Silver Hits Downside Support; Gold Stays A Safe-Haven Port

So how did January work out for you?

  • In a mere month the killer coronavirus has taken (at this writing) over 300 lives with sadly more in the offing given reports of some 14,000 folks being infected ... the global negative economic effect is of macro proportions, from canceled commerce and flights to quarantines and closed establishments;
  • The UK technically withdrew from the EU ... next comes 11 months of business and trade issues over which to stew;
  • The stateside President went on Senatorial trial after being impeached ... and come Wednesday shall have (albeit expected) survived;
  • The price/earnings ratio of the S&P 500 using "TTM" (trailing 12 months actual earnings as opposed to unrealized estimated earnings 12 months out) is still 39x as it was at the end of 2019 ... which means -- given the Index is essentially now "unchanged" thus far in 2020 -- that Q4 Earnings Season is growthless;
  • The Gold/Silver ratio mid-week topped 90x, the white metal continuing to be regarded (like the red metal) as purely industrial ... while the yellow metal, true to safe-haven form, resiliently responds to all that's unintended, untoward, unknown.

And in the midst of all these abnormal (becoming normal?) goings-on, Silver swooned to the downside tune of its divining "Baby Blues" -- as for the past two weeks we've proposed it would -- reaching down to our suggested structural trading support at 17.42 per the red line and arrow as shown on the right in the following two-panel graphic. And we expect that Gold on the left ought also have reached down to its red line at 1521 were the world not coming off the rails. The massive nugget is that upon Silver ultimately being rediscovered (for the umpteenth time) as money -- just ask any of your Athenian buddies from back in 2020 BC --  it will overwhelm Gold in upside percentage gain; (write it down):

Indeed across the above three-month view, both Gold and Silver were in precious metal harmony for the first two, but are diverging as unexpected events ensue. To be sure, it's the safe-havens that rule as we turn to the BEGOS Markets Standings with the year's first month now through:

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