June 2022

The Memorial Day weekend has just concluded. As we remember those who have fought to maintain freedom around the world, with all that is happening in our nation and around the world, many people are reflecting on both the past and the future. The world seems to be at a critical crossroads. Periods of turmoil and uncertainty are not uncommon in history. This time seems different. Maybe it is. Maybe it isn't.

Our commitment is to be here for you. To provide smart, simple access to an asset class that has proven throughout that history to act as above all else, a form of financial insurance during uncertain times. With all that is happening today, we don't see gold and silver relinquishing that role any time soon.

All the best,

The OWNx Team

Gold and Silver

What Do the Charts Say?


Well, what can we say? The past two months have not seemed very kind to gold or silver. However, when we step back and examine the three-year chart, we find that gold is holding its own from a technical standpoint. In fact, it has carved out a more sustainable long-term up-trend line. No major support lines were breached. In fact, the channel between $1,675 and that stubborn $2,075 high is now very clearly defined. A potential worst-case scenario could see a pullback to test the lower bound of this channel. If that happens, we would need to zoom out to the 5 or 10-year chart to find a new uptrend line. Or, gold could climb the new uptrend line. We'll know more in the next two months.

As for silver, well, it's doing its "silver" thing. It's always been more volatile than gold and the past two months have been no exception. The chart looks very similar to the washout selloff when pandemic panic gripped the markets in 2020. This time around it is war in Ukraine and inflation driving the markets mad. Silver did breach its lower channel boundary, but only slightly and only for one day. Thus far, technical damage is limited. As with gold, we'll see over the next two months how it resolves.

Traditionally, precious metals suffer from the summer doldrums. "Sell in May and go away until Labor Day." is a pretty common theme most years.  That leads to light trading volume and generally flat to slightly lower prices. But this is no ordinary year. We expect that there will be plenty of action as world events unfold over the summer months. It might be wise to keep an eye on these metals as temperatures heat up in nature as well as the global markets and politics.

The Fed is boxed in.

Those who had eyes to see have known for some time that broken supply chains and trillions in stimulus money had no other practical outcome but rising prices across the board. "Transitory" inflation has become anything but, with a summer of rising energy and food prices all but certain. And that "certainty" has thrown uncertainty into the markets at a level we haven't seen in a very long time.

Yellen says she was "wrong" about inflation.

It's not a good thing when we've been warning that inflation was coming for well over a year and the United States Treasury Secretary didn't see it coming.

The Fed is between a rock and a hard place

"...a lot of the inflation that we're seeing is actually because of supply chain issues that the Fed can't readily solve, and even though they seem like they're going to try. And I think that's what's gotten people a little bit nervous, is this idea that the Fed thinks they can do something that a lot of people don't believe they can do."

Will the housing market crash?

Several economists that predicted the 2008 housing market crash are saying they are concerned about a repeat. Others believe a more modest adjustment is in store. Either way, it appears that the red-hot housing market is finally cooling off as the Federal Reserve continues to hike rates.

OWNx be closed July 4th for Independence Day. Our platform, as always will not be closed.