SD Midweek Update: Silver’s price is about to get a boost that will drop the naysayers’ jaws to the floor with shock and dis-belief. Here’s why…
This is important to understand.
This is: Once the classic muscle-car, gold, takes off from the line, It’s a roaring, beautiful display of strength and power, but once the sleek sports-car, silver, takes off from the line, it begins with excitement and wonder which quickly turns into eye-popping amazement.
Said differently, when gold’s price moves, silver’s price moves even faster.
Start here: In dollar terms, gold is a much larger market than silver, but in accessibility, silver is much more accessible than gold, so when investors are buying more gold and silver than investors are selling, more investors coming into the market for a fixed amount of silver means silver’s price really gets to moving in comparison to the not as many investors who would move into gold.
You could think about it like a particular stock – Berkshire Hathaway.
You know, the same Berkshire Hathaway of that old dude with all of the best insider information gleaned directly or indirectly by corruption or otherwise, Warren Buffet?
Well, there’s actually two stocks, an “A” stock and a “B” stock.
The price of the “B” stock?
No disrespect to silver for comparing honesty to a paper fraud, however, BRK-B is much more accessible to the people.
Than to what?
Well, the “A” stock:
Let’s just say ‘Ol Half Dollar don’t know many people who could be spending $304-grand a pop for one single share of one single stock.
Up $4,250+ in a single day is a 1.42% move?
Anyway, BRK-A is like gold, and again, no disrespect to gold when comparing honesty to a paper fraud.
Here’s the real way I would like to explain it, however, by using layman’s terms.
Last Christmas, my 11-mouse-clicks-per-second-since-he-was-ten-years-old-though-he-was-eleven-years-old-at-the-time son and I built his latest computer.
The computer is an absolute beast.
It’s housed in an elegant, large case with a smoked-colored tempered glass side panel complete with LED lighting, it’s got a gold-rated power supply to fuel that bad boy, the processor rocks out with 8-cores and 16-threads, It’s got plenty of memory, super fast hard drives, and a graphics card that can handle anything you throw at it.
That computer is gold
That computer was expensive to build too, relatively speaking, coming in around $2,000 for the parts.
This is actually cheap for such a beast, relatively speaking to the expensive computer hardware days of yore, and my son’s computer is also cheap relatively speaking because buying an equally-equipped pre-built computer like a Dell or Asus would have cost much more than $2000.
My point is there are not as many people buying or building high-end desktop computers because, relatively speaking, they can be very expensive.
Those computers are gold.
Enter the Nintendo NES Classic.
If my son’s computer is gold, then the Nintendo is silver.
Remember the NES Classic from a few years ago?
You know, the same Nintendo NES Classic that started-off the whole “retro gaming console” craze, which soon saw Atari, Sega and PlayStation follow suit by offering retro gaming consoles with built-in games and modern television connectivity of their own?
Well, here’s the Nintendo:
Oh, how cute.
That little mass-produced gaming console launched in November 2016 for the price of $59.99:
At a price that was readily accessible to the people.
Sure enough, people became excited about the Nintendo, and within days of the console’s release, free market forces took over:
And all of the sudden what would arguably still be accessible to the people at a price of $500, the Nintendo was selling for multiples of its original price.
OK, “Hey Half Dollar, you’re talking about a mania with this comparison, and I’m pretty sure your logic is warped in more ways than you can cook a shrimp!”.
You’re missing the point.
The point is that when gold moves, silver starts moving, and very shortly thereafter, silver really starts moving fast.
Silver outperforms gold both to the upside and to the downside.
Because it’s about to happen.
Which means we’ve likely seen the top in the gold-to-silver ratio:
Whoever is willing and able may might want to take action before the plunge.
Silver is in the midst of a technical break-out:
Silver’s price is un-naturally too low, so even though we’ve gone up in price for multiple days in-a-row, something to which the cartel does not take kindly, we still have tons of room to run to the upside.
Gold’s break-out shows its muscle-car status I was describing earlier:
That is one massive technical break-out which has surely got the manipulation deniers all excited to profess their wisdom of the charts.
Palladium is still in its sideways consolidation:
Get ready for the same giddy manipulation deniers to begin talking about a “cup-n-handle”.
Platinum is doing battle at its 200-day moving average:
If the metals are breaking out, I think platinum could make a b-line to its 50-day moving average.
Copper’s triple-bottom may have been spared from losing $2.60:
If silver is about to take off, which I think silver is, then copper is about to have some explosive moves too.
Crude oil is the big wild card here:
Last week I correctly called crude oil’s leg-down, and while the set-up looks similar this week I think we’re looking for a bottom here, and if that is the case, the chart will be bullish with a long-term uptrend in the making coming off of the $42 low print.
I think the VIX is about to start spiking soon:
And with the fear trade (gold & silver) kicking-in as the panic kicks-in to the stock market, I think the spikes will garner a lot of attention by the mainstream media.
The stock market had the bounce I was looking for:
If this bounce tops out with a lower-high, that will be a second lower-high and surely cause some heartburn for the bulls.
Yield on the 10-Year Note bounced only ever so slightly:
And if I’m right about everything that’s coming, we could lose the psychologically important level of 2.0% very, very soon.
The dollar is taking a trip down to the low end of its allowable range:
This could be the start of a very ugly second half of the year, and if I’m right about Trump being the Fall Guy, and if I’m right that the plan is to bring max pain to the United States in the form of economic misery and financial ruin, the plummet in the value of the dollar hasn’t even really begun.
Gotta cut this one short ’cause I think it’s very timely.
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– 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.