Silver had a big move breaking out of a long term wedge pattern.
From there, we blew past the 15.60 zone and the 16.20 zone. Now it is about seeing if we can hold the 16.20 zone.
We have yet to make a higher low swing in this move, so I expect a pullback to form this. The 17.40-50 zone can be considered our next target.
I believe Precious Metals are getting a bid due to the looming CONFIDENCE CRISIS that is coming. People understand that QE was not a one time thing It is likely the norm now. Central banks are stuck. They are cutting rates when the media is telling us we are supposedly in the strongest economy ever. There is a lot of uncertainty. You can see this in the bond markets, the geopolitics (trade war), and even the social and political issues.
Precious Metals go up when people begin to lose confidence in government, in banks, and in the fiat money. Human history is cycles of hard money and soft/fiat money, a battle between the classical economists, who look at economics through the lens of a social science, and the mercantile (today called keynesian) economics who believe they can use formulas to handle the market using aggregate demand (government stepping in to prop the economy).
With the Fed expected to cut rates this week, real rates will be close to zero or even negative. You might as well hold hard assets. Banks will have no choice but to print more, go into more debt etc. Inflation however is more of a psychological phenomenon. Again, when people begin to lose confidence in the money, the banks and the government we see money get devalued as less people want to hold it.
Talks are there is a big whale buying up silver contracts. Lot of theories that is China. We know the Eastern nations have been accumulating a lot of Gold (Russia, Turkey, China, Iran etc). China used to be on a silver standard until the early 20th century. The word for Bank in Mandarin (and also in Japanese) has the word Silver in it.
From there, we blew past the 15.60 zone and the 16.20 zone. Now it is about seeing if we can hold the 16.20 zone.
We have yet to make a higher low swing in this move, so I expect a pullback to form this. The 17.40-50 zone can be considered our next target.
I believe Precious Metals are getting a bid due to the looming CONFIDENCE CRISIS that is coming. People understand that QE was not a one time thing It is likely the norm now. Central banks are stuck. They are cutting rates when the media is telling us we are supposedly in the strongest economy ever. There is a lot of uncertainty. You can see this in the bond markets, the geopolitics (trade war), and even the social and political issues.
Precious Metals go up when people begin to lose confidence in government, in banks, and in the fiat money. Human history is cycles of hard money and soft/fiat money, a battle between the classical economists, who look at economics through the lens of a social science, and the mercantile (today called keynesian) economics who believe they can use formulas to handle the market using aggregate demand (government stepping in to prop the economy).
With the Fed expected to cut rates this week, real rates will be close to zero or even negative. You might as well hold hard assets. Banks will have no choice but to print more, go into more debt etc. Inflation however is more of a psychological phenomenon. Again, when people begin to lose confidence in the money, the banks and the government we see money get devalued as less people want to hold it.
Talks are there is a big whale buying up silver contracts. Lot of theories that is China. We know the Eastern nations have been accumulating a lot of Gold (Russia, Turkey, China, Iran etc). China used to be on a silver standard until the early 20th century. The word for Bank in Mandarin (and also in Japanese) has the word Silver in it.
