This last week, a major market veteran indicated that there were 50 buyers for every one seller of gold & silver bullion. Friday was intense. People were looking for this opportunity to trade in their fiat currency for “real” money.
What is the intent behind this “smash”? Those in power are not telling us. Their actions are transmitting to us that there is something major lurking below the surface. Their desperate attempt to save the U.S. Dollar from further depreciation appears to be the focus. Further decline would bring a demand for higher interest rates. In turn that would cause an explosion of deficit costs to pay for interest against the current outstanding bonds. Ultimately the Federal Reserve would lose control.
On the technical side, gold could retrace to $1,250 before roaring back up. If it were to do that, physical supply would probably be nonexistent or premiums would make up for the shortage. Either way, this is the epic battle between the West and the East. Volatility will remain high. For those who invest in anything, do not borrow to invest. These are perilous times. For the rest of us, hang on and watch history in the making.