SD Friday Wrap: Gold & silver we’re making gains and looking good all week long, and then they we’re beaten into a bloody pulp. Here’s an update…
What a week.
Does anybody even remember the sweet gains we were making in gold & silver?
Gold & silver withstood world peace on Tuesday with the President Trump – Dictator Kim Jong-un Historic Summit.
You see, regularly, the cartel likes to smash on monthly BLS Job Reports data, quarterly GDP data, but every-so-often, the cartel really gets the opportunity to smash under the guise of world peace.
Hear me out.
Let’s look at the last time there was world peace, arguably May 2nd, 2011, the day Osama Bin Laden was killed:
- Friday, April 29th, 2011: Silver price $48.49
- Monday, May 2nd, 2011: Silver was hit for $4.14
- Thursday, May 5th, 2011 Silver hit for another $9.27 to close at $34.68
- No need to account for the seven years following that week since we’ve all felt the pain
Not only did gold & silver withstand world peace this time around, which may already be in limbo in other places of the world now that President Trump authorized new funding for the White Helmets in Syria, but gold & silver also withstood the Fed and the Fed’s rate hike into an “everything is awesome” U.S. economy.
All week long things were looking good indeed.
In fact, just yesterday the metals were looking to move into the green.
A day later that all seems like a distant memory.
So let’s go ahead and identify the victims’ corpses, shall we?
Gold and silver met the grueling, nasty, and painful fate of the barbed-wire wrapped Louisville Slugger:
I call moves like those the “Niagara Falls of Gold & Silver”.
To put the beating the cartel unleashed on silver into perspective, check out the gold to silver ratio:
It was so effective that I put the Sideways Channel of Pure Agony back on the silver chart:
And that’s not the broad range of $16.20 to $16.80. Nope. That’s the tight range of $16.40 to $16.60.
Talk about dialing in the smashing.
They had our number for sure today.
In all actuality, I would have put the channel on there anyways, just to show how nice of a break-out to the upside it was.
But I digress.
Can’t lick wounds if you’ve been beaten to smithereens.
We can see what silver was doing on the weekly chart:
Silver was setting up for a higher-high on the weekly.
When the higher-high comes it will be bullish indeed, and, to use an overused cliche, it’s not a question of “if” but a matter of “when”.
We’ll get there.
Notice the increasing volume since bottoming in December, 2015.
Let’s go off on a little side adventure now, shall we?
If you weren’t aware, governments and central banks around the world fear silver more than anything in the entire world.
Gold is the money of nations, and in places where people still believe that some people are special and above others because of the family in which they are born, gold is also the money of kings, but silver, that’s the money of the people.
The government fears the people, as the government rightly should, don’t let the police state and the brainwashing of “am I allowed to do that” fool you.
The government fears the people more than anything else, so they do everything they can to brainwash the
sheeple people so they won’t understand that the debt-based fiat currency they call the “dollar” isn’t money at all.
In fact, the same goes for everybody on this planet, no matter under which government they find themselves subject.
But back to America.
It’s sad, really, because our Founding Fathers knew better.
Here’s Article 1 Section 8 of the Constitution:
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States
Here’s what Article 1 Section 10 says:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
And for those who are unaware, the Constitution goes by another name (you can find it in Article 6):
This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any state to the Contrary notwithstanding.
The “supreme Law of the Land”
Here’s a question: If we’re supposed to have a monetary system based on weights and measures of gold and silver, and since the Supreme Law of the Land says that we must punish the counterfeiting of our coinage, what does that mean for the Federal Reserve Note?
Or the Federal Reserve?
Acting on behalf of the current Congress and Treasury?
Isn’t the Federal Reserve Note a counterfeit?
Because the Supreme Law of the Land says only weights and measures of gold & silver can be money.
You see, if the sheeple knew what is required for our money, well now, the government can’t have that because the government reneged on gold in 1933 and silver in 1965.
And so today they beat silver into a bloody pulp.
Because they have to if they’re going to keep their unconstitutional illegitimacy going.
Here’s an interesting thing to be said about silver before moving on to gold.
(link to Tweet: https://twitter.com/Daniel_March3/status/1007284252411510784)
In other words, when adjusting for inflation, for silver to pass the 1980 high, the silver price needs to get around $800 today.
Think about that for a second.
And then think about this:
- Does a house cost more than it did in 1980?
- Does a car cost more than it did in 1980?
- Does gas cost more than it did in 1980?
- Do clothes cost more than they did in 1980?
- Does entertainment cost more than it did in 1980?
- Are wages higher than they were in 1980?
I don’t know how many ways I can explain it: Silver matters.
Silver matters more than anything in the entire world to governments and central banks.
It’s not ISIS.
It’s not terrorism.
Time to for some comic relief.
Hopefully you find this funny.
I mean, they say laughter is the best medicine right?
Speaking of John Williams, there’s this other John Williams.
Except the latter is part of the problem.
You see that John Williams is the current Fed Head of San Fran, but starting next week, he’ll be the Fed Head of New York.
As such, the minions over at the Counterfeit Money Printers Guild decided to start some stupid thread about tips for newcomers to NYC.
Now, Ol’ Half Dollar couldn’t resist a little trolling of the Fed.
Never let a good trolling of the Fed go to waste, especially if it’s the truth.
I only troll by spitting the truth.
That trolling hurts because the truth hurts.
So without further ado, presenting my trolling of the Fed in the form of a “newcomer tip” for NYC:
Don’t panic in the basement.
It’s 3 easy steps:
— Paul ‘Half Dollar’ Eberhart (@Paul_Eberhart) June 14, 2018
I hope that provided some comic relief.
We need it on a day like today.
Back on track.
Gold popped above its 50-week moving average last week, but that was so, you know, last week:
Still, on the charts, gold’s weekly looks better than that of silver.
Because silver falls first, gold catches up, then gold rises first and then silver catches up.
We’ve been seeing silver making gains on gold over the last few weeks, and for the right reasons, because both are going up in price, and silver is now catching up to gold.
That’s what we want to see.
Did today’s smashing retard silver’s performance?
Yes, but only temporarily.
Check out the volume on gold’s daily chart:
That’s a lot of “gold” that was “bought” and “sold” in the “market” today.
The last time we had a volume spike like that there was also a severe beat-down.
But today’s was even worse in terms of volume.
Hopefully today’s beat-down was enough to wipe the slate clean.
Of course, the dollar shot up like a rocket ship yesterday:
There’s lots of reasons for the move:
- World peace
- Italy and the basket cases of Europe
- Argentina, Venezuela and the other Latin America basket cases
- Turkey and the basket cases of the Middle East
- And then there’s the Dollar Pumper of the Year, President Trump
I’m not making that up.
I mean, who wouldn’t want to be investing in America at any other time in history than right now?
See for yourself:
(Link to Tweet: https://twitter.com/realDonaldTrump/status/1007239837529800705)
One word: Greatest!
That’s what he made America again.
Forget MAGA, it’s now MATGEE (Make America The Greatest Ever Economy).
Sorry red hats, you’re gonna have to buy another.
Or just wait until it’s 2020, then you can buy the MATGEATGEAA (Make America The Greatest Ever After The Greatest Ever America Again)
But I digress.
You see, we all have to get through days like today with our preferred coping strategies of choice.
I always enjoy coping with a heavy dose of cynicism.
Back on track.
Palladium fell right on through its 200-day moving average:
Intra-day, palladium tagged the 50-day and bounced nicely off of it.
We’ll see if it holds.
Platinum, on the other hand, platinum still has one foot in the grave:
If platinum rolls over here, geez it’s going to get real ugly.
Copper has fallen just as fast as it has risen:
Trader’s talk about a “V-shaped recovery”.
Copper just did an “Inverse V-Shaped Puking”.
Crude oil also dropped today:
Some analysts are calling for crude oil to lose $60, and if it does, crude oil will turn red year-to-date.
The Fed may have hiked, but the yield on the 10-Year has gone down for the last three days:
Maybe the bond market “Bulls” are right after all?
Or, maybe, just maybe, the economy simply can’t withstand higher rates?
I’ve said all along that I don’t think rates can rise “gradually” or “incrementally” or however you want to call it.
Sooner or later, rates will start surging.
And if they don’t, then we’ll be seeing Paul Volcker style hikes which will send rates through the roof instantaneously.
I’m guessing the latter.
Because the cartel will just print up as much money as it needs to buy up bonds to stave off surging interest rates, until it reaches the point that it loses control and goes full Volcker.
Kind of like how many analysts say gold & silver won’t rise in any meaningful way until the cartel loses control of the COMEX paper pricing fraud.
When all of this goes down, it’s gonna get ugly.
And being one day too late is the difference between sitting pretty financially and being wiped out.
But I digress.
Wanna see a farce?
Drum roll please for the VIX:
I’ve already named one sideways channel, so I might as well name another: “The Sideways Channel of Pure Complacency”.
Its range is between 12 and 13.
I might have to adjust that range, however, and if I do, most likely it will be an adjustment lower.
What a farce.
Wanna see another farce?
Behold the power of the ESF and the Fed:
It sure must be nice to click a button and just magically buy SPX, ES, and all those other ticker symbols with freshly printed fiat.
So let’s recap.
Well, not really.
It’s only two words: Bloody. Pulp.
OK, “but where do you think gold & silver are headed now Half Dollar?”
Personally, if I had any extra fiat right now gold and silver would be headed to my apartment.
It’s a pun in an ISIS sort of way in the manner that gold & silver were treated today – “beheaded”.
But I digress.
This day is full of digression.
To the good question: I think the downside in both gold and silver is limited from here.
Has the rally been nipped in the bud?
Yes it has.
But the fundamentals still favor higher prices.
No matter how hard they try, they have only been able to manage two closes in silver below the Sideways Channel of Pure Agony, and each time, the very next day, silver recovered nicely.
As for gold, I’ve said all along I think $1275 is the sweet spot for the flush, and we’re right there, however, we technically only wen’t to $1277.90 on today’s intra-day low, so I think we could see $1270 or even $1265 if the cartel really wants to wipe the slate clean.
But the downside in gold is limited as well.
I will say this:
- Hold a car wash
- Have a yard sale
- Mow some lawns
- Sell some lemonade
- Raid that piggy bank
Because gold & silver just went on what could be the sale of the year.
I was right.
I was wrong in regards to for whom.
You see, I thought it was the most important week of the year for us.
I was wrong.
It was the most important week of the year for the cartel.
There must be something very, very wrong under the surface that the government or the central banks aren’t telling us.
Something very wrong.
– 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.