Name: Gold Price Largest Weekly Drop Since 2016 Election Night
Uploaded: 2020-03-10T22:30:31.000Z
Duration: 6 min 46 s
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The formula for our weekly 1,000,000,000 market update still obviously in its infancy, and we really want to hear from you out there tell us in the comments below what kinds of information and updates, which could bring you consistent value.

Let's start by digging into major pressure mental price action for the past week and look at some of these boughs of drivers for why spot prices got so clobbered.

The silver spot price fell over a dollar 30 tryouts, closing this week at around 16 £87.

The gold spot price had its worst week, a nominal price action since President Donald Trump was shockingly elected in late 2016 that night. 00:00:56.770 --> 00:01:6.070  The gold price immediately shot up $50 announced on the news, only to get hammered down $100 announce the very next day for reasons no one has ever been able to explain. 00:01:7.140 --> 00:01:11.120  This week's gold prices closing around 1460 per ounce.

That's about $55 off of last week's clothes.

The platinum price, still at 100 year lows in terms of value versus gold, fell some 60 bucks this week, closing just over 100 90 per ounce, often recent record setting short physical supply plating Spot prices dropped over 100 announced this week and finish shooting just below 1007 or 50 per ounce.

Gold silver ratios climbed again and it's above 86 ounces silver toe, one ounce of gold level.

The Man attribution for all these severe weakness and precious metals prices was this supposed Faizulin deal for the ongoing U.

Fall more so, a derivative driven price fall affair.

Of course, there was no mention in the supposed phase one trade deal news. 00:01:58.500 --> 00:02:6.920  If China is committing to end their consistent intellectual property theft, one party political control of their legal system, continued exportation of fentanyl into the U. 00:02:6.920 --> 00:02:7.110  S. 00:02:7.110 --> 00:02:15.150  A non liberalization of their markets or if they will ever lower their seemingly ever existing capital controls anytime soon.

So, yeah, we and many other onlookers remain skeptics.

Tweet of the week goes to spend Henrich at Northman trader.

He states recycle the same headline over and over and over again, and each time markets jump, and each time it means nothing.

His tweet goes on to illustrate a handful of supposed China US straight deal, possibly soon.

Headlines over the past year, and there were six in his tweet.

But there's been thousands, if not tens of thousands of them last 12 months or more, which algorithmic trading machines read and buy on positive news headlines, which helped to prop the market up further riel fundamental substance. 00:02:53.030 --> 00:03:1.850  Those headlines to date, though really, all that's mounted has been tariffs and escalations and respective rhetoric between the two feuding nations. 00:03:3.510 --> 00:03:6.070  This week, the Federal Reserve added more knots. 00:03:6.070 --> 00:03:6.810  Q B for two. 00:03:6.810 --> 00:03:13.350  It's expanding balance sheet as overnight loans to the global banking system continue around 100 billion Fiat fed notes for evening.

Only a couple weeks ago, best selling author and a vocal proponent of prudent golden silver bullion.

Investing, Positioning Mr Jim Records was on moneywise you to channel.

And this is what he had to say about the ongoing unspoken reasons for what may be happening deep within the bowels of the global financial system.

Don't have to go that far to say, Well, maybe we'll just have a good old fashioned financial crisis.

Honestly, Rachel, we may be in one right now as we speak.

Financial system where the Fed So Okay, so from 2008 to 2014 we had quantitative easing. 00:03:55.980 --> 00:04:1.550  Then there was a a kind of a sideways period beginning in 2017. 00:04:1.980 --> 00:04:7.920  The Fed an issue initiated with a quantitative tightening actually reducing the money supply is still run into people. 00:04:7.920 --> 00:04:8.680  The banquet table. 00:04:8.680 --> 00:04:9.240  I hate you. 00:04:9.240 --> 00:04:9.670  You're pretty. 00:04:9.670 --> 00:04:10.280  My said no.

That's been over for about five years there now burning money, throwing money into the furnace to reduce the money supply.

Except just a few days ago, they slammed on the brakes on that and flip to quantitative easing.

They call it system Repo, but it's Cuba for in in all but name.

Uh, why are they printing a trillion dollars?

When they were trying to reduce the balance sheet, they were trying to tighten them.

They're printing a trillion dollars, somebody's broke and I'm not gonna mention names.

I'm not going to speculate, but, um, they're giving the money to the bank's.

Taking Treasuries is collateral, but they expect the banks to lend the money to nonbank players, hedge funds, private equity funds, smaller banks, Chinese banks, etcetera and take treasury securities is collateral. 00:04:59.110 --> 00:05:6.620  The way it works is I give you $100 million you give me $102 million of Treasury notes or guilts. 00:05:7.540 --> 00:05:9.600  So I've got 2% collateral. 00:05:9.600 --> 00:05:12.480  So if you don't pay me back, I sell the notes in the market.

When the banks are hoarding the money and they won't take, they won't lend it out.

What it says is that they're anticipating a liquidity crisis that's so bad that they will not be able to sell Treasuries at anywhere near the value they got.

That's a pretty scary thought that that means they're seeing something.

The rest of us are not saying I won't go further than that because it was no.

No evidence, but, um, But just what we know about reserves being drawn down now suddenly increased the bank's time on landing, it said, Or someone's in distress.

But if it hits and spreads, we could be back in the global liquidity crisis on it could be starting. 00:05:54.160 --> 00:06:0.460  Now we suggest everyone take the long view in regards to this recent precious metal spot price weakness. 00:06:0.680 --> 00:06:10.090  Consider even this technical overall rising bowl shape for gold price action, as we will again likely be retesting new nominal price highs for gold early next decade.

If you're building a prudent physical precious metals bowling position, consider this past week's pullback and price consolidations as a great gift for new additions to your boy and stack.

That's all for this week's esti 1,000,000,000 Gold Silver Market update.

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