Gold & Silver Physical Shortages

The financial markets over the last couple of months have been extremely volatile to say the least. This has made financial planning extremely difficult if not impossible. This at a time when jobs are lost and consumer goods prices are rising across the board. To top it all off, the stock markets are being hammered. This will negatively effect the value of our pension funds soon. The S&P 500 made a new high of 4820 on 4/01/2022. It has dropped down to a low of 4391 on Friday. This is a 429 point drop or 8.9%. I wrote an article about this called “How You Can Benefit From The Stock Market Pyramid Scheme” in June last year. The three main reasons for this drop is higher expected interest rates and the US Federal Reserve’s intention to cut down their bond buying spree and lastly, rapidly rising inflation. The US are between a rock and a hard place when it comes to interest rates rising. Interest rates are used by the Fed to control inflation. They cannot allow interest rates to rise too much as they will then be unable to service their huge debt of $29.8 trillion. The US debt to GDP ratio is currently 127.35%, which means they are bankrupt. You can see the US Debt Clock Here.

The gold price has made a high of $2075 on 1/08/20. It has fallen to a low of $1677 on 1/03/21 and are currently trading at $1834, which is nicely above the very important support level of $1800. It is also forming a symmetrical triangle in technical analysis terms which traditional wisdom dictates will break out to the upside. It is important to notice that there is a physical squeeze on the gold supply developing right now. The tension between Russia and the Ukraine is setting up the gold price for safe heaven buying. New price targets have been issued for gold and silver which you can see here.

The silver price has made a high of $30 on 1/02/21 and subsequently dropped to a low of $21.42 on 1/12/21. It is currently trading at $24.30. The physical availability of silver is especially critical as can be seen from this article at King World News. If the silver price rise to $30 as the above prediction says, it will be a 23.5% increase. I really hope you have physical silver when that happens. The physical constraints in the supply of silver will cause an explosion in the silver price when the big money starts to move on silver. Included is a link from the SRSrocco Report which deals with this event that is sure to happen in the not too distant future.

In Tom Cloud’s latest video on “Follow The Money” he talks about the rapid demise of the us dollar and how this event will hugely benefit gold and silver. The video is 11 minutes long and I strongly suggest you have a look at it here. Tom Cloud has been in the precious metals market for more than 40 years and his knowledge and analysis is respected world wide.

Today’s bullion prices

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