Silver markets nervous ahead of US Jobs Report

Silver markets nervous ahead of US Jobs Report


Welcome to illuminati silver, we tell you
the truth about silver. Today is Friday 7th September 2018 and we
are briefly discussing what happened yesterday in the gold and silver markets and to emphasise
the importance of today’s Non-Farm Payroll Report.
Gold markets tried to rally during the trading session yesterday but found the $1,212 level
to continue to offer resistance with gold reversing its gains. However, it does look
as if the $1200 level is trying to offer some support.
However, we still maintain that dollar strength, emerging market difficulties, and the potential
trade conflict the President is threatening with Japan yesterday, will all lead to a further
strengthening of the dollar and weakening of the gold price.
At the time of writing, gold stands at $1202 but we aren’t convinced it can hold this
ground unless today’s jobs report paints a weak picture.
So, what is anticipated? Well, the headline number is expected to show the economy added
191K jobs in August. This is up from 157K in July. The Unemployment Rate is expected
to dip slightly from 3.9% to 3.8%. Average Hourly Earnings are expected to rise 0.2%,
slightly below the 0.3% increase reported last month.
If the figures are stronger i.e. less unemployment, then a further FED rate rise is likely, and
we shall see gold move down further, if the opposite is the case then the $1200 floor
may hold for a while. So what happened to silver?
Silver markets attempted to rally yesterday but fell back to its current level of $14.17
as we speak. As we have said for many months, there is no factual or fundamental argument
in favour of silver prices rising unless it is solely allied to gold rising – in other
words, short term, a weak dollar. Why is this? Because the market already knows
the level of silver demand and supply. Its aware of those industries demanding more silver
and those cutting back. Unless some revolutionary device is created which necessitates a fair
amount of silver usage and is declared overnight thereby catching traders unaware, then silver
is just going to be associated with gold for the next few months.
Some analysts are even talking about silver falling to $12. Yes $12 which is even lower
than our assessment – it would be ironic to say the least, if that we as a channel
who have been negative the price of precious metals almost since our inception (and please
note we said negative the price not negative of precious metals) and even we could potentially
be more bullish than the reality – though we are still maintaining our position that
$13 is the lowest we shall see this metal fall if it even gets that low.
We were not going to do a video today, but yesterday’s moves were interesting, and
we thought worthy of comment. By the way we have recently taken possession
of, and read, the book entitled “The Silver Bomb – The End of Paper Wealth is Upon”
Us by Michael Mac Donald and Christopher Whitestone. It was published in 2012 so it is a few years
old, but it makes a very good case as to why one should purchase silver. Now to be frank,
it’s a little hyperbolic in our view, and overstates the case a little – but in fairness
to the authors they make some very interesting points and bearing in mind the levels to which
silver prices have now fallen compared with when that books was written, could very well
be worth a read. It cost £8.61 from Amazon.co.uk and $13.95 at Amazon.com – of course the
kindle version is cheaper. If you are at all interested, then please click on the links
in the description and take a view for yourself. We enjoyed the book and certainly do not regret
buying it ourselves. As always in the interests of transparency,
if you do go ahead and purchase we will receive a small commission which will be ploughed
back into the channel. As a reminder please watch out for that Jobs
report in a few hours time. 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
ensure that you have subscribed to our channel and pressed the bell sign so that you are
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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.

43 Comments

  1. My problem is the actual rising US dollar and the falling AUD… It doesn't make much of a dent in the silver price here in God's country

  2. If the markets know the silver demand – and prices are expected to fall – WHY has the US Mint apparently Run OUT of Silver Eagles – due to SURGE IN DEMAND? At some point – prices WILL rise substantially. We just don't know when that will be since those in power control everything.

  3. What happens when j p Morgan stops buying and the supply not being bought will increase greater than the demand ? Is that when we see 8.00 silver again ?

  4. $14 silver is a joke. Imagine $10-12 silver.. wouldn't retail supply evaporate at those incredibly low prices? How many weak hands are left? At some point reality takes over and retail supply will freeze up.

  5. Well the figures are in. Silver atm is UNCH. But earlier I watched it drop to the $13 price for a brief time. Ok it was high 13 $ but as I type this Gold is struggling to hold above $1200. Yes the dollar is weakened. The Pound Sterling is rising and the Euro is falling. It's still a Bear market but I would l8ke to point one thing out. BITCOIN… It's been falling and falling. I wonder if the bitcoin investors moved from the LMBA? The bubble will burst

  6. I think everyone that follows the precious metals realise that silver will remain closely correlated to gold for all the foreseeable future. But the gold silver ratio is also quite high now, at around 80 to 1, and it is not unreasonable to assume that it will narrow to around 30 to 1 over the next few years if we have a recession.
    Thus if Gold goes to 2000$/oz silver would be around 67$/oz a substantial gain from where it is now.

  7. How about indicating the publishing time as well as the date? Nonfarms were released at around 2pm CET which resulted in an immediate Gold drop

  8. Gold and Silver have been on a slow and steady decline over the last 60 days due to a stronger U.S. Dollar and will probably find a stable point this month and remain there with minor ups and downs.

  9. The jobs report and Fed interest rates are fundamental factors that historically have impacted the price of precious metals. Now it appears the PBOC may be tying the Yuan to the gold price (rather than USD). If the price is affected by yet another manipulating entity, how does that impact your fundamental analysis? We may never see true market level valuations until the COMEX implodes and is unable to deliver physical metal on demand and thus loses the ability to set the market price for silver.

  10. Sound advice as always. I may rethink my lowest support for silver. Previously I was anticipating a bottom around $11, but your arguments are suggesting a more conservative estimate. Currently, I see a strong support around $13.65 but if that is convincingly breached then I find very little to stop it before the $11 neighborhood. Of course, this implies that the U.S. dollar remains strong.

  11. $8 per ounce! Not a chance as it costs $10+ to produce it… as for the voice it must be from the "Tales of the unexpected" thanks again gentlemen…

  12. 30 years fellas, 30 years the price of a pure silver ounce was $4-$6 dollars… $14 low, $13 low you've got me laughing my pants off, both gold and silver are still high coming off the last boom in 2011… fact is, no silver will probably not see the day of $5 again, but it will get down to $8 no problem. Mark my words fellas.

  13. Fact is it's been 7 years since the last boom. This is the first time I've bought silver since 2010. I bought as much silver as I could get my hands on between $10-$15 per ounce, and stopped buying as soon as it hit $15. I am only a player now cause it is dropping below $15 as even now I'm not buying a ton, I'm warming up to it now that it's getting more reasonable… at $10,$9, and $8 I'll start gobbling it up again. But all this nonsense about tied to this, it'll go high tomorrow is all nonsense. The Silver sellers made all these claims for 30 years before this last boom. My guess is the next boom will be with in 23 more years but probably the gap won't be 30 years again. I'm betting on 10 or 15 years til next boom.

  14. The coin shop I go to, has sold out of its silver bars, coins , all except the numismatic coins, that's because there premium prices just can't compete with just above spot prices silver,but at some time the rounds , bars etc, will have to go up, or you want be able to find that good deal on silver because the shops buy at spot or maybe 10 percent lower, but that was when silver was high, they simply can't sell when they run out of that particular purchase the made lets say, 3 months ago,
    But there's no one selling now, there buying, it can't hold out much longer, its got to go up, refreshing there inventory now, buying at the low prices, that's what I'm doing ,it may not make since, but its logical.
    That's why the coin shops are out, ether they bought high, & can't afford to sell any more, plus to stay competitive. There holding on to alot of inventory, until there spot price they bought at a few months ago , goes up.

  15. Now that the report is out and it appears strong – the "no move" in silver (very little change) suggests maybe we're at a bottom? I can't know obviously – but there was very little change and i was expecting a down day due to the "good" news in the report. Any suggestions why? Just asking as I'm no expert on these things.

  16. As of Friday the fourteenth Perth Mint has no one hundred ounce bars left, and cant get supplies to pour them. So no real shortage? They have a few ten ounce bars and plenty of coin..

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