Down To The Wire: Cartel Barely Keeps The Silver Market From Blowing-Up On Them

SD Friday Wrap: The cartel cut just the right wire at just the right time in order to avoid total catastrophe…

Gold is looking very strong right now.

Silver?

You can feel it.

Silver is performing very strong as well, even if silver’s strength is not yet reflected in silver’s current “price”.

Check out the break-out from major resistance on silver’s weekly chart:

That’s the 200-week moving average, and silver just blew right through it.

We’ve seen some wild swings in the gold-to-silver ratio this week:

Wild swings happen at major tops & bottoms (spoiler alert – the gold-to-silver ratio is at a major top right now).

On the daily chart we can see the enormity of silver’s move on Wednesday:

I think silver still has room to run to the upside.

I’m really liking the increasing volume on gold’s beautiful weekly chart:

Not even considering the low from December of 2015, but looking at the more recent low in December of 2016, and we can see that gold is up over 35% from those lows.

I do not think gold is moving too fast right now:

We’ve seen just how fast markets can move as a result of 10+ years of constant money printing, and suppress gold with paper they may, but sooner or later that will come to an end.

The overall outlook for gold & silver is bullish, and when we’re talking about silver, the run is only now just getting started, so I’ll gladly take the cartel holding silver under $17 to close out the week as an opportunity to add to my humble stack.

Palladium is finding support at $1400:

I still think that $1400 holds.

Platinum has yet to begin its move:

I’m looking for my upside surprise in platinum very soon, and I’m starting to think it will be next week.

We can continue to look to copper for clues:

I think we are finding a bottom here, with further weakness below $2.50 something I would consider not very likely, because on the one hand, yes, there is this whole “global synchronized slowdown”, but between the money printing, the need to extract silver from copper mines, the dollar which I think is ready to fall, and nations looking to de-dollarize with real things such as copper, I think the fundamentals for copper are way more bullish than the “copper’s going down because we’re in a recession” crowd would have us believe.

We have yet to see crude oil fall into the $40’s:

In the short-term I think we could fall into the $40’s, but I’m not looking for much lower than that, and I’m not looking for a visit to the $20’s at all.

I would not bet that the cartel can’t ramp the stock market to new all-time highs again:

In fact, I haven’t placed on single trade this year, so I don’t bet on anything in these “markets” at all, and unless you’re on the inside with knowledge of the plan in general and the “when” specifically, it will be hard to bet on the market one way or another.

The VIX has comedown somewhat:

I would not be surprised to see a mega-spike in the VIX.

In fact, I’m expecting one,in part because I think we could see a shock dollar-devaluation on Sunday evening by President Trump.

Let me say that differently because I think it’s important: It would not surprise me at all if President Trump addressed the nation on Sunday evening to announce a dollar devaluation or something similarly and instantly negative for the US dollar.

As we can see in this weekly dollar chart, the dollar has a very long way to fall:

If President Trump likes a strong dollar but not a very strong dollar, does that mean 80 on the DXY?

What about 70?

If the dollar index falls to 80, or to 70, hat would that mean for gold & silver?

It would mean that gold & silver will take-off in price.

It also means that price could move away from people looking to get in at current levels

Yield on the 10-Year Note fell as low as 1.59% this week:

If you need another reason why silver is about to run, then look at yield on the 10-Year Note.

What’s the bottom line as we find ourselves here this beautiful Friday in early August?

The cartel barely escaped getting blown-up in the “markets” by silver this week.

Silver hasn’t even caught up to gold’s break-out above $1400, and now?

Silver also needs to play catch-up to gold’s break-out above $1500.

I don’t think the cartel is going to be so lucky come next week.

Sure, they defused this bomb and escaped catastrophe.

Cartel’s problem is there are now too many bombs.

They may be able to defuse them for a while.

But that’s the funny thing about bombs.

You don’t get to make a mistake.

Because it only takes one.

To blow-up paper silver.

Cartel isn’t perfect.

Mistake comes.

Next week?

Sunday?

Maybe.

So.

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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