Losing The Battle
Don't get me wrong. It's far from over and The Bullion Bank Cartel has certainly revealed their intentions this week. But cracks are already appearing and their situation appears somewhat tenuous.
Why do I say this? Check out the charts below.
Let's start with the other two precious metals. Not only has platinum turned back higher and is now just 1% away from another breakout but palladium is surging, too. In fact, palladium is making new highs today, blowing through last week's highs and reaching all the way to $888. With these other two metals seeing such continued buying interest, it makes it much more difficult for The Banks to continue (successfully) raiding gold and silver.
Now check out crude. Just when everyone thought the rally was over and price broke through $100, it reversed and is charging higher. No doubt Russia/Ukraine concerns and the worsening situation in Israel are "helping" but check out the clear trendline and higher lows. A move through and close above $103.00-103.50 will signal even more price rise ahead.
And, perhaps most importantly, how about the bond market? Both The Long Bond and the 10-year Note are within basis points of their low-to-date 2014 yields. Remember, this is very important as low rates make real rates even lower...and negative real rates are always a rationale for institutional investment in precious metal.
Of course, so far, we haven't yet seen a dramatic improvement and turnaround from gold and silver. They remain pressured as this current Cartel operation remains in place. However, continued strength in all the items mentioned above will lead to renewed strength in gold and silver. Watch the red lines on the charts below for clues to recovery and bounce back.
Finally, just a few other items to note....
Can anyone explain why Woody has decided to put even more sanctions on Russia? Did I miss something?? Last time I checked, the UAF were fighting and killing "terrorists" all over East Ukraine. Is Russia being penalized for not intervening? I don't get it.
Well, ole Vlad wasn't too amused by this and has since responded:
What in the name of Dr. Strangelove is going on here? Again, is Woody purposefully trying to provoke Russia and a larger fight? It sure makes me wonder...
Which leads me to this: http://www.businessweek.com/articles/2014-07-17/how-russian-hackers-stole-the-nasdaq We've discussed several times here about the distinct possibility of cyber attacks on the US financial "infrastructure". Well, here you go. No longer just science fiction. Again I ask, why? What is Woody/US trying to gain by poking more and more at The Bear and The Dragon?
It's hard to say for certain of course. One thing is certain, however...This all just makes me want to stack even more metal in my hidden bunker. I'll think I'll buy some more today.