Latest Gold & Silver Price News
In his weekly market review, Frank Holmes of the USFunds.com summarizes this week’s strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,139.27 up $31.49 per ounce (-2.84%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, gained 9.83%. The U.S. Trade-Weighted Dollar Index gained 0.05% for the week. Senior miners outperformed juniors for the week as the GDM Index gained 9.83 percent, more than the S&P/TSX Venture Index’s gain of 7.60 percent.
The world is fast changing, and while Ufa is not a dominate feature on the world stage, it is an important one of so many, unnoticed by so many American, so unaware. Those unaware are unaware of being unaware. So true.
Most people don’t question what their government does, especially when it comes to foreign policy. This gives power-hungry politicians the opportunity to lie to the public, so they willingly accept a war in a foreign country. A recent example is the Iraq war, where the public was led to believe that Saddam was hiding weapons of mass destruction and was an imminent threat to the United States. After the invasion, however, it turned out that Iraq had no WMDs and the threat was exaggerated to gain public support for the war. I am confident that physical Gold and Silver can protect you to a certain extent from government tyranny.
The day Washington orders confiscation is the day it broadcasts to the world, including to America’s sworn and powerful enemies, it has lost all control of its disastrous economic policies. That same day would mark widespread chaos throughout international markets and foreign capitals. On that day, for the very reasons you now own gold, you are going to need that gold. My guess is, based on the historical record, not many will give it up.
If silver had slowly risen from under $10 in 2008 to $15 today, nobody would be excited, but the pervading negative sentiment would probably be absent. The too far, too fast rally and subsequent crash succeeded in crushing sentiment. Not coincidentally since 2011, the dollar and bonds have rallied, and the S&P reached all-time highs. Real assets down, paper assets up! There is method to this madness.
One of the obvious beneficiaries of the accompanying dollar weakness has been gold, which is both denominated in US dollar and seen as a store of value in competition with the greenback. Today’s big rally has created at least four significant bullish technical signals
Gold prices could (I doubt it) fall further in the short term, since High Frequency Trading dominates trading action, and central banks need to hide the fact that their policies and currencies are failing, which usually means they suppress gold prices. Gold was formerly the “canary in the coal mine” indicating the failure of monetary and fiscal policies. But active suppression of gold prices has replaced the “canary” with a plastic look-alike that disguises the warning signal which tells us that something is very wrong with our monetary policies.
We started with the statement ‘simply print more Fiat currency, and you inflate away the debt’… and the first part ‘simply print more Fiat currency’ fails the Trinity of Truth test. Under our current system it’s impossible to ‘simply print more Fiat currency’. How about the rest? Can we ‘inflate away the debt’? Well, if each new Dollar created is of necessity accompanied by a newly created Dollars’ worth of debt, this does not seem likely, does it? Any effort to ‘print away’ existing debt will result in ever larger debt. This is the road to bankruptcy.
The abolition of cash currency and the associated implementation of negative interest rates represents a “consistent continuation of misguided monetary policy”. It would pave the way for economic totalitarianism of an Orwellian character. Alternatives like gold and crypto-currencies could of course benefit from this, as long as they manage to escape “regulation” or a ban in the framework of financial repression.
What it comes down to is how much longer the COMEX-orchestrated price can delay the physical silver crunch and shortage to come? I don’t have the answer, but I am confident that this is the right question. I am also confident that once a wholesale physical silver shortage kicks in, that shortage can’t be further contained by derivatives trading and most likely will have to burn itself out the old-fashioned way – by allowing the market to discover the true clearing price. The trick, of course, is to be positioned before the physical shortage is reflected in price.
In his weekly market review, Frank Holmes of the USFunds.com summarizes this week’s strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,107.78, down $15.67 per ounce (1.39%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, lost 1.49%. The U.S. Trade-Weighted Dollar Index lost 1.09% for the week. Junior tiered stocks outperformed seniors for the week as the S&P/TSX Venture Index was off just 0.98 percent outpacing the GDM Index.
Markets never change. They are always the means for money powers to distribute their gains to the unsuspecting masses, and like the markets, people never change, always set up for being fleeced. One of the most important markets to watch is FX, foreign currencies, for that is where the demise of the Federal Reserve’s fiat Federal Reserve Note, more commonly accepted as the “dollar,” will play out.
Two hundred or four hundred dollar silver! Outrageous! Yes, of course, when we think in terms of today’s dollars, euros, and yen. But what if current deflationary forces overwhelm markets and currencies, debts are defaulted, and central banks panic. Rather than accept crushing deflation, they massively “print” to boost asset prices and thereby create a huge inflation. Instead of dollars and euros, we soon have mini-dollars and mini-euros. Commodity and consumer prices are considerably higher and people and funds are DESPERATE to own something that will retain purchasing power. Gold and silver come to mind!