As the Biden administration adds another $1.9 trillion of “stimulus” debt to an already historically toxic debt pile, the U.S. will be sitting upon over $30 trillion in government debt before Q1 of this year. In order to pay the bills, the Fed MUST suppress rates going forward (especially on the 10Y Treasury, and possibly the 30Y) while simultaneously pursuing a deliberate policy of inflation and currency debasement to “inflate away” some of Uncle Sam’s debt obligations.-Egon von Greyerz of Matterhorn Asset Management
Despite rising money supply, surging inflation, historically low interest rates, a universal bearish outlook for the US Dollar and extremely bullish supply/demand fundamentals – gold and silver prices continue to lag. Just look at silver compared to copper. In 1980, silver’s all time high was $50 oz, while copper touched $1.50 lb. Today, silver spot price is trading at $26 oz, 50% off its 1980 high. Copper is trading at $4.20 lb., an increase of 250% over its 1980 high. Now take gold. The US Money Supply has doubled in the last nine years. Yet, today’s gold price of $1,700 oz is the same as it was nine years ago.
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Of course, we all know why gold and silver have “underperformed”, and that is the result of JP Morgan and fellow banksters who have relentlessly been artificially suppressing the “paper” prices via the NY and London Exchanges, in the process raking in billions of profits at the expense of the everyday investor. However, it takes a certain amount of actual physical gold and silver to perpetuate this scam, and given the extreme supply tightness worldwide, the bullion banks appear to be approaching the end of their rope. In fact, the overall “short” position of JP Morgan and cronies, which is monitored via the Commitment of Traders Report, has been reduced from 325,000 contracts down to 189,000 contracts since January 4th. In other words, the bullion banks, who must be painfully aware of the extremely bullish set up for gold and silver, covered almost 42% of their short position in just several months.
Gold and silver at current prices are a gift. Even the physical market with its relatively higher premiums is a bargain. Knowing that prices are artificially low, while a weaker dollar and higher inflation stares the world in the face, provides you a huge advantage. In the words of precious metals expert, Ted Butler:
Sooner or later, the engineered move to the downside will become exhausted (if it’s not already exhausted) and the market structure will be even more bullish than it is now. This price manipulation process is as regular as the tides. And for long term investors owning physical silver and gold here appears to me to as close to shooting fish in a barrel as is possible.-Ted Butler
It’s Catch-up Time for Gold and Silver
- It’s time to catch up (and exceed) all other markets that have been allowed to trade freely all these years.
- It’s time for gold and silver values to truly reflect the massive uptick in money supply, followed by a demoralized US Dollar to come.
- It’s time for gold and silver prices to properly adjust to the tight physical supplies and surging demand worldwide.
- It’s time to be protected against an economy and stock/bond market built upon a house of cards (free money and forced down interest rates).
- It’s time for gold and silver to reveal their true colors as assets with no counter party risk that have survived for five thousand years as real money.
It’s “catch up” time for gold and silver. And I’m not talking about the condiment we put on our French fries.
Bullish fundamentals, bullish technical charts and an investing public that has yet to really grasp the importance of owning physical gold and silver, is the perfect set up for higher prices that most cannot begin to fathom…