SD Outlook: Gold & silver are not likely to go much lower in price as conditions rapidly deteriorate in the real-world economy and in the markets…
Nothing has been fixed.
Now we get one of the tried-and-true flush ’em out tactics: The blackout.
I wonder how long it will be before we surround Maduro and start blaring Metallica’s “Enter Sandman” 24/7 because everybody knows you don’t cut off a dictator’s power without blaring the Deep State approved heavy metal rock music.
Regardless, with each passing day South America in general, and Venezuela specifically, the US Empire becomes more bogged-down and fast reaching the point where something may be done out of sheer desperation.
And not in a good way.
Are the markets ready for that?
What about the economy?
Take the struggles of the tech companies.
I’m talking about the tech companies that actually make things, such as computer chips, graphics cards, RAM, and other hardware.
Prices have been plummeting on hardware components, and balance sheets around the world already look a level in Fruit Ninja.
It is only a matter of time before the mass layoffs begin.
Is the economy ready for that?
OK, “Hey Half Dollar, are you saying there is an entire industry out there in a state of collapse, yet hardly getting any coverage?”.
I am saying that.
What do we hear about?
We hear about the auto bubble.
We also hear about the housing bubble.
But what about the bubble in tech that’s popped?
After Bitcoin went Bit bust in early 2018, tech companies were caught a little bit too ambitious.
They thought the good times would go on forever, and that there could only ever be rising profits.
Tech companies got caught up in the pipe dream, aided-and-abetted by the 24/7 manipulation of all markets.
So Big Tech produced way too much supply, and now they’re trying to push supply onto overly indebted people & governments.
The point is that no matter where one looks, the economic, market, and even political & geo-political deterioration continue.
Until these markets and the economy are allowed to go through an actual bust cycle, there will be no relief.
But therein lies the problem – there will be no relief until things get worse.
However, the people in charge are unwilling to do the right thing.
That means a good flushing of the economy & the markets.
So we ask when will natural market forces take-over?
Sooner or later market forces must take-over.
Will the market assert itself this week?
If so, I’d be looking at the dollar.
And the stock market.
Because we can’t get clues from official sources.
I mean, look at all the data that is still “delayed” from the government “shutdown” back in December and January:
The tin-foil-hatter in me sees plenty of opportunity to re-write the narrative.
Why would they want to re-write the narrative?
To bring max economic & market pain.
It really is amazing the gold-to-silver ratio has been above 80 for quite some time:
An extreme like that will work to turbo-charge the return on investment once the pendulum swings the other way.
But it may take years.
You must be both willing and able.
I think gold can get back above $1300 to close out the week:
I’d like to see gold finish the week with momentum so we can really blow-out $1350 soon.
We really need to leave $1350 as far behind as we can, and finishing the week near $1350 may provide the set-up we need to do just that.
Sure, I’d like to see gold battling at $1400 right now, but I also understand the cartel will never gladly give up one dollar to the upside.
Silver is starting the week above its 200-day moving average:
To say silver has a ton of room to run to the upside is putting it lightly.
Palladium has faded for the prior two weeks:
The more time spent fading and consolidating, the stronger the support at $1500 when palladium breaks-out again.
Platinum had a terrible run last week:
The golden cross is, however, within spitting distance.
Crude oil has gone nowhere in a month:
I still think the next major move for crude oil is higher, especially as the dollar starts falling again.
Copper has also faded its recent price gains:
Copper’s golden cross should be clearly visible by the end of the week, however.
The stock market looks to be rolling over:
If the stock market does start dropping again, all eyes will be on Fed Head Powell as the masses beg to keep the status quo.
The VIX was setting-up for a spike at the end of last week:
I’m looking for increased volatility this week.
If there is volatility and a stock market drop, I’d be looking for new 52-week lows in yield:
I’m still expecting a plunge in yield as the stock market comes down.
The dollar is starting the week above 97:
We triple-topped, so I’m really looking for a weaker dollar now.
What is the bottom line as we head through this week?
I think we could see a black swan this week.
Such as the collapse of another industry.
Or a US Empire geo-political blunder.
Which could usher in the changes.
That we all know are coming.
Because nothing is fixed.
Except for the markets.
But they’re unnatural.
And also temporary.
This will not last.
– 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.