Amid dire circumstances, Precious Metals, Gold and Silver, are set up perfectly for an explosive move higher.
The coming explosion in the price of Gold and Silver has several fundamental factors supporting it, including: 1) the weak dollar policy of the Trump administration, 2) increased demand from Central Banks worldwide, 3) increased demand from buyers of coins and bars from the US Mint and 4) decreased new supply from miners.
The argument for Gold and Silver is even stronger when one looks at the charts to see what their 2 thousand words about the two Precious Metals tell us. Both Gold and Silver have been strikingly boring and dormant for the last 5 years. The cryptocurrency sector, or digital Gold, as it’s often called, has largely taken interest away from Precious Metals, who have almost no volatility at all.
In fact, Bitcoin (BTC) was largely constructed to be analogous to physical Gold. Bitcoin produces more supply of coins through a process it refers to as “mining” , although it bears no resemblance to mining as the process by which new physical Gold is produced. Bitcoin was designed to grow its supply in a very limited fashion, completely providing the benefit of Gold’s finite supply.
Both Gold and Silver have traded in a fairly narrow band for the last 5 years. GLD, the ETF for Gold, has traded between $110 and $130, while SLV, the ETF for Silver, has traded mostly between $14 and $2o. More often than not, a prolonged trading range precedes an explosive move in one direction or the other. When one factors in the very positive fundamentals combined with the charts, the probability of an explosive move HIGHER is quite compelling.