People Are Talking About Silver |
It's no secret that I'm a big fan of silver. I accumulate roughly monthly and for those of you who aren't aware, I have recently been making public any changes I make to my portfolio allocations. Recently, my precious metal purchase have been decreasing gold and increasingly silver; to the point where the last buy was entirely silver. Learn what I bought here.
Recently, I've noticed among the noise of my YouTube subscriptions and the various other sources I allow into my life a trend. The trend is increasingly pointing, in my mind, towards two things. Firstly, central bank intervention globally and the state of the US dollar as the global reserve currency is not in a healthy state & the rate of deterioration here seems to me to be increasing. Secondly, there's more noise about the importance of physical precious metals, sliver in particular, as one of the only if not the only tool to protect yourself from the results thereof.
The potential resources to back up these statements are voluminous so I though we'd keep things more simple and less bland by looking at a few recent videos so that you can make your own conclusions. Let's start with Mike Maloney who I greatly respect as a cool and calm analyst who plays a long term and dispassionate investment game.
Mike Maloney |
I'm a goldsilver.com insider and as such I receive exclusive content that Mike makes available prior to public release. Recently Mike announced that he's sold out of some of his bitcoin holdings and use the profit to buy more silver. This is the wealth cycle principle that Mike is a big proponent of. Selling expensive assets and buying cheap ones. Rinse and repeat. The video is entitled "Mike Buys More Silver With Bitcoin Profits (Insider Exclusive)". Because it's paywall protected, I can't link to it but I can say that it was released in the last few days and a screen shot is below.
Mike calls bitcoin "bubbly" and that could either mean a pullback is on it's way or something stronger. Either way, it makes sense to convert at least some profits and targeting silver exclusively is the first supporting pieces of evidence for the title of this post. There's going to be (if there isn't already) a public version of this video with more charts that Mike says he'll be releasing so that's something to look for.
Lynette Zang |
Next let's look at the latest interview conducted by Reluctant Preppers. It's a discussion with Lynette Zang who is very technically driven. She makes a strong case for the fragility of the global economic system and the implications for the little people. Key to my point however is that she reveals on video (by actually holding up the pieces) that she's recently purchased precious metals as insurance against the outcomes she sees as inevitable. In her case, it's a mixture of gold and silver but the case still stands. Well worth the time to watch if you can spare it. The video is entitled "Something Nasty this Way Comes" and I've linked it below.
Jason Burack |
Next comes some interesting analysis from Wall Street For Main Street. In this video released earlier in the week, Jason Burack discusses the divergence in silver and copper prices, commodities that were previously positively correlated. I'll quote Jason here but the video is definitely worth a look for those who may not be sold on the concept of silver price manipulation.
Jason Burack looked at 5 year price charts of copper & silver on Kitco. Around January 2016, a large divergence started between copper and silver prices and the divergence between the once positive correlation between copper and silver has increased a lot since then through 2017. The bullion banks, if they are not creating this divergence between copper & silver, are the beneficiaries as lots more silver byproduct is still available or will be available with higher copper price. The manipulators still need the physical metal to deliver to industrial end users for silver. So the manipulation can't bankrupt all suppliers. It can cap & control prices. A high enough copper price might mean an additional 100 million oz or more per year of silver byproduct available. Are the bullion banks are so desperate to prevent silver from spiking that maybe they moved copper a lot higher to help them? Or was this the work of private sector Chinese companies and speculators and bullion banks are only the indirect beneficiaries as they get more physical silver available with higher copper, lead and zinc prices?
The video is linked below.
James Rawles |
Again from Dunagun Kaiser but from earlier than the videos previously referenced comes this interview with James Rawles. He's a returning guest and to my mind speaks clearly and dispassionately for the most part about all manner of personal protection; we're only talking financial in this post so you'll get more than you bargained for in this video. He references silver also as an essential component of a wealth preservation strategy at this point in history.
Specifically, James talks about the amount of silver & gold in the earth as being at fixed ratio. Additionally, the amount of silver that's produced as a byproduct of mining gold is almost a fixed ratio. The current gold to silver spot price ratio is completely out of whack relative to those first two numbers and whenever you see a commodity that is outside of historic norms, it usually represents a buying opportunity because you know in the long term any given commodity is going to return to the historic mean or close to it.
In the case of silver versus gold from a monetary standpoint, in the 19th century the ratio was around 16 to 1. Now we're seeing figures around 70 to 1. Silver is hence ridiculously low. Given the long term trend wherein most gold used industrially and in electronics is recovered and where most silver used industrially and in electronics is not recovered, that points to the realization that in the long term the ration of silver to gold will be more like 10 to 1 because silver is being used up and gold isn't.
Conclusion |
To me the message is coming through thick and strong now. The interest in silver is increasing and the signs that we'll be needing to rely on owning silver seem to be more evident. There are plenty more references I could have made here but I feel that these videos are ample to at least get people thinking about whether my observations have merit. It'll be interesting to see how things develop into 2018 but regardless, silver at its current price levels makes for a proposition with huge upside potential and little risk given the known costs and risks involved in mining the metal. What do you think? Thanks for reading.
Great post. Laying out all the facts! Thanks!!
Thanks so much @sirstacksalot! My apologies for the last reply, this week has been a black hole.
Thanks for the info
Some, are not Lynette Zang fans, but, I like her.
That's a good point @cve3, it's a good reason for diversifying the presenters and sourcing information from a range of channels. Thanks!
I watched the Lynette Zang clip and it was interesting.
I don't think she fully understands the digital currency (crypto) situation though. If you look closely on the report she holds up it is Ripple that she's talking about and I agree, that one is the banksters crypto. But with privacy tech and money supply controlled by code instead of central banks I do think cypto is potentially a big part of the long term solution for the people to reclaim control of their money.
and I think that's why it's really starting to explode higher in terms of attracting market capital. I think the penny is starting to drop for many. Good spot with the Ripple chart. I missed that one as I run videos at low res when not on wifi to save data and that kind of detail can be lost.
Silver has been considered a "Great" investment for decades. Problem is, it never goes anywhere to speak of. Sorry, just not a fan anymore.
Thanks, I have been buying silver for about $9 years now. I sold recently at a lost to invest in cryptocurrencies. I have been able to grow my investments in less than a month. Silver is going nowhere fast. The value in my experience never increases. I bought some coins at $50 per Mapleleaf and American Eagle, when I sold it was $19 it does not even hold the value.
I'm still HODLing mine like crypto. I'll probably get to spend some crypto in my lifetime... the silver I'll likely pass down to the next generation! Lol
That's a good way to think of it, let's hope that the depressed prices don't last that long!
Completely understand your sentiment here. It's undeniably been a gruelling experience for a long time now and I have seen evidence of capitulations from people who think the same way. That was in a way one of the motivations for my post but it's hard to see sense in the long term when the short term is so painful!
Ha, and when you are my age, the long-term IS the short-term! lol
An even more painful issue that the silver price perhaps!
:D
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i learnt too much today.
I agree with your article and the experts listed 100% I go by the US debt clock for indications of where silver is going. Right now, it's showing a $728 oz to US dollar ratio but I have seen it as high as $1000. Upvoted and resteemed.
Scary isn't it @boodles17? Thanks for the support!
Superb information I learn more... @nethra
Thank you @nethra
Super information
Thank you @rana420!
Really Goof post @nolnocluap
Silver is a must for me. Under $20 seems like a good bet, and it can be a fun hobby. "Junk" silver like 1964 Kennedy half dollars, generic rounds, 10 oz bars, CML's, etc. are great. I got stuck in wanting to collect all of the same things at first, but then realized diversification is the best for me. Wouldn't overlook platinum either if it stays cheap relative to gold.
Must admit I've not purchased platinum yet, despite it being referenced as a good buy at the moment. I guess there's only so much one can do with a 24 hour day but since you've mentioned it, it may be worth a look. Thanks!
Platinum is more limited than gold and has a use as a catalyst in exhaust systems. I wouldn't go crazy and stop buying gold and/or silver to get platinum, but it is just another metal to add to the stack to keep things diversified. I like Pamp Suisse grams (they come in various weights) and platinum eagle US coins. Just know that they sometimes have a high premium over spot price
I am a firm believer in the benefits of diversification. I've seen and like the PAMP offerings in platinum; they're easily recognisable.
Great post. Don't get me wrong, I LOVE silver but I'm always cautious because I know that Mike Maloney and Lynette Zang sell precious metals (I don't know the other people mentioned).
There are those car-salesman-like people with crypto currencies too. If you educate yourself on what you're buying, you'll be okay. Certainly don't invest more than you can afford to lose, and treat it as a hobby. Coin collecting can be a lot of fun
Wise move. I fell for that. It got me no where. I felt really betrayed when I found Mike gave a discount for payments made in Bitcoins.
Yeah, make sure that you do your own research before diving head first into any rabbit hole. Remember that there is a lot of fear mongering on the internet. While some things may have some basic truths, a lot of these problems can take much longer than anticipated. It may be years is or even decades before any of these financial problems will be truly visible.
True, yes that's definitely a good thing to keep in mind. I do still find the information they present to be something that I can digest and either take on board or discard.
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Makes absolute sense \o/ great post.
Cheers @coindevil!
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I'm a big fan of silver as well and my case for it is more based on the cyclical case. It's been in a terrible bear market for years and as all commodities eventually do...it'll rally.
I part from your stance to the point that some silver should be kept as a store of wealth or chaos hedge. Investing with the mindset “the price will go up and then you can sell” is a tough angle.
First, selling physical silver can be tedious and expensive if you have to get into shipping and paying ebay type fees (I’ve done it). Additionally, silver is heavy. If you have a thousand ounces it tough to move it from location to location if needed (Done that also and why I stopped buying physical silver).
Secondly, who the heck wants to sell their silver? I don’t at any price.
If I’m buying because I think the price is going up I would much prefer to buy stock in silver miners or royalty companies. It’s much easier to sell stock and your returns could be much higher with junior minors that can shoot up hundreds of percent.
These are interesting discussions. The selling side is largely untested in a crisis scenario in recent history at least and would likely revolve around trade or barter in the worst cases; scenarios in which stocks, cryptos and the like would be utterly of no use. In more functional times as you say, various instruments offer various degrees of functionality and return. I do know that the few items that survived the prior generations of my family have not been in the form of equities or to some extent even real estate. Thanks for the thought provoking input!
Appreciate your feedback and I think we are of a similar mindset. I like some chaos hedge items to help me sleep well at night but I also know the world has a way of not ending. With that in mind I have to play both sides and not over commit to either. Predicting a crash or war will most certainly be a correct prediction...it's getting the timing right that is the tough part.
Couldn't agree more! Almost any prediction become easy with an unrestricted timeline, it's getting the event and the timing correct that makes things hard.