SD Friday Wrap: The cartel is getting very nervous right now as gold’s downside looks limited and those $100 daily price spikes near…
Editor’s Note: There will be no SD Outlook on Monday as we take the time to reflect on, pay our respects to, and give thanks to the true Patriots and Heros of the United States…
Note: These charts were set-up during the morning on Friday and do not include any afternoon price action.
Those daily $100 pops in the price of gold.
We know they are.
How do we know?
Well, BREXIT is FUBAR as British Prime Minister Theresa May resigns:
And BREXIT is a thorn in the side of the cartel.
Just check out what happened in 2016 when the BREXIT vote was held:
We saw a $110 dollar move in the price of gold that day, which would see gold follow through to that now notorious $1377 price level gold has yet to breach to the upside.
OK, “Hey Half Dollar, you idiot, haven’t you ever heard that past performance is not indicative of future results?”.
However, an ugly BREXIT is just one more factor which adds to the bullish case for gold.
Well, to name a few in no particular order:
- Internal political uncertainty – bullish for gold
- Currency uncertainty – bullish for gold
- External (European Union) uncertainty – bullish for gold
If the cartel simply naked-shorts the snot out of some paper gold, the cartel runs the real risk of overextending its position by underestimating the underlying physical demand.
Physical gold is indeed a thing, and it is the one thing that will ultimately break the shackles of the price suppression.
Said differently, the cartel has exactly ZERO room for error.
And not only are they human and prone to even more mistakes than others as the cartel cowers and hides behind its printing press, but they are also overly confident, and that is not the combination you want to have in any situation, much less the sheer desperate situation of suppressing the price of honest money – Gold & Silver.
In other words, these dirt cheap prices may not last much longer.
The gold-to-silver ratio has pulled-back somewhat:
To say the ratio is still “extreme” is an understatement.
Gold still has yet to be smashed below its 200-day moving average:
It sure does look to me like we’re carving out a decent bottom here.
Granted, we will get a death cross in silver:
I really don’t think the 50-day moving average stays below the 200-day moving moving average for too long, however, if the cartel wants to really smash price, well by all means, I’d like them too because I’m a buyer on any and all weakness here because I know the silver price is too low right now.
Palladium still refuses to buckle under the pressure of losing its whole number support at $1300:
Interestingly, recall that the physical palladium shortages are not just very real, but they have much to do with the physical palladium supply over in BREXITland.
We are about to see just what kind of support platinum has at $800:
Regardless, another day of two of declines from here and we might as well go ahead and call it a quadruple-bottom.
Copper has been fading for some time:
Just like I’m expecting platinum to quadruple-bottom, I am expecting copper to triple-bottom.
It looks like my timing may be off on crude oil:
There is still an entire summer ahead of us, however, and if the plan is indeed to bring max pain to America, then I’d be looking for crude oil to start rising again soon.
Stock market bulls must be very nervous right now:
The Dow’s chart looks like a dead cat bounce to me, and if I’m right about Trump being the Fall Guy, we are indeed very close to the next plunge, which could act as an accelerant to the gold (and silver) price spikes.
The VIX, albeit neutered, is moving accordingly to the stock market (as in the inverse):
I’d be looking for the VIX to spike as all the political and geo-political uncertainties really begin to heat-up.
The yield on the 10-Year Note is performing as expected:
I’m looking for even lower yields because the stock market drop has barely begun.
Is still am not looking for a break-out in the US dollar:
In my opinion, the US dollar is simply being held within a range of 96 and 98.
Throw in some volatility here and there to create the illusion of “markets”.
What’s the bottom line heading into this long Memorial Day weekend?
The weather is beautiful, and the sheeple will be overly-distracted.
But there are a ton of things that could happen this weekend.
I am not talking about just a false flag, but also specifics.
That is to say, we’ll likely see BREXIT front & center.
BREXIT uncertainty has been bullish for gold.
There is no reason to think that will stop.
This may be about as good as it gets.
For gold’s downside price pressure.
The same can be said for silver.
Take advantage, and reflect.
For it may seem dull now.
And we may be numb.
But that is ending.
– 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.