On the heels of volatility in the gold and silver markets, take a look at this…

April 23 (King World News) – Alasdair Macleod:  Is the bull market in gold and silver over? 

The fall in gold and silver prices has been dramatic, the sort of decline associated with a speculative blow-off. What now? 

In just three trading sessions, gold priced in dollars lost over $100, and silver $2. Other than profit-taking after a spectacular run, there are no new factors other than possibly a lull in bullish (for gold and silver) news. Perhaps the “mystery buyer” who led gold’s massive leap above $2100 will be rumoured to turn panic seller, driving values even lower still.

So what should you do? If you bought gold or silver recently, should you take profits? If you were only thinking of buying, is the game over? After all, is safety to be found in short-term government bonds, as we have been taught in all the text-books of the last few decades? 

Let’s put this in perspective.

The chart below shows the technical position. This is as bullish for gold as it gets. Gold has broken out from a near four-year consolidation, promising a substantial run higher over time. And the moving averages confirm, being in bullish sequence. Therefore, traders should look to buy this dip, the level and timing being their personal judgement.

The thing about trading is to take the view that if one misses an opportunity, another one will come along so it is a mistake to panic if the bottom of a particular dip is missed. But that is not a realistic view for those who understand the bigger picture: i.e. it is the value of credit which is the problem, and it should be sold for physical gold which is legal money. 

That defines the difference between paper markets and the physical. It also defines the approach of foreigners towards dollars and dollar credit, compared with US-centric investors. The former can see the US Government getting into an almighty debt trap, driving up US interest rates, and threatening to destabilise all dollar credit including the currency…

This silver explorer recently did a huge transaction with a $4.5 billion market cap producer CLICK HERE OR ON THE IMAGE BELOW TO LEARN MORE.

And if the King Rat of fiat currencies is heading for the trash can, so are all the other fiat currencies because the dollar is the anchor for the entire fiat credit system. The latter group of US-centric investors see it differently. They account in dollars, recording their valuations and profits accordingly. This is why they treat gold as the subjective value and dollars as objective in any transaction. It is why we price gold in dollars when it is dollars which should be priced in gold. And it is why paper markets currently set the value relationship as opposed to bullion. 

In a debt crisis, which is the other side of a credit crisis, the error in giving gold the price and not the dollar becomes apparent. It is only a small minority of western analysts who suspect a debt crisis is developing. Note that market participants still believe interest rates will decline, when escalating credit risk points to them rising, almost certainly sharply. 

In conclusion, this dip in paper prices for gold and silver is perfectly normal and should not encourage those trying to protect their wealth to take profits. Leave that to out and out traders who have an entirely different agenda. 

King World News note:  If you are accumulating physical gold and silver, use significant short term weakness to add to your hoard. Regarding the high-quality mining stocks, the sector is the most historically undervalued as it has ever been. Meaning, use any weakness to add to your favorite names. As soon as the sector breaks out, and that day is getting very close, it will begin to radically outperform gold. 

Celente – $3,000 Gold In 2024
To listen to one of Gerald Celente’s most important interviews ever discussing his predictions for the price of gold and what other surprises to expect in 2024 CLICK HERE OR ON THE IMAGE BELOW.

China Has Stockpiled 30,000+ Tonnes Of Gold
To listen to Alasdair Macleod discuss China’s massive gold hoard as well as what to expect for the rest of 2024 CLICK HERE OR ON THE IMAGE BELOW.

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