It has been quite a week for the markets. Even gold and silver have been affected by the downdraft. This is a normal reaction when the markets are suddenly taken down.
Investors caught on the wrong side are immediately at risk and as most assets are falling in value quickly, gold and silver remain liquid and relatively retain value they also become first on the chopping block. They generally are also first to recover.
The S&P 500 has increased by about 33% from its low in November last year and has fallen to a 23.7% increase as of now. A 9.2% draw down. There was only one other small drawdown during April/May this year.
Corrections in the market are normal. Our system would have taken us out of the market in mid-July. (We are not tracking the S&P 500 for ourselves).
BITCOIN AND GOLD
BTC:GLD below shows gold outperforming Bitcoin. The spike low means we watch carefully for a reversal.
ETHUSD we are out of ETH. It has given a spike low, so we watch for a buy signal.
BTCUSD we have a spike low and the signals have turned up so watch for a buy.
GOLD AND SILVER STOCKS
Gold is now outperforming gold stocks. This is early days and we will see if this continues.
Silver outperforms silver stocks.
GOLD AND SILVER
Silver to Gold Ratio
The indicator has switched to gold outperforming silver. Indicators show an overbought position so I expect a reversal here.
GOLD TO USD
Gold is now outperforming the USD. Indications are for a turn around.
A LOOK AT THE GOLD AND SILVER CHARTS
| TODAY | LAST WEEK | |
|---|---|---|
| Gold Price | $2,394.00 | $2,457.00 |
| Silver Price | $26.84 | $29.08 |
| Gold:Silver ratio | 89.14:1 | 84.61:1 |
| Gold Miners bullish percent index | 75.00 | 92.86 |
| Dollar Index | 103.01 | 104.14 |
| Dow:Gold Ratio (BahaUS 38735.00 Gold price, $2,394.00 ) | 16.18 | 16.56 |
| Current USA inflation rate (Dept. of Statistics) | 3.0% | 3.3% |
Gold’s low of the week was $2,360.40 and the high was $2,458.00, now trading at around $2,398.00. The Gold Miners Bullish Percent Index at 92.86 last week was extremely high. Levels such as this often indicate a price drop ahead.
This is not to say that a continuation in price appreciation cannot happen; it is just a heads-up to be aware. Prices played out as expected this past week. The level is now 75
- 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. (Chart below).
- The weekly chart remains out. Money is still flowing into gold but without pressure on the price. Indicators are turning positive.
- The daily chart is a hold, but almost a sell.
The low for Silver this week was $26.37 and the high $28.67, trading around $26.91 at present.
- Silver on the monthly chart indicates a hold. The signals look neutral to down, but no definitive sell yet. The flow of funds into the metal is negative. (Chart below).
- The silver weekly chart is out. The price has fallen below support. No indicators are pointing up.
- The silver daily chart indicates out. It has gone below support No indicators are turning up yet.
Our partner has a stock of both Gold, Silver and Goldbacks in our vaults available in Panama. Please contact us for more information.
A video by Mike Adams on the Goldbacks.
Well worth a look!
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.
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