silver

Is the dollar collapsing?

Is gold/silver the new world currency?

Worldwide there may be a quantum shift happening as the world shifts from a manipulated currency(ies) to gold/silver or a more tangible monetary base.

The single news item that may be the final straw was a Chinese banker announcing that “China should cap forex reserves at $1.3 trillion U.S. dollars.” China currently has $3.04 trillion invested in US dollars.

This has set off some massive buying of silver and gold across Asia last night – putting jet packs on the already soaring gold and silver prices.

The Trend - The US dollar has been the fiat currency for the world and that is changing. Why?

  • We run a massive shadow banking system that has NOT been fixed
  • We run an over extended military empire. Fastest growing part of our debt.
  • We have massive debt.
  • We have growing economic inequity between upper and lower classes
  • We have ideologically based political system that fear mongers and shouts instead of seeking solutions

Quite simply the average Joe and Jane across the world are saying do I want to invest in this mess – represented by the dollar?

or

Something more tangible and less corrupt, like gold or silver – It shines.

I’m not saying we are going over the edge into the abyss and I strongly doubt that the dollar is going to go the way of Zimbabwe currency.  But there is dramatic change happening and its happening NOW

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In answer to one of your emails – No Investors411 has not become a gold & silver blog – I just want you to be aware of the trend and the geopolitical ramifications. This trend is VERY related to politics.

Also I hope you make some profit from investing.

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Special thanks to RF for sending in a list of Bernie Sander’s Top 10 corporate freeloaders who pay Little to NO taxes or link here

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KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

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Index Percentage Volume
Dow +0.42% down
NASDQ +0.63% down
S&P 500 +0.53% down
Russell 2000 +0.74% -

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Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • Gold and the much more volatile silver have exploded higher this AM across the world (see above editorial)
  • To curb this speculation the Shanghai Gold Exchange has raised margins on silver futures.
  • Don’t worry if you don’t understand the above. It’s governments (in this case China in the lead) trying to stop panic buying of silver.
  • Dow hit a high last Friday and if other indexes break out of their trading patterns its a strong bullish move. (These indexes formed a reverse head and shoulders pattern)
  • For the time being, as long as Fed continues to dump money into economy – buying on dips and holding remains the trend. Investors411 has been CAUTIOUSLY BULLISH since November (with only a few days back to NEUTRAL)


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Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks]   Major question is as silver/gold rises like a rocket is the dollar going to collapse?
  • McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] Irrelevant today

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Reading The Tea Leaves

From 4/13 – Debt ceiling Republican soap opera politics in Washington could really hurt stocks. Question becomes will US default? Investors hate uncertainty and this is yet another bond holder to get out of treasuries. – “stocks” was the wrong word – It may help in the short run, but it could hurt the US far worse in the long run. Just another reason for people to panic into gold/silver.

What to Hope for todayThe move in gold/silver is really a a climax sell off and NOT the start of a major worldwide currency panic which turns the dollar into toilet paper.

Gold/silver – great profits (+15 to 50+%) for those of you who bought GLD, SLV, DGP, AGQ at the start of the month. The fundamentals behind this trade have NOT changed. No one ever went broke selling into what just about every technical analyst on the planet sees as a climax selling.

Bottom Line – However, the gold/silver fundamentals have not changed.  The oligarchy that rules in the USA has not changed. Buying  dips in  gold/silver has is still a good long term play. Just remember silver is very volatile

What to watch today - For shorter term traders – Market movers.

  • USO - ETF for oil - Oil up = stocks down.
  • UUP - (Tracking ETF for dollar) Remember - Usually the dollar is a contrarian indicator for stocks. Any major fall may give temporary help to US stocks, but a major breakdown also signal major structural problems with the USA.
  • SLV – Going elliptical

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Positions

The POSITIONS Section at top of the blog is a link to 4 different portfolios. It’s full of investment idea. The actively managed portfolios #3 &4 - Aggressive ETF Trading & Your Stock List can be found in the POSITIONS Section of blog

I have personal  positions in REMX,  SLV, GLD, (smaller positions bought on 4/13) EWV, (Note – sold EWV for profit last week) In fact, the single largest investment for a non profit I’m the treasurer of is GLD for the past 5 years.

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Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See ”POSITION“ section of blog (at top of page) for lists of potential stocks & ETF’s including ”YOUR Stock List.”

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

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