We got the anticipated pullback in Gold right on schedule the night before the FOMC meeting on Wednesday. It dropped from a high of 1975 to support at 1900. Given Silver’s dramatic outperformance relative to Gold, it was no surprise that the dump in Silver was far more precipitous. Silver fell ~15% between 10pm Tuesday and 3am Wednesday morning. That’s equivalent to a drop of ~500 points in the S&P from 3200 to 2700, “in just five hours”. Black Monday type moves.
In last week's article, I pointed out that the price of gold bullion was showing impressive strength, threatening to surpass its old all-time high of $1,920.70 USD per oz., set previously nine years ago in 2011.
In ancient times, heavenly alignments foretold doom. What would the ancients have had to say about the recent extraordinary planet parade when Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, Neptune plus the dwarf planet Pluto – all lined up together ? And, at the same time, that most basic and primal of metals, gold, was also shooting up to the stars.
Throughout centuries of history that dates back to the Roman Empire, the modus operandi of the parasitic ruling class has remained constant. When economic failure sets in, go to war.
Four precious metals names made our top ten on Wednesday, with the ProShares Ultra Silver ETF ranked the highest of them. How to find the optimal hedge for it.
