Precious metal update: gold remains sedentary; Silver slips senselessly
Without looking … Think fast! What is the price at the moment? (TIP: If you’ve read last week’s letter, you already know the answer).
“Uhh gee, mmb … in the 1780s?”
Exactly right, Squire, for the simplest reason, because the price of gold is so high always in the 1780s. Don’t you believe Feel free to check the following (you can’t make these things up):
‘That was in the 1780s ten years before; ‘that was in the 1780s ten months before; ‘that was in the 1780s ten weeks before; ‘that was in the 1780s ten days before; and ’tis today in the 1780s – 1783 to be precise – as shown in the gold scoreboard above. That is only 44% of the depreciated gold value of 4015, even if you honestly adjust for the increase in gold supply yourself. No joke.
If Gold has just died, an epitaph from exclusively “1780” is perfect. “Charles, is that the tombstone of gold?” … “That, my dysphasia, is a rhetorical question.”
Just as the price of gold was relatively “fixed” in the range of 18 to 20 US dollars according to Issac Newton, then again relatively “fixed” according to Bretton Woods in the range of 34 to 35 US dollars – until 1971, when Richard Nixon destroyed such a gold standard – today it could be said that gold was relatively “fixed” by “The m Word “Crowd. In fact, the” manipulation “motif has been mentioned more and more in the mainstream lately, the depth of market of bids and offers that revolve wonderfully around 1780 as the core unit price. And it is never wrong, the market is what ‘ today is: 1780. But a broad purchase decision can alleviate this: gold remains extraordinarily under-owned, an understatement at that. “Of course, the day you sell your gold is the day everyone wants it, even at a five-figure price.
But why have a dense, ductile lump of rather incongruous rocks for the time being, when with a mere tap of the mouse you can benefit many times over from an increasing number of shiny objects that pervade the markets, be it in-earning stocks or crypto junk or even not fungible token? In any case, they ensure security and a good feeling! (Until suddenly the objects disappear, but we shouldn’t say that).
What about sister lately? She hardly feels great. While gold was ad nausea settled in eternal wallowing around the 1780s, and more precisely -3.0% in a monthly comparison, Silver has slipped pointlessly -10.9%! Obviously, silver was not adorned with its precious metal pinstripes. So it must be that she wears her industrial metal jacket instead, Right? Because cousin clearly has to go over the cliff. But no it is not. For the same period, however, copper is only -0.5%. W.cap TÖ F.figure, How? Last week we wrote about market dislocations: Silver is so twisted that it has remained bare! Here are the percentage tracks of the metal triumvirate of our BEGOS Market from a month ago to today (21 trading days):
BEGOS metal markets
Also, can you guess what just exceeded 80 times the first time it appeared since September 29th? Exactly right: the gold / silver ratio, which is now 80.3x. Its average for millennia is 66.4x. So if silver were on average today (22.215) it would be 24.6% higher at 27.690. (Thinking means going backwards). Either way, according to our math Silver is a bargain right now (!!!)
So since silver sinks while copper floats – which makes no sense – gold is sedentary. With yesterday’s adjustment of the week at the above 1783, the price on a point basis traced its tightest week (since ending on Valentine’s Day 2020) in the last 22 months and the tightest week on a percentage basis since ending almost two years ago after December 22nd December 2019. Last week’s trading range was so tight that it has barely been shown far to the right on the graph of the weekly gold bars for a year to now:
Weekly gold bars & parabolic trends
In economic terms, the key figures received last week were resistant to inflation. There was an upward revision for the third quarter along with a downward revision for the quarter: that’s classic stagflation, right there! November also stayed stubbornly high at + 0.8% (which is an annual rate of + 9.6% for those of you …? Oh, right, you took it all public). October has pulled back from that for September while eroding and somewhat bloated. December has regained the level of 70, but remains below the COVID-era average of 77. All together and the economic barometer lost some of its power:
In terms of raising everything (except metals), Dow Jones Newswires ran with it during the week “This inflation contradicts the old models. Neither supply nor demand alone increase prices; it is an unusual combination of both.” It’s true: we have tons of money not to hunt down enough stuff that is becoming increasingly expensive to manufacture and deliver. This is what happens when the system is flooded with money. Everyone’s full so why the hell look for a job? Especially in view of your brilliant property investments, you will see yourself retiring at 35. (Or as a French friend often writes to us: “So great!”)
In the meantime, on December 21st (that’s Tuesday of the week) about 40% of government commitments will not fall due as the debt ceiling will then be reached. “Hey Shinzo, that’s you? Joe here. Hey, listen: We may have to skip the next interest payment. My Janet who? Hello Shinzo? Hey! Are you still there, buddy?” Or something similar. Which leads us to three critical, succinct questions:
■ “Do you have gold?” ■ “Do you have any silver?” ■ “Has the S&P crashed yet?”
just asking‘. In fact, our “live” price / earnings ratio is now 48.6x (another of our honest calculations that FinWorld doesn’t do). Indeed it is “in” Nowadays it is important to evaluate a company – if it has no income – on sales. (This is known as a “Dumbing-down beyond stoopid”). For example, we read last week that such a rating method appears to be for a shiny object named. is touted “Snowflake”. Last year this item had sales of $ 592 million and profits of $ 539 million, a truly symmetrical snowflake sweep of $ 1.1 billion. We also read (with the kind permission of NASDAQ) that negative spikes can be observed again in ’22, ’23 and ’24. And snowflakes melt. (See 2000-2002). I’m just saying‘.
‘Of course you have to be fair, the price of gold as a function of valuation continues to melt. The US money supply continues to rise, but the price of gold remains unwise (other than to boost that price). Namely our two-part graphic with on the left The daily gold bars from three months ago to today and On the right side 10 market profile of the price. The good news for the “baby blues” that have just ended their decline right at the -80% axis is that the recent slump in price in the 1780s could be the consolidating approach to get started. And obviously these incessant 1780s clearly dominate the profile:
Silver’s similar graph shows both the price and the “baby blues” (bottom left) much more scary than Gold, while her profile (bottom right) shows her singing the blues. (But grab some silver while you have nothing to lose!)
Also take a look at The Gold Stack:
The gold pile
- Gold value per dollar depreciation (from our opening ad): 4015
- Gold’s all-time Intra-day High: 2089 (August 07, 2020)
- Gold’s all-time Conclude High: 2075 (August 06, 2020)
- High in 2021: 1963 (January 6th)
- The gateway to 2000: 1900+
- The 300-day moving average: 1815 and down
- The last frontier: 1800-1900
- The Northern Front: 1800-1750
- Trade resistance: 1785/1795
- 10-session “volume-weighted” average price magnet: 1783
- Gold Current: 1783, (expected daily trading range [“EDTR”]: 22 points)
- Trade support: 1777/1773
- Directional range for 10 sessions: up to 1762 (from 1811) = -49 points or -2.7%
- During maneuvers: 1750-1579
- The weekly parabolic price to flip: 1728
- Low 2021: 1673 (March 8th)
- The floor: 1579-1466
- Le Sous-sol: Sub-1466
- The support shelf: 1454-1434
- Base camp: 1377
- The 1360 double top: 1369 in April ’18, followed by 1362 in September ’17
- Neverland: The Weepy 1290s
- The box: 1280-1240
And then there is next week. 15 metrics are planned for the Econ Baro. And the cherry during the week? A from the Federal Reserve Open Market Committee. “Oh no, don’t again! “ A bit like these radio hits: good or bad, they just keep going! So come on and get some gold and don’t forget the silver either!