Awhile back I spoke about the big potential Silver move and so far it has been performing. Well to be honest my readers and followers know how much I love Silver.
Just to clarify, for the long term, Silver and precious metals is where you want to be due to the CONFIDENCE CRISIS coming in governments, banks and the fiat money system. Central banks will be killing their currencies in order to inflate. Inflate or die.
After breaking 17.00, we tested the 18.45 resistance/flip zone first breaking above it, but then having a weekly close below.
Just sticking with normal market theory and waves, you can see we have not really made higher lows on this weekly recent uptrend. We should expect a pullback, and I think this is what we may be seeing here in the short-intermediate term. Just normal.
I am looking for a potential move down to the 17.00 zone, and from here, perhaps make a higher low swing before testing the 21-22 zone which we probably will hit, or break above by the end of this year.
Perhaps the US-China trade talks will be the catalyst in October. If you follow my work, I do not believe this trade war is ending anytime soon. This is more of a ceasefire, and it is really President Trump who needs the trade deal as markets may move lower. President Trump needs a strong stock market and needs to avoid a recession in order to win the next election. It will be him who goes to the trade table to accept a China dictated deal. China can remain patient (only thing that would nullify this is the agricultural/food crisis…currently prices of food such as pork are increasing with the CCP subsidizing food prices as the army virus and swine flu devastate China’s crops and livestock).
So what does this mean? It means we will have another great entry chance. This pullback is great for adding to your positions in miners and even buy bullion.
I have already outlined why PM’s will be the place to be. Ray Dalio as talked about increasing one’s gold allocation, and since his words are respected in the investing/hedge fund community, it probably lead to funds ADDING Gold and Silver to their positions. Silver is still seen as a monetary metal somewhat linked with Gold , BUT the best thing about Silver is that the market is tiny. Gold is a 7 trillion dollar market, whereas Silver is a tiny fraction (some say 350 Billion). This means when money runs into silver (as a way to play the Gold move, confidence crisis and with gold being too expensive and Silver being undervalued and cheap) it will have a big move higher.
Paul Tudor Jones also has come out saying Gold will be the best investment for the next decade. Stanley Druckenmiller has spoken about selling stocks and buying bonds on interest rates being cut to 0…people have inferred that the only currency he is holding is Gold .