Fort Kobbe Vaults newsletter

A look at the Gold and Silver Charts (14.12.2023)

spirit of debit card -Hedgeye cartoon
© Hedgeye Risk Management, LLC with permission granted by Hedgeye, reproduction and republication is expressly prohibited

The indications that the FED will start cutting rates next year excited the markets yesterday afternoon, with the Dow Jones index rising more than 400 points, Gold bouncing from $1975.00 early in the morning to $2022.00 in the late afternoon and silver bouncing from a low near $22.50 in the early morning to $23.80 later in the afternoon.

How realistic is the desire to cut interest rates and what would be the potential outcomes of doing so?

Inflation is by no means under control with numbers around 22% being a realistic estimation and also closer to real life experience. 2% is a FED pipe dream that they hope the gullible public will swallow.

I see real hurt in the future, as they cut rates. Inflation will soar, and stagflation will strangle both suppliers and consumers as the currency loses value.

The situation now is that consumers are in an extremely fragile situation. Jobs are disappearing, smaller companies are going out of business. The average person is having difficulty paying his mortgage or rent on time. Car loans and credit card debt are being paid late or not at all. 

No government wants prices falling. This removes their stealth tax – inflation. So what happens when there is supply, a plethora of cash, and few consumers? Deflation, which works to the advantage of the consumer. Worse is stagflation, a bad deal for everyone except the government. By this measure, I have a suspicion that we will get stagflation.

The movement of the gold and silver prices Wednesday afternoon, gives us an indication as to the potential movement of the precious metals once runaway inflation becomes patent.

BITCOIN AND GOLD

Bitcoin was up 3.1% on the news of the potential rate cuts. This prompts me to hold for a day on the imminent sell signal.

BTC compared to the Nasdaq does not disappoint and continues its correlation.

$BTCUSD:$GOLD Bitcoin to US dollar/Gold CRYPT 14 December 2023

The bitcoin to gold chart indicated an advantage to bitcoin over gold with an increase of 3.7%.


$BTCUSD:$GOLD Bitcoin to US dollar/Gold CRYPT 14 December 2023

GOLD AND SILVER STOCKS

The gold to HUI ratio dropped quite substantially Wednesday at 5.79%. This means that the stocks are appreciating at a faster rate than the metal. This is to be expected in a bull market.


$GOLD:$HUI Gold- Continuous Contract (EOD) Gold Bugs Index - NYSE - 14 December 2023

GOLD AND SILVER

Gold and silver recovered substantially on Wednesday afternoon after the FOMC meeting as noted above. It appears that the increases are holding. Is this a recovery, have they allowed the price to rise or did the strength of the market overwhelm the riggers? Time will tell. I see a slight pullback to compensate for the quick rise then a continuation of the rise.

On the longer-term charts the jump in prices yesterday seems almost insignificant however the volatility is significant and portends interesting times ahead.

GOLD TO USD

The past few days we have had gold and the dollar falling together. The interest rate news yesterday pushed the gold price up marginally (in overall terms).

I worry about the ability of the dollar to hold its value, particularly when there is no outside interest in the treasury auctions.

Gold and silver are what they are, so they are the base standard. Prices are relative to the metal’s intrinsic value, manipulation aside.


$GOLD:$USD Gold - Continuous Contract (EOD) CME 14 December 2023

A LOOK AT THE GOLD AND SILVER CHARTS
TodayLast Week
Gold Price$2,036.00$2,034.00
Silver Price$24.05$23.89
Gold: Silver ratio84.61:185.08:1
Gold Miners bullish percent index53.5753.57
Dollar Index102.32103.75
Dow: Gold Ratio (BahaUS 37083.00 Gold price, $2,036.00)18.2117.71
Current USA inflation rate (Dept. of Statistics)3.7%3.7%

Gold’s low of the week was $1,973.00 and the high was $2,040.00, now trading at around $2.037.00.

  • 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. None of the indicators give a sell indication yet.
  • The daily chart has given us a sell.


$GOLD Gold - Continuous Contract (EOD) CME 14 December 2023

The low for Silver this week was $22.51 and the high $24.18, trading around $24.07 at present.

  • Silver on the monthly chart indicates a hold.
  • The weekly chart has had us on a rollercoaster and indicates a sell.
  • The daily chart remains a sell.

$SILVER Silver - Continuous Contract (EOD) CME 14 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 FortKobbeVaults Panama

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 consulting 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.

Subscribe for the Latest News

Subscribe for the latest news and opinons about Gold, Silver, offshore vaulting and other industry information and opinion delivered right to your email inbox

SUBSCRIBE TO OUR NEWSLETTER

To receive industry news and updates​

“We provide a stable and expanding platform of physical and electronic security, technology, human structures and an ideal location that creates trust and resourceful solutions for our exacting wealth management clients.”

Fort Kobbe Panama

Copyright © 2020. All rights reserved Fort Kobbe Management, Corp.

Subscribe for the Latest News

Subscribe for the latest news and opinons about Gold, Silver, offshore vaulting and other industry information and opinion delivered right to your email inbox