Tomorrow we shall be publishing our weekly update YouTube video, and so will cover this in a little more depth, but as we write this podcast, gold is standing at $1443 having hit a high earlier of $1451 and silver stands at $16.43 having hit a high of $16.58. They opened at $1415 and $15.22 this week respectively.
At the start of the week there was much excitement, as a result of analyst Andrew Maguire making public, that his understanding from the latest COT Report, that there were 4 major traders taking excessively long positions in silver and he suggested that the largest was potentially acting on behalf of the People’s Bank of China. The word “Whale” was mentioned a number of times.
This immediately got the community very excited and was followed by videos and direct emails from Mike Maloney of GoldSilver himself, repeating Maguire’s analysis – even though Ted Butler – another expert in this space – derided Maguire’s interpretation of that report.
Anyway, that aside, this led to all of the pumpers and disciples now fully revealing themselves with estimates of gold and silver now going to the moon and to expect up to $2,000 gold and $200 silver any time soon.
We, having looked at Maguire’s analysis, and to some extent sharing his view that there were some interesting long positions taken, began producing a YouTube video stating that we could see silver rising from the then current $15.34 on Tuesday to $16 within a day or so and possibly peaking at $16.50 by the end of the week.
Well to be frank, when we were ready to publish that video silver had already risen to $15.94 and to state that we believed it was going to rise to $16 shortly would have been met with justifiable ridicule being only 6 cents off. I remember speaking to Bowman on Discord stating that we could expect $16 silver that day and if not then the following morning. Well it closed just below $16 and then opened just over $16.06 the very next morning.
But our video was too late to be of benefit to our members. However, that said, bearing in mind that most do not day trade even the $1 + rise is not going to make a dramatic effect or difference to one’s portfolio.
But why did the price rise, well for a start the level of excitement within the community – the COT Whale. Secondly the gold to silver ratio reached our predicted 93:1 and a correction was quite possible, though we did say it could potentially go as high as 95:1 – though at the moment it stands now at 88:1 – thus the correction. Also, there has been visible signs of consumers and traders beginning to take profits in gold and switching their monies to silver. Reuters reported earlier today:
“Consumers in leading Asian hubs continued to sell off physical gold this week, with some switching their holdings to silver, after a jump in prices that also attracted interest from investors betting further gains.”
Finally, it is not uncommon that when gold rises or falls, silver tends to follow suit but usually a little time afterwards and it now appears that this could be the time.
So, the question on everyone’s lips is where now are gold and in particular silver prices going to go from here? Well we are confident that later today there will be some profit taking – so don’t be surprised to see silver fall back to $16.20 or lower and gold back down to that pretty crucial technical level of $1425
Tomorrow we shall publish where we believe they are heading; so please do not miss our weekly update.
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