October 2024
It's been a little, let's say busy since our last newsletter. While Lenin is not our favorite person to quote, this one is proving too true to ignore.
"There are decades where nothing happens, and there are weeks where decades happen."
During the twelve years from 1962 to 1974, the world experienced the Cuban Missile Crisis, a U.S. President assassinated (JFK), a U.S. Presidential candidate assassinated (RFK), the Vietnam War and associated protests, cultural upheaval, the OPEC oil embargo and resulting “stagflation,” the end of the gold standard which set off global financial turmoil, and the resignation of a U.S. President.
Over the last twelve months, we've seen war erupt in the Middle East, the escalation of the war in Ukraine complete with its own nuclear threats, another bout of stagflation, two attempts at assassinating a former President and current candidate, an increase in the cultural divide, a full-frontal attack on free speech, and the looming end to our debt-based monetary system, aka “the Great Reset.” Add to that two major hurricanes in the span of three weeks and the most contentious and consequential election in modern history in less than three weeks, and we have a recipe for what could be the most intense 120 days of geopolitical, financial, and cultural upheaval most of us have lived through.
We don't point this out to create fear, but rather that we can deal with the reality of our present situation. We in America have become pretty good at believing nothing major can touch us. In today's world, that isn't true. Our niche is helping you navigate these times by providing a flexible, accessible, and cost-effective means to manage your financial insurance. As always, with history unfolding before our eyes, we at OWNx are...
Here for you,
The OWNx Team
Gold and Silver
What Do the Charts Say?
In the last newsletter, we mentioned that the summer rally to new highs indicated a fundamental shift in the gold market. While new highs are good for those holding gold, the continued run to further highs over the last two months (with a new high being made as this newsletter gets published) seems to confirm what we said in our opening - that there is a high likelihood of increasing financial, geopolitical, and social turmoil in the coming months.
On the chart, we see the breakout above two resistance points (green lines) and three established uptrend lines. At this point, a return to the lower uptrend line seems unlikely. The upper uptrend line is unsustainable over the long term, but could easily carry gold to the $3,000 per ounce mark where we'd expect to see another period of consolidation. During that period touching the middle blue uptrend line would not be a surprise. However, with all that is happening in the world today, price action in the coming months could establish a new trendline between the top and middle lines.
For those holding silver, it appears to have awakened from its lagging slumber and is beginning to play catch up with the price of gold. It is spending the majority of its time above the critical resistance level of $30 per ounce. With the gold/silver ratio hovering in the mid-to-upper 80s, it has a long way to go to catch up. We've said it before and will say it again. When it chooses to get serious about playing catch up, silver price movements can be rapid and stunning.
With that said, all markets need to rest, even precious metals during times of uncertainty. However, we continue to see a sustained bull market in these metals for the next several years. Continuing to accumulate them on a schedule or buying the dips are two smart and simple ways to own these increasingly "precious" metals.
In today's world...
Costco gold bars selling out quickly as bullion prices rise: survey
Bloomberg's survey showed that approximately 77% of Costco stores that stock bullion bars were sold out in the first week of October. With taxes and markups, this is certainly not the most effective way to buy gold. However, it indicates that more people are awakening to the reality of our present geopolitical and financial system instability.
Geopolitics and Fragmentation Emerge as Serious Financial Stability Threats
"Rising tensions could trigger cross-border capital outflows and increased uncertainty that would threaten macro-financial stability" Even the IMF acknowledges that we are in a period of heightened risk for macro system instability.