The Precious Metals Are Setting Up For Big Moves Higher



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After six long years, the precious metals are finally setting up for BIG MOVES higher. Even though the gold price has increased significantly over the past two months, we haven’t seen anything yet. Of course, gold has already enjoyed big moves in other currencies such as the British Pound where it has reached an all-time new high.

However, we have to be a bit more patient for gold to reach a new high in the U.S. Dollar as the Federal Reserve has a monopoly on the world’s printing press. But it is important to understand that gold has broken through a KEY LEVEL and is giving the green light to the market that a new bull market has begun.

I wrote about gold breaking out of this key level back on June 20th, in my article, FINALLY… GOLD BREAKS OUT THROUGH KEY 5-YEAR RESISTANCE LEVEL, I posted this chart:

As of trading yesterday, the gold price closed at $1,509, but reached a high of $1,520. Thus, the gold price surged by $160 once it broke above that critical 5-year resistance level:

However, as I stated, this is just the beginning stage for much higher gold prices moving forward. Why? Well, the Fed and Central banks haven’t solved any problems since the 2008 financial crisis. Rather, the central bankers have papered over the problem with money printing and a zero-interest-rate policy. According to a few sources, there are $14 trillion in negative-yielding bonds in the world.  Thus, bondholders are paying the central banks to borrow money from them.

Economists and analysts suggest that negative interest rates are a sign that the financial market has entered unchartered territory. Unfortunately, they don’t understand the TRUE underlying reason for negative interest rates. While some economists have stated that negative interest rates are the central bank’s policy to force investors to put their funds into the economy, the real problem is that global debt is too high and the net energy profit in the system is falling.

I will get into this in more detail in upcoming articles and videos, but put simply, if the NET ENERGY that drives the economy is falling, then the interest rates must fall as well. So, get used to even lower interest rates and even more money printing by the Fed and Central banks. And, as the central banks continue with even lower interest rates and money printing, it means that BIG MOVES in the precious metals are coming.

IMPORTANT: While the precious metals have broken through key levels and will reach new highs in the future, we must understand that CORRECTIONS will take place. We should not be surprised if gold and silver experience significant corrections before moving into the next stage.

Now, while the gold price has enjoyed a MAJOR BREAKOUT, we are still waiting for silver to make its move. Yes, the silver price has broken above an important symmetrical triangle formation that I wrote about several weeks ago, but it must close significantly higher above its 200 Month Moving Average (MMA) of $16.82 to be in the first stage of a new BULL MARKET: