There is some evidence that things are about to change in the precious metals market. Today's flash crash as seen in the charts below, drove gold down 18 dollars very quickly and silver near 30 cents.
It has been reported that the sell order for gold that drove it down was about 2 billion dollars in notional value. This was a planned action by some very large entity. The reported explanation was that it was some sort of poor suckers mistake, a momentary lapse of reason, nothing to see here so please move on. I have seen some lame excuses for the actions of central banks and traders, but this one below holds as much water as a cup with a hole in it.
“No-one has a clue, apart from the unfortunate individual that pressed the wrong button,” David Govett, head of precious metals trading at Marex Spectron Group in London, said of the spike in volume.
I have traded futures, it is impossible to sell that much paper gold easily. For starters, extremely deep pockets and connected at the highest levels would be needed, even then there are some hoops to jump through. While on the subject of paper gold for those that do not understand, no real gold actually changes hands in these transactions. They are simply IOU's created out of thin air. This is what makes them so immoral and no other commodity markets work like this where no product ever gets delivered, over and over again. It is a rinse and repeat wash cycle, washing hapless gold investors money right out of their pockets.
I would have thought the world would have run out of people with SUCKER written on there foreheads by now. Buying paper gold is a fools folly. Even if the hapless paper longs win one day, they will lose when their gains are paid in paper with some bogus valuation since the paper contracts all have this out written into them. They will get paper money, no gold, and get to watch gold rocket higher and higher with no ticket on the train. If you want gold or silver, then buy gold or silver, not paper.
Now to the good part, the all on board the train call. These attacks have always been strategically planned. I have seen an attack such as we had today change the markets for months going forward. Today, I saw something a bit different happen. The mining stocks usually get creamed with such a move in the underlying. Today, many such as Kirkland Lake and Americas Silver shrugged this off and actually went higher! You can read a little more on those two in this article.
https://seekingalpha.com/article/4081913-summaries-several-mining-stocks-investors
That action, where the better miners only went down slightly or some even went up in the face of such an onslaught is very telling to me. In a really good bull market in gold and silver, the miners usually lead the way up. They usually are not so oblivious to such an attack though and when you couple this with the seasonal weakness of summer, it was really quite a show of potential strength in the metals. I have been calling for a rare summer rally or at worst, an early fall rally to happen. The action today only strengthens that hunch I have. The next couple of weeks will be very interesting to watch to see if the train finally pulls out of the station. If it does, I have a feeling this will be a bullet train.
I would bet the people that shorted this massive amount of gold today are not sleeping very well tonight.
One final bullish note for the metals. The cryptocurrencies, which I am also bullish on for the record, are in a bit of a rough patch. I am one of those rare birds that like both the metals and cryptos, but this action in the cryptos may chase a little of the hot money that has been made there over to the metals, which may also add some fuel to the gold/silver fire.
MOTOWNGOLD!
Great article. I'm new to stacking and relatively new to cryptos. I'm glad you made the reference to cryptos, as I was reading your article I kept thinking that most people in cryptos think it's only that market which has flash crashes.
Something different and new is hard for people to understand. ONce railroad stocks were the king, but it changed. You have to adjust, the cryptos just plain freak people out. It is good you can see value in both metals and cryptos. Thank you for the comment as well, much appreciated.
This is a very well written and informative article! I am also, although as of late, into both cryptocurrency and metals. I see cryptocurrency as a great chance to increase your wealth, rather rapidly but I will absolutely store any wealth I obtain in metals. I believe cryptocurrency is a great way to become extremely rich in what could be considered a rather short period of time (i consider 10 years a short period for hundreds of millions) but it's value doesn't have a guarantee if we are attacked by an EMP or when inevitably, the big wigs that hate Cryptos begin using the money they have at their disposal, to manipulate the market. The one thing I hate about cryptocurrency is that it is still dependent upon an entity which it doesn't control... the internet
I 2nd that motion.
Thank you for that opinion, by the way, I agree with you on the cryptos as well and your general philosophy on wealth accumulation opportunities with cryptos and metals for preservation is solid.
motowngold, excellent article indeed. upvoted and RESTEEMED for you. keep up the great work.
Thank you very much for that and glad you found it worthy of that!
You are a good writer. Well deserved.
always a great idea to move some Crypto profits to hard assets like Metals - very informative post - much appreciated - Upvoted and following!
Thanks for the positive remarks, always good to know it was worth peoples time.
I think crypto's and metals are similar in many ways. I like both too!
They are and that is cool, and i thought i was the only one!
Thanks for the fast tip! Interesting speculation on the recent gold movement.
Glad you found it worth your time!
This was a planned action by some very large entity.
You don't say??? LOL we are in some crazy times and because of a two year bear market and many years sideways has built up a shit load of energy that this thing will pop in time but it may happen a few months in time.
yes, lots of potential energy in the metals.
Thanks, very well done! Followed, upvoted. @roused
Thank you , very much appreciate your opinion and vote!!! Follow as well.
Great analysis, these markets have been manipulated for years, and now we are starting to see this creep into the crypto world as well. Upvoted and followed.
many years, thank you for the upvote, following as well
Excellent article, thank you for that. I'm new to silver and gold stacking, do you recommend ingots or coins?
I like coins like American Eagles, Canadian Maples, Philharmonics, or good old fashioned pre 1965 silver half dollars, much harder to fake, and they already divided up so you do not have to sell the whole bar if you do not want. You pay a little more upfront, but I think it is worth it.
great post
thank you for that much appreciated!
Crypto markets are more volatile therefore present more potential to exploit that and make faster profits.
they are now, but that is not always the sace. In a full blown gold and silver stock bull market, stocks can go up 20%or more in one day, smaller ones I have seen double.
The gold train was ready to leave the station a long time ago but got delayed and delayed. I don't believe in the technical analysis anymore but I always hope to be proven wrong!
I do not use TA for metals either, too much manipulation, but evidence of the miners not crashing is something I like to see.