Fort Kobbe Newsletter Silver

A look at the Gold and Silver Charts (14.03.2024)

The more I think of governments the more I come to the conclusion that we do not have elections. We do have selections. 

Today it is Biden spending and borrowing. Previously it was Trump, prior to him, it was Obama, going back as far as I can remember they all spend and borrow. 

The train keeps going, the driver changes from time to time, the tracks don’t move. The faces change, the plan remains on the tracks. 

Total impoverishment and control of the lower and middle classes is the aim. Only we can stop it. No magic saviors.

What price is real freedom?

Bidenomics spending the USA straight to hell
© With permission granted by Ben Garrison, reproduction and republication is expressly prohibited. Visit Ben Garrison’s website by clicking on this link

In our company daily briefing we discuss the current situation as we see it in the world from an economic and political standpoint.

What we are noticing from our experience in Africa is a pattern that appears to have been used to destabilize countries around the world now becoming patently obvious in the USA. 

In my mind, the US is the last standing ‘democracy’ now being destabilized. Destabilization comprises:

  • Open or broken borders
  • Crime
  • Threats of nuclear war, wars and proxy wars
  • Riots
  • Demonstrations
  • Political polarization
  • Economic instability
  • Racial polarization
  • Propaganda and disinformation
  • Cheap, illegal labor
  • Immoral laws
  • De-weaponization of civilians and arming of opposing forces 
  • Cyber attacks on infrastructure and critical services
  • Undermining of national security
  • Corruption and bribery
  • Degradation of the environment and public facilities
  • Degradation of all infrastructure, such as roads, electrical supply, water supply, etc.
  • Antagonism between previously happy  communities
  • Breakdown between lawmakers and population
  • Flagrant passing of laws knowingly against the constitution and against the people
  • Interference in elections
  • Agencies such as the WHO (World health organization) WEF (World Economic Forum), BIS (Bank of International Settlements), UN (United Nations), etc. dictating world local policy, superseding local laws and norms.

At what point do good well intentioned people recognize this?

How many of these factors are you seeing around you, and let me know what ones I may have missed?

What is the purpose of destabilization? 

The introduction of a New World Order, with a one World Government, a one World Currency, completely digitized and trackable? Personal / Social monitoring and scoring as in China? Total population control and reduction of the population?

Where does it end?

State of the Union Speech, 2024. The country is crumbling in Biden's hands.
© With permission granted by Ben Garrison, reproduction and republication is expressly prohibited. Visit Ben Garrison’s website by clicking on this link
BITCOIN & GOLD

Bitcoin’s market cap is over $1.4 trillion, pipping the silver market cap at $1.3 trillion plus and Meta (Facebook) at $1.2 trillion. Bitcoin is now the eighth largest asset in the world. It is however, about 10% of the value of the physical gold market.

The price of Bitcoin is escalating, the pace of appreciation has been parabolic. In my experience, parabolic increases usually correct quite sharply.

The rate of change has been diminishing the past week and although flows of funds are still positive, they too are coming off somewhat. I would be careful of purchasing at this time. 

Bitcoin continues to vastly outperform gold as the rally in gold of the previous two weeks has petered out. The sell BTC buy Gold signal we got last week seems premature as we have had an additional appreciation of 3.22% by BTC over gold.

I would not ignore the signal as it usually proves correct within a short time period.

$BTCUSD:$GOLD Bitcoin to US Dollar / Gold - Continuous Contract (EOD)
GOLD & SILVER STOCKS

Gold royalty stocks have had a good run for the past two weeks. Some are still a hold, some have already given sell signals.

Gold has underperformed the gold stocks since the end of February. The stocks have a long way to go before matching previous performance. This is very encouraging for potential stock price appreciation.

$GOLD:HUI Gold - Continuous Contract (EOD) Gold Bugs Index

Silver physical has performed nicely during the past two weeks, moving from $23.00 to just under $25.00. The stocks have outperformed the physical as can be seen on the chart below.

$SILVER:SIL Silver - Continuous Contract (EOD) / Global X Silver Miners ETF
GOLD & SILVER

In the chart below, we see the shrinkage of gold as an asset class and asset holding as a percentage of global financial assets.

In my mind this is quite remarkable in the unstable financial environment we have experienced over the past number of years and particularly with the political situation as volatile as it is.

Investment in gold currently stands at 0.51% of the total asset pool at a price of $2,170.00 approximately. What will the price be if the percentage invested goes back to 5%? That is ten times the current amount invested.

The surprise to us is the diminished buying of gold in the retail market, but not government buyers which are scared of the death of the dollar and their own currencies.

Even at these levels I believe that considering the low interest rates and economic and political risk in the world economy, that physical gold is cheap.

Gold as a percentage of Global Financial Assets

If gold is cheap, then silver is a steal. A silver to gold ratio playing around the 90:1 level is preposterous. With silver coming out of the ground at about 8:1 the price looks totally out of kilter.

$GOLD:$SILVER Gold - Continuous Contract (EOD) / Silver - Continuous Contract (EOD) CME
GOLD TO USD

Gold v USD is looking a little overbought and is already turning down. We do not have a sell signal yet.

$GOLD:$USD Gold -Continuos Contract (EOD) / US Dollar - Cash Settle CME /FOREX
A LOOK AT THE GOLD AND SILVER CHARTS
TodayLast Week
Gold Price$2,162.00$2,154.00
Silver Price$24.92$24.14
Gold:Silver ratio89.74:189.19:1
Gold Miners bullish percent index:32.1428.57
Dollar Index102.97103.15
Dow:Gold Ratio (BahaUS 38,706.00 Gold price, $2,154.00)18.1117.96
Current USA inflation rate (Dept. of Statistics)3.2%3.1%

Gold’s low of the week was $2,150.00 and the high was $2,189.00, now trading at around $2.165.00

The monthly chart for Gold  is a hold. We bought in at $1,800.00 and have held it to date.

The weekly chart remains a hold. This week has been a consolidation week for prices. 

The daily chart is a hold. Looking overbought at this level, but it has broken the previous spike high at $2,152.30 which is very encouraging for future price appreciation.

$GOLD Gold - Continuos Contract (EOD)

The low for Silver this week was $24.00 and the high $25.15, trading around $24.96 at present.

Silver on the monthly chart indicates out. A couple of indicators have turned up and are looking more positive. Still a long way to go to the previous high of $50.00 in 2011

The silver weekly chart is a hold and looking positive for future appreciation. I would like to see it break out of its long term trading high of around $28.60.

$SILVER Silver - Continuous Contract (EOD)

The silver daily chart is a hold with room to improve further. Silver had a great week. It is looking overbought, but still has room to rise.

Our partner has stock of both Gold, Silver and Goldbacks in our vaults available in Panama. Please contact us for more information.
We accept the Goldback - Get yours here

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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