People Are Talking About Silver |
It's no secret that I'm a big fan of silver. I accumulate roughly monthly and for those of you who aren't aware, I have recently been making public any changes I make to my portfolio allocations. Recently, my precious metal purchase have been decreasing gold and increasingly silver; to the point where the last buy was entirely silver. Learn what I bought here.
Recently, I've noticed among the noise of my YouTube subscriptions and the various other sources I allow into my life a trend. The trend is increasingly pointing, in my mind, towards two things. Firstly, central bank intervention globally and the state of the US dollar as the global reserve currency is not in a healthy state & the rate of deterioration here seems to me to be increasing. Secondly, there's more noise about the importance of physical precious metals, sliver in particular, as one of the only if not the only tool to protect yourself from the results thereof.
The potential resources to back up these statements are voluminous so I though we'd keep things more simple and less bland by looking at a few recent videos so that you can make your own conclusions. Let's start with Mike Maloney who I greatly respect as a cool and calm analyst who plays a long term and dispassionate investment game.
Mike Maloney |
I'm a goldsilver.com insider and as such I receive exclusive content that Mike makes available prior to public release. Recently Mike announced that he's sold out of some of his bitcoin holdings and use the profit to buy more silver. This is the wealth cycle principle that Mike is a big proponent of. Selling expensive assets and buying cheap ones. Rinse and repeat. The video is entitled "Mike Buys More Silver With Bitcoin Profits (Insider Exclusive)". Because it's paywall protected, I can't link to it but I can say that it was released in the last few days and a screen shot is below.
Mike calls bitcoin "bubbly" and that could either mean a pullback is on it's way or something stronger. Either way, it makes sense to convert at least some profits and targeting silver exclusively is the first supporting pieces of evidence for the title of this post. There's going to be (if there isn't already) a public version of this video with more charts that Mike says he'll be releasing so that's something to look for.
Lynette Zang |
Next let's look at the latest interview conducted by Reluctant Preppers. It's a discussion with Lynette Zang who is very technically driven. She makes a strong case for the fragility of the global economic system and the implications for the little people. Key to my point however is that she reveals on video (by actually holding up the pieces) that she's recently purchased precious metals as insurance against the outcomes she sees as inevitable. In her case, it's a mixture of gold and silver but the case still stands. Well worth the time to watch if you can spare it. The video is entitled "Something Nasty this Way Comes" and I've linked it below.
Jason Burack |
Next comes some interesting analysis from Wall Street For Main Street. In this video released earlier in the week, Jason Burack discusses the divergence in silver and copper prices, commodities that were previously positively correlated. I'll quote Jason here but the video is definitely worth a look for those who may not be sold on the concept of silver price manipulation.
Jason Burack looked at 5 year price charts of copper & silver on Kitco. Around January 2016, a large divergence started between copper and silver prices and the divergence between the once positive correlation between copper and silver has increased a lot since then through 2017. The bullion banks, if they are not creating this divergence between copper & silver, are the beneficiaries as lots more silver byproduct is still available or will be available with higher copper price. The manipulators still need the physical metal to deliver to industrial end users for silver. So the manipulation can't bankrupt all suppliers. It can cap & control prices. A high enough copper price might mean an additional 100 million oz or more per year of silver byproduct available. Are the bullion banks are so desperate to prevent silver from spiking that maybe they moved copper a lot higher to help them? Or was this the work of private sector Chinese companies and speculators and bullion banks are only the indirect beneficiaries as they get more physical silver available with higher copper, lead and zinc prices?
The video is linked below.
James Rawles |
Again from Dunagun Kaiser but from earlier than the videos previously referenced comes this interview with James Rawles. He's a returning guest and to my mind speaks clearly and dispassionately for the most part about all manner of personal protection; we're only talking financial in this post so you'll get more than you bargained for in this video. He references silver also as an essential component of a wealth preservation strategy at this point in history.
Specifically, James talks about the amount of silver & gold in the earth as being at fixed ratio. Additionally, the amount of silver that's produced as a byproduct of mining gold is almost a fixed ratio. The current gold to silver spot price ratio is completely out of whack relative to those first two numbers and whenever you see a commodity that is outside of historic norms, it usually represents a buying opportunity because you know in the long term any given commodity is going to return to the historic mean or close to it.
In the case of silver versus gold from a monetary standpoint, in the 19th century the ratio was around 16 to 1. Now we're seeing figures around 70 to 1. Silver is hence ridiculously low. Given the long term trend wherein most gold used industrially and in electronics is recovered and where most silver used industrially and in electronics is not recovered, that points to the realization that in the long term the ration of silver to gold will be more like 10 to 1 because silver is being used up and gold isn't.
Conclusion |
To me the message is coming through thick and strong now. The interest in silver is increasing and the signs that we'll be needing to rely on owning silver seem to be more evident. There are plenty more references I could have made here but I feel that these videos are ample to at least get people thinking about whether my observations have merit. It'll be interesting to see how things develop into 2018 but regardless, silver at its current price levels makes for a proposition with huge upside potential and little risk given the known costs and risks involved in mining the metal. What do you think? Thanks for reading.