It's time to care again about gold and silver

INDRANIL MUKHERJEE/AFP/Getty Images

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.

If there is any doubt about the radical agenda in our school systems, this California teacher just put that to bed. She asked to remain anonymous and courageously agreed to join Glenn on radio Wednesday and provided a document all about the mandatory training the teachers in her school district all had to complete.

They are not required to implement the training in actual curriculum but they are encouraged to talk to their kids about it. She asked colleagues what they thought about the training and many said that it was not sitting right with them but maybe it was because they had racist tendencies themselves.

Read the full document here:

Howtotalkabout race.pdf

Here's how the conversation went:


Teacher Speaks Out | Five OUTRAGEOUS "Critical Race Theory" Lessons Unions Want to Teach your Kids youtu.be

Once again, the media has failed to carry out even the most cursory investigation when it comes to allegations against Rep. Ilhan Omar (D-Minn.). But investigative journalist David Steinberg has been piecing together "32 new, verifiable, archived pieces of evidence" that indicate Omar conducted the "most extensive spree of state and federal felonies by an elected congressperson in U.S. history."

Steinberg joined Glenn Beck on the radio program to detail how the pieces fit together in his latest report available on TheBlaze.com.

"It's over," Steinberg told Glenn. "There's really nothing left. It's all ... the publicly available documentation that anyone would need to be convinced that, for eight years, [Omar] married her brother to commit immigration fraud. And this marriage fraud also was in the service of education fraud/student loan fraud. And along the line, we have evidence, that she filed at least two years of fraudulent tax returns, possibly eight [years]. We have evidence that she perjured herself eight times during her 2017 divorce from this man. And along the way, of course, we know she was living in public housing. We also know she was likely receiving subsidized child care.

"Essentially, almost everything she put her name on for eight years was perjury or fraud. And it all adds up to likely the most extensive spree of state and federal felonies by an elected congressperson in U.S. history. I really have no other way to put it. That's how big this is."

Watch the video below to get the details:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

The extreme-left idea that gender is "fluid" is a complete denial of science, according to sex researcher and neuroscientist Dr. Debra Soh.

Dr. Soh joined Glenn Beck on his latest podcast to talk about her new book, "THE END OF GENDER: Debunking the Myths about Sex & Identity in Our Society" and to offer a hard dose of objective truth about gender and sexual orientation based on scientific facts.

She also explained why she had to leave academia to be able to speak freely about sex and identity, and how — despite being a liberal — the far-left is actively trying to cancel her for saying there are biological differences between men and women.

Watch the video clip below or find the full episode of the "Glenn Beck Podcast with Dr. Debra Soh here.

Want to listen to more Glenn Beck podcasts?

Subscribe to Glenn Beck's channel on YouTube for FREE access to more of his masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, or subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

In February 2020, Glenn Beck and his research team uncovered an alleged multi-billion dollar money laundering scheme which lead to a missing $1.8 billion in U.S. aid sent to Ukraine during the Obama administration, all of which pointed to Igor Kolomoisky, the corrupt Ukrainian billionaire at the center of it all.

If you missed Glenn's February special, "Ukraine: The Final Piece," you can find it here.

This week, the FBI raided the offices of U.S. companies owned by Kolomoisky in Cleveland and Miami. Additionally, the Department of Justice accused the Ukrainian oligarch of stealing billions of dollars from PrivatBank and then laundering the money through a network of companies all over the world. Kolomoisky and partner, Hennadiy Boholyubov, owned PrivatBank until December 2016, when Ukraine nationalized the bank because billions of dollars had gone missing.

Kolomoisky has ties to the Ukrainian gas firm Burisma, former Burisma board member Hunter Biden, and Ukrainian President Volodymyr Zelensky, whose phone call with President Donald Trump was central to the Democrats' now-failed impeachment attempt.

On the radio program Friday, Glenn spoke with chief researcher Jason Buttrill about these latest developments.

"Yeah, $1.8 billion of [taxpayer] money that just vanished has now been found, or at least part of it, in Miami and Cleveland," Glenn said.

"I can't believe it's taken this long," Jason responded. "You said in February that [Kolomoisky] was the key to finding out where the money went. And we're talking about $1.8 billion dollars — $1.8 billion! That could finance a small war."

"That money went to PrivatBank — that's Kolomoisky's bank," he continued. "It was later nationalized after they found out all this money was mysteriously going missing. But it went through a bank in Cypress then, poof, it was laundered all over the world. [...] We also showed, in one of the previous shows, that there were wire transfers going from Burisma, which Kolomoisky is the managing principal of, to Hunter Biden."

Glenn and Jason also talked about recent reports from the Department of Homeland Security (DHS) alleging ties between American revolutionaries, such as Antifa, and Marxist terrorists in Syria, which BlazeTV exposed back in June. Find out more here.

Watch the video below for more details:



Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.