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A look at the Gold and Silver Charts (07.12.2023)

We have a lot of issues to deal with before we are able to return to being a  ‘normal’ society.

COVID, the injections, the producers of both. The warmongers, corruption, drugs, child and human trafficking. Not to omit all the injustices going on in the DUMB’s (Deep Underground ‘Military’ bases), Military Child Rescue out of Underground Tunnels .

Who do we trust? Certainly not our current ‘leadership’.

Are we prepared for the transition? We had better be thinking of where we go from here. What freedom means, how we want our lives to look, how we want society to be and much more.

In addition to serious cardiovascular issues (up 1000%), the Pentagon saw significant spikes in numerous ailments well beyond their five-year averages including hypertension (2,181%), neurological disorders (1,048%), multiple sclerosis (680%), Guillain-Barre syndrome (551%), breast cancer, (487%), female infertility (472%), pulmonary embolism (468%), migraines (452%), ovarian dysfunction (437%), testicular cancer (369%), and tachycardia (302%). Heart-related ailments have soared over the past 5 years as well, including hypertension (36%), ischemic heart disease (69%), pulmonary heart disease (62%), heart failure (973%), cardiomyopathy (152%), and other non-specified heart diseases (63%).

BITCOIN AND GOLD

Bitcoin bought through BITO has given us a buy this week, but is now looking overbought. I expect slightly higher prices as the rate of change is still positive.

BITO - Proshares Bitcoin Strategy ETF - 07 December 2023

There is no buy on our system for ETHE this morning. In addition it is looking overbought at this price. There is money flowing into it which may carry the price higher.

ETHE Grayscale Ethereum Trust-07 December 2023

GOLD AND SILVER STOCKS

The gold and silver stocks have underperformed the physical gold market since the cross over in 2012. (See below)

Lately, there has been a slight outperformance by the stocks compared to the physical metals. There is a huge catch up to do.

In my opinion this should be a good run.

The pitfalls to watch with stocks are, amongst others, the following: Mines are depreciating assets. When purchases of new sites are made, shareholding is diluted or cash reserves utilized or borrowings increased.

Mine costs are increasing at the real rate of inflation much more than we are being told. All of the above affect profitability and therefore stock prices.

When the metals prices soar, the stocks will do proportionally better than the metals. Is now the time?

$GOLD:$GDZ Volatility Index - CBDCE Gold INDX 07 December 2023

GOLD AND SILVER

Gold particularly, but silver to a lesser extent gave us a few heart stopping moments this weekend and into Monday.

I have seen this type of movement in the gold market once before. $100.00 swings daily. In my experience, this introduces the volatility I saw in the market when it ran from $250.00 to $850.00 over a short period. 

The reaction of the market to the spike high seems normal to me. It appears that the spike occurred because the shorts panicked as the price of gold ran higher and had to buy in to cover their contracts. I like that the spike exceeded the previous three highs. This shows that the powers that be could not stop that rally. 

I look forward to a slower, more powerful rally over time.

My allocation for now is still largely in physical metals for the numerous reasons given in previous letters.

Right now I see $1980.00 as a base, with support at $2000.00 and the next target at $2230.00.

GOLD TO US CHART

The jump in gold prices and swift return to levels below last Friday have wreaked havoc with the gold to USD ratio.

Even though there has been quite a severe reduction in the ratio, not all signals are negative and I am relaxed about waiting a couple of days for the markets to settle and more negative indicators before calling a sell on the ratio.

Usually, a spike high as we see below is a great sell indicator.

$GOLD:$USD Gold - Continuous Contract (EOD) CME 06 December 2023

A LOOK AT THE GOLD AND SILVER CHART

TodayLast Week
Gold price$2,034.00$2,040.00
Silver price$23.89$25.08
Gold:Silver ratio85.08:181.25:1
Gold Miners bullish percent index53.5746.43
Dollar Index103.75103.31
Dow:Gold Ratio (BahaUS 36031.00 Gold price, $2,034.00)17.7117.46
Current USA inflation rate (Dept. of Statistics)3.7%3.7%

Gold’s low of the week was $2,009.00 and the high was $2,143.00, now trading at around $2.038.00.

  • The monthly chart for Gold is tough to analyze as most signals on our system give a buy indication, I am unhappy with the spike high produced by the sharp increase in price followed swiftly by the reversal. I will be patient before labeling it a buy.
  • The weekly chart remains a hold.. It broke $2,085.00 with a spike high which bears careful watching.
  • The daily chart has been a hold but is hanging in there by its fingernails. A down day today will produce a sell.
$GOLD:$USD Gold - Continuous Contract (EOD) CME 07 December 2023

The low for Silver this week was $23.78 and the high $25.91, trading around $23.98 at present.

  • Silver on the monthly chart indicates a hold.
  • The weekly chart has had us on a rollercoaster and indicates a hold, looking overbought.
  • The daily chart is a sell. Trading halfway up the longer-term trading range.

$SILVER Silver - Continuous Contract (EOD) CME 07 December 2023


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

Please contact us for more information.

Goldback - Fort Kobbe Vaults - Panama. WE ACCEPT GOLDBACK

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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