The Current Gold and Silver Price Downtrend

The current gold and silver price downtrend will prove to be just a temporary pause in a continuing multi-year uptrend. On 14 July 2016, after we purchased many gold and silver stocks in early June to add to very solid positions in physical PMs we’ve established since 2007, I sent this bulletin to our Platinum Members: “We may receive some weakness in the share prices of many of the stocks we hold now as they have increased quite strongly in a fairly short period of time, but we will continue to hold them unless stronger evidence arises in the immediate future that the support levels above for gold and silver prices may not hold.” Indeed from 15 July to 26 July, many gold and silver stocks pulled back in price to a fair degree.

On 26 July 2016, after the HUI Gold Bugs Index had pulled back by 9.4%, silver had pulled back 8.8%, and gold had pulled back 4.7% in a month’s time, there was chatter, as always, of a much greater possible continuing gold and silver price downtrend. In response, I wrote this article to dispel that notion, in which I stated my belief that the gold and silver price downtrend we were experiencing at the time was only a temporary lull in a continuing multi-year uptrend in gold and silver prices that started at the end of last year.

Indeed, gold and silver prices started rising again the very day I published that article, until the beginning of August.

On 9 August 2016, I sent a bulletin to my Platinum Members once again warning of a possible decline in gold and silver prices to specific price levels for both gold and silver.

However, just as I stated back on 26 July 2016, when this current gold and silver price downtrend ends, and we are not going to see the $150 to $200 drops in gold prices of past years, this ongoing gold and silver bull is going to resume strongly higher again. Again, much is being made about the upcoming Janet Yellen speech at Jackson Hole, Wyoming, but personally, I could care less if she expresses a hint of “hawkishness” for the reasons I provided here. Despite whatever mind-bending picture of “reality” Yellen attempts to present on Friday that causes whatever immediate knee-jerk price reactions in markets that her words always create, the one constant is that no hare-brained Central Banker speech is going to derail my long-term strategy and commitment to gold and silver assets as the way out of this Central Banker-created currency war of fiat currency devaluation to the bottom.

In addition, the one prediction in which I have confidence as well, is that when this Central Banker, artificially price-distorted creature they call the US stock market finally rolls over and implodes in one glorious disaster, whether this event happens before or many years after the US elections, the descent is going to be very disorderly and on a grander scale than the crash of 2008.

J. Kim

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