I was watchign Rick Rule talking about Silver or AG. He is wondering why Silver skyrockets at certain points after a gold price. He said he doesn't know why it skyrockets but it just does. It's interesting he questions why but it's pretty easy for me to understand. Silver is used in so many materials and devices. It's not just a monetary metal, it's also used for health.
Growing up with a silver spoon isn't just a note of a child being born into wealth, but silver was known as anti-bacterial. People used to flip a silver coin into their milk to keep it from spoiling. So why oh why is Silver not doing what it should do (like sky-rocket). Well this question brought me back to what happened after 2008. Gold should skyrocket, silver should outperform even gold.. until it didn't. My friends tease me to this day saying if I invested in the S&P 500 back in 2008 I would have outperformed gold and silver.
The truth is the legacy system hates silver and gold because it requires responsibility. You need to have the asset in hand to make payment. When paper replaced physical goods you simply can manipulate how much is actually out there. Silver is double the manipulation because it is used in many of the cheap electronics we use. If silver actually went up in price, how much more would electronics go up as well. It benefits production, benefits government spending etc..
It's that simple.
Will it ever break free from the manipulation? Well basically everything would break free and find true price discovery. The only problem is that bread in fiat dollars would be $100 a loaf.
