Over the past several months, there have been comments from various
sources calling for the bottom in gold and silver. There have been a couple
of people that have stated this is not the case. One of those people is Jeff
Nielson of Bullion
Bulls Canada and writer for Sprott Money. Jeff, beginning in February, has gone so
far as to call the upswing in silver, in particular, as well as gold, as
being a “fake rally”.
I sat down with Jeff to get an update to our conversation from March 24,
2016 when he stated the same “fake rally”. In March, Jeff explained it like
this:
Currently, what’s taking place in bullion markets,
over the short term, we are in the middle of a fake rally. My premise for
that is really simple. As we’ve seen the metals prices advance the price of
gold has been leading silver, but in any legitimate precious metals rally,
the price of silver always leads the price of gold. This is a rule of
precious metals markets for a very simple reason. By dollar value the silver
market is much, much smaller than the gold market. Jeff Nielson, The Daily
Coin
This call goes against the contrarian view point – contrarian to the
contrarian! Jeff even stated the pullback would begin at this time:
If you want to crash metals prices and they are
already at bargain basement levels then you have to march them up a bit
first, if you wanna give them a really good crash. So, it’s take them up so
you can push them down even harder and faster. Maybe that harder and faster
is starting today (Editors Note: Gold was down approximately $24.00 and
silver was down approximately $0.60 when we recorded this on March 23.)
My sense is this is a little premature, my sense is this will be a false
takedown, if you will, and then we’ll see metals prices quickly bounce back
again to assume their pseudo rally and the actual take down
will occur a few weeks down the road. – Jeff Nielson, The Daily
Coin
This has proven to be precisely how it played out. It was three weeks ago
when the Federal Reserve began their nonsensical talk of “raise interest
rates” – “don’t raise interest rates” and the metals have been on a downward
spiral ever since.
The metals are another of the (now confirmed) manipulated markets. They
move according to the people that pull the levers and produce the “news”
which points the “HFT” trading algorithms in the direction that is desired.
The “trading” then begins to move prices in the manner which benefits the people/companies
at the very, very top.
Fast forward to today. As Dave Kranzler of Investment
Research Dynamics explains on the Silver Doctors Metals and Markets Weekly Wrap, all the
news that has been produced over the past three weeks has all been
specifically to attack the gold price and, equally, the silver price. The one
exception to this overall economic/financial news cycle is the BLS labor
report on Friday, June 3. This one piece of news stopped gold and silver from
sliding further, at least for the moment.
Prices are generally moving down and we are just a few days away from the
Federal Reserve meeting. The precious metals market will, in all likelihood,
continue moving downward. The only question is: will gold and silver reach
new lows or test the low that was established in December 2015?
Jeff seems to think the metals, especially silver, could revisit lows that
have not been seen for several years. Gold, in his opinion, could retreat to
$1,000 per ounce before it’s all over, and silver could revisit a single
digit trading number. Can you imagine $9.99 per ounce for silver? Would there
be any physical silver available at that price? My guess is absolutely not. I
believe the physical markets would seize up and Jeff believes this as well.
Jeff has some ideas on how the people in charge may handle such a situation.
This interview is not to be missed. As the title implies, we are reviewing
the market from a different perspective and discuss aspects of what is
potentially coming down the pike. We should challenge ourselves everyday to
reach a stronger, deeper understanding of how these rigged markets move and
pay close attention to the clues the oligarchs share through their memos,
meeting minutes and public dialogue. We are all here to learn and we hope you
learn something from this conversation.
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Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700
articles and produced more than 200 videos about the precious metals market,
economic and monetary policies as well as geopolitical events since 1987.
His articles have been published by Zerohedge, SHTFPlan, Sprott Money,
GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has
contributed daily to SGTReport since 2012. He has interviewed experts such
as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and
Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and
some of the best economic, precious metals, geopolitical and preparedness
news from around the world.
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The author is not affiliated with, endorsed or sponsored by Sprott Money
Ltd. The views and opinions expressed in this material are those of the
author or guest speaker, are subject to change and may not necessarily
reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the
accuracy, completeness, timeliness and reliability of the information or any
results from its use.
