The Divergence Between US Stock Markets and Gold & Silver Stocks Has Begun, But it is Far From Over

smartknowledgeu.com / April 14, 2017

About a month ago, on 23 March, I wrote that a divergence between gold and silver stocks and US stocks was likely later this year. If we look at the two below charts, we see that a divergence between US stock market indexes and gold and silver stocks (as represented by the Philadelphia Gold and Silver Index) started diverging almost immediately after I posted these thoughts a month ago. However, this divergence is not the one I was referencing in last month’s article, because while the XAU index has risen a decent 7.57% since 23 March and the US stock market indexes have only fallen very slightly since then, I am speaking of a much greater divergence that I firmly believe will manifest in the future, one in which US stock markets will sell off by more than 20% and one in which gold and silver stocks will rise by more than 20%, for a divergence in excess of 40%. And since the gold and silver stocks have had a good run for the past couple of weeks, we may receive some more consolidation before the real breakout happens, depending upon how many different geopolitical events in the near future play out. Given the banking cartel-executed gold and silver asset price manipulations thus far this year, it may seem as if nothing has changed, but there are many changes happening beneath the surface, especially between Russia and China, that will allow both of these countries to play a much larger role in setting spot gold and silver prices in the future without having to worry about punitive sanctions imposed upon them by the Western banking cartel.

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