The silver miners’ stocks have had a roller-coaster ride of a year so far. They surged, plunged, and then started surging again last week on a less-hawkish-than-expected Fed. Such big volatility has spawned similar outsized swings in sentiment, distorting investors’ perceptions of major silver miners. But their recently-reported fourth-quarter operating and financial results reveal the true underlying fundamental realities.
This is the first week I can remember, in which every day, I awoke to so many “horrible headlines,” I couldn’t determine which to focus on. Which is why, articles like yesterday’s “all out political, economic, and financial war” have been commonplace; in which, I comment on myriad topics, from the four corners of the planet; which invariably, are tied to the same root cause. I.e., the catastrophic, terminal phase of history’s largest, most destructive fiat Ponzi scheme.
The narrative thus far – after decades of allowing themselves to be led in and out of COMEX silver futures contracts by their commercial counterparties, several managed money traders appear to have woken up to the fact they’ve been duped all along. A key component of the silver manipulation for the past 30 years has been the knee-jerk and mechanical reaction of the managed money traders to collectively sell whenever the commercials rigged prices lower beyond certain moving averages. Ditto for buying on rising prices.
Like it or not, we are living through a major inflectionary point in human history; on more fronts; with more lasting, and dramatic changes than any before it. Yes, there have been hundreds of humanity-altering wars throughout history. However, never have so many people been impacted by current events; as, for example, there are 7.4 billion people today, compared to 2.3 billion at World War II’s onset. And while WWII shaped the culture, economic and monetary, and physical borders for generations; in hindsight, until recently, the post-war Era has been “more of the same.” Only this time, global economic leadership switched from one Western power, the UK, to another, the U.S.; as evidenced by the “reserve currency,” in an increasingly global world, switching from the Pound to the dollar.
This just isn’t fair! As every time the weekend passes, I wake up Monday with a gargantuan amount of “horrible headlines” to process (or, as I have recently deemed them, “PM bullish, everything-else bearish); which I dutifully gather every second of the day, be it Saturday, Sunday, or holiday. In other words, the Miles Franklin Blog tirelessly works 24/7, to give you the best, and most actionable information available.
– Silver just 1/70th the price of gold
– Silver at $17.50 per ounce set to rise “faster than gold”
– Silver Eagles (1 oz) buying jumps to 715,000 this week
– “Supply may drop following mine closures” – Standard Chartered
– Industrial demand “will remain strong” – CPM Group
– Silver is substantially undervalued versus gold
– Gold silver ratio to fall back below 30
The Ides of March came and went, with the Fed’s “dovish hike” once and for all proving it cares nothing about the economy, and everything about the stock market, and its Wall Street masters. The following, damning chart of who has benefited from a decade of post-financial crisis Central bank largesse; not including, of course, the vast amount of covert market support – and likely, inside information dissemination – to the Fed’s partners-in-crime, the “too big to fail” banks; whose joint goal is, at all costs, prolonging history’s largest, most destructive fiat Ponzi scheme.
COT Silver Report - March 17, 2017
Silver is getting left behind as our introductory chart shows, with it up only 8.7% this year so far, while gold is up 6.5%. Normally, silver moves on average slightly less than twice that of gold, suggesting the right price for silver should be about $17.80. Silver’s slight loss in performance is shown in the gold/silver ratio, which is our next chart.
Earlier this month, I wrote that we would have a window of a few more days to weeks in order to get on board with gold and silver mining stocks at a good price for the first half of this year. I also have written extensively this year about the necessity of using hedges during raids on gold and silver combined with temporary moves to cash to balance out any downside exposure during these raids, and mentioned that again we had applied some hedges against paper gold and paper silver during this last raid. We unwound one hedge last Friday, and we unwound the others earlier this week.