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