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A look at the Gold and Silver Charts (01.08.2024)

cages-flying-cartoon

We are caged in the illusion of freedom, whilst our freedoms are being taken from us at a blinding speed.

I remember as a young adult, getting up to quite a bit of mischief. When caught, the consequences were quite severe, but with ‘internal’ ie. parent based punishment.

We were made to apologize for the transgression, made to work to repay the damages, to make right the damages, physical or monetary, to face up to our misdemeanors, to understand the consequences of our actions. If required,  to receive corporal punishment.

This applied to the majority of my friends as well. On reflection I believe that on the whole we were a good bunch. I wonder what has happened in the interim to change morality so severely. To use the legal system to criminalize the youth with life altering results. 

I think of simple things that have changed for the worse. My drivers license when issued was for life. Changed to renewal every five years. Why? To increase employment, to show how much power vests in government, to mess me around? To collect additional revenue? If for revenue, just send me a bill.

The story is similar for gun licenses. I remember being issued a license for life. Now renewals which are difficult, time consuming and expensive are required. More unnecessary control. Is this to disarm the public? It certainly looks that way.

Our privacy was once desired and respected. There was no, ‘if I am doing nothing wrong, I have nothing to hide ’. Surveillance has enveloped the world like a swaddling blanket. Physical and digital surveillance are all encompassing. Every call is monitored, your TV monitors you, your phone tracks you, your digital voice activated devices listen to every word, your car checks and records you.

Your insurer insists or gives discounted premiums if you allow them GPS monitoring. Wherever you go there are cameras watching you. In the streets, at businesses, tracking you and building databases. Soft total control.

Our personal data from emails, from computers, etc. are collected and utilized by companies for commercial and investigative purposes. What about permission to do so? Where has our privacy gone?

Censorship is all pervasive and has become so prevalent and intrusive that most of us self censor. There is no escaping, it is online as well as offline. How many accounts have been removed from major outlets, even though they tell the truth? 

Only the approved narrative is allowed to air. People like Tommy Robinson, Joe Rogan and many more, are continually harassed with trumped up charges designed to financially and morally cripple them. Where did free speech go?

I remember walking onto the tarmac to say goodbye to my parents when they flew overseas, then it changed to just being allowed into the terminal, then just the entrance to wave goodbye. Then passport control, then customs, then security checks, then x-rays, then invasive checks of baggage, then half undressing, then dual checks, once at security entering the security area, then again pre entering the flight.

People queuing forever to be treated like cattle. This for the very occasional ‘problem’ passenger. What about random checks only? Where has our freedom disappeared? Have we created this for ourselves?

We used to be able to protest peacefully on the sidewalk, not burning tyres on the road or looting and burning buildings or businesses or demolishing monuments. Consequences of blocking traffic or destruction or looting would result in being shot with rubber bullets or tear gas. Where is that discipline? Where is the respect for property?

As the government has grown (a rant for another time), taxes have become endemic in every aspect of life. There is hardly any activity that does not require permission, a license or taxation. Regulations are enforced as if they are laws. Why are we not looking at the other side of the equation and minimizing government? 

As a small business we now require a dedicated staff member just for reporting to authority. A total waste of time and resources. In what way does all this reporting assist the businesses? Just more and more control.

The labor laws are extremely onerous and whilst I agree that labor needs protection, laws to the detriment of business and laws which encourage businesses not to employ staff have the opposite effect to that intended. 

Sadly public servants implementing such laws have no idea of second and third order effects of their actions.

Similar criticism applies to health and safety laws. Job protectionism, union interference etc. I am all for a safe work and play environment and remember excellent safety in the workplace without draconian observation and punishment.

Of course this can easily be taken out of the hands of the government and police by the insurance companies. If you have no safety standards the result is no insurance payout. It really is that simple. Same with seat belts etc. 

I could go on ad infinitum. As I close this, I think of banking of old when one knew one’s bank manager and he knew you. All of the current stupidity did not exist. If the government has a beef with an individual or company, then act against them. Small businesses and individuals should not be your policeman.

If we do not claim our freedoms, they will disappear before our eyes. We will have restricted movement, 15 minute cities. CBDC’s (Central Bank Digital Currencies), no control of how or where or when we spend our currencies or what interest if any we receive. 

Automatic tax deduction. Non access to our accounts if we are non compliant.

We have to fight for our freedoms before we cannot. We are very close to that situation right now.

BITCOIN AND GOLD

BTC:GLD below shows gold outperforming Bitcoin.

$BTCUSD:$GOLD Bitcoin to US dollar/Gld CRYPT 31 July 2024

ETHUSD we have a sell on ETH.

$ETHUSD Ethereum to US Dollar 31 July 2024

BTCUSD we have a sell signal.

$BTCUSD Bitcoin to US dollar CRYPT 31 July 2024

GOLD AND SILVER STOCKS

The chart below shows the massive disparity in price between gold stocks (Red) and the gold price (Grey).When this divergence equalizes the equities will have a huge run ahead of them.

Gold is now outperforming gold stocks. This is early days and we will see if this continues.

$GOLD:$HUI Gold- Continuous Contract (EOD) Gold Bugs Index - NYSE - 31 July 2024

Silver stocks outperform physical silver.

$SILVER - SIL Silver- Continuous Contract (EOD) Global X Silver Miners ETF 31 July 2024

GOLD AND SILVER

If we look at the inflation adjusted price of gold below, it shows us how undervalued the gold price really is. If we used the Shadowstats inflation figures instead of Department of Statistics figures the real undervaluation of gold would be more patent.

It is likely that interest rates will be cut fuelling more inflation and higher gold prices.

We have not been told how much just holding gold has outperformed stocks, bonds and the USD over the past twenty years. No one makes continuous commissions switching between the three besides gold. A well kept secret.

Silver to Gold Ratio

The indicator has switched to gold outperforming silver. Indicators show an  overbought position so I expect a reversal here.

$GOLD:$SILVER Gold Continuous Contract - (EOD) Silver - continuous 31 July 2024

GOLD TO USD

Gold is now outperforming the USD after a quick turn around.

$GOLD:$USD Gold - Continuous Contract (EOD) CME 31 July 2024

A LOOK AT THE GOLD AND SILVER CHARTS

TodayLast Week
Gold Price$2,457.00 $2,370.00
Silver Price$29.08$27.61
Gold:Silver ratio84.61:185.86:1
Gold Miners bullish percent index92.8689.29
Dollar Index104.14104.26
Dow:Gold Ratio (BahaUS 40712.00 Gold price, $2,457.00 )16.5616.81
Current USA inflation rate (Dept. of Statistics)3.0%3.3%

Gold’s low of the week was $2,369.00 and the high was $2,462.00, now trading at around $2,450.00.

The Gold Miners Bullish Percent Index at 92.86 is extremely high. Levels such as this often indicate a price drop ahead. Not to say that a continuation in price appreciation cannot happen, just a heads up to be aware.

  • The monthly chart for Gold  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 mainly positive.
  • The weekly chart remains out. Money is still flowing into gold but without pressure on the price. Indicators are turning positive.
  • The daily chart Gave us a sell on Monday and reversed back to buy today. (Chart below)

$GOLD Gold - Continuous Contract (EOD) CME0 31 July 2024

The low for Silver this week was $27.30 and the high $29.15, trading around $28.87 at present.

  • Silver on the monthly chart indicates a hold.The signals look positive. The flow of funds into the metal is slowing but not dramatically.
  • The silver weekly chart is a sell. The price has also fallen below support but is holding on the support line. It shows the beginning of a bottoming tweezer pattern which is very positive for the price.
  • The silver daily chart indicates out. It appears to have just gone below support and bounced back. Indicators have mostly turned up but we await a definitive buy signal. (Chart below).

$SILVER Silver - Continuous Contract (EOD) CME 31 July 2024


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

Goldback-official-distributor

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

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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