Weekly Update 19 Jul 2019 ETH crashes, Silver soars
Currencies, cryptocurrencies, bonds, and major stock indexes were all lower, while commodities were mixed and gold mining stocks rose. Silver and platinum made the largest gains, rising 7.0% and 3.7% respectively. The biggest losses were in Ethereum, which cratered 21.7%, and Bitcoin, which dropped 12.9%. Crude oil was also hit hard, falling 9.7%.
All national currencies fell, but the largest drops were in the Canadian Dollar and the Euro, which declined 2.5% each. The smallest losses were in the Japanese Yen, which closed down 2.0%. USD cash fell 2.2%, while short term bonds were off 2.1% and 20+ year bonds were down 1.1%.
Bitcoin fell early in the week, hitting a low of 209 grams on Tuesday, then recovered to close at 227.5 grams, down 12.5%. Ethereum followed a similar trajectory, hitting a low of 4.4 grams on Monday, but recovered only weakly, closing at 4.8 grams, down a whopping 21.7%. Once again, some other cryptos did even worse; for example, DASH (not shown on the chart below) finished down 23.3%. Theories abound on the drop's cause; congressional concern over Facebook's Libra coin and presidential tweets critical of cryptocurrencies are often mentioned. In my opinion, these FUD factors are creating a great buying opportunity.
Gold stocks were this week's only equity winner, gaining 2.8%. The S&P 500 and Euro STOXX fell the most, dropping 3.4% and 3.3% respectively. The Dow Industrials fell the least of the major market indexes, giving up 2.9%.
Commodities were very mixed, with extremes ranging from silver's 7.0% gain to crude oil's 9.7% plunge. The platinum group metals split, with palladium falling 2.0% while platinum rose 3.7%. Silver reversed course and rose steadily through this week after hitting some of the lowest prices in 20 years during the prior week.
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