If You Blinked, You Missed It: Is This Why The Silver Price Traded Down To $15 This Morning?

This one simple reason may explain why silver was steadily “sold” overnight and into this morning…

UPDATE: 

This post was originally titled “Opportunity Knocks: Smart Money Investors Look To ‘Buy The Dip’ As Silver Price Falls To $15”.

Is this post already out of date?

Here are gold & silver’s intra-day charts, at 2:24 p.m. EST:

Why is this happening?

In my opinion, the cartel knew the Tweet was coming, so they needed gold & silver as low-priced as possible today, because after all, we couldn’t have gold testing $1500 and silver breaking-out above $17 now, could we?

What Tweet was coming?

Well, a series of Tweets, from President Trump:

In other “markets”, the dollar is plunging, yields on US government debt are plunging, and the stock market is having a rough time of it.

Yesterday I said I was not expecting any coming weakness in silver to last:

The question right now, however, could be, “is this the end of the weakness”?

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Let’s consider some fundamentals:

  • There are continued geo-political tensions including North Korea and Iran.
  • There’s President Trump who wants to PRINT, PRINT, PRINT lots of dollars and CUT, CUT, CUT way too high interest rates.
  • There’s the Fed that is cutting interest rates and stopping balance sheet run-off in a pivot to even faster money printing.

We can stop there.

Those are but three fundamental reasons why the outlook for silver is super bullish, even in the short-term.

Said differently, the current fundamentals are not really priced-in to silver.

For now, it’s easy to understand the pressure on gold & silver today.

What are we to make of this pressure?

Well, Powell was clearly uncomfortable yesterday as demonstrated by his social blunder during his post-FOMC presser, a press conference in which the markets were left with an uneasiness because of the shroud of uncertain, incoherent, inconsistent, and nervous babble Fed Head Jerome Powell spewed as responses to the softball questions he was asked, which, all things considered, is silver bullish for silver in and of itself, although that’s not my main point.

This is my main point: I think the dollar was supported yesterday to show strength in the US to counter the implied admission of weakness by yesterday’s Fed change in monetary policy, and, overnight, in addition to the HFT algos being re-programmed for whatever the cartel is planning next for the “markets”, all-the-while thinking they can successfully execute the plan, supporting the dollar and pressuring gold was (and is) very important for the cartel because the cartel is very, very vulnerable right now with so many different things going on that there is the high probability of the cartel making a serious mistake, a mistake which could blow-up the markets, and so they supported the dollar, they pressured gold, and this allowed the cartel to both directly and indirectly really pressure their most despised thing in the entire world, silver.

Here’s a look at silver’s developing out-performance of gold to the downside:

If silver continues to diverge from gold to the downside, the gold-to-silver ratio will likely continue to rise in the short-term, but that means the ratio is again climbing because of silver price weakness, which is good news for buyers of physical silver right now who have just been given a flash sale on metal.

I don’t think this weakness lasts long, regardless of the “decisive break-down” the technical analysts will all be touting on silver’s developing daily chart.

Here’s a look at the “selling” in silver:

Silver, with a 15-handle, approaching late 2019, is an absolute steal at this price, in my opinion.

Here’s a look at the dollar compared to gold:

That’s an impressive tick-by-tick inverse correlation!

Side note: I asked again, and once again, the only reply is the sound of crickets:

Whose side is Judy Shelton on again?

But I digress.

What’s the bottom line as we find ourselves on this beautiful first day of August?

In my opinion the silver price is artificially & unnaturally just way too low.

Market riggers are taking a big risk applying the pressure here.

Because silver’s price is nowhere near silver’s value.

And there is no denying the bull market is on.

In bull markets, investors buy the dips.

The physical market is still weak.

But this is one pretty nice dip.

And in light of yesterday?

A crazy opportunity.

Silver is money.

It’s Insurance.

Protection.

A hedge.

Wealth.

Real.

Yes.

Stack accordingly…

– 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.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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