Silver And S.M.S.
Silver prices have been crushed for over 4 years, especially in the paper futures markets. The predictable result has been reduced interest in real money – silver and gold. The media is more focused on Donald Trump, Caitlyn Jenner, and Hillary’s emails – not the reality of exponentially increasing debt, out-of-control spending, failed economic policies, and expensive wars.
Does anyone care that silver and gold have been real money and a store of value for 3,000 years, or that all unbacked paper money has eventually been inflated into worthlessness? While the central bankers and politicians distract the populace with Donald Trump stories, they prolong the game … and the wealth transfers.
IN THE BIG PICTURE:
The US gross domestic product and US government revenues rise as the dollar is “over-printed” and devalued. Does silver rise accordingly?
Examine the 20 year graphs of the Silver to GDP ratio and Silver to US Govt. revenues. Data source is the Federal Reserve Bank of St. Louis and silver has been multiplied by a trillion for the ratios.
These graphs show 20 years of data and indicate that silver prices are at the low end of the ratios. Expect higher silver prices in the next several years, probably soon.
Population adjusted national debt shows a similar story. Silver prices are at the low end of the 20 year range, about where they were in 2001. Silver prices hit $4.01 in November of 2001 and rallied by over a factor of 10 in the next decade. Some version of that will probably happen again.
S.M.S.: Silver Means Safety. Debt increases exponentially. Until we see action from credible politicians (not likely) demanding balanced budgets and debt reductions (not likely), debt, consumer prices, and silver prices will increase. Silver will help protect our assets from the inevitable central bank devaluations and wealth transfers.
S.M.S.: Stacking Measures Sanity: (self-evident to stackers, not so much to paper pushers …)
S.M.S. could also represent Silver Manipulation Strategy. All markets are manipulated to some degree, especially silver. Suppose the financial elite wanted to purchase a massive quantity of silver bullion at low prices, knowing its true (immensely higher) value would manifest by the end of this decade. A winning strategy might be:
- Run the price up too far and too fast – say to $49 in August 2011 while sucking in as many silver investors as possible. Close longs and sell short aggressively in the paper markets.
- Sell it down to about $30 in 2013, let it stabilize, and then crush it again to below $15 in 2015. Politicians, Wall Street, the media, and the CME assist. Most investors will exit at a loss.
- After 4+ years of crashing prices most people have given up (capitulation) on silver and are more concerned with the latest Kardashian story.
- Maintain silver prices at a very low level – nearly equivalent to the drastic lows of 2001 – for as long as possible – say into the summer and fall of 2015.
- Move silver profits and other profits out of the stock market (before it crashes again) and buy silver bullion at these near historic low prices.
- Keep the populace distracted and disoriented while the wealth transfers occur.
- When “they” can’t run the scam any longer, find a foreign nation to blame and move on.
- It has happened before and it will happen again.
Why not, if “they” can make it work and not be indicted?
Silver Means Safety: We don’t know precisely when, we don’t know exactly how, but we can be assured that, come deflation or inflation, Trump or Hillary, war or peace, Iran or Syria, Caitlyn or Kim, Democan or Republicrat, then:
- Politicians will make promises and spend,
- Debt will increase,
- Currencies will devalue and occasionally crash,
- The “fix” is in,
- There will always be a “Kardashian” distraction,
- Silver and gold are real assets, will increase in price as measured by fiat currencies, and will retain value.
- It has happened before and it will happen again – S.M.S.
Read: Charles Hugh Smith “What if the Crash is Rigged?”
Keep stacking while you can!
The Deviant Investor
Gary Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 – 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy and central banking.