Feb. 2016 Metals Investing Update
Metals Market Updates
While we do not often do "told ya so" pieces in our commentary section, the past few days in terms of global capital (and metals markets) have performed as such we are going to simply say... "told ya so".
As per our series of tweets on January 28th and 29th indicating "overwhelming information that metals markets will be moving higher", within approximately a two week time period we have seen metals markets move nearly 200USD (gold) to the upside. Silver experienced a similar 4-5 percent range gain yesterday (2/11/2016) also. As we have been saying for the past few weeks, "2016 is the year metals investors have been waiting for". Additional information indicates that we have only seen the beginning of what will be considered by all standards of modern economics, an "epic" metals (comex) rally. This is something that we have been researching for quite some time, and will be the first to say that it is the "other side" of the wealth transfer mechanism. In other words, the beginning of the "fools rally". We do encourage our listeners and readers to continue to purchase metals into the increasing spot price market, as we have so often said, the object of the game is to hang onto the metals until after the new "system" is in place. We will be going into more detail in Wirehaus this month about the purchasing power (or estimated purchasing power) of metals after the Global Economic Reset.
Perhaps just as important as the fact there was a 50.00 (at some points nearly 60.00) US dollar single day rally in the spot price of Gold is the "why" that happened. Firstly, one can point to the consistent under-performing nature of US domestic equities and the ubiquitous "flight to safety" that is so associated with metals investing. There is no question that the levels that the markets are at now means inevitably an increase in spot metals pricing. However, as banks such as Deutsche financial stability come into question, we move from a "speculative" flight to safety to a "systemic" flight to safety. As one might imagine, there is a very important difference. When speaking in terms of a speculative "flight to safety", institutions and investors will temporarily invest in metals as a place to park cash to ride out any potential speculative market uncertainty. In other words, a hedge. When speaking in terms of a systemic flight to safety, institutions and individuals investing in metals are saying something very different. Rather than a short term hedge against speculative volatility, they are purchasing metals as a longer term hedge against systemic (banking and financial) system failure. (Think Lehman Bros. circa 2008).
It is for this reason that we are going to say that metals have somehow managed to escape the two steps forward, one step backwards effect associated with an economic feedback / suppression loop. What Evolution 4.0 indicates now is that metals spot prices are going to be more along the lines of ten steps forward and one step back. While we did just speak in something of a metaphor there, what Evolution 4.0 indicates is that the manipulation associated with the metals market has created a major "backdraft" effect. The repression of metals valuations means that in addition to natural supply and demand forces, there is also the "speculative hype" effect associated with metals suddenly appearing to be "very inexpensive in spot prices compared to value". This is one of those instances where we will be the first to say that its best to believe the hype. Most notably because of one major factor that Evolution has discovered.
In addition to our forecast of dramatic and sudden moves forward for metals spot pricing, this is all occurring right about when Evolution 4.0 indicates that China will be hinting at or outright announcing a metals backed Yuan. (The beginning of what we have forecasted to be a metals backed unified BRICS nation currency). It is at that point Evolution 4.0 information indicates that the upside moves in metals to be many times greater than they have been in the wake of the systemic failure hedges. How much greater is difficult to tell, though our estimates are 100+ dollar upward moves, and very consistent.
Therefore, we once again say, please keep in mind that the upward moves that have been seen thus far are prior to any news / other possible catalysts for greater upside metals moves. As such, we once again reiterate our point, which is "2016 is the year that metals investors and proponents of metals investing have been waiting for". Another point that we would like to add is that again, despite increase spot prices / strength, the purchase of metals is still encouraged. Look for acceleration of increased spot prices towards/ past the 1500-1600 USD range starting as early as late Feb/March of 2016.
Please note that we do encourage those interested in metals investing to pre-order the revised edition of the 2016 Grant Street Notes Metals Investing Guide. We have added / revised information based upon recent (additional) Evolution 4.0 analysis.
