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Inflationary Update: The Precious Metals Breakout
Gold has
broken to new highs and now looks to be retesting forming resistance. If it
bounces hard here then the next leg up for the precious metal has begun, as
former resistance would now be support.
Having said
that, the rising bearish wedge pattern in Gold remains in play. We bounced off
the bottom trendline and now look to be on our way to the upper trendline. This
indicates the target for this current rally is in the $1470-$1480 range. And if
we break above the upper trendline…
then it’s “lift off” time.
Silver which
has been leading Gold in the last six months seems to be indicating that this
will be the case. Indeed, Silver broke out to new highs back in mid-February:
While Gold
is only just breaking out to new highs now (2-3 weeks later):
A secondary
reason for Silver outperformance is its pricing: at $36 per ounce, buying
Silver is much more affordable than Gold which costs $1,400 per ounce.
Consequently, Silver is a kind of “poor man’s” inflation hedge and so is
profiting from an influx of orders from those who are growing increasingly
worried about inflation but cannot afford to buy an ounce of Gold.
Finally, Silver
also has some catching up to do in general. Historically, the Gold: Silver
ratio has fallen into the low 30s if not the 20s during precious metals bull
markets. Today, this ratio stands at 39. So we could easily see Silver go to
$50+ or even higher within the context of historic price movements.
However, the
precious metals aren’t the only assets that are staging dramatic rallies.
Indeed, commodities across the board are exploding higher as the Fed’s funny
money kicks off an inflationary storm.
All of these
assets, particularly Gold and Silver, will perform well in the coming months.
However, their performance will pale compared to other, less well know
inflation hedges.
Why?
Everyone
knows that Gold and Silver are the most obvious inflation hedges out there. And
to be blunt, anyone who invests in these two assets will likely do very well in
the coming months as inflation erupts in the US.
However, to
make truly ENORMOUS gains from inflation you need to find the
investments
that are off the radar… investments that the rest of the investment
world hasn't
discovered yet.
If you want
the big gains… look for the hidden gems.
Good
Investing!
Graham
Summers
PS. If
you’re getting worried about the future of the stock market and have yet to
take steps to prepare for the Second Round of the Financial Crisis… I highly
suggest you download my FREE Special Report specifying exactly how to prepare
for what’s to come.
I call it The Financial Crisis “Round Two” Survival
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protection, which investments to own and how to take out Catastrophe Insurance
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Again, this
is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.
PPS. We ALSO
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have all already SOARED as a result of the Fed’s monetary policy.
You can
access this Report at the link above.
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I am always much more exited when a new package
filled with silver and gold coins arrives at the post office
with my name on it,then I am seeing the so called
price of gold and silver rise knowing my next package
will be a lot smaller.
'A secondary reason for Silver outperformance is its pricing: at $36 per ounce, buying Silver is much more affordable than Gold which costs $1,400 per ounce.'
No fucking shit! And wait.... copper is only $4. That's super-duper cheap!!
And let's not forget iron. That's gotta be really cheap! And what about dirt? Isn't that "dirt cheap".
Let me provide an abstract/summary for the article. "Things are going up and will continue to do so until they don't." In the meantime, life is short-eat dessert first.
Watch the video 'AUSTERITY MEANS POVERTY FOR AMERICANS !' at (http://www.youtube.com/watch?v=leeDbHqDU8U).
Anonymous-
The SHTF in 2008 and now its going to hit again in 2011. Can't wait for the systemic breakdown!!
You have a new pic... you are moving to brand status quo!!! rock it Brother!! tell everyone you can, fight the good fight! God Bless You for trying!!!
Let me summarize the article without the B.S. Silver and gold are going up along with everything else because of inflation. There's a gooder investment but you'll have to pay to get the info.
Money. The whole concept of money will be in flux. Most paper PM "traders" don't really understand the meaning of the word.
Oh, gee; I forgot we're supposed to buy your newsletter to find out the secret wonderfulness of your inflation-fighting thingy. Oh, well; I guess I'll just have to make do with Silver Bullion.
FoieGras, look further back to a time when you were not born.
http://www.delanion.com/main/dom.htm
The author is clueless. The period of 1980-1990 experienced a total of 150% price inflation and silver nor gold "hedged" against it, in fact they imploded when they should have provided a hedge.
That is the period when 330 million ounces of stolen Soviet gold was dumped on the market. It's hard to judge a trend when a one-time event like that occurs.
When will they have the machines that sell the silver?
I own Gold... and I own Silver... I favor silver becuase I think that day to day trading will favor a smaller denomination like and 1 oz of silver over a larger denomination of 1 oz of gold.
I am not giving someone an oz of gold for a cup of starbucks and a news paper.. or day to day needs.. Gold for day to day trade is not a reasonable medium of exchange. Silver is.
So poor mans gold or just common sense? remains to be seen.
True, but gold is more portable.
where is everyone traveling too? is everyone going to buy gold and then go directly to traveling by foot from that point forward?
I may leave this house, to go to the dock, to go to another home to walk into that house.. but I am not swimming or walking with monster boxes anywhere.
I think people will stick close to home and get to know thier neighbors better, maybe even make some new friends. Love Thy Neighbor. even my dumbass can understand that one.
i would say thats all gonna depend on how close the fires get...
seriously, think about a city on fire and no functional fire department or a california wildfire scenario
how bout hungry thugs spilling out from the city
jealousy of thy unprepared neighbor
lots to consider....we call it the 'scenario',and i havent come up with a good all encompassing solution that still allows for a normal life should nothing come to pass
Exactly - If you are desperate for something and have an ounce of gold in your hand nobody is going to offer you change. Better to have smaller sizes and silver to offer for minor purchases.
What's the prize again for being 1st?
I love to see silver going higher but to me, it also means the shit is getting a lot closer to a faster moving fan. Just wishing for a little bit more time to prep a whole lot more. For as much as I think I've got the basics covered, when TSHTF, I know I'm going to bang my forehead and say "why didn't I think of 'xyz'"
Maybe the prize for being 1st should be a thorough check list.
Phoenix, Welcome to ZH, We have talked about this scenario once or twice in the not to distant past. If you want to preach to choir ya might wanna try SGS or da' turd:)))
Same here. I've only recently become aware of impending doom. 100 ounces of silver, 1k round of 9mm is all I have to show for preparations.
Plenty of time left. Anyway, no matter how hard you prep, it will hit you from out of left field anyway.