Silver, Gold and Crypto - Daily Digest: September 20, 2017 - Gold and Silver Slammed!

in #steemsilvergold7 years ago

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First of all, sorry for missing the daily digest for the last couple of days. I got tied up with my activities and didn't have time to pen down my thoughts.

Second, I am so happy to cross the 1000 followers mark and I thank you for all the support you provide by leaving comments, exchanging ideas, upvoting and resteeming the post. A big thank you to all of you.
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As I watched the tickers today (after 3 days), I couldn't help but notice that gold and silver have been slammed. This was not a surprise to me as I had written about the coming slam down during the third week of September. Slam down started last week itself, so I was fully expecting a significant down move possibly breaching $1300 for gold and breaching $17 for silver. That may still happen. I had also written that by September 22, the positioning will be clear. As of right now, the COTS report is not favorable at all with net short positions increasing substantially. In past when we saw similar levels of short positioning, we saw a violent move up crushing all the shorts. This may very well be the case but it behooves us to pay attention to Martin Armstrong who predicted that if gold doesn't break $1362 level then it may go down to $1180. To best of my knowledge gold has not breached $1362 level. so caution is warranted. Charles Nenner, on the other hand, mentions that October will see violent move up and gold has bottomed.

The three scenarios above though appear contradictory may not be. This is what I think will happen. Martin will be right because slamming may continue for another few days touching $1180 level followed by a violent move up and not retreating from new levels thus making Charles' analysis also correct.

In any case, holding on and adding to the physical stack is a prudent thing to do but at the same time going all in may not be a good strategy either.

Cryptos seems to be consolidating at the current level, so may expect a higher move up when gold moves down and then both may go up further higher.

That's all for today and hopefully, I will be more regular from tomorrow onwards.

As always be prepared and be safe!

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What are your thoughts on the Fed starting to let it's Bond assets fall off the balance sheet? Think this will play a major factor on markets across the world as interest rates will naturally rise making bonds more attractive. Money will flow to those "safe markets" making gold and other safe haven type investments less attractive. As a stacker, this looks like a buying opportunity is coming up.

Once the markets realize there aren't enough buyers for the bonds the Fed had been buying up the next step will be real inflation and Gold/Silver will become much more attractive after the dip we will first see.

IMO this would all play out without further manipulation from the government and without outside influences like what may happen in N Korea. But obviously there are so many outside variables that the free markets aren't really free.

What FED says and does has become rather irrelevant. What you need to be paying attention to is the fact that the gold price fixing will shift from paper fixes to physical fixes by end of this year or early next. This is because of oil futures getting traded in gold backed Yuan. The exchange is undergoing testing currently and will be up and running later this year. Believe it or not, the bond bull run is just about to start.....this is contradictory to what everyone believes.

good to have you back, my friend! greetings

Greetings to you as well :-)

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