Welcome to illuminati silver, we tell you
the truth about silver. Today is Sunday 15th July 2018 and we are
providing our gold and silver weekly update for the week ending 13th July.
Gold fell $14 last week from $1,255 to $1,241 having hit a high of $1,265 and a low of $1,238.
In sterling terms gold finished the week at £937 that’s down £7, and in Euros it closed
at 1,062 Euros that’s down 6 Euros on the week.
Silver fell 22 cents from $16.04 to $15.82 having hit a high of $16.21 and a low of $15.76.
In sterling terms, it closed at £11.95 that’s down 12 pence and in Euros it closed at 13.54
euros that’s down 0.12 euros. The Gold to Silver Ratio rose from 78.24:1
to 78.44:1 The Dow Jones closed on Friday at 25,019 up
94 points on the day and up 563 points on the week; and the NASDAQ closed at 7,825 up
2 points on the day and up 137 points on the week.
Brent Crude fell $1.78 from $77.11 to $75.33 and US Light Crude fell $2.79 cents from $73.80
to $71.01 The dollar index stands at 94.67 that’s
up 0.71 on the week. Gold markets initially opened higher last
week, peaking on Monday and then slowly descended throughout the week. The strong dollar, was
caused by robust UK producer and consumer inflation reports and an increased demand
for dollars as a safe haven asset because of the threat of additional tariffs on China
by the US. Now before we discuss gold further, what happened
this week is what could prove quite indicative in the future and all precious metal buyers
should take note of this and disregard those doomsayers who say that the dollar is going
to collapse, and gold is going through the roof any time soon.
It is argued by most economists that this tariff war is potentially very harmful to
the US economy and yet there is a run to the US dollar causing its rise, why? Because it
is still the world currency and it is felt that in the case of crisis, other currencies
will fall first, and the US dollar will be the last standing. Now eventually, even that
will collapse too, but its this intervening period that is so important.
When the 2008 crash occurred; with stock markets collapsing some 45% globally and property
prices plummeting and bank credit drying up, the US dollar held up particularly well and
at some stages strengthened, while even sterling fell almost 25% during that 12-month period.
Gold markets also fell until their recovery and rise in 2009 and interestingly gold actually
fell the day that the S&P hit its intraday low.
Now this is important. If you were to ask us when is the best time to buy gold, especially
if one believes that a stock market crash is on the horizon, we would say within a couple
of days that the stock market crash occurs, as there will be a run towards the dollar
and gold prices and silver will fall in response. Now the one exception is if the cause of the
stock market collapse is that for some reason there is a fall of the dollar – if that
is what precipitates it then the response will be different. Nevertheless, we cannot
express strongly enough that all of scaremongering on the dollar collapse is just that. Long
term we all believe that dollar prices will fall but we are more likely to see other currencies
fall first and that will be the guide i.e. the dollar’s rapid rise in strength, in
relative strength, before its inevitable fall. Now back to gold, last week gold performed
slightly on the weaker side heading towards that $1200 level which we believe it will
reach over the Summer. Dollar strength and the FED’s comments on interest rates and
more importantly its actions on interest rates will be a considerable determining factor,
certainly over the next 2 – 3 months. Its worth noting that the U.S. Federal Reserve
Chairman Jerome Powell said in an interview last week that he believed “the economy’s
in a really good place” at the moment with unemployment at the lowest point in nearly
two decades and inflation finally approaching the Fed’s optimal goal of 2 percent annual
increases. He added he was “very pleased with the results” of the Fed’s gradual
pace of rate hikes. Silver again followed more or less gold’s
path last week finding $16 a strong ceiling to penetrate and is heading towards $15.50
which again we predict will be reached over the Summer and possibly getting close to $15.
Now we could be wrong here in that we do not see silver necessarily falling below $15 unless
perhaps it’s a couple of cents. The reason being is that physical buyers see both $15.50
and most certainly the $15 levels as excellent value for money, and one can clearly observe
market entrants at these levels. We believe that the days of $13 silver are behind us
and $14 silver very unlikely. Equally we do not see silver rising above $18 in 2018 at
the top end either. This coming week the following reports worth
noting are announced as follows: • On Monday Retail sales for June
• On Tuesday Industrial Production for June • On Wednesday June Housing Starts and the
FED Chairman’s testimony which we recommend you pay close attention to.
• And on Thursday Leading economic indicators for June.
So this week we predict prices holding steady to slightly weaker and politically are awaiting
the inevitable indictment of Roger Stone, which we are certain is going to happen but
are just a little askew as to the timing. If you pardon the pun, we know that Mueller
will leave no stone unturned. 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
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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