Silver - Once in every 65 years - Where is the real bubble?
Yes, once in every 65 years it may happen that Silver falls for 15 days with no retracement at all!
But why are we surprised by such a statistics data? Once in every 1000 years it may happen that CBs print 6000 bn USD equivalent of money out of thin air and that doesn't have any serious consequences on inflation and effect on real economy, but at least European bonds trade at negative yields (!) and SPX is at all time high, and we have planty of real estate bubbles all around the world.
I want to point for something here: Is the USD so much better value to hold? I mean the Dollar, which has been printed for not just 6 years (due to recent FED ZIRP and QE programs) but for the last 40+ years (due to huge C/A deficit and ever increasing debt)? Or the EUR??? I am asking it because Silver and Gold not just tanked against the USD but also against the EUR, which is being printed now! Or GBP??? Or JPY???
Ladies and gentlemen! The real bubble is not in the Equity markets, not even in real estates (or other real assets).
The ultimate real bubble of modern history is now CASH (fiat ccys) and BONDS with negative yields, which is even worse, as that is a cash promise only with negative yield so a promise to be payed out in some fiat ccy at an even lower, more negative real rate!!!
Sooner or later the world's savers will realise how they are being robbed out by central banks and governments!
I dunno how deep Gold and Silver will go. I see they are bearish. But I rather take those into my portfolio than any negative yield bonds and too much fiat cash.
Technicals:
Daily:
- Ichimoku bearish, but mkt got oversold. Price too far below Kijun
- EWO is extremely low.
- Heikin Ashi signals possible start of consolidation.
- Pull back and short covering rally may happen above 14,30
4H:
- Ichimoku is still bearish. Price is below Kijun Sen. Also 100 WMA is too high and Kumo is still thick. But Tenkan/Kijun started to converge. Maybe bottom building starts.
- Heikin Ashi suggests further consolidation or maybe one more dip down from Kijun. Watch if haDelta stays above zero.
- EWO is building a positive divergence
But why are we surprised by such a statistics data? Once in every 1000 years it may happen that CBs print 6000 bn USD equivalent of money out of thin air and that doesn't have any serious consequences on inflation and effect on real economy, but at least European bonds trade at negative yields (!) and SPX is at all time high, and we have planty of real estate bubbles all around the world.
I want to point for something here: Is the USD so much better value to hold? I mean the Dollar, which has been printed for not just 6 years (due to recent FED ZIRP and QE programs) but for the last 40+ years (due to huge C/A deficit and ever increasing debt)? Or the EUR??? I am asking it because Silver and Gold not just tanked against the USD but also against the EUR, which is being printed now! Or GBP??? Or JPY???
Ladies and gentlemen! The real bubble is not in the Equity markets, not even in real estates (or other real assets).
The ultimate real bubble of modern history is now CASH (fiat ccys) and BONDS with negative yields, which is even worse, as that is a cash promise only with negative yield so a promise to be payed out in some fiat ccy at an even lower, more negative real rate!!!
Sooner or later the world's savers will realise how they are being robbed out by central banks and governments!
I dunno how deep Gold and Silver will go. I see they are bearish. But I rather take those into my portfolio than any negative yield bonds and too much fiat cash.
Technicals:
Daily:
- Ichimoku bearish, but mkt got oversold. Price too far below Kijun
- EWO is extremely low.
- Heikin Ashi signals possible start of consolidation.
- Pull back and short covering rally may happen above 14,30
4H:
- Ichimoku is still bearish. Price is below Kijun Sen. Also 100 WMA is too high and Kumo is still thick. But Tenkan/Kijun started to converge. Maybe bottom building starts.
- Heikin Ashi suggests further consolidation or maybe one more dip down from Kijun. Watch if haDelta stays above zero.
- EWO is building a positive divergence