You have seen the price of gold rally to new all time highs this month.
It did that after breaking out of a resistance level that has held it down, trading in a narrow range between 2100 and 1980, since October, but really it represents the completion of a cup and handle pattern, as noted by Jordan Roy-Byrne, going back for four years.
You know about it, but the masses have no idea what is going on, because they are not paying any attention to what gold is doing, so captivated they are by the price movements in Bitcoin that they see on an app.
Take a look at the Google Trends search date for “gold price,” and you can see that the number of people searching for information on the “gold price” has not gone up at all this month, and is actually below where it was last November and a year ago.
In fact, there has been outflows from the GLD and SLV ETF’s during this price rise.
The masses are totally asleep on the implications of the gold breakout.
Typically, when gold breaks out like this other metals, such as silver, copper, palladium, zinc, and so forth follow.
And they are starting to do just that.
You have seen copper soar last week.
And also, as those metals go up, other commodities tend to break out of bases too to begin new bull markets.
The masses have no idea that the price of cocoa has totally exploded, going up faster even than Bitcoin.
When crypto coins go up it has no impact on the real world, as they are simply virtual gambling speculation instruments, whose price movements have zero impact on the real world.
When cocoa prices go up, the cost of chocolate bar production rises.
And now in a few months you can expect to see the cost of chocolate in the grocery stores simply explode.
Here is the CRB Index, which is the main broad based commodity index, including metals, energy, soft commodities, all the commodity futures contracts.
As you can see, this index has been going sideways now in a very narrow 25 point (<15%) range for a year and is in a position to follow the price of gold and breakout. See how narrow the 200-day Bollinger Bands are for it, with its 200-day width indicator flatlined.
This looks like it is about to breakout and no one is talking about it all.
Right now, perhaps the easiest way to play this is simply to buy silver, as it is in a position to breakout of $26 resistance, a level similar to what $2100 was for gold a few weeks ago.
I can’t predict whether the breakout will happen tomorrow, or later this week, or two months from now, but it looks like it’s simply a matter of time, coming soon.
Are you silver stacking?
-Mike
