Silver Prices Surge Over $18 to 2 Year Highs

Via Silverdoctors.com

  • “Silver has surged to nearly $18.50 this morning placing new post-BREXIT highs as the market seems to be suddenly pricing in massive new stimulus by The Fed, ECB, and BOE…
  • “Silver is up .75 over the past 24 hours, and nearing critical overhead resistance at $18.50-$18.60”
  • “A move through $18.60 would likely send silver shooting towards $20/oz”

Read more here..

Silver

True demand for Bitcoin could be severely understated

By Vinny Lingham @ Vinnylingham.com

  • “My key point in this blog post is that exchange volume doesn’t represent true market based Bitcoin demand and supply. Traders are technically trading on only a portion of the deals being transacted”
  • The largest purchase I was able to uncover is around $50m on the OTC market and regular 8 figure purchases are now common. Given the scale of purchases this size, an order like this has to be filled using tranches. Brokers typically fill and price orders like this in 6,000–8,000 BTC tranches to prevent the market from pushing the price up”

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Brexit = Death of the Technocrats

Via Michael Krieger @ libertyblitzkrieg.com

  • “To summarize, the exact same people who ruined the world bailed themselves out, avoided all accountability and continue to call the shots. These are the men and women we know as “the experts.”
  • “To the status quo technocrat, this is a lifelong position. They consider themselves to be the wise indispensable elders required to steer the world in the appropriate direction irrespective of any and all calamities they cause along the way. Unfortunately for us, history shows us that the biggest disasters happen precisely when you combine such expert arrogance with unbridled power”

Read more here..

Fortunes will be made and lost when capital flees to safety

By Adam Taggart @ peakprosperity.com

The video is very much like my video ‘Will Bitcoin investment become the only game in town’.

There are hundreds of trillions of dollars in over priced assets just waiting to find a new safe haven home.

  • “Its message is simple: there’s a preponderance of data that shows the world’s major asset markets are dangerously overvalued. And when these asset bubbles start to burst, the ‘save haven’ markets that investment capital will try to flee to are ridiculously small. Investors who do not start moving their capital in advance of crisis will be forced to pay much higher prices for safety – or may find they can’t get into these haven assets at any price”

Read more here..

2 Previous correlations that show Gold is severely undervalued

By Edward Blake @ Renegadeinvestor.co.uk

Whilst there is a lot of noise around whether Gold has just transitioned into the next stage of its secular Bull Market, or whether the recent $1300 spot price is just a bounce before Gold heads down below $1000.

There are two charts that IMO can help provide clarity and remove the noise  from the manipulation and shenanigans in the paper gold market. 

The first is Gold and U.S Debt correlation – As you can see from the chart below, in recent times. there was a very high 93.7% positive correlation between U,S Debt levels and the Gold price. 

The fact that we are now seeing such huge divergence between the gold price and US debt levels indicates that Gold priced in U.S Dollars is likely trading well under its fair market value.

Gold & U.S Debt correlationEven discounting all the other numerous fundamentals for owning gold right now; including global debasement of fiat currency, huge geopolitical risks, central bank lunacy and slowing global macro. Based purely on this chart if this correlation were to correct Gold should currently be trading North of $2000 oz. 

The second is previous Fed Balance sheet and Gold Price correlation –

FED goldWhilst the first and second charts are linked through QE to some degree, you can clearly see again that up until QE3 there was a very high positive correlation between the Fed balance sheet and the gold price.

However, since QE3 which has taken the fed balance sheet to a whopping $4.5tr and a balance sheet which has no chance of ever being unwound, without causing global financial turmoil. 

You can see again that there is now huge divergence, which indicates that if the correlation was to normalise, Gold should be trading somewhere in the $2500 oz region.

Whenever I hear a lot of noise around the paper price of Gold,  I simply keep these charts in mind, because at some point precious metals are going to correct back to their fair market value and based on the trend of Global debt which has increased by $57 trillion since 2007; IMO its going to be somewhere well North of its current $1300 oz.

Globla debt increase

 

Disclaimer

Has Bitcoin Market cap hit all time highs? – Deconstructing the Bitcoin Market Cap

By Vinny Lingham @ vinnylingham.com

  • “Based upon my analysis, the ATH price for Bitcoin is $697.19 — which most Bitcoin technical & trading analysts, like BitcoinBullBear, will tell you represents a major breakout level for Bitcoin and will likely see a lot of resistance. This is because it IS an ATH for Bitcoin, not a technical level”

Read more here.

Market cap