As we are publishing this report Gold is trading at $1614 per ounce however the white metal is hovering around $14.50.Having more than a decade of experience we have seen it all in the market but we've never seen anything like this or you could say the world has never seen anything like what’s happening right now. The entire financial system, education system, medical system, political system are facing severe shockwaves due to the corona crisis. We have already seen the dow jones and the S&P 500 suffering the deepest quarterly drop since the Great Depression, exacerbated by a 60% oil price slump. The major central banks around the world have reduced interest rates and in order to rescue, G20 countries are now injecting a staggering $5 trillion into the global economy. The Governments Understand that the implication of the lockdown would send the economy into a recession but In order to fight the virus and save people's lives they are helpless and this is the only option they have.
As Simon Mair explains, "The economics of collapse is fairly straight forward. Businesses exist to make a profit. If they can’t produce, they can’t sell things. This means they won’t make profits, which means they are less able to employ you. Businesses can and do (over short time periods) hold on to workers that they don’t need immediately: they want to be able to meet demand when the economy picks back up again. But, if things start to look really bad, then they won’t. So, more people lose their jobs or fear to lose their jobs. So they buy less. And the whole cycle starts again, and we spiral into an economic depression."
The deadly virus is continued to spread at a very high level especially in the United States, Europe, and the other counties. Total cases have reached 882,106 where deaths numbers have reached 44,136.we believe the implications of the pandemic on the global economy would be very severe and when a finance minister commits suicide because of the fear of economic fallout from the coronavirus that's not a joke.
Thomas Schaefer, the finance minister of Germany's Hesse state, has committed suicide apparently after becoming deeply worried over how to cope with the economic fallout from the coronavirus."We are in shock, we are in disbelief and above all, we are immensely sad," Bouffier said in a recorded statement.
Even though Chinese factories and cities are reopening and China got some positive economic data which was surprising for sure. The second-largest economy’s manufacturing purchasing managers index (PMI) for March was 52.0 from 35.7 in February, while the services PMI was 52.3 in March versus 29.6 in February, however, one recent study which is very alarming suggested that lifting lockdown measures in Wuhan too soon could see China experience the second peak of cases later in 2020.
Gold and silver Implications-
We believe the major collapse within equities is under development and until unless we don't find the vaccine of the virus we shouldn't hope for a major trend reversal in U.S major stock indices. Healthcare experts are predicting 12 to 18 months' time in order to develop a vaccine against corona. The Gold could consolidate in the near term but the long term picture is strongly bullish. The yellow metal has made a recent top around the $1,691 area however we don't see gold stopping here. After breaking above gold could test $1840-$1850 zone. we believe any price drop in gold near the $1530-$1550 could be a bargain to enter long.
In our several recent reports, we tried to Inform you regarding the opportunity to enter long in silver. The weakness in silver dragged the Gold-silver ratio to its all-time high, level of 125 which means the amount of silver required to buy one ounce of gold. At the moment silver prices should be at $25 per ounce under the average Gold-silver ratio of last 20 years which is 65.we wouldn't recommend you to enter long at the moment in silver however if prices drop to around $10 which we are still hoping for this could be the greatest opportunity to make enormous profit from the silver position.
Summary-The Global Emergency Rate Cut, Rapidly growing cases of COVID- 19, Implication of countries lockdowns, Continuous falling of U.S bond yield and DXY, Rising tension in U.S.-China trade talks, Significant drop in U.S major stock indices along with other major countries indices, Fear of severe Global economic Depression all are supporting the safe-haven buying at the moment. We believe the global economic impact of COVID-19 could be much more significant than most analyst thinks. Until we don't have the cure of this deadly virus we believe the selling in global financial markets wouldn't be over which will support the safe-haven bid. we believe the implications of the pandemic on the global economy would be very severe and when a finance minister commits suicide because of the fear of economic fallout from the coronavirus that's not a joke. The weakness in silver dragged the Gold-silver ratio to its all-time high, level of 125 which means the amount of silver required to buy one ounce of gold. At the moment silver prices should be at $25 per ounce under the average Gold-silver ratio of last 20 years which is 65.we wouldn't recommend you to enter long at the moment in silver however if prices drop to around $10 which we are still hoping for This could be the greatest opportunity to make enormous profit from the silver position. The long term picture of the Gold and silver market is strongly bullish. At the moment we are not holding any position in our portfolio however once we will initiate a new trading position you will be informed.
As Simon Mair explains, "The economics of collapse is fairly straight forward. Businesses exist to make a profit. If they can’t produce, they can’t sell things. This means they won’t make profits, which means they are less able to employ you. Businesses can and do (over short time periods) hold on to workers that they don’t need immediately: they want to be able to meet demand when the economy picks back up again. But, if things start to look really bad, then they won’t. So, more people lose their jobs or fear to lose their jobs. So they buy less. And the whole cycle starts again, and we spiral into an economic depression."
The deadly virus is continued to spread at a very high level especially in the United States, Europe, and the other counties. Total cases have reached 882,106 where deaths numbers have reached 44,136.we believe the implications of the pandemic on the global economy would be very severe and when a finance minister commits suicide because of the fear of economic fallout from the coronavirus that's not a joke.
Thomas Schaefer, the finance minister of Germany's Hesse state, has committed suicide apparently after becoming deeply worried over how to cope with the economic fallout from the coronavirus."We are in shock, we are in disbelief and above all, we are immensely sad," Bouffier said in a recorded statement.
Even though Chinese factories and cities are reopening and China got some positive economic data which was surprising for sure. The second-largest economy’s manufacturing purchasing managers index (PMI) for March was 52.0 from 35.7 in February, while the services PMI was 52.3 in March versus 29.6 in February, however, one recent study which is very alarming suggested that lifting lockdown measures in Wuhan too soon could see China experience the second peak of cases later in 2020.
Gold and silver Implications-
We believe the major collapse within equities is under development and until unless we don't find the vaccine of the virus we shouldn't hope for a major trend reversal in U.S major stock indices. Healthcare experts are predicting 12 to 18 months' time in order to develop a vaccine against corona. The Gold could consolidate in the near term but the long term picture is strongly bullish. The yellow metal has made a recent top around the $1,691 area however we don't see gold stopping here. After breaking above gold could test $1840-$1850 zone. we believe any price drop in gold near the $1530-$1550 could be a bargain to enter long.
In our several recent reports, we tried to Inform you regarding the opportunity to enter long in silver. The weakness in silver dragged the Gold-silver ratio to its all-time high, level of 125 which means the amount of silver required to buy one ounce of gold. At the moment silver prices should be at $25 per ounce under the average Gold-silver ratio of last 20 years which is 65.we wouldn't recommend you to enter long at the moment in silver however if prices drop to around $10 which we are still hoping for this could be the greatest opportunity to make enormous profit from the silver position.
Summary-The Global Emergency Rate Cut, Rapidly growing cases of COVID- 19, Implication of countries lockdowns, Continuous falling of U.S bond yield and DXY, Rising tension in U.S.-China trade talks, Significant drop in U.S major stock indices along with other major countries indices, Fear of severe Global economic Depression all are supporting the safe-haven buying at the moment. We believe the global economic impact of COVID-19 could be much more significant than most analyst thinks. Until we don't have the cure of this deadly virus we believe the selling in global financial markets wouldn't be over which will support the safe-haven bid. we believe the implications of the pandemic on the global economy would be very severe and when a finance minister commits suicide because of the fear of economic fallout from the coronavirus that's not a joke. The weakness in silver dragged the Gold-silver ratio to its all-time high, level of 125 which means the amount of silver required to buy one ounce of gold. At the moment silver prices should be at $25 per ounce under the average Gold-silver ratio of last 20 years which is 65.we wouldn't recommend you to enter long at the moment in silver however if prices drop to around $10 which we are still hoping for This could be the greatest opportunity to make enormous profit from the silver position. The long term picture of the Gold and silver market is strongly bullish. At the moment we are not holding any position in our portfolio however once we will initiate a new trading position you will be informed.
