It’s early Tuesday morning, following a very pleasant holiday weekend. And yet, it took mere minutes for such bliss to be ruined – by not just the gold Cartel, but a global political, economic, and monetary system so rigged, deformed, and destructive, it pains me to even consider the nightmare its inevitable implosion will engender. Heck, even Citigroup’s Head of Global Strategy admitted so much this week; albeit, without touching the bigger issue of Central bank-led market manipulation.
Last weekend, my Audioblog focused on how U.S. government book-cookers were preparing to enhance “seasonal adjustments” to its already fraudulent GDP calculations, to increase reported economic “growth” to their politically-motivated, market-goosing satisfaction. Well, such “preparations” were just made official yesterday, starting with the upcoming second quarter calculations. In other words, just as the BEA, or Bureau of Economic Analysis, recently, arbitrarily boosted base GDP by 3% via a variety of nonsensical factors – to lower the widely scrutinized debt/GDP ratio – they are now arbitrarily raising reported GDP growth to “prove” the Fed’s maniacal ZIRP, QE, and other money printing schemes are “working.”
The US national debt exceeds $18 Trillion, NOT including off-balance sheet items, Fannie and Freddie, and unfunded obligations such as future payments for military pensions, Social Security, Medicare, and more. Depending on who is counting, add another $100 - $200 Trillion in debt.
Silver could then jump up to the $22 -$24 levels, its next step. By then, it could clearly test the $30, which would be the following step.
The bottom line is, silver has great potential and it appears to be leading the other metals.
But at some point the debtors will decide that enough is enough. Interest rates will rise, confidence will fall, and the system will finally burn. No amount of air will matter. The engine just stops and all that is left is a powerful vacuum disguised as silence. At the point the very last moment to prepare will pass over.
There seems to be a great deal of hype put forth by the market that rising solar demand will be a key factor in determining the price of silver in the future. While silver consumption in the solar industry may increase going forward, the real cause for much higher silver prices will be investment demand.
Why? Because the actual data proves investment demand is the largest growth sector in the silver market. I’ll get to the figures in a moment. But, before I do that, let’s discuss the supposed wonders of solar photovoltaics.
It is interesting to note that when the Dollar peaked in March, silver bottomed and began moving higher. The inverse relationship between the two is certainly not perfect but this past week, as the Dollar moved higher once more, silver retreated from its overhead resistance level. That is something that anyone who trades this metal must not ignore.
COT Silver Report - May 22, 2015
“If everyone is thinking alike, then somebody isn't thinking.”
―George S. Patton, Jr.
“The Deep Dark” is the definitive (and dramatic without being melodramatic) account of the May 2, 1972 Sunshine Mine Disaster here in the silver fields of northern Idaho. Ninety-one men died on the day shift after fire broke out deep underground, overcome by deadly gases. Eighty-six miners escaped that day, and another two were found alive beneath a fresh-air shaft a week later.