Hello SD Bullion blog visitors, my name is James Anderson, and this is our first SD Bullion Gold Silver Market Update.
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Gold Podcast | Silver Podcast | Gold Silver Market Update
Let’s start by digging into the significant precious metals price actions for the past week and look at some of the supposed drivers for why spot prices got so clobbered.
The spot silver price fell over $1.30 per troy ounce closing this week at around $16.87 per ounce.
The spot gold price had it’s the worst week in simple price action since President Donald Trump was shockingly elected in late 2016. That night the gold price immediately shot up $50 oz on President Trump's election win, only to have the gold fiat US dollar price hammered down $100 oz the very next day for reasons no one has ever explained with prudent reasoning (i.e., that is still the record daily gold trading volume with motive or general explanations that made nonsense).
This week’s spot gold price is closing around $1,460 oz.
The spot platinum price still at over 100-year lows in terms of value versus gold fell some 60 bucks this week, closing just over $890 oz.
Often recent record-setting (short physical supply) spot palladium prices dropped over $100 oz this week, finishing just below $1,750 oz.
The Gold-Silver Ratio has climbed again above the 86 oz of silver to 1 ounce of gold valuation level.
US-China Trade War 'Phase 1 Deal'?
The leading attribution for all the severe weakness in precious metals prices was a supposed “Phase One” deal for the ongoing US-China Trade War.
This was not a physically driven paper price fall, more so a derivative driven affair.
Of course, there was no mention in this supposed Phase 1 trade deal news if China is committing to ending their consistent,
- Intellectual property theft.
- One political party's control of its legal system.
- Continued exportation of fentanyl into the USA.
- non-Liberalization of their markets.
- of if they will ever lower their seemingly ever-existing capital controls anytime soon.
So yea, many other onlookers and we remain skeptics.
Financial Twitter or Fin Twit ‘Tweet of the Week’ goes to Sven Henrich, who pointed out the following,
Recycle the same headline over and over and over again.— Sven Henrich (@NorthmanTrader) November 8, 2019
And each time markets jump.
And each time it means nothing. pic.twitter.com/VkWIVr9YYw
Mr. Henrich illustrates in his tweet, six supposed China-US trade deal possibly soon headlines over the past year.
But anyone paying attention is burnt out by this charade. There have been thousands if not tens of thousands of them over this past 12 months or more.
Algorithmic trading machines read and buy on positive headline news like this. But what is the real fundamental substance for these headlines to date?
Just a whole bunch of tariffs and escalations in respective trade waring rhetorics.
More Not QE4
This week the Federal Reserve added more not QE4 to its expanding balance sheet at overnight loans to the global banking system continue around $100 billion fiat Fed notes per evening.
Only a couple of weeks ago, best selling author and a vocal proponent of prudent gold and silver bullion investment positioning, Mr. Jim Rickards were on the MoneyWise youtube channel, and this is what he had to say about the ongoing unspoken reasons for what may be happening deep within the bowels and financial plumbing of the global financial system.
Bullion Buying Opportunity is Now
We suggest everyone take the long view regarding this recent precious metals spot price weakness. Consider even this technical overall rising bowl shape for gold price action as we will likely again be retesting new nominal price high early next decade.
If you are building a prudent physical precious metals bullion position, consider this past week’s pullback and price consolidations as an excellent gift for new additions to your bullion stack.
That is all for this week’s SD Bullion Gold Silver Market Update.
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