A look at the Gold and Silver Charts (24.10.2024)

Gold is doing the job it has for millennia. Buffers against sham currencies. Compensates for inflation.? Protects against lunatic politicians and policies. Compensates for incoherent, illogical laws. Preserves purchasing power. Acts as a financial support against war. Reduces portfolio volatility. Used for trade in difficult times. Globally accepted means of exchange.

The safe haven in difficult times was the dollar. With faith in the weaponized dollar diminishing, gold and crypto seem to be the go-to investments. Gold is a crisis hedge, it protects against both inflation and deflation, (at present we are dealing with and will deal with stagflation for quite a while).

Gold protects against negative interest rates and is a currency so is used for currency diversification. Unconventional monetary policies place currencies and countries in jeopardy, gold stabilizes that situation.

I am glad to say that this week silver has done extremely well, bringing the silver: gold ratio down from around 90:1 in September to 79:1 two days ago. It still has a long way to go.

As silver appears to be considered more of a commodity rather than a monetary asset at present, it still lags gold and, understandably, it lags. Having said that, commodities will perform as the dollar falls.

BITCOIN AND GOLD

BTC:GLD: Bitcoin outperforms gold. The chart is rolling over and indicators are pointing down. I expect gold to outperform BTC over the next week.

ETHUSD: Sell.

BTCUSD: Hold. Indicators rolling over no sell signal yet.

GOLD AND SILVER STOCK

Gold stocks are outperforming gold.

Silver stocks outperform silver.

GOLD AND SILVER

Gold touched a new high of $2758.43 this week. Silver touched $34.86, a good start. I fear that unless silver powers on again today and tomorrow it will leave a spike high behind which may result in a sell-off. I would be careful moving into either metal at this time.

Silver to Gold Ratio

Silver is outperforming gold. The silver to gold ratio is 80.76:1, it touched 79.00:1 yesterday.

GOLD TO USD

Gold gave a signal that it is outperforming the USD, but it looks like it is going to have trouble holding on to it.

A LOOK AT THE GOLD AND SILVER CHARTS

Gold’s low of the week was $2,708.00 and the high was $2,758.00, now trading at around $2,735.00.

• Gold Monthly:? is a hold. We bought in at $1,800.00 in October ‘23 and have held it to date. It looks overbought but the indicators are positive.
• Gold Weekly: is a hold. Overbought but looking strong, the rate of change is weakening. (Chart below).
• Gold Daily: is a buy but be very careful. It is looking overbought on the stochastic but the other indicators are positive. This is a difficult call because of the international turmoil, but we follow the system. We can easily buy back in.

The low for Silver this week was $33.42 and the high was $34.86, trading around $33.92 at present.

• Silver Monthly: Hold. Buy signal taken at $24.00 in March. Looking strong.
• Silver Weekly: Hold. A strong funds flow into the metal. I see a spike high which gives cause for close monitoring. (Chart below).
• Silver Daily: Buy. Some indicators are looking overbought but there is a strong money flow into the metal.

Our partner has a stock of both gold, silver, and Goldbacks in our vaults available in Panama. Please contact us for more information.

On the Stockcharts.com charts, the blue vertical lines are our proprietary system buy signals and the red vertical lines are system sell signals – for information purposes only

Please contact us to arrange the purchase and storage of your gold and silver requirements in a safe, insured location outside of your jurisdiction.

If you are interested in an overview of Fort Kobbe, you may want to have a look at this video:?Mike Brown, Director, Fort Kobbe, International Vaults, A DotCom Magazine Exclusive Interview

This is my interpretation of the market and is not to be taken as financial advice. Before making any buy or sell decisions I recommend that you consult with your professional financial advisor.