SD Outlook: While the markets and Main Street figure out if they’re full of hope or full of despair, gold & silver are bid in this moment of uncertainty…
You’re supposed to be.
If your head on over to Fox News, you’ll find Newt Gingrich saying “prepare for a second wave”.
That’s weird, because we’re barely surviving the first wave right now, and the worst is yet to come.
You’ll also find Fox News blaming the World Health Organization for any and all things botched.
If you head on over to CNN, however, you’ll get the one-off heart-felt inspirational stories of people beating the virus, people saving lives, or people doing whatever.
You’ll also find CNN blaming the Trump Administration for any and all things botched.
It gets even better as we move up the chain of mainstream media sophistication.
For example, if you head over to Reuters, you’ll find out that they’re in big trouble over in Japan:
Of course, if Tokyo’s medical system is on the brink of collapse, what does that say about major medical systems in the United States?
If you head over to Bloomberg, you’ll find the mood is much more upbeat:
The virus “eases”.
Wall Street has no shame.
The Fed “eases”, and if you’re feeding the HFT algorithms, then so does the virus.
Regardless, there is an overall point here: Have of the people are pessimistic and half of the people are optimistic.
The problem is that this leads to an understandable level of uncertainty in the minds of thinking people.
What do I think?
Well, I think it’s going to get worse from here, but I’m glad things like essential services have held together such as electricity, water, gas, the broadband connection.
I also think this is the week we begin to see the civil unrest, the looting and the riots.
The problem will be in getting good, reliable information.
From somebody who’s been through college a few times, who started off going to college using this thing filled with books called a library, the place where you went to do your research, and from somebody with fond memories of my first computer being an IBM Thinkpad running Windows 98, which made my research so much easier to do, I have never seen such quality blocking of valuable information as I have right now.
I mean, Google must have adopted its China level of censorship because it’s getting hard to find the information you need buried in with all of the junk.
Said differently, on top of the confusion in general in the mainstream, it is getting harder for a thinking person to get a clear understanding of what’s truly going on because of all of the internet censorship.
On top of that, add the sell-outs, such as Zero Hedge, and add all of the supposed “alternative media” who’ve sold their souls for the Trump Train mouse clicks, and yeah.
I’m glad I spent the weekend gardening.
That’s also what I think.
Crude oil dropped right out of the gate last night:
There is only a finite amount of crude oil that can be stored above ground, and any excess capacity is not just something that’s going to come on-line at the snap of a finger.
The chartists will tell you copper’s showing a bear flag:
Between the supposed infrastructure spend in the United States, which surely many other nations will embark upon to get their people back to work as well, and all of the monetary inflation over the past ten years combined with the monetary inflation that’s to come in response to the coronavirus pandemic, I just don’t think we’re going a whole lot lower than where we are right now, which we could call $2.00.
I definitely don’t think the technicals apply to the stock market right now:
I think there are heavy hands in there who are still able to move the stock market relatively well, albeit sloppy.
The plunge in the VIX is almost as epic as the recent rise:
At least they’re making it entertaining for once.
The more Treasury’s the US Government sells:
The lower interest rates go.
It doesn’t really matter what the dollar index does from here:
Because one thing is certain, even if the dollar’s on the way up, it’s still a race to the bottom, and as that race gets further along, everybody is going to lose purchasing power, including people holding dollars.
I’m still looking for platinum to catch up to gold very, very soon:
I’m sure there are a few prepper or stacker families out there who have their finances in order, so as soon as they get their government checks (this week?), they’re going to save it and not spend it, and since all currencies including the dollar are guaranteed to lose purchasing power from here, saving those dollars in platinum is an interesting choice at the moment.
Especially since platinum’s flown more or less under the radar over the last several years.
Platinum has flown under the radar for several years, in part, because palladium has stolen the spotlight:
In my opinion, palladium will continue to do well, but the other three precious metals will do better over the short-term.
The gold-to-silver ratio is still pegged to where it was last week:
Is this the week silver finally beings to outperform gold?
Gold is setting-up to do battle at $1700:
While I do still think the cartel is in control with regards to the paper price, I still think we punch right through $1700 and keep on surging with a break-out.
Which means that while presently sitting under fifteen stinkin’ bucks, silver has a whole lot of catching-up to do:
Which I think takes us to breaking-through $19, in lines with the “V” shaped recovery.
Bottom line as we find ourselves here this beautiful Monday in early April?
The MSM is doing a darn good job of thoroughly confusing people.
Half of the mainstream has feelings of hope and optimism.
The other has feelings of hopelessness and despair.
The problem for us is getting information.
So we draw our own conclusions.
If government draws it?
At best, stagnation.
At worst, death.
If we draw?
– 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.