The markets this week appear extremely unsettled. The MMRI index, (Mannarino Market Risk Index) now stands at 308.2 as I write.
This index measures the risk in the market, with 50-100 being low risk, 100-200 moderate risk, 200-300 high risk, and over 300 being extreme risk. This is profoundly worrying. The history of the index shows that markets come off severely at this level.
As I scan through the missives of various analysts, I fear that although some are warning of potential stock market failure, none are spelling out the potential calamity that lies ahead.
Most governments are in a precarious position regarding finances, not to mention corruption and various other activities which undermine the smooth and efficient running of society.
This is a worldwide phenomenon and is, in my opinion, coordinated in order to create a worldwide collapse so that the Central Bank Digital System can be easily implemented.
Bitcoin and Gold
Bitcoin remains in a sell or out position on our system and is looking weak right now.
Gold and Silver Stocks
On Monday, I liquidated all of my shareholdings, including gold and silver stocks. I may be premature, but my feeling is that to be out of the market or to take short positions in times of risk is prudent. The ability to buy back in is always available.
Why sell gold and silver stocks and hold my physical? In previous collapses, gold and silver stocks have been sold off in order to cover leveraged positions or to cover positions for which there are no buyers.
There is no guarantee that this will occur this time. If I see prices run higher, I can easily buy back into the market.
Gold and Silver
Physical gold and silver have sold off this week and are sitting on support at these levels. It appears to me that both silver and gold have been held at prices beneficial to the parties doing it.
For example, to make the dollar look better against gold or to give certain buyers the opportunity to purchase at lower prices. Has stopped quoting current figures for dollar-to-silver and dollar-to-gold ratio.
Why? I think we would be shocked if they were reliably published.
They have, however reinstated a five and ten year ratio for both which are as follows:
- Dollar to silver five year $1,562.00/ounce, ten year $1,124.00 per ounce.
- Dollar to gold ratio five year $12,632.00 per ounce and dollar to gold ten year $9,353.00 per ounce.
- These numbers are a far cry from the currently quoted prices of silver at $22.50 and gold at $1,875.00.
Should they be forced to revalue gold and silver to cover the incredible number of dollars ‘printed’ the numbers will be immense.
Will or can they do that under the current system? I have my doubts and this is exactly why they need CBDC’s.
Of course, this does not take into account the incredible tracking power that the CBDC’s give the powers that be.
Lastly, to answer the question raised above regarding holding physical gold and silver.
Should inflation run away, physical silver and gold should benefit.
Assuming we end up with stagflation, both metals benefit, should we end up with deflation, gold certainly and silver probably will deflate at a slower rate. Any one of the above outcomes are possible.
Gold to USD chart
The Gold to USD chart below describes the damage done to gold as the dollar has appreciated against the dollar index. This ratio chart is beginning to look oversold. It is standing at present at 17.73 and could possibly go as low as 17.00 support before turning around.
A look at the Gold and Silver chart
|Gold: Silver ratio||83.18:1||83.54:1|
|Gold Miners bullish percent index||10.71||17.86|
|Dollar IndexDow:Gold Ratio (BahaUS 33,542.00 Gold price, $1,876.00)||17.87||17.88|
|Current USA inflation rate (Dept. of Statistics)||3.7%||3.2%|
Gold’s low of the week was $1,872.00 and the high was $1,927.00, now trading at around $1,873.00.
- The monthly chart for Gold is a hold, looking neutral to down.
- The weekly chart is in a sell or out condition.
- The daily chart has given a sell signal.
The low for Silver this week was $22.40 and the high $23.64, trading around $22.68 at present.
- Silver on the monthly chart remains a hold but is looking close to a sell.
- The weekly chart has had us on a rollercoaster and is indicating sell or stay out.
- The daily chart remains in sell or out mode.
Our partner has stock of both gold, silver and Goldbacks in our vaults available in Panama.
Please contact us for more information.
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
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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.