At the time of writing this post, the markets are still open and are relatively flat despite the FOMC meeting minutes. Silver was singled out to get the thrashing. With silver below $16, the cost of production exceeds the cost of sales. CEO of First Majestic Silver in an interview mentioned that he doesn't really expect the prices of silver to go up anytime soon. So what is the truth? Is the cost of production a lie? Is the demand and supply a lie? Is the narrative of sound money a lie? Is the narrative that China and India are buying silver and gold hand over fist a lie? I don't know. I do know that for some reason some powerful group is hell bent upon destroying the sentiments around gold and silver.
Are they pushing all towards cryptos?If so, then why? And if that is the case then why cryptos are down? Goldman Sachs came out with a statement that Bitcoin will touch $3,915 by the year end. Why did Goldman feel the need to cover cryptos? What is the basis for this number? Of course, soon after their report a couple of days ago Bitcoin appreciation seemed to have stalled. So are cryptos really the asset that can't be manipulated as we thought? And if they can be manipulated, then are they really the safe haven?
Another report Goldman released a few days ago suggested that Gold has bottomed and is on the rise. Since then, gold is going down. Why is Goldman saying that gold will rise? If this is to get out of their positions then why are they getting out of their position?
Oil was down by over 4%. Why? What changed since yesterday? Another ICBM from N Korea, more tensions in Syria region, more tensions in Turkey, Italy discussing leaving EU. Shouldn't these events trigger a higher price for gold, silver and oil.
At least, one thing got cleared up today and that is the sudden isolation of Qatar. As it turns out Qatar was transacting with China in Chinese Yuan and not in US dollar. With China being the largest importer of Saudi Arabia oil, China is pressuring Saudi Arabia to sell the oil in Chinese Yuan.
As if the insanity has any limits, Canadian government apologized to a terrorist who accepted his crimes and awarded him Canadian dollar 10 million that is US$8 million! and for what - we violated his civil rights while he was taken in as prisoner for killing an American and held at guantanamo bay. Good job Canada, you surpassed the insanity of the USA where in San Francisco we awarded $200,000 to a child rapist and pressed charges against the crime. Why? Because the person was living in sanctuary city and as per Mr. Obama's act of generosity, it was agreed that crimes committed will not be reported to ICE!
And this one really takes the cake. Illinois is out of money and is tethering on the brink of bankruptcy. A law has been passed to increase the income tax and corporate tax by a huge 32% and pensions will be cut. But the state has enough money to support sanctuary city and build presidential library for Mr. Obama for $1.2 billion. If Obama is living in Washington DC, why the library is being built 1000 miles away?
It appears that I am on a rant here but I am not. I am merely trying to make sense of the events. Because if we don't then the next thing we know we will be attacking Iran. And why do I say this? A story was leaked today in mainstream media that Iran is funding North Korean missile program through the $1.8 billion dollar in cash that was given to Iran by Mr. Obama. Really? How come suddenly this fact was discovered? Connect the dots - we are going into yet another war!
As always, be prepared and be safe!