Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

The Gold (and Silver) Volcano Is Ready to Erupt

Commodities / Gold & Silver 2019 Jun 21, 2019 - 06:34 AM GMT

By: MoneyMetals

Commodities

In March 1980, the University of Washington installed a seismograph system designed to monitor earthquake activity in the Cascades, with a focus on increased seismic activity around Mount St. Helens.

Starting just a few days later, a series of earthquakes, small eruptions, and steam releases took place. Near the end of the month, the peak of the mountain started to open up.

But this was only the beginning. For the next six weeks, small eruptions alternated with intermittent quiet periods. But beneath the surface, liquid magma was forcing its way upward, creating intense pressure.


News wires in Washington State reported on these changes, but few people – including scores who would later be killed – paid much attention.

As reported in LiveScience, even the USGS position at the time was that "The changes to the bulging mountain were consistent with what had been reported several times daily since the watch began and left no indication of what was about to happen."

Then on May 18, a lateral blast involving a release of pressure over the magma chamber created "a glowing superheated cloud of gas and debris moving at nearly supersonic speeds" leaving an eight-mile path of destruction.

A second, vertical explosion at the summit took off the top thousand feet of the mountain, killing 57 people and scattering ash over seven states.

Pressure Is Building Inside the Gold (and Silver) "Volcano"

The Mount St. Helens explosion offers a fitting metaphor for the pressures building in the gold and silver markets.

Tremors are intensifying around the globe due to the massive overprinting of fiat currencies, creating debt levels without historical precedent. Financial "earthquakes" are taking place as we speak in Venezuela, Argentina, parts of the Middle East and Africa. Yet most people – especially in the West – are simply not paying attention.

Yearly gold acquisition by four countries alone – China, India, Russia, and Turkey – now exceeds annual global production. Central banks are vaulting gold at the fastest pace in decades.

Falling gold reserves of major producers have declined 26% since 2012. Gold (and silver) yields during the last few years have plummeted on the order of 50%, with discoveries of new projects headed in the same direction. The time frame from discovery to production is moving off the charts. Derivatives have been written dwarfing the total amount of precious metals ever produced in history.



Since 2001, gold owners, even in countries where inflation has so far been low, have profited by holding this historically powerful asset protection vehicle. Their otherwise less-fortunate brethren in other locales who did the same have done very, very well indeed!

Risks Are Mounting

"From a risk/reward perspective, there is no asset class that has anything even close to the positive attributes that gold has at this point in US business cycle time." Stewart Thomson, Graceland Updates.

For over a decade, the policies of central banks – including the Federal Reserve – have been almost entirely unblemished by success. Keeping interest rates below what would normally be the case when borrowers and lenders agree on a loan, based upon the risk/reward economics of doing so, has created a series of asset bubbles.

This monetary malpractice has impoverished the majority while excessively rewarding the minority who can comfortably take highly-leveraged risks, knowing that "the authorities" have their back, come what may.

But now the banks are stuck between the proverbial rock and a hard place, with nowhere to go but zero to negative rates.

The result, as Jim Rickards puts it, is that the "Failure of central banks to exit from radical monetary experiments will drive the next leg of the gold bull market."

If you wait until a crisis situation is obvious to everyone else, most of the profit opportunity – not to mention even the ability to protect your finances by acquiring "hold in your hand" gold and silver – may have disappeared or will seem to have become unaffordable (See last month's When (not If) Silver has a Bitcoin Moment).

"Seismic Activity" in the Gold Markets Is Increasing

A number of increasingly – evident factors are building pressure under this "golden volcano." Like the Mount St. Helens eruption in 1980, it's difficult even for professional observers to gauge just when an explosion – not to mention its magnitude – is going to take place.

What's important in our analysis is not precisely when gold (and silver) is going to "erupt," but that the evidence overwhelmingly suggests we're getting closer by the day.

In fact, as this is being written during the overnight session, gold has penetrated the $1385 level for the fourth time in the last few years. Regardless of whether this price holds, it should forcefully demonstrate – to anyone paying attention – that the preconditions necessary for an unexpected and sustained upside price explosion are being laid.

Look objectively at what's causing the pressure to build, decide how it might affect your situation, make a plan (how much to devote, level of risk tolerance, time frame and goals) – then begin to act.

Pressure is building. You may think you're not living in a "financial blast zone." But neither did that doomed volcanologist who woke up that morning on a ridge 6 miles north of Mount St. Helens' peak. After finding himself directly – and unexpectedly – in the path of an explosion traveling 90 miles per hour, his last radio transmission was, "This is it!"

Don't let time run out before taking action to protect your finances. Learn from what others, across cultures, have done ahead of time for thousands of years, and from what millions of people around the globe are doing today.

The clock on the coming eruption of the gold (and silver) volcano is ticking...

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com as well as the LODE Cryptographic Silver Monetary System Project. He has investigated precious metals’ mines and exploration sites in Argentina, Chile, Peru, Mexico, Bolivia, China, Canada and the U.S. He shares resource sector observations withr eaders, the media and North American investment conference attendees.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules