The fundamentals for silver and gold are very strong, and with all the massive bailouts and stimulus, which have increased debt levels, they are just getting stronger. Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
So, anyway, let's just conclude with this. Please do not rush out of here thinking that the COMEX will soon collapse. The weight of all this delivery demand may eventually lead to a force majeure-style failure, but that's very likely not coming this month or next. The CME, the LBMA, and The Banks will work to protect their pricing scheme until the very last moment, so it would be foolish to think they're going to meet a quick end.
However, their fate was sealed in late March, and like a…
A $10 bill today doesn’t buy as much as it used to. Yes, indeed… the $10 Federal Reserve Note today would only buy a little more than a half-ounce of silver. However, back in 1934, a $10 Silver Certificate would purchase 18.5 ounces of silver. Try doing that today.
The Final Chapter
All things, both good and evil, come to an end. So it will be with the great silver price manipulation, which I date as having existed, in its COMEX-orchestrated version from 1983. Before that, of course, silver prices were never truly free, mostly as a result of some type of government interference. The US Government both supported and then depressed the price of silver for a hundred years prior to 1983, first by amassing more than 5 billion ounces and then by disposing of same.
Thu, 06/25/2020 - 09:56
The annual data for silver supply is in, and it shows that the structural decline in new supply for the silver market has strengthened. It is not temporary, and can’t be easily resolved or reversed.
The main issue is the deterioration in mine production, although scrap sources are falling as well. This is important because much of the bullion you and I buy comes from newly-mined silver. Secondary sales (bullion products that have been previously bought and sold) will always have a place in…