Welcome to illuminati silver, we tell you
the truth about silver. Today is Sunday 9th July 2017 and we are providing
our gold and silver weekly update for the week ending 7th July.
Gold fell $28 last week from $1241 to $1213 having hit a high of $1,242 and a low of $1,208.
In sterling terms gold finished the week at £941 that’s down £12, and in Euros it
closed at 1,063 that’s down 23 Euros on the week.
Silver fell 99 cents from $16.61 to $15.62 having hit a high of $16.65 and a low of $15.37.
In sterling terms it closed at £12.12 that’s down 62 pence for the week and in Euros it
closed at 13.70 euros that’s down 0.84 euros. The Gold to Silver Ratio rose from 74.71:1
to 77.66:1 The Dow Jones closed on Friday at 21,414 up
94 points on the day and up 65 points on the week, and the NASDAQ closed at 6,153 up 63
points on the day and up 13 points on the week.
Brent Crude fell $2.06 cents to $46.71 and US Light Crude fell $1.81 to $44.23
The dollar index stands at 96 that’s up 0.37
Last week we predicted that we expected “continued weakness throughout the Summer, unless of
course some form of International political incident occurs.”
Well, the selling pressure started early in the week as investors continued to respond
to the hawkish comments from several central bankers, strongly suggesting that the days
of lower interest rates were numbered. The Fed has already committed to a tight monetary
policy but it looks like they will be joined shortly by the European Central Bank, the
Bank of Canada and the Bank of England (though we suspect growth figures released later in
the week may indeed hold back interest rates in the UK for a little while longer).
Gold did steady a little after the release of the Fed minutes and a weaker than expected
private sector jobs report, but Friday’s robust U.S. Non-Farm Payrolls report re-ignited
fears of higher interest rates sooner rather than later and it took its toll on gold and
silver prices. All eyes will be on the Bank of Canada’s
(BOC) interest rate decision on Wednesday, Fed Chair Janet Yellen’s testimony on monetary
policy on Thursday and the U.S. CPI and Retail Sales reports on Friday.
Well last week’s fall especially in silver was even larger than we thought especially
being so quick, though not surprising based on our original assessments.
A few months ago when silver had fallen back to $17 we stated that we could foresee $15
silver before $18 was reached again only to be proved wrong a week or so later when $18
was reached. We could not quite understand this at the time, because all of our calculations
and assessments were pointing to silver nesting between $15 – $16. Well it did rapidly peak
to $18.62 and within a few days collapsed again to just over $16 and see sawed between
$16 – $17. Now it has fallen back close to the level
we were expecting then. With the $16 base having been well and truly fallen through,
and with Summer now upon us, we are not expecting any significant rise in silver over the next
2 months, but in fact further falls. Now that is not to say that perhaps there may be a
slight initial rebound, but there is no logical reason for silver to be above $16 at the present
time and we see prices now see-sawing between $15 – $16 with $15 possibly being breached
within the next 2 – 3 weeks and sooner if Canada raises interest rates. Silver is going to follow gold over the coming
months as there is little on the Industrial side to set it apart.
Now we want to comment briefly on the argument from some of our subscribers who proffer that
gold will rebound because of crypto gold or gold backed bitcoin. Forget it for now. We
meant to add this last week but omitted to do so. At $3,000 bitcoin is in a bubble in
our view. At its current $2500 we still believe it to be overpriced. Any gold backed bitcoin
may have a slightly positive influence, but over the next year or so it will in our assessment
be so little overall, one should not be purchasing gold simply because of the crypto currency
effect. Even Jim Rickards who is generally bullish on gold believes cryptos are in a
bubble soon to be burst. Look out for interest rates and their potential
to rise. Forget those who have said that they cannot rise because of the level of Government
debt – for last year and this year has so far proved them wrong and we believe will
continue to do so. We do not foresee major rises, but one does not need major rises to
have a negative impact on gold and silver prices. The trend is what one must consider
right now. Those who held off buying silver a couple of months ago will now be well rewarded.
We are seeing amazing offers being made and with silver likely to fall further will provide
yet again another excellent opportunity for those who wish to increase their stocks. But
just be warned, please, although we do not see silver falling below $14 and is more likely
to hover around the $15 level – $13 is not an impossibility – though unlikely. Traders
are already beginning to panic and quote $14 being breached and then $13 – and these
are the very people who move markets in the short term. Anything below $15 we will become
more significant buyers ourselves and gold below $1200 will indeed provide another opportunity
to pick up a bargain. 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