Michael Oliver: Silver Could Surpass Its All-Time High Within The Next 18 Months

In this podcast episode of Palisades Gold Radio, your host Tom Bodrovics invites back Michael Oliver from Momentum Structural Analysis to discuss the stock market's present condition in relation to the upcoming US election. Michael expresses his view that the markets have not fully accounted for the uncertainty and potential instability arising from the election. He references historical precedents of market reactions following unpredictable election results, specifically the bull market peaks in 2000 and 2007, where interest rate cuts after periods of hikes led to significant downturns.

Michael shares his perspective on the economy, emphasizing that the Fed has shifted its focus from inflation control to defending the economy due to Powell's concerns over an inadequate job market, particularly in manufacturing and essential industries, and a looming debt crisis. He discusses the potential consequences for the bond market and gold prices, suggesting that when the stock market corrects, data points will shift, prompting Fed concern about solvency and the need to roll over substantial amounts of debt with increasing interest costs.

Michael discusses the potential for a government debt crisis and its impact on gold, predicting a short-term rally in T-bonds as assets flow out of stocks into perceived safety but an ultimately downward trend in terms of price and upward yield. He also highlights the significance of commodities related to agriculture, energy, and base metals following gold's lead during market upswings.

Michael explains the correlation between stock markets and the US dollar index, emphasizing that increased losses may create demand for the dollar but warning that historically, major swings in the dollar index have followed the stock market trends rather than assisting it in times of potential breakdowns.

Michael uses an analogy to describe gold's relationship with silver, viewing it as a 'mama market' with silver acting as an unpredictable 'wild dog on a leash.' He explains that while gold sets trends, silver exhibits seemingly irrational swings but ultimately follows the same direction. The underperforming gold miners GDX are expected to outperform gold in the future, and silver's industrial significance could lead to increased attention once prices take off.

Predicting significant price increases for gold, Michael suggests that conditions such as stock market instability, central bank issues, and government debt markets could drive a surge reminiscent of the late 1970s and early 1980s, where gold experienced eightfold growth.

Michael concludes with a discussion of the potential for market instability due to unpredictable outcomes from the US election, with both parties experiencing desperation and panic contributing to an unstable stock market. He also references Javier Milei's presidency in Argentina as a reminder of the need for painful changes in response to decades of mismanagement and anticipates an intriguing and consequential period ahead.

Time Stamp References:
0:00 - Introduction
0:31 - Markets & The Elections
8:04 - Yen & the Nikk ei
11:46 - Fed & Liquidity
14:15 - Bond Markets & Service
20:45 - Gold & Commodities
24:33 - Dollar Crisis & Demand
27:16 - Complexities & Timeframes
32:50 - Sell Offs & Metals
35:52 - Silver Vs. Gold Spreads
41:32 - Metals & Fundamentals
46:19 - Gold Miners & Signals
49:43 - Earnings & Margins
51:38 - Miners & Mining Tiers
55:16 - Debt Crisis & The Metals
1:02:42 - Political Upsets
1:06:51 - Wrap Up

Talking Points From This Episode
- Michael Oliver warns of potential market instability due to US election uncertainty, referencing historical precedents.
- Fed's focus shifts from inflation control to economy defense amid job market concerns and debt crisis.
- Gold predicted to surge with conditions like stock instability, central bank issues, and government debt markets.

Guest Links:
Alasdair MacLeod Video: https://vimeo.com/1017577311/aaaf32f856
Guest Links:
Website: http://www.olivermsa.com/
Twitter: https://twitter.com/Oliver_MSA
Amazon Book: https://tinyurl.com/y2roa7p5
Free Report email: michaeloliver@olivermsa.com

Email MSA above, and they will send you this week's report for free, which covers many of the topics from this interview.

J. Michael Oliver entered the financial services industry in 1975 on the Futures side, joining E.F. Hutton's International Commodity Division, headquartered in New York City's Battery Park. He studied under David Johnston, head of Hutton's Commodity Division and Chairman of the COMEX.

In the 1980s, Mike began to develop his proprietary momentum-based method of technical analysis. He learned early on that orthodox price chart technical analysis left many unanswered questions and too often deceived those who trusted in price chart breakouts, support/resistance, and so forth.

In 1987 Mike technically anticipated and caught the Crash. It was then that he decided to develop his structural momentum tools into a full analytic methodology.

In 1992, the Financial VP and head of Wachovia Bank's Trust Department asked Mike to provide soft dollar research to Wachovia. Within a year, Mike shifted from brokerage to full-time technical analysis. He is also the author of The New Libertarianism: Anarcho-Capitalism.