Mass protests and chaos are happening all over the world. France has schools closed due to unrest. South Korea saw mass protests on the weekend. In India, the 80s-style communist Bengal protest form is regaining form all over India, to destabilize a progressive country. In the USA, the Black Lives Matter (BLM) movement prevented Donald Trump from getting a second consecutive term. Spain, there will be a re-election at the end of November due to mass protests. All the mass protests are orchestrated. Social media is extensively used to justify false narratives. The internet is forcibly closed by nations in places where mass protests turn extremely violent. Small and tiny businesses suffer the most wherever mass protests turn violent.
The best hedge is physical gold and physical silver. Why? Your money in stocks and bonds and even real estate is an illiquid investment. Your money in a bank is of no use on days/weeks when you are directly impacted by mass unrest, as bank branches will be closed. ATM is generally out of cash. If the internet is down, you cannot transfer funds to a third party and collect cash.
In India, the protestors have explicitly stated that they do not believe in the Constitution of India. They will continue to create chaotic unrest in every nook and corner of India till the democratically elected government does not resign. Chaos and unrest are still there in Bangladesh and Nepal. As common men, we are helpless. We need to live through the chaos and survive. I am confident that Team Trump has created the global unrest. Trump has another thirty months as president of the USA. The best hedge is to be short-term oriented in all forms of investment other than gold and silver. Long-term: increase investment in hard assets significantly and reduce investment in paper assets.
Nations cannot block USA-controlled social media. Trade sanctions and trade alienation will be imposed overnight if nations resort to banning Twitter, Instagram, WhatsApp, Telegram, and Facebook, etc. Gold, and only physical gold, is the best hedge against global uncontrollable circumstances.
Artificial Intelligence (AI) is the future tool to spread misinformation and control the world by the Western cabal. Kids and Gen Z blindly believe the answers from various AI networks. Data has to be fed into AI networks. AI input data will be controlled by the Western world. School students do not have any brains in India. Most are dumb and dumber. I see my nephew completely relying on AI search without any verification. Everything, including the type of food we eat, is getting increasingly controlled by social media and AI. Gold is the only hedge against future human slavery by Artificial Intelligence.
I am least bothered by the short-term bearish price trend in gold and silver. I get criticized by my friends for my bullish view every time. I have never been an intraday trader. I prefer investing. Six months to twelve months of a bearish trend (from the highest price point) does not alter the long-term bullish view. When the gold price failed to break $2000 and fell to $1200, most people wrote off gold. I did not alter my bullish view. Every article on www.goldseek.com had a bullish view when the world was writing off gold as an investment.
Either be a momentum intraday trader or be an investor. In between, and you will join the loss-making side. Short-term trend and intraday trend can reverse and follow the drunken man theory. Trump cannot control the long-term fundamentals of precious metals and non-ferrous metals. BUT BUT BUT team Trump controls short-term price moves of every asset class.
Interest rates will not be hiked in the October Federal Reserve meeting. Let's not bet on the outcome of the December Federal Reserve meeting. Silver investment is not for the low-risk taker.
I am an intraday trader in silver. I will continue to be an intraday trader in silver for thirty days after the US Senate election result is over. I cannot think of the chessboard moves that Mr.Trump will play after the US Senate election result is over. I have a certain price target in Indian rupees for physical silver which, if it comes, will push me to reduce short-term stock investment and switch to physical silver.
Spot Silver – Current Market Price: $60.73
- 50 day simple MA: $65.10
- 100 day simple MA: $62.90
- Key intraday resistance: $61.80
- Key intraday support: 60.05 and $59.18
- TODAY: Spot silver has to trade over $60.50 today and to rise to $62.90 more.
- A crash or sell-off will be there if spot silver trades below $60.50 today in USA session.
- A daily close below $59.70 for four consecutive trading sessions is needed on or after 12th October for a confirmed medium term bearish trend in silver. If not then spot silver will see wild price swings and big gap open daily around Singapore open.
- Views are intraday unless otherwise specified.
- Currently, silver volatility is very high. Avoid extreme risk-taking while doing intraday trades in silver.
- Low-risk traders and low-risk takers trading in silver (spot, futures, and ETF) should preferably be intraday trader.
- A systematic investment plan (SIP) or monthly SIP (physical or ETF, your choice) is the best way to invest in silver for the low-risk takers.
- Derivative trading in silver is not for the low-risk takers.
- Please assess your own risk profile if you intend to do derivative trading in silver or trade in silver futures on any commodity exchange of the world.
DISCLAIMER: The investment ideas provided are purely an independent viewpoint and are solely for collective learning and for academic interests. There is no commercial benefit accruing or deemed to accrue to me out of providing such investment ideas.
The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on this advice, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.
I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivatives.
Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity futures. I do not trade in CME futures or OTC spot gold and spot silver.
NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
- Follow us on Twitter @chintankarnani
- PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
- PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
- ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
- ALL NEWS IS TAKEN FROM REUTERS NEWSWIRES.
- TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE
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