The pressure on silver is to the upside, however, for at least these two very specific reasons…
(by Half Dollar) Silver is once again beginning to move.
Silver hit $27.63 at 1:21 a.m. EST Monday morning:
Then “market participants” just had to “sell” their silver, which saw prices plunge over 9% by just after five in the morning.
Do not be fooled by the gyrations, however.
In my opinion, the pressure is to the upside.
Two reasons: First is that silver had been “correcting” for months already, and second is that the next round of Federal fiscal stimulus seems imminent, and the next round includes more Economic Impact Payments for eligible tax payers and dependents.
Honest Question: If everybody sees inflation all around them, if the government intentionally understates inflation by way of official policy, if the Fed is ready to let inflation run hot, and if the price of silver has been actively suppressed for decades, then why in the heck would smart people not be buying real, physical silver hand over fist right now?
So yeah, in my opinion, the pressure is to the upside, and I think price will move pretty fast.
Which means the paper gold-to-silver ratio will not likely have a 70-handle by Christmas:
Merry Christmas in advance, by the way.
Gold will get moving too:
In my opinion, however, the silver story is much more compelling, which is why we’re seeing huge moves in silver.
Platinum is also compelling:
Don’t let platinum’s overnight crash scare you either because platinum is also undervalued compared to gold.
The only precious metal that’s really rich right now is palladium:
It comes down to a question of how long it takes the other three precious metals to catch up?
Big moves were not just in the precious metals last night.
In fact, the markets are all getting very turbulent right now.
Check out crude oil:
I’m sure every technical analyst and his brother are looking for a trip back down to the 50-day moving average.
Copper also moved lower overnight:
I think $3.50 holds as support.
There is just too much money being printed.
I mean, we have a broke Federal government that doesn’t produce anything on its own but endless death and destruction all over the world, and when I say broke, I don’t mean only with no savings but I also mean with huge unfunded liabilities, and the Federal government is about to vote to spend another trillion dollars it just conjures out of thin air, only, a lot of that money is going directly into Main Street by means of bail-outs, forgivable loans and more, and not only that, but Reuters is reporting that “President Elect” Biden is “urging” Congress to have yet another stimulus ready for him to sign on January 20th!
And to think, silver is still a country mile away from all-time record highs, set back in 1980, and that country mile is in nominal terms too!
So when adjusting for all of the inflation since 1980, and the parabolic inflation since this year?
It will be interesting to see what happens to the stock market this week:
I say that because it wasn’t until two days after the stock market crashed back in March that Congress passed the first Cares Act (stimulus bill), and yet, if they vote today, which seems to be the case so that our elected “leaders” can jump on planes and go back to their home states to enjoy the holidays with friends and family, eating out, having parties, and generally doing things the Proles are unable to do by way of decree, the stock market will not have really crashed into this round of stimulus.
Does that mean if the stock market starts really crashing, we could even see one more round of stimulus before Trump leaves office, assuming this latest round is indeed imminent and signed into law?
The VIX is starting to look perky:
Word is that a “mutated” coronavirus is all the rage in the UK.
But what will they call it?
Think Covid-19 is bad?— SilverDoctors.com (@SilverDoctors) November 5, 2020
Wait until you see Covid-21…
The pressure on yield on the 10-Year Note remains to the downside:
Because you can’t spend a trillion this week and a trillion next week if you can’t get ultra-low interest rates, you know!
It comes at a cost to the US dollar, however:
That cost is called “hyperinflation”.
Thanks for reading,
Paul “Half Dollar” Eberhart