Posts tagged 'Silver Prices'

If Keynes was alive today, he’d likely say not one man in a million would realize that bitcoin is the conversion of one person’s wealth into another’s income.

There is a loose analogy between being held hostage and being an investor in a regime of irredeemable paper currency and zero interest rates. In both cases, the victim has little hope of escape and must seek to somehow survive under malevolent conditions.

Silver currently sells around $16, which would be sensible if the U.S. national debt was much less than its current $20 trillion.

We consider Steve Saville a friend, and certainly appreciate his view that when gold moves from an ETF to China or India, it has no effect on the price. However, we disagree with his fundamental model. Let’s do a quick rundown of these factors and move on to a broader point.

As most in the gold community know, the UK Chancellor of the Exchequer Gordon Brown announced on 7 May, 1999 that HM Treasury planned to sell gold. The dollar began to rise, from about 110mg gold to 120mg on 6 July, the day of the first sale. This translates into dollarish as: gold went down, from $282 to $258. It makes sense, as the UK was selling a lot of gold... or does it?

Silver bull Lior Gantz, editor of Wealth Research Group, discusses why he places silver at the top of his natural resource rankings.

The jobs report was disappointing. The prices of gold, and even more so silver, took off. In three hours, they gained $18 and 39 cents. Before we try to read into the connection, it is worth pausing to consider how another market responded.

Therefore, wealth should be measured in gold ounces or grams. We recommend you periodically take the dollar value of your assets, and divide it by the current price of gold. If the dollar value goes up, but the gold value is down, which are you going to believe?

Silver prices are rising along the bottom of a 20 year log scale trend channel. There are no guarantees in a manipulated paper market, such as COMEX silver, but it is possible that silver prices will collapse further, or more likely, move substantially higher, sooner rather than later.

If the entire world only produces 880,000,000 ounces of silver per year...and if 75% of that silver is consumed through the production of cell phones, solar panels and other items...then how do The Banks manage price off of the remaining 220,000,000 ounces? The answer: Alchemy.