Now Is NOT the Time to Lose Hope for Gold and Silver
The comments below are an edited and abridged synopsis of an article by Mark J. Lundeen
Many are upset by the market action of both gold and silver, but investors must bear in mind what is plotted in the Fed’s balance sheet and the pending demise of the US dollar as an economic asset of global standing.
Right now you can purchase gold and silver far below their true market values. If you’re buying, the FOMC is doing you a great favour. Get your precious metals positions in, and stop watching the mainstream media; this too shall pass.
We must decide what gold’s primary trend is in August 2021. Is it gold’s advance off its December 2015 bottom, which would make its current decline from last August’s all-time high simply a correction in the bullish primary trend? Or is the decline from last August’s all-time high its new and bearish primary trend?
Lundeen believes the current decline off last August’s all-time high is a correction in gold’s continuing bullish-primary trend. When gold advances, and breaks above the high of last August, we should see some real excitement in the precious metal markets.
The silver:gold ratio (SGR), or how many ounces of silver one ounce of gold can purchase, is approaching 80. In precious metal bull markets, the SGR tends to decline, as with bear markets in gold and silver the SGR increases.
The current advance in the SGR is simply a correction in the ratio. Once the bull market resumes, the SGR should once again decline below 40.
Nothing much happening on gold’s side of the step sum table. What gold and silver need now is a big jump in their daily volatility’s 200-day M/A. Life for the gold and silver bulls will be much better when this 200-day M/A increases to something above 1%.
The Dow Jones has made a new BEV Zero, and its daily volatility’s 200-day M/A declined to a bullish 0.60%. Be patient; with time we’ll be able to say the same for gold and silver.