Will the fall of Deutsche Bank spark the next financial crisis? We cover the price movements of gold, silver, platinum, palladium, the U.S. Dollar index, equities markets, and more.
Is The Spot Price Of Silver Affected By The Fall Of Dow?
Welcome back to Golden Rule radio. We’re watching the markets move today. We have the dollar index looking like it’s going to close at about a two year high above a 98 if it closes where it is right now Wednesday as we’re recording. We have a stock market coming down as we noted last week about it failing to break to new highs.
We have gold holding well Silver has come down a little bit farther and is bouncing back up. I see a lot of paper on the desk over there what’s cooking.
Well some of that is because Miles isn’t here today so we’re filling the void. But I’ll tell you before we jump into the details too we have four perfect solutions in terms of the precious metals right now and call us and we’ll walk you through what those are. But one of them includes the sleeping giant in silver we have a particular product that gives you a double play in the ratio and the premium. So just give us a shot at eight hundred five to 5 9 5 5 6 it’s not even printed up yet but we’ll we’ll share those details with you. And then I want to jump into listener questions real fast we had a really good point brought up last week by Bea Swick eleven eleven who said Have a look at what Silver does when stock markets crash. Silver crashes to when the Dow crashes 50 percent silver will fall 15 percent easily. That will be the time to buy if you can get it. And dealers are willing to sell. Robert you and I were both here in 2008 when Silver did exactly that. Won’t you answer that question.
Sure. So Silver did come down the price of silver spot price of silver. However a lot of the items that are actually silver real silver if you can believe that people actually buy real physical silver a lot of those items didn’t follow it down as the spot price came down from the mid teens about where we are today down to 8 8 9 dollar spot price. You couldn’t buy junk silver for less than about 13 you had premiums on silver eagles in the 15 16 dollar range. So you didn’t even have the ability to buy the real thing when the price dropped with the market. So yes that’s what did happen. However I’m not so convinced that that’s going to happen on this next crisis that we’re ultimately going to have.
I totally agree and so now is the time to step in because as as the listener points out if dealers are willing to sell or if you can get it. The other problem that we ran into back then was literally unavailability of a lot of product including hundred ounce silver bars correct silver eagles 40 percent premium I remember thinking who’s going to overcome that. Eventually you did if you sold in the 30 to 40 dollar range but that was really an interesting phenomenon. So I appreciate you bringing that up. Just don’t even wait. Get it while it’s easy to get in. We’re looking at both the ratio and a spot price motivating market right now where you really do have the guesswork taken out for you an entry point.
So even though on paper you had the silver price coming down it actually provided some of our best ratio trains our premium trades with some specific items I remember being able to sell some silver dollars at quite a bit of a premium and increase my total ounces.
Well that just shows that there’s a lot more to gold and silver investing than the spot price. So speaking of spot prices we look at the charts here. Breakdown do our best to represent Miles. Not a whole lot has changed in terms of the support and the resistance levels that we’re looking at gold sitting in the middle the channel here. And we really. The dollar Yes it’s at a two year high still relatively flat in its channel. And gold is doing exactly the same thing. So with that current price of about 12 81 recording here today we were here two weeks ago when we were recording. And so a little bit of flat. Action but down to the downside we’ve been calling for a while for that 12 40 to 45 support level to probably be tested. If that happens this summer wouldn’t surprise us at all to the upside.
What are you looking at resistance wise Robert low 13 hundreds on gold needs to get back above that psychological level right now. Gold‘s putting in higher or low is as it’s bouncing above this twelve seventy level so it’s positive. Nothing says that we’re we’re actually going to see the mid to off hundreds like what we’ve been talking about I hope we do. I think we probably have some people who are sitting sitting waiting for that and we don’t want to tell you to wait too long because you should probably set a boundary on the top side meaning that if gold does continue to bottom here at this 12 70 12 80 low point and then move higher in the thirteen hundred thirteen 05 13 10 it starts to go away from you pretty quickly I think heading into the seasonal strength that we typically have didn’t have to happen that way in the early late summer early fall so I’d put a boundary on that upper side because it’s showing strength here without going down.
So your dollar cost averaging for example I mean does this not make a great entry point for position number one of three for example then if you do get that correction you take position 2 and or 3 if it runs away to the upside you just don’t let it get away from you. Yeah I think I would just say buy on weakness. Any weakness that we see here. So what about silver then. Speaking of weakness you intro the show that way.