News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Silver Market Update

Precious Metals Languish

March 29, 2022 - (Gold Market Wire) - The world is teetering on the edge of global conflict. The world monetary system is in complete disarray. And the Precious Metals market does - well... not much. Frankly, its disheartening from the trading perspective, and it certainly makes us glad that our main focus for the past 6 months+ has been in Crude Oil. The Silver market has held it's floor at $24.50, but it is going down for another look, and the challenge is still there.

...the world turns...and Silver sits there.

Ultimately, as per our long-held thesis, we will probably see the Euro collapse and the Metals stay constant, or rise slightly vs. the US dollar. Yes, the USD is much maligned, but right now, it is still the only 'fiat' to hold on to. A good example of what may lie ahead can be gleaned from the Japanese Yen's recent action.

USD/YEN... is the widow maker getting ready to walk down the isle?

We haven't see levels like this since 2015! And we're likely to see more 'magic' yet. Considering how many men have been sent to their trading graves because they went short the Yen, these are indeed, historic days.

So, as ever, - are the Metals actually firming? Well, depends on where you look. Against the Yen they surely are. But as the trading community is based in Dollars, its less exciting. One thing should be clear now: As we careen towards the end of this monetary system, the USA Dollar will be the last to fall over. The Dollar bears hate that thought, but it is clearly apparent. The Yen and the Euro are the major ones on the way to the hospital first. The USD and the Swiss franc will be the last.

The stark truth now, is that tangibles are ruling the world. That should mean the metals, and in most of the world that has been a great, easy to acquire hedge. But the real tangibles, that people want and, more importantly need are energy and food: i.e. - the staples of life. That's how bad the global situation has become.

Maybe when a tin (can) of baked beans hits $5.00, people will change their view of what a real tangible is. If you want a 'first' world example of this, one is encouraged to follow what is happening in the UK. Government is careening out of control, spending like there is no tomorrow (there may well not be at this rate), while energy and food prices soar and temperatures plummet. We now see a population that is actually undergoing real hardship in many locales. And still, the population believes that it is government that should be saving them - when it should be government getting their foot off of their neck. The UK has a conservative government that is tilting at communism. That is the naked truth of the situation. Labels mean zero.

The UK population has no savings, so now, they are totally at the mercy of what government can and will do - which is very little. When we start down the road towards sovereign debt default, all of these negatives will be multiplied - and then, we will truly be at the end of the road. For years the metals crowd has been yelling that this day would come, and they were called "Chicken Little".

Well - now we are here. "Chicken Little" has come home to roost.

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