Weekly Update: Gold, Silver, Bitcoin – 04.29.2017

Approximate spot prices

Gold: $1,265 per paper ounce
Silver: $17.20 per paper ounce
Bitcoin: $1,350 per coin

Please pardon my absence from the weekly updates this past week. I work as a private tutor in NYC, and this is my busiest time of year. It turns out that working seven days a week for a few weeks isn’t exactly conducive to writing. But I digress…

With the alarm bells ringing for World War III, all of the abysmal economic data coming out of the US, and even the dollar under pressure, you’d think that maybe – just maybe – with the metals poised for a breakout – that we might get some meaningful upside in a rational response to the current state of the world. Those of that mindset have been rather disappointed over the past two weeks to see the metals under pressure, particularly silver.

This system is temporary, but it has outlived its expected lifespan time and time again. We are witnessing a state of affairs around the world that I’d have to describe as utterly unintelligible. I don’t have any inside information, and even if I did evaluating a prospective timeline in detail would be a fool’s errand. How long can we continue with 7 day stopgap funding measures, nuclear threats, and market rigging?

I guess we’re about to find out.

Gold

Gold has held up quite well in the face of several multi-billion smackdown attempts. Nonetheless, gold miners have been getting absolutely massacred. The disturbances to correlation are an indication that the system is becoming harder and harder to keep under control, but that doesn’t mean it can’t continue longer.

Every time I get to thinking about how we need to do away with the indescribable corruption of this current system I have to put myself in check because I am aware of the chaos and damage that would cause (even if it would boost my portfolio). The peace that I have about these investment decisions comes from the notion that such a change is inevitable and decades overdue. Rather than driving myself into a wrathful fury every time I see downward action, I can rest in the Lord and enjoy each day that I have left in this supremely unstable and volatile system. If I were still a professional trader watching markets all day every day I could play both sides and make money in either case with proper hedging and timing. If you’re interested in such a lifestyle, then give it a shot and get involved. Get trained up first. Talk to Dex at Pulse Wave Trading if you’re interested.

Stick tight. The potential for more waterfalls is always here. Perhaps we’ll visit the 100 day moving average once more, or perhaps we’ll knife right through it. Or, of course, we could break out to $1,300 and then $1,400. The system, and the fake prices that are generated by it, is still in control even if plans have been made for its demise.

Silver

The 6-hour chart shows that silver attempted to bounce from each of the heavy beatings, but it’s been a merciless two weeks for one of the most undervalued assets in the entire world. A good chance to buy more. If you’re still on the fence about whether markets are manipulated, then try explaining the price action in terms of tangible economic fundamentals (or technicals even). The chart looks weak – unsurprising after two weeks heading directly down – but who knows.

Another round of breakout predictions have gone by the wayside, but eventually it will happen. One of the trickier things to understand is that if these paper markets go dark and the price on these charts goes to $0, then that actually implies that silver has escaped and gone no offer. Just keep stacking. Paper dollars have no intrinsic value. Silver has intrinsic value from it’s monetary, decorative, and industrial functions. Buy the dips!

Bitcoin

Well, well, well. Here in the world of prices that aren’t completely manipulated it looks like real money alternatives are doing quite well. Was that last plummet on ‘hard fork’ concerns the final trip below $1,000? Time will tell, but it does demonstrate something meaningful about the explanations that are carted out to explain price moves. Did all of those concerns vanish a week later? It sure seems so. We’re back at all time highs where we were six weeks ago. Maybe we’ll get another chance to scoop some up at lower prices, but maybe not. This move seems rather slow and steady, but considering it’s added over $400 to the price in a month it should be seen as a bit more aggressive than it might look on this chart. Wake me up when we’re above $2,000 or up $500 in a day and I might sell some and put the proceeds into physical silver. If this is a low volatility upmove, then the volatile ones to follow will be quite the sight to behold…

Conclusion

I’m still waiting, watching, and stacking. In these times, it’s easy to work ourselves into a state of hysteria. This hurts our critical thinking, immune system, and spiritual discernment. Find rest in God and shelter in our Lord Jesus Christ. Now is the time to protect yourself financially and to prepare. Does it seem to you like things will get worse before they get better? Act accordingly.

Disclaimer: These are one amateur’s fallible opinions. Holding any asset is risky, so do your own research and make your own investment decisions.