BullBear Trading: Stock and Financial Market Technical Analysis

This Mega Dual Rally Signals The End Of Central Banks And Epic Warning Shot

Gold and silver have spiked dramatically higher in 2016. Just in the last week we have seen silver squeeze higher by 20%. It is extremely rare to see both gold and silver surging together. Why? The basics of it revolve around gold being a store of safety, while silver is mainly an industrial metal. The idea being, if there is panic gold surges but usually silver stalls or falls because the panic is due to something economic. Negative economic issues can hurt demand for silver.

 

This mega spike price action on gold and silver tells of something absolutely scary. It screams to the world that investors have lost all confidence in the central banks. Whether it is the Bank of England, European Central Bank, Bank of Japan or the Federal Reserve, currencies are looked at as being far too risky. Remember, interest rates in Japan and some places in Europe are now negative. It is not normal to pay a bank to hold your money. Central banks have created this artificially. Investors now prefer to hold gold, which is normal in fearful times...but also silver. That is the more shocking part. Central bank printing presses and monetary policy have gotten so out of control that investors are willing to buy anything but currencies. Look at the price of Bitcoin as well. It is up over 200% in 2016. Again, Bitcoin (BTC) is something the central banks around the globe have no power over. It cannot be printed at will.

 

Keep an eye on other metals to see if they start getting the same play. An even more economic dependent metal is Copper. If gold and silver continue higher, look to buy Copper. This could be the next store of safety from the out of control central banks. Pretty scary for investors if you hold lots of Dollars, Yen, Euro or Pound. Diversifying into other assets that cannot be printed is extremely important in this day and age.

 

The end game is simple yet horrifying. There will be another epic global collapse, far worse than the financial catastrophe in 2008-2009. It will spur a global depression. All of it caused by central bank policy. As the world emerges, the central banks will be dissolved. You read it here first. This will happen in the next 10 years.

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