The Divergence Between US Stock Markets and Gold & Silver Stocks Has Begun, But it is Far From Over

April 14th, 2017
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About a month ago, on 23 March, I wrote that a divergence between gold and silver stocks and US stocks was likely later this year. If we look at the two below charts, we see that a divergence between US stock market indexes and gold and silver stocks (as represented by the Philadelphia Gold and Silver Index) started diverging almost immediately after I posted these thoughts a month ago. However, this divergence is not the one I was referencing in last month’s article, because while the XAU index has risen a decent 7.57% since 23 March and the US stock market indexes have only fallen very slightly since then, I am speaking of a much greater divergence that I firmly believe will manifest in the future, one in which US stock markets will sell off by more than 20% and one in which gold and silver stocks will rise by more than 20%, for a divergence in excess of 40%. And since the gold and silver stocks have had a good run for the past couple of weeks, we may receive some more consolidation before the real breakout happens, depending upon how many different geopolitical events in the near future play out. Given the banking cartel-executed gold and silver asset price manipulations thus far this year, it may seem as if nothing has changed, but there are many changes happening beneath the surface, especially between Russia and China, that will allow both of these countries to play a much larger role in setting spot gold and silver prices in the future without having to worry about punitive sanctions imposed upon them by the Western banking cartel.

 

 

 

In the meantime, let’s recap this week on my SnapChat channel, SKWealthAcademy. Again, this remains the source of daily updates as I post nearly every day on Snapchat in the morning, Asia time. On Monday, I stated that I wasn’t buying the previous Friday large reversal day in spot gold and spot silver prices on heavy volume as a sign gold and silver were to be raided this week. Instead, I stated that there was a heavy possibility that the large Friday reversal was bankers painting the charts to wrongly convince more people to sell their gold and silver positions on Monday or to wrongly open up shorts against gold and silver on Monday. And Monday proved that point, as traders sold down gold and silver heavily into the market open, before both gold and silver recovered to close in New York almost unchanged.

 

On Tuesday, I reiterated the fact that bankers were likely painting the charts and that we could see gold and silver rise for the rest of the week even though more than a few technical analysts were stating that heavy shorts against silver in the silver futures market indicated an imminent heavy silver raid was going to materialize. Then on Wednesday and Thursday, we saw heavy gains in both gold and silver as I stated was very possible earlier in the week. And finally, tomorrow morning, on SnapChat, I will discuss how some of the recent quick gains in spot gold and silver could be attributable to the North Korean/China/Syria perpetual war mentality of the global empire today, but even so, the rises of gold and silver on the back of geopolitical events are not the primary reason to own gold and silver assets and have never been. The Central Bankers’ war on fiat currency valuations and their constant devaluation of all global fiat currencies have always been the reason to own gold and silver assets for the long-term, and war or not, this reason has not changed in the past two decades.

 

To revisit one last statement from last month’s article, I stated, “As Google stock is trading at US$830 a share today, ask yourself, would you rather buy 5 shares of Google, or instead, use this money to purchase 225 ounces of the shiny silver metal at silver’s physical price today?” A month later, GOOG is still trading at US$824, so a few weeks later, the choice is to buy 5 shares of GOOG or buy about 211 ounces of physical silver (bullion bars) a month. These huge discrepancies between buying a few shares of overpriced stock or a couple hundred ounces of physical silver are not going to last much longer, and this example still adequately illustrates how massively underpriced silver remains to this day.

 

Finally, we must always remember that when it comes to gold and silver, the mainstream media always tries to frame stories from the Western, specifically the US perspective, as if what happens in the US regarding paper/physical gold and silver is the only thing that matters in the entire global precious metal market, though only slightly more than 4% of the entire world lives inside the US. Believe it or not, I actually received an inquiry from a reader asking me if he should dump all their physical gold and silver holdings for other “better” investments because of reported news from the US mint that February 2017 sales of US gold eagles of 27,500 ounces represented a 67% decline from the 2016 February sales number, and February 2017 American silver eagle sales of 1,215,000 ounces represented a 75% drop from the prior year February sales. Thus, this reader wanted to know if he should immediately sell all of his physical gold and silver at the start of this week due to the huge decline that was sure to come because of his belief that global gold and silver demand was cratering.

 

To begin, it’s hard for me to even know where to start when the logic behind such conclusions is so glaringly missing. Since when did US gold and silver coin demand ever represent total global physical gold and silver demand? First of all, US gold and silver eagle coin demand does not even represent total US physical gold and silver coin demand, as there are many other different weights of gold coins like ½ oz and ¼ oz coins and different US gold and silver coins such as buffalo coins and so on. Secondly, US coin demand does not even represent total US physical gold and silver demand, as this excludes the entire physical bar market. Thirdly and most importantly, US coin demand does not represent global gold and silver demand by any stretch of the wildest imagination. Fourthly, a year-over-year drop of that magnitude would require much more analysis but to frame a one month over prior-year same month drop as the whole basis for a false conclusion that global gold and silver demand is cratering is nothing short of ludicrous.

 

But let’s just take a closer look at my third objection above to use a one month over prior month significant drop in US PM coin sales to conclude global demand for gold and silver is cratering in 2017 – the ludicrous assertion that US coin sales represent total global gold and silver demand. In China, using data directly drawn from the Shanghai Gold Exchange, in February 2017, more than 2,258,946 physical silver ounces were withdrawn from vaults in Shanghai and more than 5,762,682 physical gold ounces were also withdrawn, which INCREASED to 3,475,709 physical silver ounces and more than 6,181,085 physical gold ounces withdrawn in March. So how can we say that because the US mint sold only 27,500 American gold eagles in February 2017 that global gold demand was cratering when Chinese investors withdrew more than 5.7 million ounces of gold in Shanghai alone? And Shanghai is just one market outside of the United States, not to even mention physical purchases occurring in other large physical PM markets that exist in India, Russia, Switzerland and the Middle East.

 

In conclusion, realize though the internet has provided access to loads of information, it unfortunately has also provided many points of distribution for analysts that simply want to draw conclusions that fit their own confirmation bias. For more information about our services, visit us at smartknowledgeu.com today, follow us on SnapChat at SKWealthAcademy, where we post every day, and subscribe to our youtube.com SmartKnowledgeU channel.

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Expect Divergences, Not Convergences, Between US Stock and PM Asset Prices for the Remainder of 2017

March 22nd, 2017
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22 March 2017

For those that have been following my daily updates on Snapchat (SKWealthAcademy), you know that I stated this past Tuesday that I expected silver and gold to rebound this week after a brief pause that some technical analysts said was a sign that the prices of gold and silver assets were heading lower again this week because of less than impressive follow through after the significant rise last 15 March. Again, the reason I so often contradict the predictions of technical analysts specifically in regard to gold and silver price behavior is because of

(1) my long standing contention that with gold and silver, big global bankers often paint the charts, and try to fool people into selling right before significant rises and into buying right before significant raids; and

(2) my even longer standing contention that one must take a much deeper look behind the scenes to understand what direction global bankers are trying to push gold and silver in the short-term, as there are plenty of times global bankers push gold and silver asset prices higher in the short-term, though long-term, they are perpetually interested in suppressing them. Read the rest of this entry »

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Is Silver a Better Value than Gold Right Now?

March 17th, 2017
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Earlier this month, I wrote that we would have a window of a few more days to weeks in order to get on board with gold and silver mining stocks at a good price for the first half of this year. I also have written extensively this year about the necessity of using hedges during raids on gold and silver combined with temporary moves to cash to balance out any downside exposure during these raids, and mentioned that again we had applied some hedges against paper gold and paper silver during this last raid. We unwound one hedge last Friday, and we unwound the others earlier this week. If you follow us on SnapChat (SKWealthAcademy), I also stated on the morning of the 15th that there was a good possibility of the interest rate hike that was to happen later that day being already priced in to the current price decline in gold and silver assets and that the announcement could cause a spike higher in the prices of gold and silver assets. And this is exactly what happened.

 

So now with a substantial spike higher in gold and silver asset prices on the back of the US Central Bank’s interest rate hike, has the reversal now begun? It’s a little premature to state the reversal is on its way now, but if you’re new to the gold and silver game, and want to know if now is the time to get on board, visit us at smartknowledgeu.com for more information on how to identify the best junior gold and silver mining stocks and for information on a more conservative gold and silver mining stock portfolio. Read the rest of this entry »

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How Much Further Will the Gold and Silver Correction Run?

March 10th, 2017
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In my last article, I stated, “I believe that this current correction in gold and silver stocks will provide a window for a few more days to weeks to get on board at a good price for the first half of 2017.” As we are still in this window of correction for gold and silver spot prices, and for those of you that follow my Snapchat channel, you know that I warned of further declines in gold and silver spot prices yesterday before market open in NY, and thereafter, silver sold off by another 1.73% and spot gold descended below $1,200 an ounce. So what is next? Is the correction over yet? I don’t believe so, and as I stated in my most recent Snapchats, we are continuing to take hedges and maintain them until further evidence of a bottom has been put in. Recall that in the articles I released earlier this year, I stated the basic wisdom regarding the premise of using hedges to short paper gold and paper silver when uncertainty about current direction remains. Given the volatility of short-term periods that bankers like to use to obscure and cloud the long-term picture, the necessity of using such hedges will always remain until such obvious banker PM price manipulation disappears. Regarding Snapchat, I mentioned before that I am posting daily when possible and that remains true. For those of you following me there, at SKWealthAcademy, I apologize for missing a few days, but that was only due to the fact that I was on the road in an area with poor internet strength, so I just waited until I returned to an area with good internet signals before posting daily again. Read the rest of this entry »

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How to Interpret the Deliberately Ambiguous Language of US Central Bankers

February 28th, 2017
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As I stated yesterday, “I believe that this current correction in gold and silver stocks will provide a window for a few more days to weeks to get on board at a good price for the first half of 2017.” Yesterday, gold and silver stocks corrected further as I believed they would, but they also sold off an inordinate amount considering the slight pullback in the underlying metals themselves, with gold only correcting less than $5 an ounce and silver down less than half a percent. These minimal pullbacks in spot gold and spot silver prices shouldn’t have triggered the much larger percent sell-offs in gold and silver mining stocks that occurred in yesterday’s markets, so are the larger price sell-offs in the PM stocks predicting imminent future sell-offs in spot gold and spot silver prices? Read the rest of this entry »

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Will Gold and Silver’s Strong Start to 2017 Resume Shortly?

February 27th, 2017
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As I stated in my last article here that I published in 9 February 2016, one should have disregarded the sensationalistic articles that were touting a massive gold and silver stock breakout back then, because as I explained, even if one presumes that such a breakout is going to happen from whatever analysis one engages in, it is literally impossible to predict the exact day when such an event will occur, save for pure luck. From the chart below of the VanEck Vectors Gold Miners ETF (NYSE: GDX), you can see the technical event that led to such predictions back then, which I’ve circled below. The event was basically a break above the 200-day MA, which prompted many predictions of the GDX immediately rising to about 28.50 before happening.

 

 

And as normally happens, instead of continuing higher in a rocket shot as predicted by some, those predictions instead acted almost as the perfect contraindicator in marking the short-term top, from which the GDX and many other gold and silver mining stocks have now pulled back by about 6% or so. Of course, gold and silver mining stocks could have broken out back then, but those predictions again would have been right from pure luck and nothing else. As I’ve stated probably at least a couple dozen times in the past decade, the problem with relying solely on technical analysis in gold and silver assets is that it is more a leading indicator than anything else because traders paint the charts to produce certain expectations, and often use these expectations to sucker people in on the wrong side of the trade to skim profits in the short-term. For example, if a lot of money poured into call options on gold and silver stocks based upon the short-term prediction of an imminent breakout on technical analysis, traders and bankers could then proceed to make some easy money by painting charts that “predict” an imminent move and then influence markets to manifest the exact opposite move. Read the rest of this entry »

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Will Junior Gold and Silver Mining Stocks Outperform their Larger Peers in 2017?

February 10th, 2017
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In yesterday’s article about BTC, I wrote “it is always critical to track what is happening to the Chinese BTC market to understand what may happen to BTC prices in the future ” because “if the PBOC cracks down on BTC, they could cause another huge, rapid sell-off in BTC prices.” About 12 hours after I wrote this, after observing an environment of a large number of Chinese traders shorting BTC that predicted imminent new regulations, the Chinese government imposed new regulations on Chinese BTC exchanges, and BTC rapidly plummeted $100. Of course, with large global banks rapidly increasing their influence among blockchain development companies and other digital currencies, the Chinese government is not the only institution one has to worry about when predicting future BTC price volatility, but you can refer to yesterday’s article for more information about that topic.

 

Today, I want to return our focus to the 2017 global gold and silver outlook. As I stated to start this year, I still believe that 2017 will mark another strong year for gold and silver asset prices, and certainly this year has gotten off to a strong start. I mentioned in previous articles, that we utilized a lot of successful hedges and moved some positions to cash in December when bankers were raiding gold and silver to deal with the temporary downtrend in gold and silver assets while still remaining net long gold and silver assets, and then became more aggressively long after the raid ended. Read the rest of this entry »

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Will the Banker War on Cash Spread to a War on Bitcoin?

February 9th, 2017
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Over the years, I’ve written a number of articles regarding why I prefer physical gold and physical silver over bitcoin (BTC). I believe in monetary competition, however, and believe that different forms of money should be allowed to compete, because the best form will eventually and quite rapidly always rise to the top. However, we are far from such an environment, as government/banking cartels have banned the use of gold and silver as systemically-wide accepted forms of money worldwide while ensuring that their rapidly devaluing fiat currencies remain the norm. So where does BTC fit into this picture? Again, I think that BTC has its place in the economy, especially since transaction fees using BTC are well below the highway-robbery rates of global banking institutions. However, BTC has yet to prove itself in preserving purchasing power over decades of time as has gold and silver, nor does it meet all 9 qualities that I deem necessary for sound money.

 

In any event, as some of you may well know, BTC has exhibited massive volatility in 2017, far beyond even the sometimes volatile price fluctuations in spot gold and spot silver prices. BTC started out this year reaching an interim high of $1,129.87 per BTC, then plunged a maddening 31% in just 5 trading days to $775 after the Chinese government placed more restrictions on BTC trading, but since then, has nicely recovered 24% of that plunge and has risen back to $1,052.54 per BTC. At the time, BTC rose to $1,129, many posed the question of whether BTC was better than gold, which in my opinion, it will never be due to its digital nature. Some ask why would Chinese regulations cause BTC to plunge 31% in five trading days, and the answer is simple. Chinese speculators were almost entirely responsible for the rise of BTC from $800 to $1,129 at the end of 2016 into the start of 2017. As the Chinese government took more measures to clamp down on black money leaving China, wealthy Chinese turned increasingly towards BTC as their preferred mechanism to move black money out of China, thus fueling a speculative, unsustainable rise in BTC price. Furthermore, Chinese traders not even using BTC to move black money out of the country piggybacked off of this rising, easy trade because most Chinese BTC exchanges charged no fees on either end of the buy and sell transactions for BTC. However, when regulators changed these rules and implemented a 0.2% transaction fee on both ends of the trade, the easy speculative profits disappeared, and in response, BTC volumes collapsed 90% almost overnight on every Chinese BTC exchange. Read the rest of this entry »

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What Lies Ahead for Gold and Silver Prices?

January 27th, 2017
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Every time gold and silver prices have a good run, there tends to be a proliferation of sensationalistic articles that state something to the effect of “gold ready to break out to new highs now” or “silver about to surge tremendously”. To such sensationalistic articles, I always say, pay no attention to them, because no one really can ever predict the exact date when gold will surge by $100 and silver by $3 or $4 in a single trading session, as these events are likely to happen at some point in the future when most people are not expecting it to happen, and not during a time when everyone is expecting it to happen. It’s good to be optimistic whenever gold and silver have a good run, but it’s also good to stay rooted in realism as well, so one can spot risks when they appear instead of being blinded to such risks by excessive optimism. Furthermore, more often than not, a proliferation of such articles often marks a short-term reversal in prices. Certainly gold and silver have had a good run since the last week of December into the New Year, such that our CIO newsletter has gotten off to a solid January, up by 7.53% in January.

 

Still, risk is risk, and when risk rears her ugly head, much better to heed it than to ignore it. In fact, based upon my analysis of global gold and silver markets, I announced on my Snapchat channel (yes I’m posting every day now) two days ago on 25 January (24 January in the West), when gold was still trading at $1,210 and silver was still at $17.20 in Asia that morning, that there “was significant risk” to gold and silver prices that could very well manifest as we closed this month and headed into February. That very evening in New York, just several hours after I posted this warning on Snapchat, spot gold and spot silver closed down by its largest single-day decline since 21 December. I reiterated the following day on Snapchat, the morning of the 26th in Asia (the evening of the 25th in the West) that even though many thought this gold pullback was just a temporary one to the $1,200 mark or slightly lower, and that gold would rebound off support at $1,200, that there was still considerable risk to spot gold and spot silver prices right ahead. So for those that have supported me on Snapchat, thank you for following, and I hope you heeded my warnings if you are long gold and long silver. Read the rest of this entry »

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In the Banker War on Cash, New Zealand and Canada Are the Next Major Countries on the Banker Hit List

January 12th, 2017
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As we warned more than 4½ years ago in this article here, the criminal banking cartel’s end game involves restricting freedom of speech and curbing any criticism of their criminal banking industry by banning cash and imposing an end game of 100% digital money upon all of us. Now with the benefit of 4½ more years, there can be little doubt that indeed, that the banking industry has advanced their war against all of us by accelerating their war on cash, and attempting to disguise this war on cash as a war on corruption.

 

Any logical person would understand the vast irony in such a statement, especially since bankers are leading these false charges of a war on cash as a war on corruption, not only given the fact that the banking industry is the most corrupt industry on the planet, but also given the fact that bankers provide much of the dirty money that feeds global stock markets by laundering tons of dirty money for the world’s most violent drug cartels. Recall that in 2012, HSBC bankers had to pay a $1.9B fine for willingly laundering hundreds of millions, and more likely billions of dollars, of dirty money for the largest and most murderous Mexican drug cartels. Though HSBC CEO Stuart Gulliver unconvincingly denied approving of these transactions, any logical person would conclude that it is next to impossible for the CEO of a bank not to know that origin of the source of hundreds of millions of dollars of cash flowing into his bank. Read the rest of this entry »

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Investors’ Number One Flaw Often Revealed During Gold and Silver Raids

December 28th, 2016
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In many aspects of life, being ruled by one’s emotions can often cause one to land in hot water. This is not to say that one should be devoid of all emotion and act like a robot, because no one likes a stiff and unfeeling person. However, as with life, balance is necessary. Yin and yang. Unfortunately, many of us, as investors, fall victim to the pitfall of making decisions from a raw emotional place, instead of a place more balanced by logic, far more frequently than we would like. Even in martial arts training, I learned that letting one’s emotions get the best of oneself during a confrontation could be dangerous, whether it was crippling fear that would delay response and reaction time in which fractions of a second make a huge difference, or anger that would cause lapses in judgement that would leave one vulnerable to counterattacks. Furthermore, I even learned that the adrenaline surge that accompanies the onset of anger would soon be followed by an adrenaline dump that would cause one to become unexpectedly and easily tired, a dangerous predicament in a prolonged confrontation.

 

In vlogging about this recent and ongoing gold and silver raid, I’ve discovered that emotions also prevent us from making prudent decisions in investing as well. Though all of us have heard time and time again that investing is an emotional activity, too often, many of us become so emotionally and inflexibly committed to a position that we never waver from our stance, even when we know that there could be a huge possibility of our stance being wrong, rather than to simply step away from the situation for a second, calm our minds, and make rational, logical decisions. Even though I detest the immoral, criminal banker raids against spot gold and spot silver prices that are, without doubt, a misanthropic attack on the freedom of humanity (as an attack on sound money helps elevate the status of counterfeit fiat currencies in the public eye), none of us who are long gold and silver, even if it is just physical gold and silver, should have to relegate ourselves to idly standing by without taking any counter measures against this abominable banker-executed manipulation. Read the rest of this entry »

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Less YouTube, More Snapchat, and Banker Wars on Cash and Gold.

December 19th, 2016
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As all of you that have been long-time readers of this blog know, we have several primary channels of distribution for all the news we distribute – our YouTube channel, our free newsletter (subscribe on our website), and this blog.

 

However, ever since Google bought out YouTube, YouTube has become increasingly hostile towards any distribution of any hard-hitting news about the systemic and rampant criminality of the commercial financial and banking industry. We’ve had numerous problems with censorship issues of our news over the past several years with both Google and YouTube, so we are going to migrate towards other channels of news distribution. Read the rest of this entry »

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Join Our SKWealthAcademy Snapchat Channel

December 19th, 2016
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For daily updates on gold and silver markets, building positive life-building wealth, (not monetary wealth only), and the launch of our new SmartKnowledgeWealthAcademy, please follow us on Snapchat. You may add us by taking a photo of the snapcode below and then tapping “add friends” and “add by snapcode” or by searching for the snapchat username “skwealthacademy.”

 

skwealthacademy snapcode

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