InvestMacro

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.09814
• Open: 1.10009
• % chg. over the last day: +0.21
• Day’s range: 1.09991 – 1.10351
• 52 wk range: 1.0777 – 1.1494

The single currency has continued its growth against the greenback. EUR/USD quotes have overcome the key mark of 1.1000. The European Commission has proposed a package of measures 1.85 trillion euros worth to restore the economy from the COVID-19 epidemic. According to the Fed’s Beige Book, economic activity has slowed down sharply in most regions. Investors continue to monitor the conflict between Washington and Beijing. Today, important economic reports from the United States are in the focus of attention. We recommend opening positions from key levels.

News Feed on the US Economy for 2020.05.28:

• – Report on durable goods orders at 15:30 (GMT+3:00);
• – Preliminary data on the country’s GDP at 15:30 (GMT+3:00);
• – Initial jobless claims at 15:30 (GMT+3:00);
• – Pending home sales at 17:00 (GMT+3:00).

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator has started exiting the oversold zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations

• Support levels: 1.0990, 1.0940, 1.0915
• Resistance levels: 1.1035, 1.1060

If the price fixes above the level of 1.1035, further growth of EUR/USD quotes is expected. The movement is tending to 1.1060-1.1080.

An alternative could be a decrease in the EUR/USD currency pair to 1.0950-1.0930.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.23337
• Open: 1.22588
• % chg. over the last day: -0.66
• Day’s range: 1.22484 – 1.22812
• 52 wk range: 1.1466 – 1.3516

Yesterday, there were aggressive sales on the GBP/USD currency pair. The British pound is under pressure due to rumors of negative interest rates. At the moment, the technical pattern is ambiguous. GBP/USD quotes are consolidating in the range of 1.2240-1.2280. Financial market participants expect important economic releases from the US. We recommend opening positions from key levels.

The news on the UK economy is calm.

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations

• Support levels: 1.2240, 1.2205, 1.2160
• Resistance levels: 1.2280, 1.2325, 1.2360

If the price fixes above 1.2280, GBP/USD quotes are expected to grow. The movement is tending to 1.2320-1.2350.

An alternative could be a decrease in the GBP/USD currency pair to 1.2210-1.2180.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.37758
• Open: 1.37504
• % chg. over the last day: -0.19
• Day’s range: 1.37342 – 1.37811
• 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable after a sharp drop since the beginning of this week. The loonie is currently consolidating. There is no defined trend. The local support and resistance levels are 1.3730 and 1.3780, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of “black gold” prices. We do not exclude a further decline in the USD/CAD currency pair. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, indicating the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/CAD.

Trading recommendations

• Support levels: 1.3730, 1.3700
• Resistance levels: 1.3780, 1.3820, 1.3870

If the price fixes below 1.3730, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3700-1.3670.

An alternative could be the growth of the USD/CAD currency pair to 1.3820-1.3850.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 107.563
• Open: 107.730
• % chg. over the last day: +0.21
• Day’s range: 107.687 – 107.901
• 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is still being traded in a prolonged flat. The technical pattern is ambiguous. At the moment, the local support and resistance levels are 107.65 and 107.90, respectively. Investors expect additional drivers. The conflict between the US and China remains in the spotlight. Today, financial market participants will assess important economic reports from the US. Positions should be opened from key levels.

The news feed on Japan’s economy is calm.

Indicators do not give accurate signals: 50 MA has started crossing 100 MA.

The MACD histogram is in the positive zone, indicating the bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 107.65, 107.40, 107.10
• Resistance levels: 107.90, 108.95

If the price fixes above 107.90, USD/JPY quotes are expected to grow. The movement is tending to 108.10-108.30.

An alternative could be a decrease in the USD/JPY currency pair to 107.40-107.20.

by JustForex

By CentralBankNews.info

South Korea’s central bank cut its base rate for the second time this year, as expected, and said it would maintain an accommodative monetary policy stance as “economic growth is expected to be sluggish and inflationary pressures on the demand-side are forecast to remain weak due to the COVID-19 pandemic.”
The Bank of Korea (BOK) cut its base rate by another 25 basis points to 0.50 percent and has now cut it 75 points this year following a 50-point cut in March.
Since June 2019, when BOK began easing in response to sluggish economic growth from exports that were hit by the U.S.-China trade war, the rate has been cut 125 basis points.
BOK didn’t show its hand regarding future policy decisions, merely saying it would continue to conduct monetary policy to support the economy and stabilize consumer price inflation at its target level while paying attention to financial stability.
Although South Korea has been relatively successful in controlling the outbreak of the coronavirus, its economy has still taken a major hit as exports have fallen significantly and consumption remains sluggish.
“Economic growth in Korea has slowed considerably,” BOK said, adding labour market conditions have worsened with a sharp decline in the number of employed, especially in the services sector, and a recovery in facilities investment has been subdued.
“The Board expects that domestic economic growth will remain sluggish for some time due to the impact of the COVID-19 pandemic,” BOK said, forecasting that gross domestic product growth will be around zero percent this year, sharply down from its February forecast of 2.1 percent.
It added uncertainties around the future growth path are very high.
In the first quarter of this year, South Korea’s GDP contracted by 1.4 percent from the previous quarter for annual growth of 1.3 percent, down from 2.3 percent in the fourth quarter of 2019.
Inflation has also slowed sharply with headline inflation falling to only 0.1 percent in April from 1.0 percent in March, well below its 2.0 percent target.
BOK forecast consumer price inflation and core inflation would be in the lower 0 percent and mid-0 percent level this year, respectively, due to the fall in oil prices and weak demand.

The Bank of Korea issued the following press release:

By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By TheTechnicalTraders 

– M2 Velocity is the measurement of capital circulating within the economy.  The faster capital circulates within the economy, the more that capital is being deployed within the economy to create output and opportunities for economic growth.  When M2 Velocity contracts, capital is being deployed in investments or assets that prevent that capital from further circulation within the economy – thus preventing further output and opportunity growth features.

The decline in M2 Velocity over the past 10+ years has been dramatic and consistent with the dramatic new zero US Federal Reserve interest rates initiated since just after the 2008 credit crisis market collapse.  It appears to our researchers that these extended periods of zero interest rates deflate the capability of money circulating throughout the economy and engaging in real growth opportunities for investment and capital inflation.

It also suggests that the US Federal Reserve, while attempting to support the US economy and global markets, maybe destructively engaging in policy that removes the capital function from the markets in a systematic process.  Eventually, something will break related to M2 Velocity and/or the global economy.  As more capital pours into less liquid assets and/or broader investment funds and Bonds, this process ties capital up into assets that take investment away from Main Street and the lower/middle class.  There is less capital available to support the ground level economy as more and more capital ends up buried in longer-term investment assets.

Before we continue, be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!

VELOCITY OF M2 MONEY STOCK

US FEDERAL FUNDS RATE CHART

We believe the collapse of the M2 Velocity rate is similar to a slow decline of economic capacity and output over a longer period of time.  We believe this process will likely end in a series of defaults and bankruptcies as a result of capital being stored away into longer-term assets and investments (pensions, investment funds, and other types of longer-term assets).  As this capital is taken away from the core engine of economic growth (main street and startups), the process of slowly starving the economy begins.

We believe we’ve already entered a period of decline that has lasted at least 15+ years and the “blowout process” that ends this decline will be somewhat cataclysmic.  One way or another, the function of capital must return to levels of activity that supports a ground-level engagement of economic growth and opportunity.  A healthy balance of capital available to all levels of society and deployed in means to support growth and opportunity is essential for the proper health and future advancement of global economies.

It appears that after 2008-09, the global economy disconnected from reality as investors began relying on institutional level investments and speculation in large scale assets instead of ground-level investments and core economic function.  This translates into a very euphoric mode for stocks and commodities where capital chases capital around the planet seeking out undervalued and opportunistic investments…  until…

Pay attention to what happens over the next 4 to 5+ years related to the COVID-19 virus event.  We believe this virus event could be a “monkey wrench” in the capabilities and functions of the global economy over the next 5+ years. Pay attention to what is really happening as capital plays the “dog chasing its tail” routine and the central banks attempt to stimulate economic activity by printing more and more money.  If you understand what we are trying to suggest in this article – printing more and more money at this stage of the game is like saying “diving out of the 20th-floor window is not enough – let’s go up to the 50^th floor and give it a try”.

Hang tight, there are going to be some very interesting and big price swings over the next 4+ years in the US and global markets.  Skilled technical traders should prepare for the opportunity of a lifetime if they understand what to watch for and how to protect assets.

You don’t have to spend days or weeks trying to learn my system.  You don’t have to try to learn to make these decisions on your own or follow the markets 24/7 – I do that for you.  All you have to do is follow my research and trading signals and start benefiting from my research and trades.  My new mobile app makes it simple – download the app, sign in and everything is delivered to your phone, tablet, or desktop.

I offer trading signals for active traders, long-term investors, and wealth/asset managers.  Each of these services is driven by my own experience and my proprietary trading systems and modeling systems.  I have a small team of dedicated researchers and developers that do nothing but research and find trading signals for my members.  Our objective is to help you protect and grow your wealth.

Please take a moment to visit TheTechnicalTraders.com to learn more.  I can’t say it any better than this…  I want to help you create success while helping you protect and preserve your wealth – it’s that simple.

Chris Vermeulen
Chief Market Strategist

TheTechnicalTraders.com

By Elliott Wave International

Many stock market investors believe that prices have already bottomed. Numerous banks, brokers and financial firms have issued statements saying as much.

Indeed, the May Elliott Wave Theorist, a monthly publication which has offered analysis of financial and social trends since 1979, noted:

On April 28, Bloomberg interviewed four money managers to answer the question of “Where to Invest $1 Million Right Now.” Cash was not mentioned.

All these professional financial observers might be right in their assessment that the bottom is in for stocks.

Then again, the stock market rise since the March 23 low might be a bear-market rally.

If so, it certainly has “done its job,” meaning, as one of our global analysts put it in Elliott Wave International’s May Global Market Perspective (a monthly publication which covers 40+ worldwide markets):

The job of [the first, big bear-market] rally is to recreate the optimism that existed at the previous highs.

One particular sentiment that the rally has “recreated” is known by the acronym FOMO, which stands for the “fear of missing out.”

A little background: Toward the end of 2019, the FOMO sentiment was prevalent. Indeed, our December 2019 Elliott Wave Financial Forecast (a monthly, U.S.-focused publication which covers stocks, bonds, gold, silver, the U.S. dollar, the economy and more) showed this chart and said:

Last week, the percentage of bulls polled in Investors Intelligence Advisors’ Survey rose to 58.1, a new 13-month extreme. … Last month we talked about the return of FOMO, the fear of missing out on stock gains; its last major outbreak occurred as stocks approached their January 2018 highs. In November, FOMO became far more entrenched. One Bloomberg commentator called it “the age-old fear of missing out” and stated, “The end of the year is coming, when investment managers will be judged on their performance. Those who are behind have an incentive to clamber into the market now, while there is still time.” In our experience, “to clamber” is generally not a sound investment strategy.

Day trading – it’s back.

As you’ll probably recall, day trading became so popular during the late 1990s that some market participants were selling their homes to raise the funds to participate.

It didn’t end well. After peaking in March 2000, the NASDAQ went on to lose 78% of its value.

Yet, even after the dot.com bust, day trading never went away. There was a marked resurgence in the months leading up to the 2007 stock market top. But, even then, day trading activity was not as intense as it was around the time of the dot.com bubble.

However, the wild speculation that was taking place around the time of the February 2020 top did call to mind the 1990s.

The March Elliott Wave Financial Forecast, a monthly publication which covers major U.S. financial markets, the economy and cultural trends, showed this chart and said:

The middle graph in this chart shows that investors’ amazing willingness to bet on stocks with borrowed money lasted right through the top of the bull market. … The bottom graph shows when SentimenTrader.com’s Options Speculation Index jumped to 1.5, its highest total in 20 years. That index divides the total number of bullish transactions (call buying and put selling) by the total number of bearish transactions (put buying and call selling). …

For anyone who wondered about where the small day traders who made the 1990s so wild went, meet the 2020 version.

Did the February / March market meltdown make the day traders go away?

Hardly.

Here’s a May 22 excerpt from Barron’s:

Day Trading Has Replaced Sports Betting as America’s Pastime.

Day trading among individual investors has taken off.

A full-blown retail mania has taken hold in buying and selling small lots of stocks and options. … Many Americans used their coronavirus stimulus checks to trade stocks.

So, no, day traders are as hopeful as ever.

Even a market meltdown that saw the S&P 500 drop nearly 35% in just a month or so was not enough to scare them off.

This speaks to the extreme level of optimism that is now in play and correlates with the stock market’s Elliott wave pattern.

As the book, Elliott Wave Principle: Key to Market Behavior, notes:

The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure.

Learn more about the Wave Principle by reading the entire online version of Elliott Wave Principle: Key to Market Behavior.

You can gain instant access, 100% free.

All that’s required is a free Club EWI membership.

Simply follow this link to get started: Elliott Wave Principle: Key to Market Behavior, free access.

By Han Tan, Market Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By IFCMarkets

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

By Araby Smyth, University of Kentucky

One might think Mexican immigrants in the U.S. would be sending less money home to their families as a result of the coronavirus.

The 11.2 million people of Mexican origin living in the United States together send upwards of US$38 billion to Mexico each year. This money, called remittances, supports the basic necessities and financial investments of 1.6 million Mexican households – some 10 million people.

In March, analysts at BBVA bank predicted that migrant remittances to Mexico could fall as much as 21% because of stay-at-home orders and record unemployment in the U.S. Instead, remittances reached a record high in early 2020, the Bank of Mexico recently reported. Mexico received $4.02 billion in March 2020, a 35.8% increase over March 2019.

In early May the Mexican president, Andrés Manuel López Obrador, thanked “our migrant countrymen” for sending record remittances in this difficult period, calling them “living heroes.”

How is this possible, when the unemployment rate in the United States is 18.6% and swaths of the American economy are still shut down? My research on remittances finds three reasons.

Immigrants are essential workers

With all the talk of the U.S. economy being “closed,” certain sectors are still going strong – particularly, as the Mexican American community organizers Rodrigo Camarena and Lorena Korusias wrote in City Limits, those staffed by the Mexican workers doing “some of the toughest jobs in our economy.”

Mexican immigrants are more likely than other workers to be employed in the construction, maintenance, service and production industries, according to U.S. Census data. These are all “essential” sectors of the pandemic economy, though many pay barely above minimum wage.

Employment during this crisis has sustained households that are dependent on every paycheck, both in the United States and back home in Mexico.

These jobs – which require people to leave home and interact with other people – have also disproportionately exposed the Latino population to COVID-19. In New York City, the U.S. epicenter of the pandemic, 34% of all COVID-19 fatalities are Mexican or Latino, while Latinos make up just 27% of the city’s population.

As of May 23, 1,036 Mexicans living in the United States had died of the virus, according to the Mexican consular records.

Community advocates attribute the disparate rates of infection and mortality among Latinos to their high-risk working conditions, lack of access to government aid, language barriers and discrimination. These issues are particularly acute for indigenous Mexicans in the U.S.

Exchange rate

The rise in remittances is also due, in part, to a steep decline in the value of the Mexican peso, according to a recent report by the Center for Latin American Monetary Studies, or CEMLA.

In early March, the purchasing power of $1 rose from 19.42 to 25.35 pesos, a 30.5% increase in just three weeks. That means every U.S. dollar sent to Mexico goes farther. During that same time, the CEMLA report says, the average remittance transfer by Mexican migrants in the U.S. increased from $315 to $343.

This particular increase in sending occurred before shelter-in-place orders took effect in major immigration hubs like California and Texas. In the report, CEMLA economic statistics manager Cervantes Gónzalez says migrants took advantage of favorable exchange rates before the economy began closing to maximize their families’ purchasing power.

Obligation

On March 23, Mexico began its own gradual shutdown, with the government closing schools, halting many kinds of nonessential business and requiring most people to work from home.

That’s not possible for the estimated 56% of Mexicans who work as domestic laborers, in agriculture and in other informal jobs that lack social security. Their incomes have simply disappeared during the pandemic.

The decline in economic activity in Mexico may have compelled family members working abroad to send more money home, says Gabriela Siller, head economist at Banco BASE, a Mexican bank.

Remittance senders have always felt obligated to their loved ones back home, research shows. It’s likely such feelings of care and responsibility would only increase in a crisis such as COVID-19.

A durable financial relationship

In 2019, the World Bank estimated that global remittances exceeded $550 billion – a massive wealth transfer. And the U.S.-Mexico remittance corridor is one of the world’s most significant, with Mexico being the third-largest receiver of remittances.

So far, it’s also proving to be remarkably durable. Remittances from the U.S. are down in many other Caribbean and Latin American countries.

There’s reason to think cash transfers to Mexico will stay strong. Feelings of familial obligation won’t change due to the pandemic, and the exchange rate between the U.S. dollar and the Mexican peso remains favorable for remittance senders. These factors should keep funds flowing south.

But this financial relationship may still suffer as a result of COVID-19. Soaring unemployment in the U.S. is hitting Latino service workers and small businesses hard, as are COVID-19 infections. Eventually, wage loss and sickness could force even the most loving, responsible and reliable person to send less money back home.

About the Author:

Araby Smyth, Ph.D. Candidate and Instructor in Geography, University of Kentucky

This article is republished from The Conversation under a Creative Commons license. Read the original article.

By CentralBankNews.info

Kyrgyzstan’s central bank, one of only five central banks to have raised interest rates this year, left its policy rate steady for the second time, saying inflation is expected to accelerate temporarily in the first half of this year but an expected weakening of demand will then restrain inflation in the medium term.
The National Bank of the Kyrgyz Republic (NBKR) left its discount rate at 5.0 percent, as in March, after raising it in February by 75 basis points to curb inflationary pressures.
The February rate hike was the first rate hike since September 2015 and it interrupted an easing cycle that began in March 2016 and resulted in rates being cut 575 basis points.
Inflation in the Kyrgyz Republic jumped to 8.6 percent in April from 5.9 percent in March due to higher food prices in connection with a spike in demand ahead of the imposition of quarantine measures and a closure of its borders to combat the coronavirus.
As of May 15, the central bank said inflation had eased to 7.5 percent, but this was still above its inflation target 5.0 to 7.0 percent.
The restrictions imposed to combat the pandemic led to a decline in production in almost all sectors of the country’s economy, especially the services sector, construction and industry, and this trend is expected to continue in the short term.
Domestic consumption will also be limited by lower export earnings and remittances from workers abroad, NBKR said.
This decline in domestic demand will curb inflationary dynamics in the medium term after a temporary acceleration of inflation in the first half of this year.
The domestic foreign exchange market has remained balanced and so far NBKR said it had not intervened this month.
NBKR is in the process of transitioning to a monetary framework based on inflation targeting to ensure price stability as a basis for long-term economic growth.
In mid-March the Kyrgyzstan’s som tumbled 18 percent to 84.9 to the U.S. dollar by April 4, but since then it has rebounded to trade at 74 to the dollar today, down 5.5 percent this year.
On May 8 the International Monetary Fund (IMF) approved a second release of funds to help  Kyrgyzstan meet what it said were “urgent” balance of payment needs and catalyze donor support.
On March 26 the IMF also offered the country emergency assistance and total disbursements to the country amount to US$ 242.0 million.
“The COVID-19 pandemic has hit the Kyrgyz economy very hard and increased an already urgent balance of payments need,” the IMF said earlier this month, estimating the gap of some US$ 500 million.
The IMF funds are aimed at helping finance health and economic relief but IMF added expeditious additional donor support is needed to close the balance of payments gap.

www.CentralBankNews.info

By Money Metals News Service

Most of us know about 20/20 vision, that is perfect vision- seeing something so clearly there is no distortion, nothing but the complete view. It is with this background that this year, my attempt to clarify the picture about silver is my utmost objective. I wish to be crystal clear that anyone that reads and understands this article will not only pass it onward but will also consider whether they have the correct amount of silver in their portfolio.

For me, it is impossible to write an article about silver without including gold, because the similarities and differences must be known to fully appreciate the role each plays in today’s financial system and how they differ in the physical economy. Everyone knows that gold is money (actually very few know this and think currency is money), and if you have enough of it, then you can achieve financial freedom. Something every person that is retired, or plans to retire- strives to achieve.

The most fundamental fact that this writer has consistently stressed is simple; all fiat ”money” fails. The track record for unsound money is perfect! In all of recorded history, each time the tie to gold, silver, copper, or some combination of those three metals has been severed, the currency has eventually failed. This is the one TRUTH that all political stripes can agree, but they do not. Many conservatives think it is impossible in today’s world and think the coming technocracy for the monetary system will ”save us.” That is the point however, that the currency de jure had to be replaced with a cashless system for a variety of reasons, with the only truth being that the reserve currency of the entire world was no longer trusted.

Gold is often referred to as a hedge or as insurance necessary to protect ones assets from unexpected circumstances across the spectrum. Financial, weather, war, invasion, famine, pestilence and anything else you care to put into this category. It seems to me this is the correct approach to owning the yellow metal. Most of the central banks hold gold primarily for financial/economic reasons, but just like printing paper, owning gold is not the means of production – real wealth and gold can no more grow food or produce a cell phone than paper. Bear this in mind, as the picture of the new world comes into sharper focus.

Silver can be of safe haven status and therefore placed into the insurance category, but this is inaccurate because whereas gold being worthwhile for the reasons above is excellent to own and may help in numerous ways; silver has a much more critical function. Before going into these salient points, the reader needs to know the truth about Silver. The truth is that silver, not gold is the real money. Now I know most reading this will want to argue the point. However, the fact is that the banking establishment have brainwashed the entire planet into believing that gold is money and everything else is credit.

Let us look back into early recorded history and find out what one fact stands out. The Hebrew word for Silver is the same word that is used interchangeably for Money in the Torah and Old Testament. The federal reserve notes that we use today in this country in place of actual real Money is not what the Bible calls Money.

Isn’t it also a fact that when Silver and gold were both trading as Money that the gold/silver ratio never got above twenty for well over 5,000 years? In 1873, Silver was officially demonetised by the Eastern Economic Establishment and that was when the U.S. went to a monometallic standard – gold only. This act ruined many of the free spirits in the Western United States, because their livelihoods were built on the most fundamental money- silver. The fact is, pure silver is valued far higher as money than it is as an industrial metal.

What has brought the global economy to the current level? Simply, energy has been responsible for the tremendous amount of growth in population, lifestyle, and almost anything else imaginable. It has been cheap energy that has brought the global economy to the January 2020 level. If we did not have oil, the substitute for human and/or animal power – water, wind, solar, geo-thermal, would not have produced the energy density necessary for today’s world. Nothing- and I mean nothing, is more of a critical factor for past and future generations, than how much energy is available per capita. The more energy per person, the higher the standard of living.

HISTORICAL RATIOS

Which brings me to report that oil is responsible for more derivative products than anything else.

Silver, however, is the second most useful resource for humanity. There is something like over ten-thousand different uses. My key point, is that although silver may be ”needed” in the sense that gold is used as a hedge or insurance, the fact remains that silver is indispensable, essential, crucial, and an absolute must for today’s way of life.

Imagine no silver in existence…No computers, cell phones, electrical power, electronics, and so many others.

Yes, possibly other metals could be used in some of the products. Still, in almost all cases, the outcome would be inferior to using silver. In some cases, there is no substitute at all, which means silver truly is indispensable in many applications.

Recently the gold-silver ratio hit an all-time high, roughly 122 to 1, which means 122 ounces of Silver is required to buy one ounce of gold. In all of recorded history, the ratio has only been as high as 100 to 1 until mid-March 2020. Many precious metals proponents suggested taking advantage of this and trading Gold for Silver. The historical precedence for this is established, because in the prior extreme goldsilver ratio, an economic mess unfolded, and silver quickly started to outperform gold. Taking the ratio from over 100, back to a much lower ratio.

Since gold is held as a reserve asset by many countries (their Central Banks), think of the opportunity. If Mexico, which has 120 tonnes of gold, were to swap for silver, (after all, Mexico is one of the top silver producers year over year.) The USD value as of April 2020 is $6.4 Billion. That amount put into silver in April 2020, is about 430 million ounces of Silver. This is slightly more than two years’ worth of silver production from Mexico. This is the same amount of silver purportedly held by the iShares (SLV) ETF. In other words, Mexico would be ”hedging” two years’ worth of production, but at a ratio that took over 5000 years to achieve. The timing could not be better.

Imagine if Mexico’s destiny is to maintain their national treasure in silver and drop out of the ‘gold only club’ of international banks. Many Central Banks would undoubtedly be more than willing to trade their dying by the day fiat, for physical gold. The problem, of course, would be that fiat is unacceptable, and a physical swap is needed. Put Up or Shut Up, as the expression goes! Admittedly, this industrial commodity would be used to relieve the current hard physical demand for gold.

THE MOST FUNDAMENTAL FACT THAT THIS WRITER HAS CONSISTENTLY STRESSED IS SIMPLY; ALL FIAT ‘MONEY’ FAILS. THE TRACK RECORD FOR UNSOUNCE MONEY IS PERFECT!

Recently my main presentation has explored the topic- ”What if silver were treated like gold?” The entire argument is that silver is valued far higher as money, than as a mere industrial commodity. This suggests that from the time silver was demonetised in 1873 to present day, that silver has lost its shine because as an essential commodity, it is less valuable.

To come back to the early symbolism, silver (the colour) means truth by some Biblical Scholars accounts. The silver metal, is very closely associated in the scriptures with the subject of redemption. Trumpets are closely related to the topic of redemption in the gospel. In Hinduism, silver embodies spiritual enlightenment, eloquence, and encouragement.

IT IS TIME TO RETHINK SILVER

The financial definition of redemption is paying off a mortgage, bond, or note. Umm, and how would one pay off these items that are largely created out of nothing by a Babylonian system of Banking (fractional reserve lending)?

From a natural law perspective, redemption can mean being saved from sin, error, or evil. At the risk of getting too close to the proverbial ”hot button” for almost everyone, let me ask with the current circumstances, isn’t it time to redeem the monetary system and perhaps ourselves? Is it time to rethink silver and what meaning it has to you?

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