ChartDaddy Is In The House
A full baker's dozen. Come on in and get 'em while they're hot!
The biggest challenge with this kind of thread is in determining a logical order for posting all of these charts. Forgoing that, let's just roll with it.
First, you know we've been watching our friend, Sylvia Platinum, for some time now. First, she turned higher late last year when gold and silver didn't. Then she extended in January while gold and silver began to recover. And after two weeks of battling psychological resistance at $1700, she finally broke through this week and, after consolidating, has charged to the top of her year-long range, near $1730. What happens next? Will she burst through and head toward the 2011 highs above $1900? IF she does, it is almost unimaginable that gold and silver won't follow along to some extent.
And now take a look at copper. Ole DrC has been rallying since November, within a broader pennant. Just last week, it broke UP and out of the pennant. Now, can it hold? IF it does, a continuing rally here will also underpin strength in gold and silver.
Of course, one of the biggest (if not THE biggest) determinants of inflation is fuel prices and crude has been rallying since early November, too. Many bears claim manipulation and over-supply. Who knows, maybe they're right. All I know is that crude (for now) is primarily denominated in dollars. Once QE∞ kicked in, the Black Gooey has done nothing but rally. It met resistance exactly where we'd predicted near $98 but it is now tracing out a very bullish cup-and-handle. Just be patient, there's no way this current move is over.
Of course, we need to talk about food prices, too. Protein is also denominated in dollars and, since the intro of QE back in 2009, both beef and soybean costs are UP over 50%. Absolutely brutal, particularly for those "third world" countries where most exist on, quite literally, just a few dollars per day. Do not underestimate the destabilizing, geo-political consequences of this. Hungry people are desperate people.
While on the subject of declining currencies, here would be a good place to insert a very interesting chart of The POSX. This looks nasty and it's going to take an enormous amount of SPIN and MOPE in order to keep it from breaking down and through the "neck-line" at 79. Watch very closely.
And I know I've been posting this next chart quite frequently lately but I'm doing so again today because it is truly breathtaking. We're talking about the national currency of Japan, allegedly the world's 3rd-largest economy, and it's down over 25% in just the last 4 months!! Amazing and incredibly destabilizing to the existing order and paradigm. Please do not ignore this. The long-term ramifications of this are utterly unpredictable.
OK, finally, the metals. I think you can tell that I'm extremely bullish here. Ignore all the nonsense and ignorance that attempts to convince you that gold and silver are headed lower. Not gonna happen. Though these charts indicate that breakouts and sharp rallies may still be a few days and/or weeks away, fear not and be patient. Continue to accumulate on every dip (just like the Chinese, the Russians, the Indians, the Turks and just about every other "creditor" nation).
Here is the current situation for silver. It is currently battling its 50-day MA near $31.75. Once it wins that battle, it will move toward the 100-day Big Test, near $32.50. Through there, it's game on!
And they won't keep gold in check much longer, either. Though it is currently being held back by chart resistance and the 50-day MA near $1685, that level will soon fall. It will then tackle $1695 and psychological resistance near $1700. Once above there, a plethora of buy-stops will get tripped and gold will surge toward its 100-day MA, currently near $1716, and beyond.
What's the point of all this:
- Fiat currencies and collapsing in an accelerating "race to debase".
- This and other factors are driving higher the prices of platinum and copper.
- Inflation, particularly food inflation, is accelerating too. See crude and protein.
- And under these conditions, there is now way that the naysayers, prechterites and top-callers are going to be correct when they call for lower gold and silver prices. No Freaking Way. Period.
Have a great day and btfd.