Expect Divergences, Not Convergences, Between US Stock And Gold And Silver Asset Prices For The Remainder Of 2017

March 23, 2017

For those that have been following my daily updates on Snapchat (SKWealthAcademy), you know that I stated this past Tuesday that I expected silver and gold to rebound this week after a brief pause that some technical analysts said was a sign that the prices of gold and silver assets were heading lower again this week because of less than impressive follow through after the significant rise last 15 March. Again, the reason I so often contradict the predictions of technical analysts specifically in regard to gold and silver price behavior is because of:

(1) my long standing contention that with gold and silver, big global bankers often paint the charts, and try to fool people into selling right before significant rises and into buying right before significant raids; and

(2) my even longer standing contention that one must take a much deeper look behind the scenes to understand what direction global bankers are trying to push gold and silver in the short-term, as there are plenty of times global bankers push gold and silver asset prices higher in the short-term, though long-term, they are perpetually interested in suppressing them.

The analysts that can’t understand that bankers can make huge profits from pushing gold and silver prices both higher and lower in the short-term, if they’ve positioned themselves accordingly before they execute these plans, probably are also dumbfounded by the notion that bankers would ever want stock markets to crash at times as well, believing they can only make money from stock markets if they rise continuously.

And speaking of stock market crashes, this has not yet happened in US stock markets, though the DJIA and the S&P500 index both fell by more than 1% yesterday for the first time incredibly in five months, which due to incessant ramping for the last five months, seems like a “crash”. In any event, those following me on Snapchat also know that I’ve stated that US stock markets are a huge bubble and that I expect the sell-off to be extremely volatile and violent when the market finally snaps. Is this the start? Honestly, no one can predict the exact date of when the US market will snap. It could start next week, or it may not materialize for another 3-5 months, but I don’t think it’s a stretch to say that when it does, we’re going to experience something worse and more intense than the global stock market crashes of 2008.

However, due to the possibility that the US stock market has peaked as of the end of February, there has been some worries about if the best gold and silver mining stocks are going to be dragged down in any resulting melee, should it materialize. To address this worry, I think it’s overblown, as this concern originates mainly from fear of a repeat of 2008, when Wall Street banks like Bear Stearns and Lehman Brothers went belly up and the BIS, and other Central Banks under its umbrella, colluded to simultaneously smash gold and silver prices at a time, had free market forces been allowed to operate, they should have been soaring. There are several reasons why I believe that gold and silver asset prices will diverge from the direction of the US stock market when a significant correction occurs, and after a predictable snap-back rally ensues, again when a deeper, more violent sell-off in US stock markets follows.

Number one, Central Bankers that are not on board with the Western banking cartel that do not have a vested interest in seeing the US dollar remain an internationally accepted currency, who reside in all the BRICS nations, now have the benefit of 9-years of white papers and documented evidence of how the BOE, BIS and US Federal Reserve spot gold and spot silver price suppression scheme works, not to mention the admissions of Deutsche Bankers regarding their participation in these schemes. Thus, with knowledge will come a different way of handling the acquisition of physical gold and silver during subsequent global economic turmoil.

Secondly, while the People’s Bank of China and the Central Bank of Russia likely welcome price smashes, when they happen, as another opportunity to buy low, I’m fairly certain that all of the BRICS nations will use such situations to buy as much physical PMs as possible and even to acquire more PM mines, which will subsequently place upward pressure on spot prices shortly thereafter. And perhaps more importantly, should the US market correct significantly and a deeper sell-off appear to be on the horizon at some point in the near future, I don’t think that the retail investor is going to be fooled again for a second straight time after the travesty of the 2008 market crash. Even if the percent of the retail market that does not succumb to banker propaganda against gold and silver, and has learned valuable lessons from the 2008 economic crisis is small, even a small percent of this market moving money into PM assets will successfully create a divergence between the prices of PMs and US stocks. So to make a long-story short, I expect divergences in price behavior between US stock prices and the prices of PM assets, including the best gold and silver mining stocks, to occur later this year.


JS Kim is the founder and Managing Director of SmartKnowledgeU, a fiercely independent research & consulting firm with a focus on Precious Metal strategies to combat the wealth destruction of quantitative easing and Central Banks’ currency wars.

U.S. ranks third in world gold production with 240 tons per year

Gold Eagle twitter                Like Gold Eagle on Facebook