How gold prices could fall below $1200 before the end of 2016

Welcome to illuminati silver we tell you the
truth about silver. Today is Sunday 13th November 2016 and we
are briefly addressing the issue of how gold could fall below $1200 within the next 6 weeks.
Last week, Gold prices plunged to their lowest level since the week-ending 3rd June, in reaction
to a surge in U.S. bond yields, on speculation that President-elect Trump’s economic plans
could stoke the flames of inflation. December Comex Gold futures closed the week down over
6%. There have been numerous reports from Reuters
and other agencies, suggesting that in order to gain the jobs Trump has promised, and to
fulfil his election promises, considerable infrastructure and public expenditure is required.
Coupled with reducing the legislative burden on businesses, including banks, we may indeed
see a rapid rise in both inflation and interest rates.
Some analysts argue quite cogently, that since Trump’s victory, the markets have been going
through a considerable reallocation with stocks and the U.S. Dollar rising and Treasury Bonds
and Gold prices falling. The key here is to understand the impact of
US Treasury Yields and how they are probably one of the best indicators of the direction
of gold prices. As Gold doesn’t pay an yield or a dividend, rising yields and equity prices
put pressure on the precious metal. Gold competes for the same investment dollar and investors
want to get the best return for that dollar. The cash bond market is saying that inflation
is coming and that rates will have to rise. Even you our subscribers have repeated on
numerous occasions how you are witnessing rising prices in your local stores. The Fed
has to make the decision whether to speculate on future inflation issues or stick with what
is actually happening in the economy at this time. Despite this, most economists agree,
that the FED will raise rates by 0.25% in December.
The next 6 week’s direction in gold will be determined by the direction of U.S. Treasury
yields and the U.S. stock market. If stocks and yields continue to rise then gold could
very likely break below the $1200 level perhaps as low as $1180.
If this were to happen, with silver prices generally correlating to gold on the approximate
basis of 70:1 we could also see silver fall into the mid to late $16 level.
At this stage we looked back at our predictions video of 24th February of this year where
we forecast that the gold price would move between $1100 and $1350 and silver between
$13 – $17.50. We did change this a little more to the upside post BREXIT and we did
indeed see gold peak at $1370 and silver peaked at $20.72 but interestingly it appears at
least that gold and silver are likely to end the year within the scale we set back in February.
If it does, even allowing for political issues, it suggests to us, that our analysis which
is heavily geared towards fundamentals, is quite reasonably accurate and that all the
fear the pumpers engulf us with, suggesting gold is on the cusp of rising to $5000 an
ounce and silver to $200 is just nonsense and that we are content to be just a dollar
or two wide of the mark as opposed to hundreds or thousands of dollars as they yet again
for another year will clearly have been. However, we accept, we may have to eat our
words as there is still 6 or 7 weeks to go before the end of the year.
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updates and offers. Our Facebook page which is updated daily can be found at 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
its owners.

41 thoughts on “How gold prices could fall below $1200 before the end of 2016

  1. what exactly is the "fundamentals" when floating in a soup of magic beans and pixy powder. one pill makes you larger and one pill makes you small……not to mention new technology needs silver like never before. We are just one new electronic fad device away from a lottery type run away silver price. eventually silver will become priceless.

  2. Well I was pissed when the price went up and pissed when it went down. I didn't plan on selling anytime soon so, cool I'll just buy more. BURN BABY BURN!!!

  3. Real rates even with a nominal .25 increase would still be close to 0 or negative considering inflation. I mean the US 10yr yield is @ 2.138% factoring in govt reported inflation you are are 0, with real inflation you are into negative territory. A nominal pull back is ok with me especially with real negative yields.

  4. I can't name one politician who was able to deliver on all their campaign promises. The GOP leadership is already talking down expectations. I just don't see interest rates or inflation rising very quickly, and the stock market is way overdue for a correction. You are probably right about metal prices for the rest of the year. Next year? It's going to be interesting, to say the least.

  5. I wonder if we can expect similar price action in gold and the miners as we did last year at this time? It seems to me that all the pressure on gold and miners right now is to the down side with bond yields seeming to be on the rise and a rate hike almost certain in December. I for one, will be watching closely tomorrow morning and probably shorting the gold miners until at least mid December, excepting diversified miners like Freeport-McMoran. What the heck is going on with copper anyways?

  6. So far your forecasts have been the most accurate I have found. And your analysis always supported by reasoning and evidence. Thanks. Wondering if the idea that by year end 1.6 billion muslims may be permitted to buy gold could spike the price. That idea I have seen floating around. Is it all a ploy to get people to buy buy buy?

  7. I doubt that nominal rates can go up much. There is just too much debt and the cost of servicing it would bankrupt governments, corporations and households alike. If the bond sell-offs continue, central banks will be forced to resume buying the bonds themselves to hold the rates down. Rates won't rise just because of price inflation: indebted governments need negative real rates to inflate away their debt. My guess is that we will see negative 4 per cent real rates for a long time.

  8. this is a real killer that's for this a big dead cat bounce or are we seeing the cusp of early to tell or for me to make my decision. Either way I've learnt alot from this. lost touch with objectivity

  9. The yield of the PMs is its long terrm independency of currencies and its resistance against inflation in general. Nevertheless there are always fluctuations due to speculation in a grande style.

  10. This leap year has proven to be a eventful year in many aspects and the period after the super moon maybe interesting as well. The last super moon back 1948 proved interesting also

  11. don't count out a pump and dump the next week or 2 once sp500 and the dow show interesting technical standpoint. do or die moment for sure

  12. im actually glad gold is going down. I been planning on getting another oz for months. Hopefully before this year of 2016 ends, I could get another 1 oz gold.

  13. How many times in history have eight thiusand metric tons of paper gold been sold in a three day span of time. Eight metric tons of gold is equivelent to almost three years of production. Obvious manipulation of the market to smash the post election run. An extreme move which reeks of desperation. IMHO

  14. illuminati silver. . . Seriously! WTF is with using the illuminati ( a nefarious bunch of anarchist bloody terrorist Jesuit criminal intellectual despots ) name to sell bullion too the public, did I miss something here or is no one else wondering why?

  15. Who ever believes the gold price shut look at the price of bitcoin………….Like the banks though Killary would of won the elections and gold rose a bit for 10 min and then it get bashed back down hard…and since then sinking and sinking believing the usa………now is saved and all global problems are solved and our debt based fiat saves the day………….

    We,ll see what happens but i really really start to doubt if the price of gold and silver is made by traders or by banks……….

    Trump was during the election tours like a wild animal saying all came up in him and once elected he held a 15 min speech and the world was………ow the past 1,5 years where not nice but these last 15min made him in a great leader who will rebuild the broken left by capitalism usa by slapping import tarifs on cheap products from elsewhere and he will rebuild the infrastructor…

    Anybody who believes u can rebuild a nation by that…….Shut look at what the chinese did…buy raw commoditys like steel oil alumium and produce things from them with labour and sell them with a profit…Thats the only way u can make a profit…..China can break the usa down by bullying the usa mega corps out of china and then we have a economic war..

    But trust me Trump is just like Obama change vote for me i promise u this and that………and in 4 years we see a new man stand up saying vote for me i am new special i bring change….

    Trump is 1 of the 1% u think he would tax the rest of the 1% or that he borrows the deficit of his budget so he looks like a wise great leader………..

    I am really happy Trump won cause the world will need less bodybags (as it looks now vs that old witch) but his economic plans are a laugh…Look at history and u see what happend,all is been done tried and with any good results..

  16. sadly silver can never stay above $20 for more then 3 days max when it gets there..I will admit ive been wrong my outlook doe silver has changed most of my collect is all 40% blue and brown eisenhower dollars I have nearly 1,000 of them all together my avg cost for all of them between 71-76 is about $8-9 per coin 500 of my ikes are toned brown box proof 1974 still cased eisenhowers aka ike my avg price is $10 per coin..melt value is about $5 when silver is $16ish..but they only made just over 1millon of these giving them numastic value..i also have about 40 rolls of 40% bu jfk halves avg cost $60 these coins are bu so I did well on them….my point is I was saying silver would see $80-100 in 2017..well im wrong!!! silver is being shorted hevily and it will only continue I wish I was wrong I think 2017 we may see near $10 per because im low income and will not be a buyer unless things change..I would never sell though at our current prices I would consider selling if we ever in my lifetime hit $50…i have about 3,000 dollars in .999 avg cost $18….sorry for my spelling im shaky due to my health i have severe lyme disease…just wanted to share my views best of luck to all with your stacking silver

  17. A .25% interest bump in my savings account would not make me want to go sell my gold and place the proceeds into a interest bearing account. Frankly, things look strangely familiar to 2000 when the Stock Market was in a bubble and a new republican president was coming into office. If you were ever thinking about buying gold then now is the time to do it.

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