Artificial Intelligence & Fedspectations: Long Road Ahead For Silver
Scurrying for the reasons silver was volatile this morning, the white noise of the obvious hummed in the back of my mind. That white noise informed me that I was likely to find no reasons for the sudden spike this morning in the price of the devil’s metal. No war with Iran, no quantitative easing, no technological breakthrough demanding increasing amounts of silver. Instead the black hole of artificial intelligence trading had been ticked at the $26.50 level, most likely where thousands if not millions of automated buy orders are triggered, and programmed to sell somewhere before $27.30.
These critical mass artificial intelligence trading platforms will in effect dictate the price of silver in such a way so as to benefit speculators. Thus, savers and stackers in the metals will be frustrated by extremely volatile conditions and charts totally out-of-whack.
Other markets are responding predictably to shattered fespectations over quantitative easing. The short-term price of gold and silver will remain intimately tied to Federal Reserve policy. This makes gold and silver rather exposed in the short-term, as panoply of news blitzes and market movements by market makers could send the metals down in the absence of quantitative easing hinting.
But appearances only go so far. While the mainstream investing public waits idly for the headlines of mainstream pundits to instruct them what to do, behind the scenes the fundamentals for gold and silver remain largely unchanged from the original enunciations of aggressive quantitative easing policies of 2009. The bearishness is founded. Silver has a rough road ahead. But, patience will prove valuable.
The M2 update, released today, underlines this. M2 is the choice monetary aggregate, and it just crossed $9,991.50 billion. This marks a $43 billion increase from last week. As ZeroHedge points out, “this is the last week in which M2 is under $10 trillion.”