Gold & Silver- Desperately need this to hold!

October 17, 2017

The chart below is courtesy of Chris Kimble over at Kimble Charting Solutions. I am not a short term trader so I try to stay away from the short term charts. However when presented with a 30+ year chart I take note. Chris is simply showing us there is a strong support line in the silver/gold ratio that we are approaching. The important aspect to note is that an increasing chart is indicative of a bull market. No telling on where we go but it is important for this ratio to bounce soon.

Click here to visit Chris’s site and read more of his technical analysis.

Below looks at the Silver/Gold ratio over the past 30-years. Metals bulls (both Gold & Silver) want to see the ratio moving higher, to send a quality bullish message to both.

The ratio has spent the majority of the past 30-years inside of rising channel (1). When the ratio hit the top of the long-term rising channel back in 2011, the ratio put in a large bearish reversal pattern at (A). This is where both Gold & Silver both started turning weak.


Over the past 5-years, the ratio has created a series of lower highs and lower lows inside of falling channel (2), which is not long-term bullish for the metals. The ratio hit rising support at the start of 2016 and short-term counter-trend rally took place, which took it to the top of its falling channel last summer.

The lows over the past 13-years and rising support (1) come into play at (3), as a dual support test.

Gold & Silver bulls BIG TIME want to see support hold at (3)!!! If support would fail to hold at (3), it would send a long-term concerning message to Gold & Silver bulls. What happens at (3) should send a very important long-term message to the Gold and Silver markets.

    Oct 17, 2017 17:08 PM

    I thought the chart people on this site were gung ho PMs, ready to go, etc.

    Now, its gotta hold? hmmm

    I see 2 parts to PM right now, 1 is novo the other is the yuan oil deal.

    The info out today on novo is huge imo and the 18th is when the yuan gold backed oil begins.
    So here we go, its off to the moon, for sure this time.

    Oct 17, 2017 17:28 PM

    Cory, Faber is being blackballed for some comments he made, guess he is a racist now.
    So maybe you could get him for a good long interview.

      Oct 17, 2017 17:38 PM

      I’ll look into it b! That’s good the heads up.

        Oct 18, 2017 18:46 AM

        You will get a ton of hits that is for sure.

    Oct 17, 2017 17:13 PM

    Mark Faber is just getting too old to be politically correct.
    He was, of course, technically and historically correct; he just forgot that it is improper to distinguish on racial grounds, even if there is a measurable IQ difference between races.
    And so that I am not labelled as racist let me point out asians on average have a higher IQ than anglo-saxons (my race), which is why they had an advanced civilization when my ancestors were painting themselves with woad. (Please note I did not say anything about africans)

    Oct 17, 2017 17:29 PM

    The stench from the swamp gets worse:

    Oct 17, 2017 17:35 PM

    Many posters that frequent the KE Report have been posting their non stop dribble about Bitcoin being in a Bubble.
    My question is why don’t they comment on any of the other Crypto Currencies?
    Could it possibly be that they don’t have a clue and continually expose this.
    Does the 19% gain today in Bitcoin Cash mean it is in a bubble to?
    Bitcoin has corrected before as has many of the Cryptos,but guess what?
    There still here.
    What we have been witnessing is a paradigm shift in the use of the internet as transactional exchange as a median for Business.
    I really don’t think we will wake up tomorrow and the Cryptos will be gone. Do You?

      Oct 17, 2017 17:03 PM

      I find it difficult to fully explain the price differential between BCH and BTC.
      They each have approx 61 million coins. They each trade over a billion coins a day.
      BCH is both cheaper to use and faster than BTC, but BTC is worth approx 15 times BCH.There are clearly a lot of incognoscenti in crypto space.

      Oct 17, 2017 17:44 PM

      John, it’s drivel not “dribble” and it is all coming from those who don’t know a bubble when they see one.

        Oct 18, 2017 18:24 AM

        I will be the first to admit Bitcoin’s rise has been phenomenal,even steep as you may,but it is far from a bubble.
        Where we are at now with Bitcoin, is that a lot of the activity could be contributed to speculation. This is not all bad as it gives the Cryptos exposure.
        The more it succeeds,the easier it is to exceed more.
        I see a lull coming for Bitcoin,even some sort of pullback.That being said the next force of move will be driven by those actually using the Cryptos in everyday commerce.
        That will be the move that will prove the survivability of the Cryptos.

        Bitcoin is in a Bubble, Bitcoin is in a Bubble, Bitcoin is in a Bubble, Back in the day we use to bump the turntable.I wonder what it will take today?

        Oct 18, 2017 18:39 AM

        Drivel would be for the people who actually back up their conclusions with facts.
        Dribble is for the rest.

      Oct 18, 2017 18:54 AM

      I believe it is partial based on bitcoin being the brand name much like Kleenex is for tissues…..but I will be the first to admit it’s a learning curve that keeps growing and I’m not keeping up

        Oct 18, 2017 18:01 AM

        CFS is the go to guy here.
        I wonder why Mathew, Bob M and others never debate him?

          Oct 18, 2017 18:00 AM

          What’s there to debate? BC’s bubble has nothing to do with whatever utility it might have. The same goes for gold in 1980. Being in a bubble does not prove or disprove an asset’s legitimacy.

            Oct 18, 2017 18:08 AM

            The sun came up this morning. See I can be right to.

            Oct 18, 2017 18:10 AM

            Gold Mining: Wasteful Zero Sum Activity– Vitalek Buterin.–

            Oct 18, 2017 18:18 AM

            John, that got pointed out a few years ago.
            The guy that did got “run off”.

            We need gold for almost nothin.
            A friend of mine thinks were simply gathering it for the aliens, I guess they have some spooky use for it.

            Oct 18, 2017 18:32 AM

            B, your words always prove just how little you know. Sound money is a must if society wants to avoid growing debased people like yourself. Sound money is very green, too, if that matters to you.

            Oct 18, 2017 18:35 AM

            Btw, if you and JohnK believe that gold mining is not right but still invest in it, then neither of you deserves much respect.

            Oct 18, 2017 18:42 AM

            Its about making money. You can have the Respect.
            Now post us another forked chart of IPT.V and get on with it.

            Oct 18, 2017 18:52 AM

            Like i said before. I would start lobbying Big Al to get rid of me.

            Oct 18, 2017 18:00 AM

            Why would I lobby Al to do anything? I’d quit posting before doing that.

            Oct 18, 2017 18:15 AM

            “Gold Mining: Wasteful Zero Sum Activity– Vitalek Buterin”

            I thought that too, once upon a time. In a ‘perfect world’ it would almost be correct, other than technological applications.

            Oct 18, 2017 18:18 AM


            As far as I know, those who have been barred have been birdman, Heavy Hitter, and James the Lesser. All became incredible nuisances before they were belatedly shown the door.

            As long as people focus on information exchange, and not on bickering or ax-grinding, I haven’t seen a problem.

            Oct 18, 2017 18:23 AM

            Exactly, GH. JohnK is a boy scout by comparison and I wouldn’t want him banned.

            Oct 18, 2017 18:47 AM

            Thanks Mathew.
            Now that the Boy Scouts are letting girls in,maybe you could join us.

            Oct 18, 2017 18:59 PM

            That’s true, why would I want to join if there are no chicks?!

            Oct 18, 2017 18:59 PM

            No offense, I don’t care about your orientation.

            Oct 18, 2017 18:12 PM

            There you go again with your assumptions.
            It’s ok though.I didn’t want this to get personal.
            Evidently you do. Thats fine.

    Oct 17, 2017 17:45 PM

    Hive blockchain Technologies has been putting nice gains recently.
    Another bubble in the making?

    Oct 17, 2017 17:49 PM

    Here’ another BLOC.V Global Blockchain Technologies

      Oct 18, 2017 18:50 AM

      Makes you wonder, what Trump is thinking………

    Oct 17, 2017 17:04 PM

    I’m interested in Tzero when it comes out.

      Oct 17, 2017 17:18 PM

      Thanks for the heads up.

      Oct 17, 2017 17:19 PM

      I have not seen the Tzero development team personnel yet, So no recommendation.

    Oct 17, 2017 17:11 PM

    Cherokee Nation’s Attorney General suing Walmart,Walgreens,CVS, Amerisource Bergen,Cardinal Health, and McKesson.Keep an eye on those stocks.

    Oct 17, 2017 17:34 PM

    Im beginning to wonder whether the PMs wanna flirt with their 2015 lows. A few months back I thought no chance, now it’s closer to 50/50. Gold looks ok, but barely. While silvers just getting beat up.

    Oct 17, 2017 17:23 PM

    SEC charges Rio Tinto, former top executives with fraud
    Lawsuit against ex-CEO Tom Albanese, CFO Guy Elliott centers on $3.7 billion acquisition of Mozambique coal assets in 2011 later sold for just $50m.
    read »

    Oct 18, 2017 18:45 AM
      Oct 18, 2017 18:46 AM

      And it was clearly not just the hurricanes – starts dropped in every region except The West:

      Northeast: -9.2%
      Midwest: -20.2%
      South -9.3%
      West: +15.7%

        Oct 18, 2017 18:47 AM

        Separation of the Nation………West is on it’s own………

    Oct 18, 2017 18:00 AM

    Half a trillion pounds disappear from Britain’s coffers, this could be the beginning of a big deflationary crash.

    Oct 18, 2017 18:01 AM

    Thoughts and prayers go out to the family and friends of Gord Downie a Canadian icon who passed away too young.

    Oct 18, 2017 18:06 AM

    To The Moon. For the Spankmeister.

    Oct 18, 2017 18:16 AM

    What comes after the Crypto Bubble?

    Simply put, if more than 100 new sources of this digital commodity have been launched since the summer, then the entire concept of scarcity, and therefore value, begins to erode. In fact, many of these new cryptocurrencies will need to fail in order to maintain the viability of the best-known currencies, bitcoin and ether.

    Oct 18, 2017 18:20 AM

    More Wisdom from the Money Changers.
    What’s the first thing that comes to mind when someone says Sound Money?
    Why the Central Bank of Brazil of course.

      Oct 18, 2017 18:33 AM

      Central Bank morons………..they should know what a pyramid scheme is, they are all part of one big scheme…….what a hoot……

        Oct 18, 2017 18:36 AM

        The moron……has some dribble coming off his lips………….. “)
        (of a liquid) fall slowly in drops or a thin stream.
        “rain dribbled down the window”
        synonyms: trickle, drip, fall, drizzle; More

    Oct 18, 2017 18:29 AM
    Oct 18, 2017 18:32 AM
    Oct 18, 2017 18:35 AM
    Oct 18, 2017 18:38 AM

    Bitcoin for Wine.

    Oct 18, 2017 18:40 AM

    Catherine Austin Fitts:

    Money missing from DoJ, HUD

      Oct 18, 2017 18:43 AM

      Good place to start looking would be DARPA.

      Oct 18, 2017 18:43 AM

      HOw long have we been talking about this one…………….at least a couple of years…

        Oct 18, 2017 18:45 AM

        maybe, the sheeple are ready to over take their pretend govt……….

        Oct 18, 2017 18:33 AM

        Keep those brush fires burning 😉

    Oct 18, 2017 18:42 AM
    Oct 18, 2017 18:45 AM
      Oct 18, 2017 18:34 AM

      John, there may be more and more stuff to buy with bitcoin, I watched a vid yesterday of a realtor doing bus in bitcoin.
      The thing is, I can use cash too, I still have no NEED for bitcoin.

      What I needed was to buy it at $3 when I first found out about it.

      Oct 18, 2017 18:05 AM

      Fed,CIA,NSA,Dept of Treasury,ECB,JCB,QID,MK Ultra.

    Oct 18, 2017 18:08 AM

    Massachusets Institute of Technology Book store.
    Bring your Bitcoin Wallet!

      Oct 18, 2017 18:11 AM

      cftc……….joke………….south korea …….joke

        Oct 18, 2017 18:17 AM

        Actually this will prove to be positive for the Cryptos.
        People are waking up to the 1%.At the same time it will be good to get some of the “hot” money out.
        One cannot deny a “Free Entry Market with a High Level of Trust”
        Bring it on!

      Oct 18, 2017 18:17 AM

      I see a form of Whiskey Rebellion , going to happen on cryptos…….govt and bankers are in for a treat……

    Oct 18, 2017 18:22 AM

    How to use Bitcoin to shop at Amazon,Home Depot, CVS and more.
    I would be careful with CVS as the Cherokee Nation is going to give them some of their medicine.

    Oct 18, 2017 18:34 AM

    “President Trump has been notoriously inconsistent in his foreign policy. He campaigned on and won the presidency with promises to repair relations with Russia, pull out of no-win wars like Afghanistan, and end the failed US policy of nation-building overseas. Once in office he pursued policies exactly the opposite of what he campaigned on. Unfortunately Iran is one of the few areas where the president has been very consistent. And consistently wrong.”
    ~Ron Paul

        Oct 18, 2017 18:47 AM

        Preaching to the choir….

          Oct 18, 2017 18:23 AM

          You think? I’ve got the impression that plenty are still holding out hope for the Donald.

      Oct 18, 2017 18:42 AM

      I think the only thing thats going to stop the yanks and their killing is a currency devaluation that makes it too expensive to have military everywhere.

      No american gov is willingly going to stop it, nor will the american people.

      The plan the brics have of dropping the american dollar is a good one.

      I have refused to take it myself for years, I get american change I ask for cdn,… like it matters.

    Oct 18, 2017 18:36 AM

    Because it is not traded on a regular exchange,like the NYSE, many think that the cryptocoin market cannot be rigged. I don’t believe that to be true.

    e.g. Suppose I , with bank accounts in several different locations, start up a new crypto with a good idea and white paper.
    Further, suppose I keep back half of these new cryptocoins (supposedly for future sales)
    Now suppose I offer some of these on a coin exchange at a price slightly above market.
    Then I buy those coins, using a different identity and bank account, or get a friend/partner to do it.
    Then i sell them back to myself at a slightly higher price,
    Then repeat selling back and forth at slighly higher prices, bleeding off a few coins now and again to others to pump up my cash holding.
    Do you not think the market could be rigged this way?

      Oct 18, 2017 18:38 AM

      Makes sense to me. Surely Jesse Livermore could have run an ‘operation’ on a cryptocurrency.

        Oct 18, 2017 18:45 AM

        That is one reason I monitor volumes closely, even on stocks, and who is doing buying and selling.
        Because I am paranoid enough to be most markets are rigged.

      Oct 18, 2017 18:47 AM

      Your the genius. You don’t get to ask us questions.Just kidding.
      That is a pretty deep question. I think the community would be able to “sniff” them out.
      In the end,the Crypto that meets people’s needs will be the go to. Speculation will not sustain on going continual value.

    Oct 18, 2017 18:48 AM

    Yen ($XJY) is set for a serious plunge on the weekly chart. We already have an outside week down. There is nothing but air between current price and the lower bollinger band, which is now curving down and is now ready to receive a tumbling yen.

    The monthly chart is even worse. There is nothing between current price and the lower monthly bollinger band which is coming in just under 84. Gold and silver are going to get bent over. Conversely, we should see one hell of a rise in the US stock market as this unfolds. Borrow $$$ from the BoJ at negative interest rates (they pay you to borrow!) and go long US stocks. You can’t lose!!!

      Oct 18, 2017 18:38 AM

      With the long-term bearish dollar charts, plus the US’s need to devalue the dollar, I doubt it.

    Oct 18, 2017 18:00 AM

    Keep an eye on the JGB 10Y . As long as they can keep this contained it will be business as usual. If the 10Y starts getting away from them,things will have to change.

      Oct 18, 2017 18:20 AM

      This crap has been goin on for 40 years now. The BoJ owns like what, 80 or 90% of JGBs? No one gives a crap. Sure some day it will end, but whose to say you or I will be alive to see it.

      As long as yen is falling, its all systems go for the US stock market. Banks can borrow at negative interest rates and go long US stocks. The party stops when the BoJ stops or a bubble in US stocks bursts. Neither of those look likely thanks to the Fed put. The Fed will simply print up the difference if the market drops. Ergo the stock market is headed to infinity. The only risk is currency risk, but clearly again, no one gives a crap about the absolute quantity of currency. All that matters is exchange rates and as long as the BoJ prints more, its all systems GO.

      Oct 18, 2017 18:28 AM

      When’s the last time Zero Hedge published a positive article on anything?
      These people have secured the model for negative press equals continual revenue.
      Lets be serious here.

        Oct 18, 2017 18:53 AM

        When’s the last time Zero Hedge published a positive article on anything?…….Good question..

          Oct 18, 2017 18:54 AM

          Positive attracts negative……I must be a magnet……. 🙂

    Oct 18, 2017 18:32 AM
      Oct 18, 2017 18:28 AM

      We both know the CFTC is one of the most corrupt institutions ever conceived.
      Allen Greenspan and the CFTC are responsible for the Derivitive bubble we are in now.
      I wish I could be more possitive. No longer can I claim ignorance. I did not understand what learning the market would lead me to.
      In Hindsight, with what I know now,I probably would have been a happier person if I had just stuck to catching Salmon and Building Houses.

    Oct 18, 2017 18:47 AM

    Bix on hump day with the rogues

    Oct 18, 2017 18:31 PM

    I have heard Bitcoin called “the next fiat”. Perhaps. I still say that crypto currencies have come about because of capital controls, asset confiscation, etc. with governmental abuse. After the Vietnam War, you couldn’t sew gold coins into your clothing and go to another country and sell the gold to start a new life. Metal detectors got too good.

    Well, now, you can have millions in currency in altcoins on the blockchains, and all you have to do is memorize the wallet passwords. You can cross state lines or international lines without your property being taken. Then find an Internet cafe where you can transfer the altcoins to a nearby bank for withdrawal in local currency.

    All this reaction against Bitcoin et al is capital controls by government oversight. Of course the USA does not like Bitcoin – it gets around their currency controls and threatens their debt overhang. The same for China. Both countries have a vested interest in keeping as many people as possible buying their government bonds and using their currency for all transactions through their communication systems. Russia is not far behind in the reasoning.

    Obviously crypto currencies only work when there is the infrastructure to support it – but gold and precious metals also fail in a Mad Max scenario, where barter with goods works.