I sat down with Michael Noonan, Edge Trader Plus, to get his take on the current state of
the silver and gold market. Michael's approach to trading is a little
different than most of the other people I speak with in that he simply
watches the movement in the charts and tunes out everything else.
Michael is not concerned with fundamentals, and, quite frankly,
fundamentals have not played a role in the movement of silver for many years.
The price of silver is only determined by the amount of paper being moved
around on the COMEX, nothing else.
We take a look at the movement in the gold charts as well, but the real
action is in silver. The gold/silver ratio (GSR) is on the move and now sits
at 66:1, which is close to a 20-point improvement in just a couple of short
weeks. The GSR, historically, has been in the neighborhood of 12-15 to 1.
Real quick for newbies: the GSR is the number of ounces it takes to acquire
an ounce of gold. Currently, it takes 66 ounces to equal gold's current
value. The GSR is a great trade and Michael explains one of his recent trades
based on the GSR. I made the trade a couple of years ago as well, and like
Michael, am looking forward to reversing that trade.
Silver and gold are looking very strong for the remainder of the year.
While none of us have a crystal ball and, therefore, can not make
predictions, there seems to be a number of people that believe the silver and
gold market are set up for some major movement through years end and into
2017. Will this movement be based on what is happening with the dollar, the
euro, yen or other currency? Only time will tell. The dollar, while currently
strong, is very weak and getting weaker by the day. The Chinese and Russia
are beginning to make bigger and bigger moves with their economic and
financial infrastructure. What most people don’t realize is the dollar is
almost 100% dependent upon others for it’s strength or lack of strength. If
another nation, like China, decides they would rather do something
differently, the status of the dollar changes and those changes can occur
very quickly.
Physical silver and physical gold is where’s it at. The price is not as
important as the physical possession as silver and gold are preservers of
wealth, a hedge against inflation and insurance against changes in other
currencies.
Give this a good listen as Michael‘s view is slightly different than what you may be
used to hearing at The Daily Coin.
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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.
