cartel is trying its dangest.
Because the only signals that are signaling a plummet in price are the technicals combined with the fact that the cartel has unlimited paper and the time to wait-it-out on its side.
And it’s a BIG BUT.
I’m assuming the cartel still has control of the gold & silver markets when I say that.
And we just don’t know.
Couldn’t the cartel have already lost control of the markets, and we just don’t know about it yet?
It reminds me of some movie I saw like five minutes of, many years ago, and I don’t remember the name of the movie, who was in it, or what it was even about.
But in the first five minutes of this medieval genre movie, the king is slain in battle, and there are some blokes fighting on the other side who see the king die, but nobody else other than the king’s closest knights knows the king is dead.
And if my memory serves me right, the dead king is rushed off of the battlefield by his knights, who are desperately trying to hide the fact that God didn’t save the King.
Here’s the thing: that information the blokes had, before anybody else, was precious.
No pun will be intended.
In a weird way, it seems the cartel may have lost control of the gold & silver markets, and the cartel knows it because they have seen it, but nobody else knows the paper markets are dead yet.
Let me say this another way, and i’ll ask it as a question: What if the cartel has seen the paper markets get blown-up by the physical markets, only the world doesn’t know it yet?
All of the fundamentals are bullish for gold & silver right now, and I think the mixed signals showing either another surge or a plummet are also bullish for gold.
Because of the added uncertainty brought about by all of the mixed signals.
This is turning into one of the most epic wall’s of worry.
Especially with the Silver Bugs.
No, I’m not worried.
I’m grateful that the cartel is destroying the paper markets in an attempt to save the paper markets, and therefore, the cartel is destroying itself.
All this means is we have been given more time to prepare.
Time, which is running out.
Adding to the mixed signals is a gold-to-silver ratio parked right at 90:
Is it going to 100, and what’s that low 80s print I spot on the far left of the chart?
At $1400 gold, a GSR of 80 would put silver at $17.50.
What we need to do first, however, is see silver get above $16.50:
Once silver gets above $16.50 on the daily chart, it will be hard to argue against one massively carved-out bottom, and I don’t think it takes silver that long to break-out, especially as the white metal has turned positive on the year (opened 2019 at $15.55).
I’m really liking gold’s consolidation on its daily chart:
While the short-term bulls & bears duke it out over the next significant move in price, gold is quietly consolidating over time, which shows that even though many of the technicals are suggesting a sharp pullback, such as open interest, COMEX positioning, etc, gold is quickly adopting a neutral posture, and if the price action is in a tightening range, then we will soon begin to see some nice coiling, and that would also be bullish for the yellow metal.
Palladium is adding to the uncertainty of the entire precious metals sector:
And that’s understandable because past-performance can wreak havoc on the psyche.
I’m liking platinum’s action on the daily chart:
Notice too, how platinum’s trading volume has been ever so slightly creeping-up.
Copper is acting like the US dollar of commodities:
Copper has basically done nothing for the better part of a year, aside from the kiddie roller-coaster, but that ride’s comin’ to an end.
I’m sure the crude oil bears are talking about that downward sloping trend-line from the high of $76.90 to the most recent breaching of $60:
Likewise, the bulls are talking about the upward sloping trend-line from the low of $42.36 to the most recent loss of $60.
All of the “wizards” out there will draw both lines on the chart and say we’ve nearly completed the wedge formation.
Notice all of the mixed signals?
It’s supposed to be that way.
I mean, I’m not 4-D Chess Master, and heck, I don’t even know the rules in the game of checkers, but how else can you bring max pain to America in the form of economic misery and financial ruin if you don’t first create so many mixed signals that they leave people stunned, shocked, or scratching their heads and asking, “how in the heck did this happen?”.
It’s gonna get ugly.
The Heartbeat of America has not been invited to the party:
In fact, the index will likely try to crash the party, and crash it they will, that is, if the cartel just doesn’t simply burn it all down first.
They don’t call ’em “sheeple” for nothin’, and yes, most people in the world of economics, finance and markets are sheeple too, and the VIX demonstrates just how oblivious they are:
Of course, I’m being generous in assuming these “markets” are not manipulated, but the sheeple are easily fooled by that too.
Psst: Wanna learn the secret to not being a sheeple?
It’s not hard to do: Hear all, ignore nearly everybody, ignore most every thing, and listen to very, very few.
The yield on the 10-Year Note is only adding to the mixed signals:
I don’t think the bond bull dies gracefully, however, so I’m looking for continued downward pressure on yield until the bond market just blows-up, and with the Fed showing their cards on interest rates, even though they are only playing “Go Fish”, we’ve seen further proof that my assessment is correct in that the Fed was barely able to tighten interest rates for this “cycle”.
Finally, the most mixed of signals is the US dollar:
Well, let’s see the signals in action.
First, there’s President Trump the money pumper:
Hence the moves lower, so the manipulation deniers say.
Then there’s President Trump the strong dollar guy:
Because, hey, cake and eating it!
His Tweets were only 8-days apart.
They’re called “mixed signals”.
It’s a beautiful day in July.
Or, well, is it that day?
No mixed signals.
It is that day.
– 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.