Welcome to illuminati silver, we tell you
the truth about silver. Today is Friday 3rd February 2017 and we are
asking why are gold and silver prices going up?
On the 15th January we produced a video entitled “Investment Schizophrenia prior to a Trump
Presidency” where we suggested that investors were unsure where to place their money in
view of impending then President-elect Trumps policies.
Well nearly 3 weeks later we are witnessing a similar situation, save that the issues
are rapidly becoming far more serious in that conflicting reports are creating confusion
amongst traders. This past week has seen a number of conflicting
news reports which quite frankly has caused stock market, currency and bullion traders
a high degree of confusion. We have seen the Dow Jones Index rising above 20,000, then
falling to 19,964 and is now just 10 points off its all-time high standing at 20,071 – whereby
frankly it should now be testing 20,200. The dollar index has moved from 100.5 down to
99.5 and is currently standing at 99.7 whereas its been as high as 103 in the past month
and frankly should be moving a little closer to 104. Gold has moved from $1190 to $1220
when it should actually be moving down towards the $1175 level and silver has risen from
$17.14 to $17.50 when it should now be trading between $16.50 – $16.75.
So what is actually happening? Well first the good news which on its own would cause
the prices to be where we are claiming they should be:
• US firms added 227,000 jobs in January against expectations of 175,000 – thus strengthening
the dollar, boosting the stock market and making interest rate rises more inevitable
– bad news for gold and silver • On Thursday, the Bank of England revised
up its forecast for the UK economy this year, and now expects it to grow by 2% suggesting
a recovering economic situation good for the stock markets, value of sterling but bad for
gold and silver – though slightly better for silver than gold.
• Reuters Poll out today shows that New York Banks believe that the FED will raise
rates only twice this year – thereby boosting the stock market and making gold and silver
less attractive in comparison as investment vehicles.
• Prime Minister May visited President Trump and it appears that the ‘special relationship
between the UK and the USA is back on – meaning excellent business prospects for both countries.
So why is gold and silver rising – well it’s the ‘fear factor’ right now. Headlines
this week show: • Michael Flynn, The National Security Adviser
on Wednesday stated that he was “officially putting Iran on notice” in reaction to a
missile test and an attack on a Saudi warship. Then today sanctions have been announced,
causing oil prices to rise and investors becoming nervous.
• President Trump cut short a conversation with Australian PM Malcolm Turnbull after
reportedly telling him it was his “worst call by far” with a foreign leader that day over
the refugee crisis – Trump called the deal made with Obama a “Dumb Deal”. Australia
is known to be a very close ally of the US and such disagreements may prove harmful in
the longer term. • President Trump recommended Ted Malloch,
the leading contender to be named America’s next top diplomat in Brussels, who reminded
the EU they have no say over who President Trump appoints to ambassadorial roles. Ted
Malloch is a well-known anti-EU advocate who is keen to see the break-up of the Union from
a political perspective. This has caused considerable disharmony amongst the EU elite and again
makes markets nervous which is good for gold and silver.
• NATO expenditure and contributions are to be reassessed and an inquiry into banking
legislation has been ordered – both causing a mixture of good news/bad news for the investing
community. There have been many other examples announced
during the past week which may have had an impact but tensions with Iran may indeed cloud
any positive news and lead investors scurrying to safe haven gold and silver.
The traders we have been able to speak with this week agree that gold and silver prices
should be falling but there is a distinct fear trade in the market that may gain some
momentum. So those who have criticised the paper markets
for pushing prices down, may indeed be praising them for pushing them up – so for the next
couple of weeks we believe fundamentals are out of the window and geo-political issues
will dictate where prices shall move. 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