Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 25th August 2018 and we
are providing our gold and silver weekly update for the week ending 24th August.
Now before we move into our update we would like to draw our listeners attention to a
book we came across that we believe would be very useful, especially for those relatively
new to the silver and gold space. The book is entitled “Stack Silver Buy Gold For Beginners:
How And Why To Invest In Physical Precious Metals And Protect Your Wealth When The Money
Bubble Pops” It was published in 2015 and having read it
is an excellent guide to the subject and relatively easy to understand. Its available on amazon.com
for $7.99 or on Amazon.co.uk for £5.99 and we have provided links just below the video
in the description column.. Yes if you purchase it through our link we will get a small commission
from Amazon to support our channel, small being the operative word, but we genuinely
believe you will not be disappointed. https://amzn.to/2BI3CCS – US
https://amzn.to/2BL1DxH – UK Gold rose $21 last week from to $1,184 to
$1,205 having hit a high of $1,208 and a low of $1,183. In sterling terms gold finished
the week up £9 at £938 and in Euros it closed at 1,037 Euros up 2 euros on the week.
Silver rose 2 cents from $14.80 to $14.82 having hit a high of $14.88 and a low of $14.49.
In sterling terms, it closed at £11.53 that’s down 7 pence and in Euros it closed at 12.75
euros that’s down 0.19 euros. The Gold to Silver Ratio rose from 80:1 to
81.3:1. The Dow Jones closed on Friday at 25,790 up
132 points on the day and up 121 points on the week; and the NASDAQ closed at 7,945 up
67 points on the day and up 129 points on the week.
Brent Crude rose almost $4 from $71.83 to $75.82 and US Light Crude rose $3.03 from
$65.69 to $68.72 The dollar index stands at 95.14 that’s
down 0.96 on the week. Well on our last weekly round up we ended
the video by saying: “So, what will happen to gold and silver
prices this week? Frankly we do not know as it could go in either direction. There is
the prospect for a small improvement, but International developments will have an impact
on the dollar in either direction.” We received a little criticism for this comment
but the week that has just gone by gives us a perfect example as to why we said this.
Initially gold rose, as we suggested, then it fell and then rose abruptly on Friday.
We also pointed out that Fed Chair Jerome Powell’s speech in Jackson Hole Wyoming
would be extremely important, and so it proved. Having an idea on what was going to be said,
and knowing the potential reaction put us in a quandary as we could see prices going
down and then possibly reversing which is what has happened – remember we follow international
banking extremely closely and not just rely on newspaper headlines for our information.
Now we shall be producing a video on this subject either tomorrow or Monday, as we believe
it’s an extremely important guide to the FED’s thinking and its effect on the US
Dollar and interest rates. Jerome Powell stated that ‘he expects a slow but steady diet
of interest rate increases to continue as the central bank looks to find the right recipe
between promoting growth and controlling excesses.” He expressed confidence in the US economy
and did not foresee inflation getting out of hand. He also added, and this is what caused
some of the change of heart: “there are risk factors abroad and at home
that, in time, could demand a different policy response”.
St Louis Fed President James Bullard added fuel to the fire by more or less calling for
no further rate hikes this year, and combined we saw the US Dollar index fall and a consequent
rise in gold and silver prices. It was quite amusing to watch both professionals
and amateur’s response this past week. We witnessed a number of You Tube Channels stating
OMG Gold is going to fall to $1,000 and silver to $10 and we saw technical traders stating,
‘sell on any rally as prices are falling’. What happened yesterday – the same You Tubers
are saying this is a turn-around, we have hit the bottom good times are ahead and a
number of technical wizards are saying ‘positive momentum is accelerating’ look now for $1300
gold – all in the space of one day after one speech. No wonder people lose money in
this marketplace. We shall give our thoughts shortly.
With regards to silver, yes it too rallied on Friday along with gold, but not to such
a great extent providing another rise in the gold to silver ratio. Now technical analysts
are calling for $17 silver when earlier in the week they were calling for $14.
So, what is likely to happen to gold and silver prices this week? Well firstly let’s just
re-inforce what we have said previously. Gold below $1200 represents good value for money
as does silver below $15. With the exception of a few choice coins, we still won’t be
purchasing at these levels. But that does not mean that you shouldn’t. Our portfolio
is already well diversified with gold and silver at its optimum range, so any additional
purchases for us will be made on an excellent value basis as opposed on a diversification
basis, as we are already there. We want to see gold enter $1100 territory and silver
in the very early $14 or late $13 arena before we allocate additional monies of any worth.
That said, and please forgive us for repeating ourselves, the 2 main impacts now will be
the rise or fall of the US Dollar and the actions of President Trump. Politically President
Trump had a very bad week last week with his former campaign manager Paul Manafort being
found guilty on 8 counts; Michael Cohen pleading guilty on 8 counts also, 2 of which were campaign
finance violations in which he accused the President of Directing and also the Trump
Foundation being investigated implicating the President and his 3 eldest children – not
to mention a host of other Trump friends, employees and associates who have been given
immunity and provided evidence to the Mueller enquiry. Faced with this pressure his reactions
could have an important impact on the value of the dollar. He could fire Sessions, Rosenstein
or Mueller and cause a Constitutional Crisis; he could cause a military infraction in order
to strengthen his position as a ‘no nonsense President’ or he could increase the trade
war by strengthening sanctions in order to deflect attention from his troubles, or, he
could do none of these. This is the unknown variable.
So, in view of Jerome’s comments Friday, and the political uncertainty, the next week
or so will bring, we are expecting precious metal prices to strengthen next week. However,
we are not convinced as yet that their prices have hit the bottom and our analysis suggests
that this rise will be temporary perhaps a week or two and then a further decline towards
mid – late September. If, however, the President does commit any of the actions we mention
above, and especially one of the first two, then frankly all bets are off and higher prices
will undoubtedly ensue. We hope you have found this video interesting
and informative and if so, please give it a thumbs up and share it on twitter. Please
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updates and offers. 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 its owners.