Many investors have been watching wild and incomprehensible price movements in precious and industrial metals in recent weeks. This has more to do with the Rock am Ring festival than with explainable price developments. Copper and zinc, for example, have switched on a final stage and in some cases turned the levels upwards by up to 40% at the peak. At the same time, gold has moved into quieter regions by about minus 10% and silver by about minus 15%. The performance gets even more discordant in the platinoids. Palladium alone rocks at the top with plus 30% while platinum, which after all belongs to the same metal group (PGM =Platinum Group Metals), has become quieter from the top by minus 20%.
If you are an investor in precious metals, you have done everything right fundamentally. But what does fundamental mean? If you look at the initial situation in the financial world, you will see new highs in the world's debt - of governments, companies and also consumers. The uncovered paper money mountains should have long since been reflected in the natural counterweight, the precious metals, in significantly higher prices.
Added to this are the incalculable political crises in Europe, not to mention the election of Donald Trump in America. The centrifugal forces are having a stronger impact on the European bureaucratic juggernaut's merry-go-round.
Colorful paper slips
Efforts to counteract the breakup are becoming more and more reckless. The fear is great. For two years, the ECB has been pressing colorful pieces of paper out of thin air for government and bank financing, currently the fantastic sum of 80 billion euros MONTHLY. That is about 4 times what is paid out annually to Hartz4. Also Japan, Switzerland and Japan copy money bills unabatedly and devalue their currencies and consume thus the reserves, the pension and pension claims as well as the purchasing power of the incomes. All this has long since ceased to be sufficient and the influence of the propaganda of the Euro apparatchiks is now being extended to democratic elections in Europe. An Austrian candidate for the presidency is being accused of preparing a holocaust, and the media are doing the same. In Germany, the costs of the mass invasion are being buried in the darkest corners of the federal budget, and Brexit supporters are being shoved into the vicinity of mentally unstable people by the synchronized mass media.
"Financial optimisation" with a difference
The generals of the European financial battle are bringing out the big guns. Therefore, it is not surprising that the most important precious metal markets gold, silver and possibly also platinum, let's say, are adapted to the political agenda. That is lubricated by massive short pressure on the futures market the price gladly times in the desired direction. The Deutsche Bank has already had to pay 38 million dollars in October of last year, because through secret agreements they had
Silver price manipulated. They were probably also very active in manipulating the gold price. However, 38 and 60 million dollars for a German bank is really small stuff.
Misguided developments on the financial markets
Currently, investors prefer to bet on shares and real estate - yet. But the concert can play a different program very quickly. What investors in the markets are listening to right now is the pre-program. And that's where unknown rock bands often try to set the mood. Europe is sliding down the same blind alley as Venezuela, only it hasn't slid that far down that road at the moment. When the demonetization hits the market, precious metals will rock too and probably considerably before then. The main band will then be hitting the strings hard.
The previous undesirable developments in the financial system, which were caused by state intervention, require more and more state intervention so that the planned economy bubble does not burst. There is then no use in manipulating the price of gold, because there is no one left to physically sell you the precious metal for this manipulated price.
By the way - at the end, every paper money band plays the same rock ballad and it's being performed Live on Stage in Venezuela right now. It's called Hyperinflation.
