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What Will Signal a Reversal in Precious Metals?

Mike Maroney
September 27, 2018
Video Transcript

Mike Maroney: Good afternoon! It's Thursday, September 27th. My name is Mike Maroney and I'm coming to you today from the Monex Precious Metals Studio. We're going to do our Silver Centric video today. We've had a lot of action in the silver market as we broke above the 20-day moving average this week and we hit an intraday high of $4.55 before backing off as the market was waiting for the Federal Reserve announcement. Now, we received that announcement yesterday as the Federal Reserve raised a quarter of one point and they talked about one more increase this year and three more in 2019. Now, the interesting development that took place off of that is the dollar was trading down around $93.60, but now it's rallied back to the upside, broke at above the 20-day moving average, and the 100-day moving average, and because of this we've seen a sell-off in gold and in silver. Now, what we have developing in the precious metals market is... we've been hammered pretty good for the last three or so months, gold was as high as $1,370, it's trading $1,190-$1,195. Silver was as high as $17.50, it's trading at approximately $14.00 - $14.25. What we have developing right now is this situation. We've seen the dollar trade upwards, because of the increase in interest rates and our economy and our stock market is doing pretty well, but the bottom line right now is the emerging markets and the world markets are starting to slow. There's a massive amount of U.S. dollar denominated debt, and as the dollar strengthens this is going to put a damper on the overall world economy, and how long will we be able to maintain this situation based on what's happening here and based on what's happening with the trade war.

Right now, there's a lot of uncertainty out on the horizon. We have sovereign debt issues that quite frankly could blow up at any moment. We have issues because of BREXIT. We have issues because of Italy and Spain and the banking situation and the Turkish crisis. So, what we have right now is a potential opportunity. If you believe in precious metals and understand why it makes sense to diversify your portfolio by owning a portion of it in precious metals, you probably also understand the trick is to try to buy low, and what we have right now is a market that looks to be trying to put in a bottom. Now, what I mean by that is both silver and gold are putting, what we call, a trough in and all they need right now are certain signals that will potentially tell us that a market reversal is about to take place. So, if you believe in precious metals and believe that it makes sense to diversify your portfolio, what you should do is give us a call. So, we can explain how this opportunity could play out and how you could use different strategies to buy the market once it breaks back above key resistance levels and the dollar breaks back below key support levels. There's a lot of things happening and we believe that the last quarter of 2018 and 2019 could be a tremendous time for ownership of precious metals.

So, please, give us a call today. So, we can talk to you about how they potentially could fit into your individual portfolio. Thank you.

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