How much further will the gold and silver correction run? 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 and a deeper gold and silver correction 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.
In any event, I mentioned that the risk for the gold and silver correction will last up until about mid-March, but we may unwind our hedges against further dropping gold and silver prices if the risk dissipates to a great enough degree before then. In the last article I wrote, I briefly discussed the increasing probability of a fed funds interest rate hike by US Central Bankers on 15 March, and yesterday, I saw an article that the interest rate hike probability was 100%. About a week ago, I mentioned that one never knows if Central Bankers are playing a psychological game with their press releases, as they often make statements designed to push spot gold and silver prices down and to trigger a gold and silver correction without following through on their threats. However, since the interest rate hike probability has now moved to 100%, it would seem that this time around, they will follow through on their threats, which was the main question I posed in the last newsletter. In the instance a hike rate happens this month, the hike should have already been priced into the descent in spot gold and spot silver prices and the associated PM mining stocks by the time it occurs. I still believe in my comment that opened up this article – that after the bottom is put in on this banker raid on the prices of gold and silver mining stocks – that the prices that will materialize after the gold and silver correction will present a solid opportunity for those to purchase at bargain prices for the remainder of 2017.
In other words, I don’t believe that this raid will mark a year-long descent in gold and silver asset prices, as there are too many “risk-on” events that will likely develop in 2017, both in the geopolitical sphere as well as the global banking industry, that will make it difficult for TPTB to continue the descent of gold and silver asset prices on an extended timeline. As well, as global bankers may be at odds with many political leaders’ goals around the world soon, depending upon if opposition party leaders win an important series of political elections that will occur this year in the EU, there may be a considerable number of “risk-on” events that manifest in 2017 as well. For example, if Marine Le Pen wins France’s national election this year, she has already stated that she will dump the Euro and reinstate the French franc at a rate of one: one, a decision that would surely introduce massive volatility to the forex world. And this issue of when the UK will finally be “allowed” to exit the EU after their pro-Brexit vote more than eight months still looms as well.
Again, if you’ve been following me on my new SnapChat channel, you know that I’ve been providing you with nearly daily breakdowns in gold and silver price behavior that has been on point the entire year thus far, so please join us at our SnapChat name SKWealthAcademy for daily updates. If you have never used SnapChat before, our updates stay online for 24 hours, then automatically disappear, so you have to check your SnapChat inbox daily to listen to my updates if you’re interested, because after 24-hours, they disappear.