A look at the Gold & Silver Charts

Please have a look at the Peter Schiff article about The Roman Empire analogy on our website here.

We have an analogy between the bond market, the stock market, the war market, and the dynamite as shown above.

It is difficult to imagine the consequences as the fuse burns down. It appears that a small fire is burning along the fuse. Eventually, the fire lights the charge and the consequences are way beyond the expected result.

The bonds are vulnerable to an interest rate hike. The banks are in a pickle. They borrow short and lend long-term. In order to make money, they buy bonds.

If interest rates increase, the bond value drops. If there is a call on those investments they are forced to sell at a loss. This is not conducive to long-term bank survival.

The FED may be forced to cut interest rates irrespective of the long-term damage, firstly to save themselves, (Interest payments over a trillion dollars a year), and secondly to save the banks, so that their bonds regain some value.

How long can the FED carry this burden and how long can the banks survive on this course?

Even though the stock indexes are at, or close to all-time highs, the underlying market is in big trouble. As of yesterday 60% of stocks traded above the 200 period moving average. ($DITH)?

So the large cap popular stocks are carrying the market higher while the smaller stocks languish. Does this indicate the slow burn before the implosion?

War: First some skirmishes, then bombing some small weaker Arab states. Then regional ambitions? are exercised locally. Then? requirements to obtain minerals and control their supply, leading to conflict.

Then Russia and Ukraine, then Israel and Gaza, opening fronts in Lebanon, West Bank, Jordan, and Yemen. Now Iran enters the conflict directly, China looks at Taiwan. See the slow burn? When does the fuse ignite the dynamite? What are the consequences?

BITCOIN AND GOLD

BTC:GLD below shows bitcoin? still underperforming Gold, no signal to buy bitcoin yet. I am aware of the halving, but see no signals to buy Bitcoin yet.

GOLD AND SILVER STOCKS

Gold physical is now outperforming the stocks.

Physical silver outperforms silver stocks as of this week.

GOLD AND SILVER

Silver continues to outperform gold. The silver: gold ratio is coming off nicely from around 92:1 early this year to around 84 plus presently.

GOLD TO USD

Gold v USD? Gold is outperforming the USD. Even though the USD is strengthening, rates are up and so is gold. A great sign for future gold strength. These things would normally mitigate against the gold price. Chinese jewelry demand is adding to price pressure.

Gold and the USD usually work in opposition to one another as can be seen on the chart below. This is definitely not the case now. The fear trade as well as countries loading up on gold see them both run up in tandem. Note the Green Dollar running up with the candlestick gold representation.

A LOOK AT THE GOLD AND SILVER CHARTS

Gold’s low of the week was $2,324.00 and the high was $2,398.00, now trading at around $2,379.00.

• The monthly chart for Gold is a hold. We bought it at $1,800.00 and have held it to date. It looks overbought but the indicators are mainly positive.
• The weekly chart remains a hold.? Looking overbought but no sell yet. Subject to my worries on the spike high last week. See below.
• The daily chart is a hold. Price is looking overbought but all indicators are positive so we hold. I am worried about the spike high which has not yet been broken and which indicates the possibility of a consolidation at best and price breakdown at worst. (Chart below).

The low for Silver this week was $27.56 and the high $29.02, trading around $28.43 at present.

• Silver on the monthly chart indicates a hold. It needs to break $30.35 then $50.00. The signals look strong for now.
• The silver weekly chart is a hold. We bought it for $24.00. It has broken out of its long-term trading high of around $28.60 and pulled back inside it again. Silver weekly looks overbought but no sell signal yet.?
• The silver daily chart is a hold, looking overbought it has broken out of the long-term trading area. If it holds above $28.00 that is a great sign. Silver daily is very close to a sell, but has not given a definitive signal yet. The spike high on silver is a problem to be overcome as discussed in Gold Daily above. (See chart below)

Our partner has stock of both Gold, Silver and Goldbacks in our vaults available in Panama.?Please contact us for more information.

A video by Mike Adams on the Goldbacks. Well worth a look!

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.