Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 6th February 2016 and we
are providing our brief gold and silver update for week ending 5th February.
Gold rose in US dollar terms last week by $55 from $1118 to $1173 having been as high
as $1175 and as low as $1117. In sterling terms it rose by £24 and in Euro terms it
rose by 19 Euros Silver rose 72 cents from $14.27 – $14.99
having reached a high yesterday of $15.05 and a low of $14.25. In sterling terms it
rose by 32 pence, and in Euros by 0.26 Euros. The Gold to Silver Ratio dipped slightly from
78.35:1 to 78.2:1 exactly the same as the week before last.
Well this past week has virtually seen a continuous rise in both gold and silver and frankly what
we expected to have occurred some 1 or 2 weeks ago. Having passed through the $14.60 as we
predicted, silver moved up to the $15 level, slightly surpassing it, but then falling marginally
below it. Technical traders are in slight disagreement over what may happen next week.
While some claim that the 10-day moving average crosses above the 200-day moving average showing
that a short term trend is now in place, other’s point out the fact that the relative strength
index stands at 77, which is above the overbought trigger level of 70 and could foreshadow a
correction. The Dow Jones closed on Friday at 16204 down
211 points and the Nasdaq closed at 4363. Friday saw the Dow and other markets across
the world move into negative territory once again with only the Hang Seng index being
up by 105 points. The dollar index stands at 96.56 having fallen by more than 3 points
since its previous Friday’s close of 99.60 So Gold is 3.6% higher this week and is now
over 9% higher year to date and silver is up 8% on the year. The dollar saw sharp falls
this week on growing doubts that the Federal Reserve will be able to raise interest rates.
The gains this week were due to increasing concerns about the U.S. and global economies,
thereby undermining the dollar. The increasingly uncertain U.S. and global
economic outlook has led to an increase in demand for gold and silver bullion. Sharp
falls in stock markets globally (S&P being down 6% and DAX down over 12% ytd), the Chinese
slowdown and the collapse in oil prices, has seen some safe haven demand for the precious
metals. However let’s not lose sight here of what
is actually happening. The world is reporting lower economic growth figures and reduced
forecasts, stock markets bubbles are being deflated and the latest US jobs figures were
disappointing to say the least. All this is leading to an increasing chance of interest
rates not rising in March as originally planned, and as we suggested a couple of weeks ago.
This week we are entering the Chinese New Year, and the Indian Wedding season is almost
upon us – all of these aspects are bullish for gold and silver. Yet despite their 9%
and 8% rises, add in geopolitical turmoil into the mix, their prices should be considerably
higher. With the recent rises, only paper traders will have been able to make money.
Physical buyers for this year will be at break-even at best due to premiums and buy sell spreads
(and that really only applies to physical gold).
We were told that silver is gold on steroids, and yet the gold to silver ratio has moved
just a tiny fraction and seems quite fixated on the 78:1 level. It is important for all
of us to understand, that silver at present is simply responding to the move in gold.
With economies faltering this puts a downward pressure on the industrial demand for silver
counterbalanced only by its monetary demand due to its correlation with gold. This means,
that whilst we have witnessed a good rise in January and so far in February, this is
little different from previous years, except that both of these commodities should be much
higher considering the surrounding circumstances. So our view is still one of caution and we
are not convinced that the lows are in, even though the next couple of weeks may still
be mildly positive for the precious metals. Our tune will only change about the trend
when we see $1300 gold and $17 silver. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
visit our website at www.illuminatisilver.com and look at our Facebook page which is updated
daily at www.facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of