Why Gold and Silver prices have fallen in early November 2015

Why Gold and Silver prices have fallen in early November 2015


Welcome to illuminati Silver, we tell you
the truth about silver. Today is Tuesday 3rd November 2015 and we
are covering the issue of the recent gold and silver price falls.
Many people have criticised us for being bearish on gold and silver despite significant falls
from their all-time highs. They quote manipulation, imminent stockmarket,
bond market, derivative market and money market collapse for reasons why prices should go
up. They quote that China, India and Russia are buying so much that the West will run
out any day soon and that their price is going to rocket to the moon.
Now those who listen to us carefully, and in an objective way, know that long term i.e.
10 years to 25 years we are very bullish on gold and silver, and believe, that should
the economy decline further, then gold is the better bet of the two and should it improve
then silver is the better bet of the two. We have for some time, surprisingly to many,
discounted the over-rated impact that China and India’s purchases have had on the market,
especially when one compares it to increases in supply (if not peak supply) and rest of
the world demand. Let us give you an example. On the 3rd of August 2015, the Times of India
(and for those who criticise us for not quoting our sources) we shall elaborate, Narendra
Nathan of the Times of India wrote an article entitled “No need to rush to buy gold or
silver just yet”. Now this is what the article said, word for word:
“Analysts feel this is not the time to go bottom fishing. Global gold prices touched
a 5-year low of $1,090 per troy ounce on July 22, down more than 42% from the all-time peak
of $1,900 in September 2011. Though prices bounced back a bit the next day, experts feel
more pain is in store. The metal is trading very close to the support level of $1,080.
If it falls below $1,080, prices could recede by another 4-8% in the international market.
“If the $1,080 support is broken, the next major supports are $1,040 and $990,” says
C.P. Krishnan, Whole Time Director, Geojit Comtrade.
However, the price may not fall too much because $1,000 per troy ounce acts as a long-term
support. “It is the mining cost of gold,” says Krishnan. Even so, the rise may be capped
by resistances. “Heavy long build up in gold happened between $1,130 and $1,230. All these
bull operators are in losses now. They will try to recover their money once gold price
reaches $1,130-1,140. This range will now be a major resistance zone,” says Ram Pitre,
independent commodities analyst. The article goes on to say:
“While gold is down, the cut in silver has been more severe. The white metal is down
70% from its all-time peak of $48.60 reached in April 2011. Silver has been hit badly because
it also has industrial uses. The slowdown in China has pulled down prices to $14.71
per troy ounce. The downside is not capped here because mining cost is $10.
Now since then we have seen gold rise to $1185 and silver has risen to $16.14. However, at
the time of creating this video, Gold stands at $1118 that’s $67 lower and silver at
$15.27, almost a dollar lower per oz. So, during the past 2 months, as gold and
silver prices have risen, just as they historically have in the majority of the preceding 20 years,
we have heard all of the pumpers coming out and saying ‘this is it’ this is the next
leg upwards. Hold on to your hats, the tail wind is blowing and blowing hard.
Really? Well it doesn’t look like this to us. Now
before the pumpers begin jumping up and down saying – prices have fallen due to manipulation
(and we are not discounting an element of this) let see what reasons other commentators
have given: Martin Hayes of “The Bullion Desk” wrote:
“Gold prices were under renewed downside pressure as a fresh week and month started
in Europe on Monday, with the market falling under the $1,140 level to its lowest since
early October. “It would seem that [last] Wednesday’s
surprisingly hawkish Fed statement is still having after-effects,” broker Commerzbank
said. The down-move was due to a burst of technical
selling in Asia, which triggered sell-stops below $1,140, traders said. Prices hit $1,137.10
before stabilising. “Looking forward, with little to be seen
on the support side until the medium-term trend line around $1,120, and with producer
hedging continuing to add to the topside resistance, it may be a difficult week,” broker MKS
said. On the data side, China’s October Caixin
manufacturing PMI of 48.3 was above the forecast of 47.7 and September’s reading of 47.2.
But it was still the eighth straight month of contraction in the manufacturing sector.
A figure above 50 signals expansion and below that level indicates contraction.
Jim Wyckoff of Kitco News wrote today: “The chart-based traders are stepping up
the selling pressure on gold and silver markets early this week, as the near-term technical
postures for both precious metals are deteriorating. Gold prices hit another four-week low overnight,
while silver is also hovering close to Monday’s four-week low.” He added “Traders and
investors are looking ahead to Friday’s U.S. employment report from the Labor Department,
which is arguably the most important data point of the week, if not the month. The key
non-farm payrolls number is forecast to be up around 185,000 in October, following a
rise of 142,000 jobs in September.” Eddie Van Der Walt of Bloomberg News wrote
yesterday: “Silver prices headed for the longest slump
in two months and investors sold the most since June from funds backed by the metal
on speculation that the Federal Reserve will raise interest rates this year.
Now listen to this “Holdings in silver exchange-traded products dropped 93.1 metric tons to 18,887
tons as of Monday, the lowest since July 2013, data compiled by Bloomberg shows. Prices have
dropped more than 6 percent since touching a four-month high last week after Fed officials
signalled that they’re still considering tighter monetary policy this year.
Higher rates cut the appeal of precious metals, which don’t pay interest or give returns
like other assets such as bonds or equities. Traders see a 52 percent probability that
the U.S. central bank will increase rates this year, up from 33 percent a month ago,
Fed-fund futures data shows.” Van der Walt, also pointed out that “BullionVault’s
gauge of client buying fell below 50 in October, indicating more sellers than buyers, the company
said in a report Tuesday. The index is at the lowest since data began in 2012. BullionVault’s
gold gauge dropped to a nine-month low.” Just over a week ago, Reuters quoted “Festive
demand for gold in India got off to a tepid start, with local prices still at a heavy
discount to the global benchmark, a bad sign for a period when buying is typically strong.
Though sales picked up this week with the onset of the festival season, demand was lower
than usual, retailers said, even as jewellers splashed newspapers across the country with
ads promising good deals and discounts.” In addition to this we learn that “After
recording a sharp rise in August, gold imports into India dipped 45.62 per cent to $2.05
billion in September, which is also significantly below that of 12 months ago which stood at
$3.78 billion in September 2014. So there we have it. Gold is down, silver
is down, and for those who believe that prices are cheap, then it’s a great opportunity
to stack, for those of us who believe prices have further to fall, it appears that we may
be right. Let’s just wait and see. We hope you have found this video helpful
and informative, and would appreciate it if you would give it a thumb up, comment and
if you haven’t already done so please subscribe. Disclaimer: Silver Illuminati 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. great buying opportunity! awaiting Friday's report! I still think all things depend on Feds December decision; if rates go up in December, then expect gold at $990/oz or even lower, that's when one should buy like there is no tomorrow; first deflation then inflation.

  2. Silver and gold are long term insurance policies as long as you treat it like a hedge against inflation you can't go wrong buying at the bottom.

  3. Gold and Silver are commodities. During the mini-crash between May and August they barely moved then they seem to have started following the market and now as the market has risen the nearly 2000 I said it could at the end of August they are tanking again. This "buy" in the DOW is being fueled with 401K and Pension Fund money. It's the Sun Prime Scam reworked. They got to use the panic of that event to hide all the fraud if the last two decades they had been showing investors on their statements and got to keep the houses and resell them. since very few people paid outright for the homes it was just fake money in the computers being pushed around. Banks lost nothing because they are all the same bank regardless of the name on the door. Now they are investing that money they say they have in your 401ks and Pensions into this, it will crash, and all that fake money will disappear too and they don't have to pay up when you retire.

  4. @FreedomForceUSA I'm no economist but I think we can all agree that silver and gold is sound money and the fiat currency is going down fast. Who knows when it will happen but we know it will happen. No, downturn is the same the charts don't support a lot things that are going on in the market but sound money gold and silver will always take their rightful place.

  5. this comment is in the general,& not meant for any one person or directed at any one person. this is just my opinion Americans don't need physical gold & silver ;we are never going to see hyperinflation or major inflation in the united states due or caused by QE, How can we have massive inflation if most Americans have no money & not spending Money ,& 51% of Americans make under 30,000 $ per year & pensions are being cut by some government agencies? where's all the inflation going to come from? you want to talk about stagflation 70's style which was caused by the decade of the 60's ,fine inflation with weak econ & weak job numbers? fine, but that's another matter not related to this issue. Currently the MV in united states is stagnant .the idea that some stackers Now believe in ,first we will see deflation then inflation well,where's the inflation going to come from in the US? & don't tell me due to money printing or else I'll bitch slap you,

     I have to laugh at stackers ,because I have been saying for years we are not going to see hyperinflation.But now that stackers realize their dream of buying gold as an insurance policy or a hedge against inflation dollar collapse failed ,& now they realize that the pumper's to whom they followed all got it wrong & even them banking on hyperinflation massive inflation buy gold never saw what they expected or had hoped for,so now they are back tracking back peddling saying Oh, first we will go into deflation ,then inflation . Really? what a joke
    Keep in mind the great majority of stackers were banking on dollar collapse hyperinflation in the USA after they were banking in inflation ,but then decided to flip the script to cover their ass & sound smart, because they got it wrong.
    Admit it stackers you got it wrong. so lets not play games!
     so now it's deflation ,stack while prices are low,& then get ready for massive inflation? Give me a break Yeah, go listen to the Baloney man.Don't listen to Tacos. that's Reverend tacos.
    God damn stackers are morons. ( not all stackers but Most stackers are morons) wake the fuck up people. Gold is a scam ,but I see Now gold & silver are a hedge against deflation first then inflation,
    but wait I thought it was inflation first then deflation
    Stackers get your god damn story straight
    Oh, & Fuck you Silver Gold Man you are the biggest clown in you-tube history don't even try to act like the good guy. we all know you were the biggest pumper.
    Fuck you SGM suck a dick

  6. Im willing to wait and see . I would hold on to cash for a minute …..one way or another IS is usually spot on about this mkt ………thanks as always Im waiting for the price drop

  7. I have tried to following mining reports … when I can find them. I tend to believe the miners over bullion sellers. Well, been waiting all year… guess I can wait longer. Plus.. the bank just called and my daughters school loan is now due. Oh well.. maybe next decade I can buy.

  8. I don't believe mining cost of Gold to be as high as there reporting fuel prices are not that much higher then when Gold was $250 an Oz I'm sure mining operations cost has went up but not that much.

  9. For 3000 and much more years back metals have value…..Paper keep failing and certainly now i buy and i love these prices I ditch my euro,s from the bank to metals to my storage :)……
    Look on here (Youtube) for production of the new 10 euro note and every normal mind understands that paper + ink = not value…

    As i say there are 2 gold world=one is trading world 2=real with real metal and trading world makes up price for the real metal…The both walk a diffent path these days..I buy metals and land and dump savings…….Something banks cant copie is always bettter..

  10. Excellent video with in depth analysis and backed up by facts.  I think it is inevitable that gold will go to 1000 just because most people say that is the support line. If there is manipulation in the gold market probably the big boys with make sure it goes there.  Of course I have no idea what I am talking about. That is why i appreciate your videos!

  11. Yellen won't raise rates. She's misleading the market by hinting rates will rise. It's smoke. My bet is they are preparing QE4 to try and move this flaccid economy.

  12. #1- most are running out of available cash to convert to metal.
    #2- deflationary pressures will lead to central bank increases in aggregate liquidity
    #3- premiums on physical will stay high due to manipulated markets
    #4- debt freeze unavoidable. spot price irrelevant.

  13. So glad the highest I paid on Silver was 21. I probably would have cried if I bought at 48 dollars. I do think gold and silver are going up a good bit in the future. Less gold was produced this year then last and with Russia and China buying its a good bet it's going up. I'm a little confused why you hate the pumpers if you agree with them long term. Is it because they are always bullish on it no matter how high it goes. http://moneymorning.com/2015/06/15/russias-gold-reserves-are-a-growing-threat-to-the-u-s-dollar/

  14. Missed this yesterday…but today, silver is sitting as I type at $15.05 US, gold at $1107.70.

    So it all fell just a little bit more today…seems you're on track. d;o)

    An unrelated question…Chris Duane has decided that next year, proof versions of his rounds will only be available to those who sign up with a subscription service. Admittedly, the lowest priced subscription is $5.00 per month, which is not a lot, but I'd like to hear your thoughts on this.

    Mine are simple:

    First, it's cutting the sales of the dealers who've supported him over the last few years, which is not something I feel is a "great reward" for their loyalty.

    Secondly, I have always been of the opinion that I would NEVER pay someone for the right to give them more fiat later on. As soon as I found there was a fee associated with further acquirement of his proofs, I balked. I can live with minting premiums, as I know there are costs involved with die manufacture, blanking, minting, packagig, et cetera., but unless he's completely absorbing all of those costs with the subscription, it will cost more, so the end value is lower when compared to the cost.

    Thirdly, since there was only one place in Canada where I was able to readily pick his stuff up, and it is prohibitively expensive to buy from the few bullion dealers who are willing to ship to Canada from the states these days, this means he's deliberately cutting his market…not a smart business decision in my opinion. Especially so in these times.

    I'm sure that I'll like many of his future designs, but if he's deliberately making it more difficut and more expensive to get them, common sense says it's time to look elsewhere.

  15. October 27, 2015. Gold was at $1177.10 and silver was at $16.29. Today, November 4, 2015, just 8 days later, gold is at $1108.80 and silver is at $15.09. What gives? What earth shaking event has taken place to explain this?

  16. If anyone wants to invest in gold and silver you should think about buying collectable gold and silver coins. If you study a little about what coins are hot, than you can go by the Redbook value, not the London fix price.

  17. Looks like we're headed to $1000 now with the October jobs report on Friday, glad I haven't been buying since mid September when the prices began to rise again. Your videos have tempered my hand, and I definitely appreciate that.

    As for silver, even if it goes down to $13 or $12, I'm confident many bullion houses will keep the premiums on physical jacked up. Sure I might be able to save a dollar an ounce, but it won't really matter in the longer run, at least for myself and other younger buyers. I'm in my early 30s, so I can be more patient for the next bull market.

    Will be preparing to back the truck up on gold, however.

  18. this is a great lesson for all of us….when you can make a good profit , YOU SELL …it was pure stupidity for any of us to hold gold when it was $1900 a oz…. we may not see those prices for MANY years from now.   The PM bear market has reared its head again and the 2 week bull run, was just a head fake for fools.

  19. gold broke $1085….silver broke $14.65 …there is no support.  Lower prices in the near future.  I remember the pumpers on " goldismoney"  forum, claiming silver could not come below $25 a oz, because it cost more then that to mine it.  Pure liars and bullshitter.s

  20. Now the question is How low can they go between now and the pretend rate hike which I give a 25% chance of actually happening and a 100% chance of being rolled back within a quarter if it does get raised. I think $13 is the big buy in. Watch India as the speaker eluded to by quoting the article. India is the leading indicator on gold and silver since they are one of if not THE most important non industrial market.

  21. FYI…
    http://www.providentmetals.com/provident-metals-prospector-1-oz-silver-round.html

    So its 1oz rounds at $15.63 with AG @ $14.80 .. ie only $.8x over spot free ship on orders over $99 .. I have bought from them many times.

    PS: of course I am waiting for even lower prices… good luck all

  22. May I ask "exactly" how far you expect gold and silver prices to drop?  Gold-$800.00? Silver-$9.00?  Higher, or lower, than $800/$9.00?  When gold and silver prices get to a price that you buy, will you tell us?

  23. Nobody knows whats going to happen with price! All we do know is that gold and silver is money and paper is an illusion. Silver is in huge demand around the world and we are all very smart to own it. When banks can sell billions of ounces of silver that doesn't exist, its smart to own silver. When governments are TRILLION in debt its good to own silver! Just buy and forget talking about price in currency that too is illusory..

  24. Mr. Illuminati, I find your productions to be helpful and informative. Thank you for taking the time to put research and your thoughts into words that can be understood by laymen like me. I hope that you continue producing commentaries. Thank you once again.

  25. Very glad you made this video. Interesting that USD is very high a year later, yet, G&S took their Nov. fall, and now, gold not much higher, with silver higher by 20%. PM's are generally long term holds, and too many expect them to trade like stocks. In Dec., I think we have a Fed rate hike in the cards, so save your extra fiat to purchase some PM's when they drop in price.

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