The market is not prepared when Institutions and Large Investors try to gain access to silver to protect wealth as the energy crisis gets even worse. Since the 2008 Financial Crisis, most of the silver investment has moved into strong private investors and away from Public Big Money.
While many in the precious metals community disregard Silver ETFs as viable investment solutions, this is really the only place BIG MONEY can go. And when BIG MONEY controls 80% of the Stock Market and most of the Bond Market, when they start to move into silver… watch out.
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Steve, could this be a generational thing? I can remember Jim Rickards saying “Money” wasn’t part of the economics curriculum in universities from around 1976. Since this time there have been many PhD’s running around the world giving talks on MMT (Modern Monetary Theory) and consequently haven’t really understood the value of Precious Metals.
Fiat money theoretically can work in an “HONEST” society BUT power and greed prevent that from happening, hence the GOLD STANDARD of old in the past. Algorithms have made things even more dishonest. This is those smart college kids who write all these modern-day Apps we use today. They know how to make money BUT do not know how to produce or make things.
These modern-day gurus haven’t understood the “Store of value” contained in certain assets, in particular GOLD and SILVER. In the game of musical chairs, they will find themselves holding the bag full of paper when the music stops. Crypto’s will be another, “POOF” and it’s all gone.
Once the “Paper Purchasers” wake up and find they can’t purchase the HARD asset, they will turn to known “In Situ” assets. Keep your eye on those resource stocks in their “ORPHAN PERIOD” (Proven discoveries).
RedOpal,
You may be on to something because I watched a recent Bloomberg interview by CIO Ailman of California CALSTRS Pension Plan on ExxonMobil becoming the next Blockbuster or Kodak as it is not CHANGING for the times: https://www.bloomberg.com/news/articles/2021-12-31/calstrs-says-exxon-in-danger-of-being-next-blockbuster-kodak
CIO Ailman actually believes in the GREEN ENERGY TOOTH FAIRY and that the assets that CALSTRS is invested in are REAL ASSETS and not a BUBBLE. Interestingly, a significant part of CALSTRS investments is in Private Equity. Private Equity, as you may know, are SHARKS that go in and CARVE up companies in the short term to destroy them in the mid-long term.
So Ailman is a Hypocrite of the worst kind. Not only that… he believes GREEN ENERGY is going to work. So, we can clearly see these poor GUYS at the TOP are totally BRAIN DEAD when it comes to the Falling EROI of OIL and the ENERGY CLIFF.
This is why the metals are not behaving well because the MASS PSYCHOLOGY OF TOP MONEY MANAGERS believes in the GREEN ENERGY TOOTH FAIRY.
steve
I am just a babe in the woods Steve when it comes to fully understanding the attitude of corporate resource executives or its shareholders. What I do understand however is, my research indicates mining companies here in Australia are making the effort to improve their ESG (Environmental, Social and Governance) number. If they don’t (And I am assuming) they will not get the money required from the banks to get their stuff out of the ground.
If I accept the GREEN ENERGY policy in its current form, it will affect the share price in the positive until it is realised it is a success or a failure. I’m prepared to buy now and hold for 3 to 5 years until I can make a judgement. From my observation, most mining stocks in Australia are not in a bubble and I believe are a better buy than those in other countries, including North America or Canada.
ISR (In Situ Recovery) is getting some legs with government support along with CARBON CAPTURE.
https://www.sciencedirect.com/science/article/abs/pii/S0169136815300937
https://www.proactiveinvestors.com.au/companies/news/954292/andromeda-metals-files-patent-for-conversion-of-halloysite-kaolin-into-nanomaterials-954292.html
I am not taking sides; I am just putting my money where my mouth is!
Don’t disregard crypto currencies. A DeFi Decentralized Blockchain Financial System in which investors have their cryptocurrency in private wallets outside of centralized exchanges is a good thing. It doesn’t matter if 95% of cryptos go POOF. The other 5%+ will do well and seem to be an inevitable part of the world’s financial future. As the global financial system crumbles, precious metals alone without technology is not efficient for daily use.
No doubt, precious metals are the safest and least risky way to go. I believe in the upcoming silver moonshot. However, in our technological word it is not efficient to pay for your groceries and utility bills with pre-1965 constitutional silver. The convenience of credit and debit cards are clear, however the problem is the third party banking institutions controlling them that we can’t trust and charge outrageous interest. To be efficient and effective, precious metals need to be in a digital system, for example where though your silver is in a vault, you can spend allocated percent’s of it with a digital card.
Now you can argue perhaps correctly that there is enough gold in the world that if priced high enough, that can be the money for digital spending. However, writing off blockchain cryptocurrencies as going POOF is simply not understanding it. True decentralized fraud preventive cryptocurrencies and an important option that can operate side by side with precious metals in the new economy coming.
“precious metals alone withouth technology is not efficient for daily use.”
I would rather say:
Technology alone withouth ENERGY is not efficient for daily use
The above two comments show the perfect example of the essential difference between a mind that has understood the energy cliff and one that hasn’t … yet.
One person can see beyond the matrix of fake dualities and the other keeps building bridges to nowhere in hopes that running faster still will at least let him stay where he is.
I suspect that only one of the above commenters will even understand the true meaning of my comment. For the other one, here’s a tip: https://srsroccoreport.com/membership/
Alice,
We agree with your comment. What is amazing to me is that CONNECTING THE ENERGY DOTS of the coming Energy Cliff isn’t that difficult. It just goes to show how CLOSE-MINDED people in top levels of Govt, Economy, & Market are really mucking things up in a BIG WAY.
steve
There probably will be uses for blockchain even in a bleak future scenario, but only if the ledger system and/or computations are very energy-efficient
DisappearingCulture,
Agreed if the system was very energy efficient. However, it isn’t. Most in the HIGH-TECH WORLD miss this because they don’t see the massive global supply chain that keeps it running.
steve
i am as sceptic of crytos as i am of globalism. Jim willie just said that if you think that free energy or anti gravity propulsion doesn’t exist your a #%*@%^ %*&%#^&& $%ron. I have researched and try to prove meaningful free energy many times, my results tells me that it is not something that i can expectto rely on to feed my family. but if jim proves himself right count me in on bitcoin.
Hughes,
I have spoken to Jim Willie on the phone from his place in Costa Rica. While I followed Jim for some time, I haven’t read any of his work for a few years now. If Jim believes in FREE ENERGY TECHNOLOGY, great for him. But, I can assure you, I wouldn’t bet the farm on it.
Jim made a few could calls years ago which got him on the RADAR, but now his subscription service lives and dies by the next LOUSY CONSPIRACY THEORY. While conspiracies take place, the coming ENERGY CLIFF will destroy the world as we know it, and many of the lousy conspiracies with it.
steve
I used to listen to JW occasionally, but i came to the conclusion he makes stuff up. Some of it’s pretty entertaining though.
Interestingly, right at the time silver was being removed from circulating coins in the U.S. (circa 1965), was also the time the banks were pushing credit cards onto their customers. I remember my father, who hated debt, getting angry at the credit cards mailed to him without his permission or request. He angrily cut up the Master Charge or whatever else came in the mail. Cash and paper checks were king, and travelers checks for travel.
Clearly credit or debit cards are convenient and have grown the fiat economy.
As to whether they will be issued in the future by banks backed by the customers’ deposits of gold or silver in that institution we shall see.
My grandfather would hold his quarter so tight that the eagle would squeal. Also never touched a credit card.
Well there are 176 thousand silverbacks over there on Wall Street Silver. I can’t remember how many there were 5 or 6 months ago, but it doesn’t look like they are completely beaten down. There might still be some excitement in the message that regular people should buy physical and make some waves in 2022.
Steve
Apple and other companies have a lot of money in cash, and silver is an important resource for them.
Will se see these companies buy some of the mining companies to secure silver supply?
I guess there hasn’t been much industrial silver hoarding by companies 1/10 the size of Apple yet. But when they and larger companies start to stockpile, they won’t be buying shares of an ETF.
Count me among those who think closer towards the end of easy availability, industrial companies will become a large % buyer of what is remaining.
They buyback their stock.
Why wouldn’t they try to stockpile Ag, cobalt, rare earth elements, and other raw ingredients their purchasers are informing them of increasing price and scarcity?
Not to mention mining stocks.