Gold price Silver & Gold Jump higher, what should you do now?
Huge moves going on I’m. Getting a lot of questions dan, what should I do? I recommended buying silver and gold and platinum for the past six to seven months. What should i do dan I’m gon na try to answer these questions today in about 10 to 15 minutes? For those of you new viewers, my name is Dan takahashi I’m, a former Wall Street guy I’ve been investing almost all my money. Since I was 12 years old mowing lawns, then I joined Wall Street as an intern. When I was 19 and then created a fund, a hedge fund with a partner of mine, he was a mentor of mine when I was 26 and then I saw my stake in that fund when I was 30 travelled about 60 different countries over four and a Half years and then came back to Tokyo about seven months ago and just started all of social media for the first time got about 300000 subscribers and followers worldwide across different channels. Very thankful guys – and I just started this English Channel English version channel a few weeks ago – so hopefully you’ll, follow me and subscribe to my channel going forward today, I’m going to break down our topic and three main themes, number one. Why did I recommend this? In the first place, and what was my recommendation, why do I like these precious metals and what’s the reason behind it? This is the most important part of this video guys, don’t get so enthralled with all the excitement and the drama going on with the price movement understand.
Why number two we’ll do a chart. Analysis well, I’ll, do the chart analysis and you guys can listen. What do I think is this going to keep going higher silver specially gone up a lot number three I’ll give you my recommendation, my idea, so let’s get started. First and foremost, look at my Japanese YouTube videos, I’ve been publishing stuff about gold and silver and platinum for a while I’ve liked these precious metals for a long time, I’ve started watching them ever since I joined Wall Street. When I was about 21 years old, then I’ve been watching. I watched the whole move up to about 1920 in gold and I didn’t own any, and I was so pissed off that I told myself next time. It goes down I’m gon na buy a lot, and when it went down to about 1100 US dollars, I started buying as much as I could around 2015 2016 and ever since then, I’ve been continuously just buying long term. Gold, silver and platinum also, some other precious metals in rare earth. Metals and I’ve been doing this for one really strong reason, because gold and precious metals to me are form of money. Yes, money and the price of money should be based on the supply of money. Basically, gold and silver have been used as money for thousands of years. Looking historically, they moved the price of gold and silver moves with the monetary base or the supply of fiat currencies.
Basically, money that the government prints and the largest fiat currency in the world is still the US dollar it’s, still the world’s biggest reserve currency. So, looking at the US dollar money supply to give historically it’s, given a good indication of the price of gold and silver in u.s. dollars, so I can express this as one very simple chart. I’Ve talked about this over and over. This is the price of gold. The monetary base – this is the st. Louis adjusted monetary base. It matches basically the size of the Federal Reserve’s balance sheet, so this is basically the central bank of the US and how much money it prints, there’s all sorts of measures of money supply. In my experience, this is one of the most accurate there’s M 1 M 2 M 3 there’s tons of tons of other forms of money, because money is so vague, but this is usually historically the best, because the biggest control of money supply in the world is The central bank, because they’re the only institution that can print money, basically just with a push of a button, they can create more money. But looking at the price of gold, which is one of the oldest forms of money in the world divided by the money supply, gives you this type of graph over the last 102 102 years. This goes back to 9 at 1918. Looking gold right now, even though the moves been very high, recently it’s still very low when measured with the money supply, basically because the money supply has just gone up drastically over the last few years.
So that was my main reason for buying these. I like buying these, I recommended buying it for both short term and long term. So long term I’ve been talking about this over and over a long term portfolio of putting 70 90 percent of your money into this yellow region by 79. Money into this long term. Investment and within that 20 to 40 percent in this yellow region commodities – I have been a bit more aggressive than I am usually in the 40, sometimes even 50 range in these commodities, just because I’m a big bull. I, like these precious metals, a lot, but this is longer term investment separately. I put out a video which I’ll post at the ending screen of this YouTube: video another video about buying short term but that’s about thirty to ten percent of your investment. That goes in short term, and this is for investments that you hold from anywhere between one week to a few months. Long term are investments you basically hold until you retire. Unless you need the money for a cash emergency, you try to not touch this. You just rebalance when you have to rebalance – and you hold these ratios at the bottom, so that’s so far the story and why I recommended precious metals and what and how I recommend it. Precious metals now let’s get into the charts, specifically looking at the precious metals. I advise based on your experience either looking at the futures or the ETFs, or maybe the mining companies.
If you have a bit more experienced, mining companies can be very dangerous. They can move very fast, but usually most of my subscribers and viewers, I recommended ETFs. One of the most basic ETS is GLD there’s, another one called IAU. These are the big gold ETFs silver. I recommended SLV, the large silver ETF and for platinum, I recommended PP LT. Now the moves have been very significant for silver. Basically, since I recommended it just a week and a half ago, it’s gone up over 20 percent. Very big move, but volume is big. This is silver futures contract as well it’s, quite big we’re. Looking at gold as well, bold is breaking out nicely it’s going up. The volume is not quite as big historically but the chart still looks very, very strong, it’s aiming for 1950. I think which was high, that it made in 2000. Oh, what was it 11 or so, but right now it looks like the chart is going back towards that range. It was about 1920. However, silver is still very very far from its high that it made 2011 same with platinum, stole very, very far from its high, and we can see there’s even more clearly with a goal to silver ratio. This is gold divided by the silver price. Looking at this, we can say that, even still now, this ratio is not really back towards its 10 year average, meaning that silver can still outperform gold. A lot more Sam also goes with the goal to platinum ratio as well.
This is gold divided by platinum. This can still go a lot more down, meaning that platinum could still outperform gold a lot now. Looking at these charts, more specifically, all the precious metals have moved higher over the last few days. Right, they’ve all moved every single one of them, they’ve all moved higher, but it’s important I’ve always said in my videos. Where is the initiation what’s the catalyst? How are why are these moving higher that’s very important to determine for your trading strategies? We look at this. We see okay, for example, GLD DTF. The volume is not really that different from most days, it’s pretty normal, so this is buying here, but not super aggressive buying, SLB the silver ETF, very aggressive volume, much higher than normal right be PLT. Platinum ETF volume is a little bit more aggressive, not super aggressive compared with the past, but still aggressive. Looking at this, the precious metals the biggest buying is occurring in silver. Looking at this chart, that’s confirmed by both the ETF and the futures, so I think we need to analyze the silver price chart to get engaged for the entire precious metals market, because I think, right now, the catalyst in precious metals is silver. I actually said this in my other video a week and a half ago, among all the precious metals short term, the silver price I like the chart, the best just because it was a large break out of a range that was a very long term for a Resistance level, which is right around this level, around 18 17 or around 19 bucks, if it right, if it breaks that level, I was saying in my video it’s a very, very strong breakout, the more dots, the stronger the line, the stronger the resistance level and the Stronger the breakout, which is one of the basics of charts.
Now the biggest question you guys are asking is okay. Should you hold on to this or not looking at this and looking how much it’s gone up it’s breaking through so many different resistance levels, it’s going up very violently? The first thing that stands out to me is right now, it’s over 20 percent away from its 25 day moving average, which is this 20 blue line right here. Yes, okay, the MACD is nicely going up. The stochastics are still showing a sign up. It’S still very far away from its 25 day moving average the last time it was this far away from it’s moving average when it was silver prices going down during the chrono crash. It was about 26 away from its moving average, and then it quickly went back up. So looking at that plus I’m looking at the Bollinger Band, Bollinger Band right now it’s a little bit outside of the range here. I’M. Not sure. If you can see this or not it’s a little bit outside of the range of the Bollinger Band, which to me indicates that it might go inside the band, so there might be some stability in the price. Looking historico Lee when the price bursts outside of the band, it tends to snap back in at least short term that plus one more piece of analysis. I think that this is not just a movement precious metals, but this is a move in a lot of different commodities.
We’Re seeing oil going up we’re, seeing Bitcoin going up we’re, seeing a lot of currencies go in the same direction. I think this is actually the real catalyst behind. All of this is actually the US dollar. The US dollar is going down long term, but short term right now. It really broke through this flag pattern and now it’s testing a very, very big level which it has not tested since the corona virus crashed. The DXY, which is the u.s. dollar index, is now at around 95. So this is a very, very big support level for the US dollar when the US dollar goes down. Usually commodity prices go up basically, because most commodities are based in u.s. dollars. Historically, they move in a negative correlation, so I actually think app right at the chart of the DXY is perhaps one of the most important Alice’s points for looking at precious metals. Looking at this chart, I think’s DXY it’s, actually, actually a nice support level. So you might actually see some stability in DXY. It might be hard short term for it to move down more meaning it’s a little bit harder for commodity prices to move up that fraught plus the fact that the silver price it’s about you know over 20 percent away from its twenty five day. Moving average it’s moved up very aggressively. I think it’s a little bit hard for it to move up even more just in the next few days, it’s possible, but so it’ll be difficult, so what’s my recommendation based on this video.
My recommendation is simple: this right now, we’re talking short term. This has nothing to do with your long term, investments again guys long term investments you put 70 to 90 percent of your investment money into this right after you pay your rent off. You pay your health f, you pay your education, all your necessary expenses, the amount of money that goes into investments 70 90 percent goes into here right now. Commodities have gone up a lot, so you may need to rebalance your portfolio to make sure you’re still in this range twenty to forty percent, if you’re already at sixty or seventy, because the price of silver has gone up, you may need to put more money into This red region or the green region, or you may need to sell some of your yellow region. It depends on your portfolio. You need to analyze and decide on yourself, however, for the short term trade, the 30 to 10. I also recommended buying around here around the 8090 level. It shot up a lot. I think you sell hats, especially silver, if you bought silver futures or if you bought SLB. I think you just sell half right here, you’re, probably sitting on a very nice gain. You sell half see what happens, maybe even sell three more than half two thirds of your position and I recommend you hold on don’t. Do don’t buy anymore but hold on to your position and platinum, because TP LT, I think, has a probably a little bit higher move to go, especially the fact that the goal to platinum ratio, it still can go down a lot further to go back to the February loaves, however, the gold to silver ratio it’s already past the February lows, so I think there’s a little bit less room to run there’s, probably more room and platinum.
So I would suggest you sell half or two thirds short term short term, guys of your silver position and hold on. Do nothing and wait with your ppl to position, obviously guys this is short term long term. You continue to buy and hold and just rebalance the way you need to so guys, that’s my recommendation. Hopefully you found this video useful guys. Please subscribe to my channel also, you could send my channel link to any of your buddies and friends to try and subscribe to my English Channel. I would very much appreciate your help. Please also see below for Twitter LinkedIn Facebook. I put out a lot of trading ideas.