It's time to care again about gold and silver

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It's been a while since I've covered the precious metals in an article. They've been range-bound for much of the past year, with few notable sector developments to report.

But I feel compelled to write about them today for two reasons:

  1. The probability of an upwards re-pricing of the precious metals is rising, and
  2. Both gold & silver are quite over-sold right now, technically-speaking.

With technical and fundamental indicators flashing green simultaneously like this, now is an advantageous time to consider increasing your PM exposure (I did so myself yesterday).

The Human Factor

Before I go into further detail on the current conditions of the PM market, here's a recent personal experience that underscores how few people have any real familiarity with gold & silver as an asset class, let alone own any (beyond, perhaps, a bit of jewelry).

A good friend moved and needed help transporting some bullion from his old town to his new one. Most of it was silver, several thousand ounces worth.

That much silver is pretty friggin' heavy.

So we huffed and strained, hauling that load out of one bank vault, into his car, and from there into the vault at his new bank. While we did our best to be as discrete as possible, our sweaty, grunting 2-man production was hard for the bank staff to ignore.

Managers at both banks figured out what was going on, as it was pretty obvious. And both separately asked us out of genuine curiosity, "Is that real silver?".

My friend briefly handed over a 100-oz bar so they could see for themselves, sparking conversations about the merits of owning physical bullion.

It turns out that neither manager had ever held a bar of silver before. This was pretty shocking to me. Even though they know that the safe deposit boxes in their own vaults very likely store some bullion, neither own it personally, nor even come into contact with it. It's just not a part of their world.

Anyways, later on I mentioned this story to another buddy who shared my surprise. "Man, if the bankers aren't familiar with silver and gold, then who the heck is?", he asked. A very good question, I agreed.

But then he jolted me by asking: "So, one of those 100oz bars -- what's it worth, anyways? $150?"

This is an otherwise intelligent, math-competent person. But like most folks, as well as those bank managers, he doesn't own any precious metals and so his knowledge of them is pretty limited. Limited enough to underestimate the price of silver by over 90%.

This reminded me of Mark Dice's videos, which show just how woefully ignorant the average person is when it comes to the value of bullion. In this one, street passersby decline a free gold coin in favor of a Snicker's bar:

Simply put: gold and silver, in the West at least, are underappreciated assets. As Grant Williams famously put it in his excellent synopsis, when it comes to public and institutional sentiment of the precious metals, "Nobody cares."

Which is a big factor why the prices of PMs have languished for the past seven years. And why the flow of bullion has been uni-directional from West to East over that period.

Time To Care

But there are gathering signs that it's now time to start caring again.

Looking at the just techinical side for a moment, both gold and silver have been in a prolonged downtrend for the past two months. They're now at extreme undersold levels.

Both RSI and MACD indicators are signalling that the recent declines have likely been played out at this point:

Gold price chart

Silver price chart

And both metals have now broken below their Bollinger bands (a sign of extreme oversold conditions). Here's gold:

Gold Bollinger Band chart

While a break below the Bollinger bands could indicate that something fundamental has suddenly changed in the PM market to merit a materially lower repricing, there just don't appear to be any credible candidates for that argument. Yes, the dollar has risen over this period; but there are solid reasons that the USD and gold/silver need not always trade inversely to one another. And as we'll get to in a moment, conditions are actually becoming more PM-favorable.

Technically-speaking, it seems much more likely that the current downtrend is long-in-the-tooth and that, as prices dip down to 18-month lows, a recovery is soon due. In fact, we may be seeing the start of such today, the first material up day for the PMs in a while.

Fundamentally-speaking, world events are providing more and more reasons to own gold and silver -- from stratospheric asset bubbles threatening to burst, to a long-overdue return of market volatility, accelerating de-dollarization, slowing global economic growth, increasing credit market risk in both Asia and Europe -- the list goes on and on.

The full set of PM-positive drivers are covered in our recent excellent interview with Ronald Stoerferle summarizing the insights of his exhaustive 230-page annual report titled In Gold We Trust. If you haven't listened to it yet, carve out 49-minutes to do so soon:

To the many reasons Stoerfele gives in support of his conclusion that gold is "dirt cheap" right now, we can add the multiplying macro data points predicting market turmoil and economic recession later this year, as well as the building uncertainty of further rate hikes by the Federal Reserve -- all potential developments that should lead to higher PM prices.

Whether you're amassing bullion for the long term (which we've long recommended) or speculating in the paper markets for the short term (something we don't encourage for the average investor), you want to buy low and sell high. With precious metals trading near 18-month lows and close to the "all-in" production cost for many miners, prices are unlikely to get much lower than this.

Taking Action

So while prices remain at current lows, we recommend considering the following:

  • Creating your core physical precious metals position if you have none. Many PeakProsperity.com readers already have their core positions in place, should an abrupt crisis occur that suddently sends demand for 'safe haven' assets spiking. But if you haven't built yours yet, don't panic. But also don't delay too long in taking action. A good first step is reading our free guide Buying and Storing Gold & Silver, which details the various forms you can purchase bullion in.
  • Setting up an ongoing purchase program. The easiest and most affordable way to build exposure on top of your core position to set up an automatic purchase program that buys a consistent amount of bullion each month at a volume that fits within your budget. The MetalStream service offered by the Hard Asset Alliance is a good example of such a program, through which you can set up automatic purchases of as little as $100 per month.
  • Nibbling into the miners. The stock prices of precious metal mining companies are much more sensitive to the spot price of gold and silver than the actual metals themselves. They can yield fantastic returns during bull markets, as well as widow-making losses in bear ones. And widow-makers they have been for the past seven years. But, for the above-mentioned reasons, that long winter may be thawing. For investors with the constitution and resources to speculate, it's an opportune time to consider adding or increasing exposure to the miners. That said, when doing so, we *strongly* urge to you work with a profession financial advisor with longtime experience with this asset class *as well as* demonstrated expertise with using hedges to protect these high-risk positions to the downside. If you're having difficulty finding an advisor who meets these conditions, consider scheduling a consultation with the firm we endorse (it's completely free).

Remember, right now, nobody still cares about the precious metals. Which is why it's estimated that only 1-3% of US households own any (jewelry aside).

So even if you only hold a few ounces, that's still more than 97-99% of everyone else -- which may make a tremendous difference to your prospects when the world starts caring again.

Fortunately, President Trump walked away from his attempted assassination with very minor injuries. The bullet that wounded Trump's ear could have just as easily ended his life, and his survival is nothing short of a miracle.

Sadly, that miracle didn't extend to everyone attending Trump's ill-fated Pennsylvania rally. Three other people were shot. David Dutch and James Copenhaver, both Pennslyavia residents, are thankfully in stable condition. Corey Comperatore, however, tragically died after being shot while protecting his wife and daughter from the hail of gunfire.

“Corey died a hero."

Camperatore, a 50-year-old loving father and husband from Buffalo Township, Pennsylvania leaves behind his daughter Allyson, his wife Helen, sister Dawn, and many other friends and family. Camperatore was a man of service, having spent 43 years as part of the Buffalo Township Volunteer Fire Company and had worked his way to becoming the fire chief when he stepped down to spend more time with his daughter.

Corey Comperatore's firefighting gear outside the Buffalo Township Volunteer Fire Company. The Washington Post / Contributor | Getty Images

Corey's friends and family have nothing but good things to say about him, and judging by their testimonies, Corey's final heroic act was consistent with how the volunteer firefighter lived his life.

According to many people who knew Compertore, he was a true patriot who loved his country. He was a fan of President Trump. Compertore was very excited to attend Saturday's rally, which he expressed in his last social media post.

Corey_Comper/X

During his speech addressing the shooting, President Biden expressed his condolences to the Comperatore family, stating that "He was a father. He was protecting his family from the bullets that were being fired.”

Democrat Mutiny? These prominent Progressives and Democratic leaders DEMAND that Biden withdraw

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Biden is still taking hard blows from both sides of the aisle after his abysmal performance in last month's presidential debate. As Glenn pointed out in his post-debate coverage, Biden came across as so incompetent that it has made many Americans scared that, should the country face a major threat, Biden would be unable to respond to it. This includes many Democrats, who are finally admitting that Biden isn't as fit as they have been claiming for the last four years.

Many names have already been suggested as potential replacements for the Democratic nominee, but many people, including some Democrats, don't believe Biden should even stay in office for the election. Here are some prominent progressives and Democratic lawmakers who have called for President Biden's resignation:

Rep. Lloyd Doggett (Texas)

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Rep. Raúl Grijalva (Arizona)

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Rep. Seth Moulton (Massachusetts)

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Rep. Mike Quigley (Illinois)

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Rep. Angie Craig (Minnesota)

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Rep. Adam Smith (Washington)

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Rep. Mikie Sherrill (New Jersey)

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Rep. Pat Ryan (New York)

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Rep. Hillary Scholten (Michigan)

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Senator Peter Welch (Vermont)

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Rep. Earl Blumenauer (Oregon)

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BONUS: Actor George Clooney

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These TOP 5 new technologies left Glenn SHOCKED

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Glenn has been covering some of the most groundbreaking, exciting, and often terrifying technological advances. Some new tech has the potential to make a positive impact. Some tech is just SUPER cool, like a flame-throwing robot dog. However, there is also a dark side to technology. Glenn exposes how some new technological developments, particularly in the realm of AI, pose serious ethical questions.

Here are the top five new technologies that Glenn covered that will make your jaw drop:

Anti-gravity device

This new technology developed by Dr. Charles Buhler and his team may change everything we know about transportation and travel. Described as "propellant-less propulsion" by Dr. Buhler, this technology appears to defy gravity and is potentially a way for people to travel into and through space without the need for rockets. It doesn't stop there either, this tech could be used to forever change the way we travel here on Earth.

Human embryo-powered supercomputer

To have massively powerful AI, something, which many people seem to have an invested interest in, you need a lot of electricity to power the computers that host the artificial intelligences. Naturally, this energy consumption upsets the environmentalists so in response a terrifying solution was developed. Bio Processors are essentially computer chips powered by human cells, specifically stem cells, which are predominantly harvested from embryos. These Bio Processors have a limited shelf life, meaning they need a steady supply of stem cells to keep the computers that use them operational. What could be more terrifying than an AI that eats human cells?

Voice-stealing AI

When ChatGPT came out in late 2022 its power and versatility took the world by storm. Suddenly, students had it write entire essays in mere seconds, and it was creating songs and poems with ease. The capabilities of the ChatGPT AI were as disturbing as they were impressive, but after a recent update, it took a hard turn towards disturbing. OpenAI, the company behind ChatGPT, decided to give the program a voice and tried to recruit famous actress Scarlett Johansson to lend her voice to the machine. After she declined the offer, OpenAI went ahead and released the update for ChatGPT featuring a voice that sounded eerily similar to Johansson's. While OpenAI claims it's a different, similar-sounding voice actress, the idea that a computer is going around with your stolen voice is terrifying.

Flamethrower robot dog

How could you possibly ever make something cooler than a flamethrower? Simple, strap it to the back of a robotic dog of course! Originally built to help fight forest fires (ironically enough) by creating backburns, Glenn pointed out that a pack of these bad boys patrolling your property would be the ultimate home defense. Nobody would come anywhere near your house if it was guarded by a few of these firey companions.

Wormhole-generating UFO's

It's been a decade since the tragic disappearance of Malaysia Airlines Flight 370. No trace of the aircraft or any of its passengers, except a few small pieces of debris, were ever found nor was an official cause of the disappearance ever given. There have been an infinite number of theories explaining what might have happened, but this one from investigative journalist Ashton Forbes might take the cake for the wildest. Forbes joined Glenn on his radio show and brought with him convincing video evidence that seemed to show the now-missing aircraft being circled by three mysterious orbs before suddenly disappearing in a flash of light. Does this video show the doomed aircraft being sucked into an artificial wormhole, or is it an amazing piece of hoaxwork?

THESE TOP 10 Founding Fathers' quotes help us remember America's original vision

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Independence Day is one of the few days when Americans come together to celebrate our country and the continued vision that our Founding Fathers crafted in 1776. But what is that vision? It seems with every passing July 4th, Americans lose even more of a sense of what the original intent of our nation was supposed to be. It's becoming increasingly important to read the Founding Fathers in their own words and to remember the vision that they cast for our nation. Here are our TOP 10 favorite Founding Fathers' quotes to help us remember their original views of government, freedom, and the American vision.

"The advancement and diffusion of knowledge is the only guardian of true liberty." —James Madison

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"Either write something worth reading or do something worth writing." —Benjamin Franklin

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"Truth will ultimately prevail where there is pains to bring it to light." —George Washington

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"The people are the only legitimate fountain of power." —James Madison

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"I agree with you that it is the duty of every good citizen to use all the opportunities, which occur to him, for preserving documents relating to the history of our country." —Thomas Jefferson

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“Human passions unbridled by morality and religion… would break the strongest cords of our Constitution as a whale goes through a net.” —John Adams

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"Those who stand for nothing will fall for everything." —Alexander Hamilton

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“The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse.” —James Madison

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"I fear that in every elected office, members will obtain an influence by noise, not by sense. By meanness, not greatness. By ignorance, not learning. By contracted hearts, not large souls. There must be decency and respect." —John Adams

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“We must go home to be happy, and our home is not in this world. Here we have nothing to do but our duty.” —John Jay

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