Silver Bull Market and Central Banker Bullshit

Silver has been participating in Gold’s new Bull Market, but the action hasn’t been very exciting

That all changed on August 7th when Silver opened at $16.44 and closed at $17.07 – this gain of 63 cents launched the next phase of the Silver bull market

It doesn’t matter what financial vehicle you want to talk about, a 3.8% move in one day is significant

And, in Silver’s case, this huge move was a breakout through a long-term support/resistance line dating all the way back to 2010 as we can see in this monthly chart

 

Breakout in Silver Bull Market - monthly

 

In the monthly time frame the next obvious price target for Silver is the round-number at $18.00

For Silver Bulls, the MACD in this chart is truly exciting

Silver is heading into bull mode (both the MACD indicator and its moving average above the zero line) and there is a tremendous amount of room for the white metal to run before it gets anywhere close to the level of overboughtness that stopped the 2011 Silver bull market

In the current secular Bull Market for precious metals, Silver is going to be sporting at least a three-digit price tag

$130 to $170 is on the low end of my guesstimations, with something in the neighborhood of $625 on the high end – but what the heck do I know, I’m just a good ole’ boy from Texas

 

Silver Bull Market Pausing at Resistance – weekly

 

With its recent big moves, Silver has reached a resistance level identified by the upper-median-line-extension of the Schiff pitchfork

Price may pause here, but with the geopolitical events of the past week the pause may be quite brief

 

Silver Bull Market Tested Resistance Friday – daily

 

Silver had a big day on Friday, clocking-in with a 34-cent gain

That 2% pole-vault tested resistance for the second time – Silver may need to pause here and catch its breath, but the $18.00 target seems like a given, even if it is just a quick spike up to that level before both Gold and Silver take a much-needed rest

 

Gold Bull Market Targeting $1600 – weekly

 

Gold continues powering higher as the world moves into risk-off mode

Friday’s big move added another $28 bucks (1.9%)

$1600 is the next price target for Gold – perhaps we will get a correction at that point

 

Gold Silver Mining Stocks – Channel Provided Support – daily

 

I was a tad nervous about the precious metals mining stocks as GDX approached the bottom of this channel

I’m deploying new funds in the sector so I have mixed feelings about these relentless uptrends

On the one hand, I’d like to see prices continue higher so I don’t take any heat on my new positions

On the other hand, I’d like to have a big correction where I can back up the truck instead of taking small ‘hold your nose and buy’ positions

As we can see in the chart, the bottom of the channel provided support and price gapped-up from that level, demonstrating the strength of the new Bull Market in Silver and Gold

Friday’s move in GDX is a good example of the leverage that the mining stocks provide to the price of physical Silver and Gold

While Silver pole-vaulted 2% higher and Gold surged 1.9% higher, the mining stocks added a full 3.5% to their collective prices

 

Phase Three of the Gold and Silver Bull Market

During a Bull Market, one of the risks that investors face is that prices tend to make vertical moves to the upside

Conservative investors can easily be left on the sidelines wishing they had a position

In the current Bull Market, we have the added factor that the metals have now begun the second upward leg of their secular uptrend which began in 2001 (or 1999 if you prefer)

There are two ways we can refer to the current price movement

In Elliott Wave (EW) terms, the metals have begun wave three of a five wave movement

Third waves tend to be very powerful

 

Gold Elliott Wave: 2016 Rally Was A Fly on the Golden Bull’s Butt

~Satori Traders, July 19, 2019

 

In Richard Russell’s terms, Silver and Gold have entered the third and final phase of a tremendous Bull Market that historians will write about for decades to come

According to Richard, the third phase is when widespread acceptance of the 'new' Bull Market occurs, leading to manic behavior on the part of investors and parabolic price action

 

Silver's Long-Term Forecast is Bright and Shiny

~Satori Traders, July 4, 2019

 

In either case, we are likely going to bear witness to numerous vertical jumps higher as Silver and Gold seek out their true value in this world where all things financial are currently enumerated in worthless fiat currency

 

Economic Reset Approaches

One of the fundamental factors we have to consider is an economic reset where one or more countries launch a new currency backed by the precious metals

For example, China and Russia could announce one Monday morning that the Yuan and Ruble are now tied to Gold at a price of $5,000 per ounce

The price of Gold in all fiat currencies would immediately jump to the new level

Silver would follow Gold higher and, most likely, the Gold-to-Silver ratio would instantly change from its current value of 87 to something in the neighborhood of 60 or even 50

 

Gold-to-Silver Ratio Says Silver is Way Too Cheap

 

Equities of the precious metals mining companies would explode higher

All of the investors waiting for a conservative entry into the precious metals market would be left on the sidelines warming the bench – hopefully, you won’t be one of them

 

Update on Crazy Town

I tell ya’ folks, it ain’t easy being a Texan sometimes

Much of our history is based on ranching and cattle so we know exactly what bullshit looks and smells like

This Texas heritage makes it easy for us to spot the brown smelly stuff, and it is being spread especially thick right now by both politicians and central bankers

 

Sorry, I’m allergic to bullshit.

~Will Smith

 

Of all the remarkable events of the past week, the most remarkable IMO is having England’s chief central banker, Mark Carney, calling for a new global currency at the Jackson Hole Symposium (did I mention an economic reset?)

Acknowledging that the US Dollar and all of the other 180 fiat currencies on planet Earth are doomed is actually a sign of intelligence (or honesty) on Mr. Carney’s part

 

Big Stinking Cow-Patty

The big stinking cow-patty is his suggestion that the new reserve currency be virtual

 

 

Replacing worthless fiat currency with worthless virtual currency is not going to change anything or solve any of the current problems plaguing human beings here on the big blue marble

At best, it would allow the central bankers and politicians to maintain the status quo for a little while longer

And in case there is any doubt, the status quo that they are desperate to maintain involves financially screwing-over 99% of the planet’s population in order to enrich the other 1%

And if that isn’t bullshit, I better hang up my spurs

 

I don’t have a short temper, I just have a quick reaction to bullshit.

~Elizabeth Taylor

 

Have a fantastic week, folks – these are definitely interesting times, position yourself accordingly for the Gold and Silver bull market