Weekly Update: Gold, Silver, Bitcoin – 05.22.2017

Approximate spot prices

Gold: $1,260 per paper ounce
Silver: $17.10 per paper ounce
Bitcoin: $2,200 per coin

Behold the whirlwind! The dollar has weakened back to the Trump election levels, cryptocurrencies have continued to skyrocket, and the geopolitical intrigue escalated once more. Will Seth Rich be outed as the WikiLeaks source inside the DNC? Would such a revelation put an end to the Trump-Russia narrative? There are many more eyes on this now than ever before, and it appears that the initial speculations about Rich’s murder last summer were on point. Many more questions have been raised that can best be explained by the theory that this was a retributive political hit rather than a botched robbery. Expect this story to reach feverish levels this week.

With President Trump in the Middle East and things heating up on the domestic side, it can be difficult to know what to pay attention to. The same deep state playbooks will be used, but this time with increased desperation. This brings the potential of false flags back into play. Will it be time to pull the plug? We know that people make poor decisions when under stress, and this applies even more so to evil people under stress. Batten down the hatches. It feels like this cycle isn’t going to go quietly into the night unless overtaken by even more dramatic events – distraction or otherwise.

Gold

It doesn’t take a technician to look at these charts and note that $1,260 is an important level for our barbaric relic of choice. These levels don’t ‘really matter’ to the extent that prices are not allowed to determine fair value. If you’re reading this, then you’re likely familiar with the context and methodologies of precious metals manipulation. I’d like to see a solid break of $1,260 to put $1,300 back in play. A nosedive back to $1,200 is also possible, but it looks like the upside is a more likely progression for now. One interesting aspect about the current dynamic is how missile launches from North Korea were the main attention target for geopolitical instability a couple of weeks ago. Now that’s page six material. Where will we go from here? We may not have to wait long to find out.

Silver

We are closing in on a year since the courageous silver move up to $21.00 that lasted about two weeks and started from where we are currently. Perhaps the recent elevator down was to avoid a similar move from a higher level, but the short term bottom looks like it’s in barring other shenanigans. I’m pleased to have picked up more silver when it was in the $16.30s, but it’s still one of the best investment theses out there to continue accumulating physical silver based on its monetary and industrial use. The thesis hasn’t been playing out at the same speed as the cryptocurrencies, but that’s what a century of manipulation implies. Any real unwind will be absolutely epic, and when that time comes you won’t be able to acquire what you need. We are waiting for the no offer moment.

Bitcoin

Trade alert: I sold 5% of my bitcoin position in front of $2,000 and another 5% in front of $2,200. I’ll sell another 10% if we see a buying panic (ex. $500 up in one day), but for now the game is to sit with the core position that was accumulated back in ancient history when bitcoin was in triple digit territory. It turns out that $1,200 a month ago was not too late to buy. I’m expecting any dips here to be bought aggressively. We’re certainly overdue for the type of quick drop that materialized regularly last year when bitcoin got away from the trendline. Part of these gains have been reinvested into ethereum, where I’m late to the game but not too late. I’d love a pullback in that to size up the position. There is incredible potential in the crypto space, but you absolutely must do your homework as not all will make it or have a long term use case. As I mentioned on The Hagmann & Hagmann Report last week: never invest in something you don’t understand. Here’s some homework if you’re not familiar with the blockchain or bitcoin:

Conclusion

These are wild times, and they look to be getting even wilder in the days and weeks ahead. Seek the Lord first and foremost. Look to an infallible guide in this fallible world.

Disclaimer: These are one amateur’s fallible opinions. Holding any asset is risky, so do your own research and make your own investment decisions.