Caution Is Warranted Heading Into Election | Steve Penny #Finance

from a long-term perspective this is a major breakout the trend is clearly up however over the shorter term you know caution is a little bit warted things don’t go up at this trajectory Forever This is Kaiser Johnson with liberty and

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance and these are the miles Franklin weekly specials for October 28th through November 4th 2024 while supplies last this week we feature gold half oun backdated Canadian maples at just $110 over melt we also have

backdated over 1 O Britannia at just $2.99 over a spot per ounce to order our specials or any of the many other options we have available call us at 188881 Liberty that’s 18888156806 artist Steve thank you so much for joining us today hey Elijah it’s been too long I’m really

excited for this call I haven’t done an interview in uh gosh it’s probably been six seven months I think the last one I did was with you so really excited to uh connect with you again and connect with your audience I think we’ve got a lot of good things to talk about definitely

well thank you so much for coming back on here uh our viewers always enjoy our conversations and after such a run in the metals you know we needed to have you back on so can you give us a your overview of what gold is doing right now now you know it seems like hitting new all-time highs every day

pretty much at 2800 recently your perspective on this door so I like to go big to small so from a big picture perspective we got the fundamental backdrop that’s been in in place for a long time now you know where we’re basically heading into a situation where uh the the Federal Reserve

is trapped and they claim to have a dual Mandate of uh price stability and strong labor market well I think they can say that all day long but really the problem now is unsustainable uh Debt and a fiscal situation where we’re approaching a point where the just the interest

payments on the national Debt will soon consume all of federal tax receipts and we’re approaching that point and obviously the biggest variable in that equation of when we reach that point is the interest rate so they’ve got they’ve got to get Interest

Rates down to get that interest expense under control to avoid that Day of Reckoning well what’s the what’s the side effects of that is debasement of the currency and and persistent Inflation so I’ve been saying for a long time I’m in the camp of

persistent Inflation over the next 10 years but be prepared for Sharp deflationary impulses and this is obviously very bullish for gold so that’s the fundamental backdrop now the technical backdrop is extremely bullish uh we’ve been saying on your channel for a year or

two now when we break above 2089 that was the previous all-time high from back in uh 2020 that unlocks a measured move Target of $2500 to $3,000 gold um kind of been saying that for a very long time well sure enough we broke above 2089 and then just last week we went up and tapped 2772 right in the

middle of that uh measured move Target so from a long-term perspective this is a major breakout the trend is clearly up however over the shorter term you know caution is a little bit warted things don’t go up at this trajectory forever so I I wouldn’t Chase here but I’m very uh

bullish on the long-term prospects for gold and even more so for silver and blood now potentially a short-term pullback is what you’re looking for based on the chart pattern what do you see are some of the levels we could retest sure and we’ll just briefly go through this and I always

like to say because I know money of your listeners and a lot of listeners out there are so familiar with the fundamentals for gold and that is all totally valid but these technicals really do matter and it doesn’t have to be complicated because the big institutions the trading algorithms that

trade these paper Markets uh use technical it’s a big input so what I’m just I’m sharing with you right now the long-term chart for gold these are monthly candlesticks and

you can see those vertical red lines so I’ll put my cursor over them right here and you can see the last three times the RSI got this overbought so you see that a red line at the very top it’s very rare that you get above that RSI so the last couple times preceded pretty significant

pullbacks and it took quite a while to get back to those levels now I think the the there’s been a paradigm shift not to use too dramatic of a term so I don’t think it’s going to take a couple few years to get back to 2772 or this area however conditions are right for a pullback

when you look at the longer term charts and when you zero in and so so you say hey well where where might I look for a pullback well let’s go ahead and look at the daily chart here and you see this 50-day moving average right here down on TW around 2600 and I’ve labeled this for our

members I’m not sure we’re going to get back here but if we do that’s where I plan to scale in aggressively I think it’s important for everyone to have an if have if then state if then statements so for me if gold pulls back to this uh Best Buy Zone I’ve labeled here

between 2285 and about 2400 then I’ll scale in aggressively that’s a pretty good support Zone you’ve got the rising 200 day moving average there pretty good area of support right between 2300 and 2400 um and then the stink bid Zone down around 2,000 not sure we’re going to

pull all the way back to 2,000 that would be a pretty big pullback I don’t rule out that possibility however you know 2300 to 2400 would not be surprising at all and I think that would uh present a very favorable risk reward opportunity to begin accumulating again now as for silver

we’re in you know more than highs we haven’t seen for over 10 years your perspective on this and do you also anticipate a pullback before you move higher I do and we’ve already seen it um like silver just moves so fast so here’s the long-term chart for silver and this is no

surprise to your listeners we most everyone listening to this knows we’ve been to 50 bucks we were got there in 2011 4842 we’re back at $50 in 1980 and to my knowledge silver is the only commodity on the planet that’s trading way less than where it was 40 something years ago back

in 1980 so from a fundamental like value proposition silver or the risk reward ratio is very favorable however it’s very wild and volatile so uh in full disclosure we took Profits uh right around the $35 level last week when we briefly poked our head above that but when you

look at the daily chart here I put out a post for our members and let me zoom in a little bit so you guys can see this more clearly I posted this uh I think it was Sunday evening anyway we’re right about here I said hey where I would consider scaling back in is between 32 and 3275

that’s our first big support Zone well we’re there right now we’re right in that zone um it coincides with the lower rail of this uptrend channel up below there you’ve got this blue 50-day and then all the way down you’ve got the 200 day moving average so those are

potential entry points but what’s really important about this silver chart is this pattern and this is a very obvious pattern it’s a reverse Head and Shoulder so you got a left shoulder a head and a right shoulder here and the way you get a price Target or a measured move Target is you

just take this pattern and flip it on its pivot point so if you use $33 as the pivot point or the neckline that projects a measured move Target up around $39 so that’s my base case scenario I don’t like to make predictions but I think the probability suggest more upside ahead in silver

in the weeks and months ahead up to about $39 and because Silver’s so volatile I don’t rule out the potential for an overshoot up towards in the 40s or even you know a test of 50 before you know a bigger pullback again so it seems like right now silver might actually be there might be

more upside potential in the short term compared to Gold absolutely uh from a percentage basis yeah silver certainly has 100 has more upside potential but I like to look at too the upside potential measured against the downside risk and then you get a risk reward ratio um so the uh asymmetri the

asymmetry in silver is much more favorable right now in other words downside risk is still minimal relative to the upside potential we’re in Gold Gold’s still up at 2750 or so I mean I wouldn’t gold could could potentially pull back $3 $400 that wouldn’t surprise me at all

it also wouldn’t surprise me if it another $300 or $400 so rather than trying to predict which way it’s going to go I look at the ratio it’s about a 1:1 ratio which that’s kind of like a coin toss I think we can do better than that where silver yeah it may pull back two or

three doll but it’s got you know10 to15 of upside potential so that risk reward ratio is more favorable in silver than gold in my opinion know when it comes to the other precious metals platinum and padium they have not performed as well this year know not even Rising 10% for either of them

but gold and silver up 30 and 40% this year so your perspective on that do you see a catchup for uh platinum and padium coming I do and especially Platinum I I like Palladium a lot um one way I trade it is the SP it’s the Sprout physical platinum and Palladium trust you get exposure to both

in one ticker physical Metals um but I’m also big proponent of just buying physical Platinum that’s my favorite way to get exposure and to me Platinum is very likely to outperform gold and not only outperform gold but I think it has the potential potential to outperform Silver I’m

not predicting that but Platinum is just so undervalued you can see on this long-term chart uh Platinum got up to $2,300 you know almost 15 years ago 2008 and here we are down around a thousand so Platinum could double and still be below where it was you know 15 years ago and what’s

interesting about Platinum is when you look at ratios uh the Platinum to gold ratio has never has never been more uh extreme in other words Platinum has never been more cheap relative to Gold going back decades and decades I think it’s like ever forever this is a generational opportunity in

my opinion uh in Platinum and anything around a$ thousand Platinum I think is is a steel for me it it it’s also higher risk so I like 20% of my physical metal allocation of platinum that’s a number that works for me because you know silver and gold have a 5 6,000 year track record like

I’m super confident in those doing what they always do I think Platinum is likely to participate but it doesn’t have as much of a guarantee but uh very bullish on Platinum uh before I ramble on too long let me talk about this technical chart because this is a powerful chart this

triangle pattern has been in place here for 15 years and look where we are we’re approaching the Apex of this triangle pattern right now these are monthly candlesticks so if we can close the month Above This resistance line we tried to do it last month you can see right here poed head above

it and came right back down if we can close the month above that resistance line we could see a really powerful move a catch-up move in Platinum and I think that’s likely people are looking at 27 $2,800 gold saying hey I don’t I don’t have almost $3,000 to go buy an ounce but well

now I’m going to look at Silver well Silver’s up at 34 35 maybe I’m going to take a look at Platinum too so um Platinum could see a pretty rapid catch up move now I think it’s important you mention how you uh don’t like to make predictions but you kind of give a uh

percentage probability of these moves happening so can you discuss also in these times when we’re seeing massive moves and the precious metals and your perspective on the approach that people might want to consider when it comes to these

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets yeah I think it’s so important to have a plan and I’ve been doing this for over 15 years now and I’ve learned many lessons the hard way unfortunately so hopefully I can pass along some of those lessons

to newer people or if you’ve been around for a while and help people not have to make the same mistakes I’ve so I like to say whenever you have a push the buy button have a subse subsequent plan to push the sell button because if you look it back and study like the 1970s bull market

very few people took Profits when silver ran up to $50 so they sat on and they experienced these life-changing gains but they were unrealized gains because they never took any off the table so my strategy and you don’t have to mirror mine but I think that people should just

have one it’s important to have a plan an exit strategy so for me the physical medals I plan to hold most of that as a generational Insurance policy like I’m not selling that uh maybe some because I have an overweight exposure when the time is right but I’m going

to have some for as a generational Insurance policy but mining stocks man these things are so volatile and people are left bag holders because they don’t have a plan to push the sell button and you don’t have to sell all at once so my strategy is I scale out into

strength when we get overbought against resistance take a little bit off the table and then inevitably when we pull back to support I scale back in sounds very simple easy to do it’s easier to said than done but that’s my strategy and it’s it’s worked very well for me over

the past couple years and and members at Silver charts and if our viewers are interested in learning more they can go to Silver charts.com um but before we let you go I did want to maybe dive into some of those uh mining stocks or maybe some of the indices I know you follow SJ uh quite a bit as

we’ve seen gold and silver run what are the mining stocks doing right now yeah for sure so and this is typical in a precious metals bull market what tends to happen physical gold leads then uh physical silver as a catch-up move then uh excuse me it goes in the order of physical gold then the

big gold miners so we saw that ago Eagle for example up near all-time highs wheat and precious metals making new all-time highs big ones like that numont had a big run before this big pullback anyway and then you see silver and silver miners play rapid catch-up at the end so we haven’t seen

the big rapid catch-up move in silver and silver miners so just like in the physical medals I see the opportunity and where I’m looking to accumulate on pullbacks not right now but on pullback to support is in the junior silver Miners and like you said I I prefer the

href="https://cashnews.co/etfs" style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs and this is another thing that’s not popular to say because it’s exciting to go talk about the next Explorer and developer that could have be the next 1020 bagger but the truth is

most of those stocks end up uh eventually bankrupt and it’s very hard even if you do catch a big move to time the you know your buying your entry and sell points so I’m a big fan of just trading the indices so I watch SJ like a hawk I mean I watch that thing every day I know the levels

and I we trade that so you can see on the screen here like first Profit Zone these are charts I share with our members we scared scaled in aggressively last year about one year ago down near eight and you can see Profit Target number one I had this this plan

written out ahead of time so that when it came to fruition and I see price up here you know we sold about 20 20 something per of our silver miners right up here now we’re pulling back and looking for a place to scale back in um so I’m not sure if I answered your question but I I think

there’s still a lot of opportunity and in these mining stocks especially silver miners right now especially if you’ve got the right Risk Tolerance and time Horizon but the the takeaway is have a plan to push the sell button because you don’t want to just hold

these things indefinitely fantastic well Steve we really appreciate your time today as always if our viewers are interested in learning more they can go to Silver charts.com I believe can you tell us a bit about that yeah absolutely and uh I look forward to get getting our affiliate program back up

so that because you’re you’re the people who watch your show are the kind of people we really want to serve so I hope to have that going next time we connect but yeah silver char.com it’s a really unique Community it’s an overthe shoulder service I show with members exactly

what I’m doing and hopefully that helps them to make better uh trading and investing decisions it’s a great Community as well fantastic and and before I let you go I don’t want to put you on the spot here but um I know I noticed you had uh the election uh noted on one of your

charts there do you anticipate any volatility or what are your expectations going into these final days and after the election yeah I think it’s it’s just too hard to predict there’s too many variables to have I think an accurate Forecasting model of how they the

election is going to affect the medals but what I do find interesting and maybe I could pull up that chart what I find interesting is that when a a technical pattern is set to resolve around a key event that’s worthy of note so there was this bearish Rising wedge in Gold that is set to

resolve just right around the election time a little bit before the election or excuse me a little bit after the election so I think that’s interesting it’s it’s a somewhat bearish pattern in Gold not long-term bearish but shortterm so that could indicate some weakness around the

election but I’m not willing to stick my neck out and say hey I think we’re going lower after the election but just interesting to know all right well Steve will’ll definitely be interesting to you know have you back on after the elections see where we are uh but we really

appreciate your time as always thank you so much and God bless all right thanks Elijah this is Kaiser Johnson with liberty and Finance and these are the miles Franklin weekly

specials for October 28th through November 4th 2024 while supplies last this week we feature gold half oun backdated Canadian maples at just $110 over melt we also have backdated silver 1 O Britannia at just $2.99 over a spot per ounce to order our specials or any of the many other options we have

available call us at 188881 Liberty that’s 188881 15 4237 we’re available after hours and on weekends and we look forward to speaking with you