Note To Cartel: Smashing Keyboards Through Monitors Does Not Result In A Silver Price Smash!

SD Friday Wrap: The cartel is going berserk as silver breaks-out to multi-year highs…

What an amazing week for silver!

Everybody has an explanation about what’s been going on, but I do think the answer is really simple in that the cartel is no longer able to contain the natural, fundamental factors that are taking over the market.

In other words, the cartel is barely able to contain silver right now due to overwhelming market forces which are bringing on the fear trade, big time.

Fundamental factors are also bringing about people and nations putting on a hedge against uncertainty.

Others are putting on an inflation hedge.

Still others are putting on a speculative bet, so I’d be looking for more whipsawing volatility coming up.

Is that all that’s going on because of the fundamental factors?

No way.

People are also looking to preserve their wealth in the coming currency debasements, cash grabs and tax hikes, whereas the “you can’t take it with you” aspect of real estate means that if taxes get too expensive and no longer affordable, then  there is no choice other than liquidation, one way or another.

But wait!

There’s more!

People are also buying silver because it is insurance.

Others just want privacy.

Total privacy.

Silver is to gold as gold is to silver as silver is to gold.

Oh yeah!

That’s what I see.

See where I’m going with this?

No seriously, see where I’m going with this.

The cartel trying to contain silver is like this poor fella:

It’s a losing battle.

Futile.

On Wednesday, I outlined these generic fundamental factors:

National politics in most nations around the world are an absolute mess.
Geo-politics around the world are an absolute mess.
Politics in the United States are an absolute mess.
The economies around the world are an absolute mess.
The economy of the United States is an absolute mess.
Markets around the world are an absolute mess.
Markets in the United States are an absolute mess.

Let’s drill down a little with a specific example or two from just this week, with each generic factor, and then we can see more clearly why the price of silver is rising.

National politics in most nations around the world are an absolute mess.

Politics in the US are so abysmal right now that on Tuesday, ex-NY Fed Head Bill Dudley came out with an op-ed about how it’s the Fed’s job, you know, for the good of the economy, because the Fed knows best, to ensure that Trump loses the 2020 election.

It does not look like very many nations’ own internal, domestic problems will find relief anytime soon, the US included.

Geo-politics around the world are an absolute mess.

Trade Wars, Sanctions, Brexit, Argentina Default (yet again), and the Middle East, oh my!

Where does it end?

Nowhere.

We’ve got geo-political tensions everywhere right now.

I guess I left it equally generic in my specific example, but that’s because there are just so many geo-political powderkegs right now that it’s difficult to know even where to begin, but it’s not difficult to see that diplomatic relations and then some between nations all around the world will only continue to worsen for the foreseeable future.

Politics in the United States are an absolute mess.

Is it any wonder why 70% of Americans are angry at the political establishment?

We’ve got Swamp Creatures basking in the Swamp while low-level Miss Nobodys’ get fired for leaking Trump Administration stuff to the press, and we really haven’t even gotten into the full election cycle swing yet with so many Democratic candidates still in the running.

The economies around the world are an absolute mess.

When the economies around the world are an absolute mess, what are some of the things we would see?

Oh, how about people talking about needing to move away from the dollar as world reserve currency, gold at record highs in many currencies now including the euro, and a Chinese government newspaper suggesting a return to the gold standard.

What we have going on has commonly been referred to as a “global synchronized slowdown”, only with the US being an island unto itself, because, well, you know, ‘Merica!

However, if you can believe the often overused analogy of the US being the cleanest dirty underwear in the hamper, a specific example of economies around the world being in an absolute mess right now would be Argentina in default on its sovereign debt, yet again.

The economy of the United States is an absolute mess.

Aside from the fact that a recession indicator with a 100% track record is sounding the alarm, a healthy economy wouldn’t see a data revision resulting in a cut of 500,000 jobs from a full year’s worth of job gains, and since we’re talking about the Bureau of Lies Labor Statistics, it is safe to assume the real number of jobs lost is much higher, meaning the US economy is in even more of a mess than the revisions officially report.

Markets around the world are an absolute mess.

The fantasy of growth that central banks around the world have created is imploding everywhere one looks, however, central banks are still trying to maintain the fantasy with negative interest rates and ever expanding debt.

Markets in the United States are an absolute mess.

The markets must be much worse than what the alternative media can uncover because President Trump and his Administration are lying about the trade war at every chance they get in order to “boost the stock market”.

I guess I’ll just stop there.

The bottom line is there are so many fundamental reasons as to why people and governments are purchasing gold & silver right now, and in my opinion, it doesn’t look like there will be any less demand on the horizon, but rather, even more people and governments seeking out gold & silver as it becomes more and more apparent we are in the midst of a complete and total economic collapse.

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NOTE: THESE CHARTS WERE SET-UP CLOSE TO 12:00 P.M. EST AND DO NOT REFLECT TRADING AFTER THAT TIME

NOTE II: AS OF RIGHT NOW, THERE WILL NOT BE AN ‘SD OUTLOOK’ ON MONDAY

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Silver overshot $18.50 three times this week, all the while consolidating nicely at that level:

Of course, we said exactly what was going to happen on Wednesday.

Silver is at multi-year highs as shown on silver’s weekly chart:

I think it’s safe to say we have kissed a 14-handle goodbye.

Check-out the break-out through major resistance on silver’s monthly chart:

It has been one heck of a painful double-bottom on the monthly, but that break-out is decisive.

The gold-to-silver ratio has come down big time this week:

At a $1530 gold price and a $14.40 silver price, we are talking about a real-time ratio of 83.15, and we’re only just now getting started.

I don’t mind gold banging around $1500 and $1550:

If we are in a sideways channel, I’d be looking to test support at $1500, but I do think support holds, and that we break-out of the the sideways channel to the upside on the next run.

Palladium has had a nice break-out through resistance:

Today’s move will help get palladium’s 50-day moving average pointing up again very soon.

Platinum overshot my $920 target:

I think we can officially call that the upside surprise I have been looking for!

For the record, we have not seen the upside surprise I’m looking for in silver.

Copper is up 4 out of 5 days this week:

As of right now, I do not think this is a “dead cat bounce”.

Crude oil is still straddling $55 per barrel:

I think crude oil is next to surprise to the upside, a lot like we saw platinum do this week, I’m just not sure if crude oil or silver has the upside surprise first.

The stock market has been held in a sideways channel for quite some time, and the channel held this week:

In fact, aside from the crash into the end of the year and the second surge beginning in early June of this year, the Dow is basically unchanged from a year ago.

For whatever reason the cartel wants complacency back into the market again:

We might get more VIX suppression next week, but I do think the spikes are really only beginning.

Yield on the 10-Year Note fell to as low as 1.44% this week:

The pressure is for yields to keep going down too.

Check out the US dollar surging all week long:

 

This is exactly what you would want to see if you were on the cusp of a major US dollar devaluation.

What’s the bottom line as we find ourselves here this beautiful last Friday of August, 2019?

We have a long holiday weekend coming up, but I don’t think it will be boring.

We may very well have a brand new world come next Tuesday.

With Labor Day on Monday, the risk is very high.

Will this Sunday be the Trump Shock?

I think it very well could be.

Americans distracted.

One last party.

And then?

Lights.

Out.

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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