Precious Metals … Silver & Gold

The ‘Non-Confirmation’

Something’s not right in the precious metals sector.

Gold’s just off -8%, from its highs while other monetary metals (Palladium, Platinum, Silver) are far below their highs; silver’s off a whopping -51.75%, from its 2011, highs.

In addition, as we’ll see below, silver (SLV) is just now contacting the right side of a trend line and potential downward channel structure that goes all the way back to the lows of 2015.

The ‘Squeeze’ of 2021

Below on the weekly chart of SLV, is a point labeled “1”.

That’s the location of what turned out to be a right-side trend line contact. Back then, an update on the ‘squeeze’ was posted, linked here.

Taken from that update was the following (emphasis added):

Those attempting garner forces (the little guy) to move the markets, such as silver, will find out soon enough who’s in control … and it’s not them.

It’s unlikely silver is going higher any time soon. There could be some upward spasms as the crowded trade exhausts itself; it’s likely we’ve seen the SLV highs for quite some time.

So, here we are nearly two years later; SLV never posted higher than the February 2nd, squeeze of 2021.

So, what’s next? Is there something else going on?

We’ll look at that question after the charts.

Silver SLV, Weekly

First, is the un-marked chart.

Next, we see a pattern that’s not so clear without mark-up.

For SLV, to break out, there needs to be an absence of motivated sellers (prices drift higher) or sufficient buying demand to overcome the downward trend.

Inflection Point

For an idea of what’s likely to happen next, we’re going to go to an unlikely source; Daniela Cambone and Gregory Mannarino.

It’s not about ‘controlling’ inflation and it never was, going all the way back to 1913. It’s about the ‘end game’, as discussed by Mannarino.

“Eliminate The Middle Class” (time stamp 11:40)

The sticky wicket is the ‘debt bubble’ and the ‘elephant’.

The Elephant Grows

The chart of silver (and other precious metals) and its non-confirmation with gold, could be an indicator of debt collapse and demand collapse first, before hyperinflation.

Multiple times a day now we have reports like the following flooding into the marketplace:

COVID Vaccines Are “Obviously Dangerous” And Should Be Halted Immediately, Say Senior Swedish Doctors

‘Normalization’ Of Emergency Use Authorizations Concerns Health Experts

CDC Says Stroke Concerns Over Pfizer Jab Warrant Investigation

They Promised “Safe And Effective”; We Got “Sudden And Unexpected”

Pentagon “Exploring” Back-Pay For Troops Kicked Out Over COVID Vaccine Mandate

Multiple Young Athletes And Former Athletes Died Suddenly This Past Month

Doctor Calls For Withdrawal Of Pfizer, Moderna COVID-19 Vaccines Following New Research

The above list is just since yesterday and it’s only 2:00 p.m., Central Time, today!!!

Monetary & Manufacturing

Silver is unique more so than gold, in that it’s an industrial metal as well as monetary.

The collapse in manufacturing demand could be the reason silver’s not confirming gold’s move.

It may also be telling us, as the effects of the elephant take hold, a huge liquidation of all assets could be coming; paradoxically as the need for fiat cash (not precious metals) to pay off debt, increases.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Alternate Viewpoint

Mid Session

Gregory Mannarino, Updates

According to Gregory Mannarino, everything’s fine in the bullish camp.

The Central Banks still have it all firmly under control; ‘Evergrande’ is a non-event.

He’s clear on who’s really in charge of the world system … and likely correct.

We’re not yea or nay on Mannarino’s assessment. Jut providing it as a different viewpoint.

However, there are many types of ‘Black Swans’ … not just financial ones (on which he is focused).

One such potential is here.

If there’s a major volcanic eruption (Level VEI 5), the entire world dynamic will be changed instantly.

Not saying the La Palma eruption is another Black Swan … no, just that volcanic activity is picking up world wide and needs to be included in any ‘unforeseen’ event situation.

Real Estate (IYR)

Back at the markets, let’s see if everything’s ok in the bull camp for IYR.

The short answer is, it’s not decisive for either side as of this post

4-Hour Chart of IYR:

If we put in a Fibonacci retrace and then highlight the resistance area, it paints the picture more towards the bears:

Price action has reversed from a well defined resistance area … that just happens to be a 38.2%, retrace level.

So, we’ve got an excellent demarcation line.

If IYR price action gets significantly above the 38%, retrace, we’ll close out the DRV short (not advice, not a recommendation).

However, at this juncture, price action continues to retreat from the 38%, area. A good sign for the bears.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.