With the entire world conveniently concentrating on cryptocurrencies in recent months, few reports have come out revealing the stunning rise of gold prices. Since the middle of December, the yellow metal shot up over 9%. In the same timeframe, the U.S. Dollar index cratered 4.5%.
In a currency market that deals with the smallest of percentage gains, a 4.5% move is a whopper. Worse yet, this decline has been occurring since December of 2016, shortly after the contested and controversial presidential election. In turn, gold prices have steadily, but quietly moved higher last year.
While I’m trying to avoid conspiratorial leanings, recent market dynamics strike me as either odd or incredibly fortuitous for elite central bankers. The jump in bitcoin and alternative cryptocurrencies virtually ensured that no one would talk about gold prices. And if no one was talking about gold prices, then we essentially had a blackout on the dollar index collapse.
Then, we have to talk about silver prices. While all other precious metals, including platinum and especially palladium, enjoyed standout performances in 2017, silver prices only gained roughly 4.5%. And throughout this month, the metal’s valuation was falling until just recently.
Certainly, this unusual market action brings to mind the silver suppression concept.
Moving beyond that, what we do know is that the political realm played the electorate as fools. One of the tickets that then-candidate Donald Trump ran on was fiscal responsibility. Perhaps he still believes in those fundamental monetary principles, but as our own TraderStef mentioned, Treasury Secretary Steven Mnuchin pushed the old dogma that a weak dollar was ultimately good for the U.S. economy.
Is this the kind of BS that “conservative” Republicans voted for? Sadly, the answer is yes.
When former Vice-President Al Gore came out to defend recent Trump economic policies, it should have raised immediate red flags. Democrats almost never support Republicans on any issue. Yet here we have Al Gore of all people defending the most contentious Republican President in history.
It doesn’t make any sense were it not for the fact that the government is placating everyone with cheap dollars. Yes, we’re enjoying a robust labor market, but at the expense of higher gold prices. This jump then corresponds to other rising costs, such as real estate, petrol, utilities, even education.
Perhaps the only thing that we won’t see with the falling dollar index is sharply rising silver prices. But if that’s the case, you’ll have almost undeniable evidence of clear silver suppression.