Weekly Update: Gold, Silver, Bitcoin – 01.19.2017

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With the inauguration of Donald Trump as the 45th President of the United States set to take place tomorrow (01.20.2017) it is almost as if macro mechanics have gone into stasis. This pregnant pause after the immediate gut check and then counter move in global equities, bonds, and other asset classes has persisted for several weeks. All of the background themes of financial instability, particularly in the European banking system, have taken a step back as the world holds its collective breath and awaits Trump’s ascendance to the seat of power with hope, dread, and everything in between.

This laser focus on Trump and the resulting stagnant environment serves primarily to obscure some of the more interesting and important aspects of recent news cycles that have gone largely unnoticed. One prime example of this is the annual World Economic Forum in Davos, Switzerland that is still ongoing. Perhaps it’s just as well that nobody is paying attention to what this group of elitist policymakers, investors, and bankers are saying. They represent the outgoing paradigm of globalism along with all of its corollary policies. It is a fantastic triumph of the revolt against political correctness that globalism is now a term loaded with serious baggage resulting from decades of failed policy.

The old paradigm occult elite, the moneychangers, and the totalitarian globalists now wonder to themselves in amazement that all isn’t going according to their plan. Perhaps if they bothered to take into account the thoughts, feelings, dreams, desires, and wishes of those outside their groupthink bubbles then they wouldn’t be so surprised. They are supposed to be the technocratic masters of the universe, the enlightened ones, the initiated, and the illuminated of superior blood and mind! The best thing we can do when Joe Biden bemoans the potential implosion of the liberal world order and blames everything on Putin is to have a good laugh and then return to finding solutions for the problems these maniacs have created.

It is important that those of us pursuing truth and liberty avoid speculative exaggeration of influence and power mechanics in various institutions. Yes, there are dynamics and agendas behind the scenes. The so-called Deep State will always exist in some form or another. It is true that there are levels of control and manipulation that will persist regardless of who the visible heads of power are. But let’s always remember to have the right kind of attitude. If these groups were omnipotent, then they would have had their way a long time ago. The latest string of disasters for the globalists certainly seems like genuine setbacks rather than a Sun Tzu style retreat bluff to lure the opposition into a false sense of security.

On the other hand, let us avoid the assumption that Trump both can and will restore a utopia on day 1 or even day 100. Some seem to believe that happy days are here again and that we can reset all of our institutional structures and rid them of corruption and waste completely without pain or resistance. The organization of protests and efforts to disrupt the inauguration are evidence that sore losers with vast resources don’t go quietly into the night and admit defeat when power is the only currency they understand. My prayer and belief is that the inauguration will be peaceful and that these violent instigations will fail and indeed backfire on those who have organized, planned, and funded them.

Something is different. Can you feel it? Everything the globalists have tried recently has failed. We should always keep our guard up because they are stubborn and foolish enough to take desperate measures, but if we stand in the aggregate, oppose violence, and speak the truth, then we just might have a chance to restore freedom and prosperity once we clean out the mess. I say we because each one of us has a part to play. We all have skills, talents, interests, and passions. Let’s get to work. Let’s find solutions. All hands on deck.

Gold

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Gold has spent the last week around or above the $1,200 mark. It has swung up and down in fits and starts as chatter about the dollar from Trump and others has shifted the value of the world’s obsolete reserve fiat currency. Nothing goes up in a straight line – with the exception of what will happen if and when the manipulation of precious metals is removed – so it’s worth looking at the price action as constructive the more time it spends above the $1,200 fake paper price. Should a smackdown ensue, I’d still view $1,120, $1,050, and $1,000 as good places to pick up some more. However, as time passes this scenario looks less likely. Some are predicting an explosion in the gold price when Trump is inaugurated. This is more likely than a massive drop taking place, and a continuation through resistance and up to the $1,300 area would bring more buyers in since some people only seem to buy when things are going up rather than picking good entries after moves down. Above the election night highs at $1,340 the next quick target would be $1,400 and then things could get moving. This process may take some time to play out, but take advantage of buying opportunities along the way. If you don’t have any exposure to gold, then now is the time to grab some. The best mechanism to nibble in gold while retaining flexibility is to open an account with Goldmoney. Holding physical in your possession cuts out the counterparty risk, but if you only have a few dollars at a time to move over to gold then Goldmoney would be the way to start.

Silver

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Silver continues to hang out around $17. From the summer 2016 highs there is an extended bullish flag that highlights $18 as an important level. Silver can move pretty sharply, but it may be the last of the GSB elements to move aggressively because it is so heavily manipulated. Any price is a good price for silver right now. Don’t sweat the exact entry. Silver is more affordable than gold, so my preferred way to hold it is taking possession of the physical. If you haven’t done this already, contact Renaissance Precious Metals and get your hands on some right away. If you already have silver, then continue to accumulate. For price action I’m looking for a break back above $18 and then either an acceleration back above $20 or – more likely – a consolidation at higher prices before the resumption of the bull market in force. Hang tight and stay the course. It’s going to be a bumpy ride, but I’m looking for some serious moves upward back to all time highs this year as the tide shifts on the global monetary system.

Bitcoin

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In the last update I said that I was looking for a move back to the trendline at $800 or below for a buying opportunity. When I saw that latest smackdown I grabbed an additional piece at $850 and then another piece at $770. There has been a healthy rebound since, and while it’s still a shame that my average price isn’t $400 I have to cut myself a break because I didn’t get involved in bitcoin at all until November, 2016. I’m what you call a late early adopter. It would have been nice to get ahead of the curve, but that must be treated as water under the bridge. From a decision making aspect, the question is how to proceed given the current situation. Because of the price volatility, bitcoin is rather difficult to wrangle. The best advice is to have some, even a token amount, and to store it outside of exchanges. I followed this tutorial and everything worked great:

Given the recent swings, bitcoin may need some time to stabilize while the uptrend continues. I’d love to see some tighter trading to build a base so that when the next currency disruption occurs it will be poised to move to new highs. A move down to the $750 area would be informative in terms of whether a floor in that area will be defended. I imagine it would, but that wouldn’t preclude me from grabbing some more at lower prices. I’m fully loaded with about a 5% portfolio allocation at this point, but I’ll add if I see a nice price or it looks like we’re on the verge of a significant breakout.

Do your own research, make your own financial decisions, and stay tuned for more! Questions can be sent to amateursociety@gmail.com.

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