Monetery Metals on Gold, Silver, USD and Confidence

Among a select group of writers (aside from myself) published at Biiwii is Keith Weiner of Monetary Metals.  This morning we have published the following…

Gold Demand Falling

He is talking about the fundamental prices (per his unique methods of calculating) of gold and silver being well below current market price levels and that the gold-silver ratio’s calculated price is 81, which jibes with my own view and also with a logical ojective of this chart.  Gee, look at that gap down from 81 that occurred when the market achieved max freak out on Janet Yellen’s USD adversarial comments.

gsr

But markets are their own animals and the spirits of the silver bugs and inflationists can be irrepressible so market fundamentals, whether the likes of Mr. Weiner’s or my completely different angle, are only one aspect.

The technicals are a different animal, which is a point we have made in NFTRH.  The technicals, especially in the gold and silver miners, are fully intact at this moment.

On another matter, Keith mentions “confidence” in central banking and in essence, notes that it is still fully intact.  His proof?  People are gaming the precious metals and settling in the debt paper overseen by the Federal Reserve, good old “soggy dollars”.

I would agree that in that respect confidence is intact, but I would disagree with the idea that it is fully intact, if that is indeed what he meant.  It’s a process and for all of 2016 we have been in a process of erosion in confidence.  I mean, things don’t happen over night.  Process, process, process…

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