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 A look at Gold and Silver Charts (06.01.2023)

Who should we believe? Do we have inflation or deflation creeping up on us? In my opinion ‘Mises Institute’ is correct. Inflation is caused by currency printing and there most certainly has been plenty of that.

So for now, I expect and we are seeing continued inflation.

Is deflation a possibility? Sure it is, I think down the line. We are keeping a lookout for the signs.

Deflation_reflation_Hedgeye cartoon
© Hedgeye Risk Management, LLC with permission granted by Hedgeye, reproduction and republication is expressly prohibited

Chapter 11 Filings in the US, shown in the chart below were to be expected. What we are being shown in the overall market index figures are a sham. About seven companies are holding the indexes up and the rest of the companies are showing negative or tiny positive results.

Tiny, small and medium companies have been devastated by the events of the past number of years on top of which consumers have been financially denuded. It is impossible to have the restrictions imposed that we have suffered and have no economic effect.

The chart below shows only companies with more than $50 Million in debt and only last week’s numbers. No wonder the banks are taking strain and I think we still have a long way to go to resolve these issues.

filing flutty chart_weekly bankruptcy filings

Gold and Bitcoin

The chart below reflects BTC against the Nasdaq. We see that for the past month and a bit it has been more advantageous to hold the Nasdaq than BTC. The situation is changing now but the indicators are not yet pointing to a buy for BTC relative to the Nasdaq.

$BTCUSD: COMPQ Bitcoin to US dollar/Nasdaq Composite CRYPT/INDX 01 June 2023

Gold and Silver Stocks

Gold and silver stocks appear to have reached a bottom and are turning, according to our indicators. We have gingerly started to purchase both gold and silver stocks which are giving buy signals.

It appears at present that silver indicators are stronger than gold.

Gold and Silver

Since early May gold has outperformed silver in price appreciation. This period appears to be changing, although right now we do not have a sell signal in favor of silver.

The silver:gold ratio reflected here is 83.19:1. I have harped on continuously about this out of kilter ratio, when the miners are reporting 8:1 (8 ounces of silver to one ounce of gold) ratio out of the ground. To my mind the return to correct financial to geological ratio would mean a ten times increase in silver prices.

Look at the Gold & Silver charts

TodayLast Week
Gold Price$1,977.00$1,948.00
Silver Price$23.87$23.00
Gold: Silver ratio82.80:184.58:1
Gold Miners bullish percent index:53.5753.57
Dollar Index103.56104.18
Dow:Gold Ratio
(BahaUS 33,055.00/Gold price, $1,977.00) =
16.7116.83
Current USA inflation rate (Dept. of Statistics)4.9%5.0%

Gold’s low of the week was $1,933.00 and the high was $1,983.00, now trading at around $1,977.00

  • The monthly chart for Gold is a hold and still looks positive.
  • The weekly chart is a hold, looking stronger. The spike high is not supported by the other signals, so no sell yet.
  • The daily chart has given a buy indication Thursday evening.
$GOLD Gold - Continuous Contract (EOD) CME 01 June 2023

The low for Silver this week was $22.95 and the high $23.93, trading around $23.87 at present.

  • Silver on the monthly chart remains a buy. 
  • The weekly chart is a sell, within a whisker of turning up again. Tomorrow will be the deciding day. 
  • The daily chart is a sell, so out of the market. Price is inside the long term trading range and looking stronger. The indicators are a hair’s breadth from giving a buy signal.
$SILVER Silver - Continuous Contract (EOD) CME 01 June 2023

Our partner has stock of both gold, silver and Goldbacks in our vaults available in Panama.

Please contact us for more information.

Goldback-FortKobbeVaults-Panama

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.

Larry Simon

Larry Simon was educated at the University of Witwatersrand, Johannesburg, South Africa and is an experienced businessman specialised in management, investment and finance.

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