We couldn’t even get $22.50 as the gran finale on silver’s latest “correction”? Here’s why silver looks ready to rally…
There are a ton of things happening in the markets and in the economy.
We have the Fed’s 2-day FOMC with their “announcement” at 2:00 p.m. EST on Thursday, instead of the usual Wednesday, this week.
Recall on Friday, I pointed out how disgusting the Fed and its apologists, armchair quarterbacks, enablers and sympathizers are in that they have their regularly scheduled orgies where “market adverse” actions, for whatever that means, are clearly signaled well ahead of time, and yet, for “market favorable” actions, for whatever that means, can take place at any darn time the Fed feels like, with no 2-day meeting required, and who cares if it’s on a Sunday evening?
In addition to the Fed’s Circus Side Show, we have economic
lies reports on manufacturing, trade, and jobs to name a few.
But does any of this stuff matter?
This week, not really.
It’s all eyes on The 2020 US Presidential Election, or The 2020 Dog-N-Pony Show, or The 2020 World Wide WrestleMania Fest, or The 2020 Whatever You Want To Call It, so for now, the election is all that matters.
Interestingly, President Trump has still not Tweeted about the stock market.
Disgustingly, Trump’s out there pumping the 33.1% GDP to the Red Hats as if it was a good thing:
— Donald J. Trump (@realDonaldTrump) November 2, 2020
Of course, when you reduce the chocolate ration from thirty grams to twenty grams per week, and then the very next day announce that you have raised the chocolate ration to twenty grams per week, The Party will eat that crap up!
Even take to celebrate it!
But I digress.
We’re in “wait-n-see” mode.
Although silver may not be waiting for long to see:
Now don’t get me wrong, for I’d love to see sub $20 silver just in time for the next round of Economic Impact Payments, especially for the new Silver Bugs, the new stackers and the new other smart investors out there, so they can add more to their stack at a better price, but I doubt it.
Gold looks like it could reclaim its support at $1900:
If gold does that, ask a Permabear Chart Hugger what that would say about gold’s “breakdown”!
Spoiler Alert: They’d have to say the breakdown is “invalidated”.
The paper gold-to-silver ratio begins the week in the upper 70s:
A contested election, in theory, is “good for gold” because it implies much “uncertainty” in the markets, which leads to a “fear trade” bid, of which I think heightened uncertainty in the markets would lead to a turbo-charged fear trade bid with silver, because a drawn-out, contested election could also get Congress & Trump to rubber stamp the next round of stimulus during the
kabuki theater legal battle, and recall on August 11th, I said that is what was needed to get silver really moving again.
All in all, a contested election is good for gold and even better for silver.
All in all, an uncontested election is good for gold and even better for silver.
Here’s the thing: The election doesn’t change course from the economic path of destruction that we’re on, for it’s really all about the obstacles along the way, which may be lesser in some areas and greater in some areas depending on who is “elected” President, so on net, whether it’s Biden, or Trump, or Whoever, the outlook for gold is bullish and the outlook for silver is even more so.
Sure, everything looks bearish now:
The cartel takes pride in how they paint the charts, you know!
For example, the cartel has been brutal on platinum this year to help paint the “bearish” case for the precious metals in general:
The cartel really is grasping at straws.
Crude oil continues its slide:
You’d think everybody was about to hunker down for a couple days, and that the hunkering down would be accompanied by lesser demand for crude oil, adding to the pressure to the downside.
Copper is still above three bucks:
Copper, among other things, is signaling there never really was much downside in gold & silver anyway.
Besides, gold & silver are hanging in there despite a rise in interest rates:
Any bid under the bond market will reduce interest rates and possibly act as a springboard for gold and silver.
Gold & silver are hanging in there, additionally, despite a final push higher in the US Dollar Index:
If the cartel wants to give us a little more “value” in our soon to be worthless unbacked, debt-based fiat currency dependent on exponential, unsustainable growth, I’ll take that.
I do not think they’ll give us much more value than what we have right now, however.
All things considered, I’ve been looking for a spike in the VIX:
There is a full trading week in front of us, and at this point, it’s hard to say if the cartel is going to bring on the fear before, during or after the election.
Either way, it’s not looking too good for The Heartbeat of America Index:
America loses the election as Biden & Trump aren’t much different, much less transformative.
Bottom line as we find ourselves here this beautiful Monday in early November?
There would be a lot going on in the markets and economy this week.
None of this week’s official
propaganda reports matter, however.
For it’s all eyes focused on the 2020 US Presidential Election.
If there is any weakness in gold or silver, then pounce.
As I type this Monday morning, silver looks good.
Silver looks like it wants to begin its run here.
Is silver trying to front-run something?
Perhaps the election “uncertainty”?
Or the next round of stimulus?
Ignore those Permabears.
They’re not stackers.
They know not.
Of real value.
– 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, a former amateur trader, and a Silver Bug at heart.
This post was syndicated from : Silverdoctors.com