While the world has entered into a financial crisis, the worst is still yet to come. When the global contagion continues to spread, the crisis will turn into a FINANCIAL STORM, in which few are prepared. Unfortunately, the analysts on CNBC and Bloomberg continue to provide incorrect forecasts because they are looking at the markets in a linear fashion. What lies DEAD ahead is a collapse and disintegration of a way of life that won’t return as it was in December 2019.
Thus, it is important to understand that “Business, as Usual” is over for good. With the United States on lockdown for at least another month, the situation in the financial system and economy will continue to deteriorate. It won’t matter how much the Fed and central banks prop up the markets, because the Fundamental Economy has suffered a massive heart attack.
In my newest video update, Silver Investing During The Coming Financial Storm, I explain why it’s essential to acquire physical silver bullion as the negative impacts from the global contagion has just only begun:
In the video, I explain how the global contagion has forced investors to move down the Exter’s Pyramid to safer assets, with gold and silver being at the bottom. The largest financial assets (in dollars) at the top, are the weakest. And, now, with Global GDP currently forecasted to decline 36% in Q2 2020, a lot of these financial assets are in serious trouble.
With Government Bonds, Bank Money, and Base Money being the safest financial assets at the bottom, totaling $136 trillion, gold and silver valued at $4+ trillion represents only 3% of those assets or supposed assets. Investors that are currently trying to acquire physical gold and silver bullion are finding it very difficult to obtain supplies. This will only become more difficult as time goes by.
One question that I receive the most is… “Why is the paper futures silver price so much lower than the physical retail bullion price?” While I explained it briefly in my last video, I provide more details using the chart below. HOWEVER…. this is only a temporary situation.
I forecast that as the financial system continues to implode, Large Investors, Hedge Funds, and Institutions will start acquiring 1,000 oz wholesale silver bars to protect wealth. They will not be buying these bars for Industrial-Jewelry-Silverware consumption, but rather, to protect their wealth during the coming Financial Storm.
If it is challenging to acquire smaller retail silver productions (1-100 oz), back ordered for weeks-months, then it makes logical sense to seek out the larger (lower premium) 1,000 bars. While some investors may acquire these 1,000 oz silver bars to make smaller retail products, I believe a large percentage will hold them as an investment while a lot of financial assets continue to lose value.
If you haven’t purchased any Gold or Silver Insurance, you may want to consider doing so before it’s difficult to acquire the physical metal.
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“It won’t matter how much the Fed and central banks prop up the markets, because the Fundamental Economy has suffered a massive heart attack.”
i liken it to trying to reinflate a shredded balloon. it is not gonna work.
Seriously….the Dollar to Silver ratio here has DOUBLED in the last year….. Tell me what this means, please! https://www.usdebtclock.org/#
Hover over the price and it will tell you. Shows up at top. Basically increase in M2 per WORLDWIDE silver ozs.
Yet the Crimex price is a laughable $14!! ?
Jared,
DID YOU WATCH THE VIDEO??????????????
steve
What laughable is ~30% spread on 1000oz bars now at certain well known dealers. And what is criminal is those same dealers with such spreads telling stories about phyzz shortage, while they can and possibly do take delivery of those same 1000oz bars.
https://www.usdebtclock.org/sources/trans.gif
Steve wrote:
“What lies DEAD ahead is a collapse and disintegration of a way of life that won’t return as it was in December 2019.”
Sadly, that right there…. Is the Truth.
They locked down the entire world, all without firing a single shot.
And so The Masses will clamber for even greater slavery…. And they will deserve it.
For all the very best slaves…
Don’t even realize…
That they are slaves.
They don’t deserve it.
90% of mine is in 1000 ounce bars.
Let them come.
P.S. on Ebay I only saw one person selling 1000 ounce bars at $21,000+.
Similarly, all forms of silver bullion are being sold above spot on the internet. I saw prices ranging between 220 – 480 dollars for a 10 oz bar.
There is of course a difference between an asking price {Buy it Now] and what someone is willing to pay. Maybe it has changed since about a week ago, but I found 1,000 ounce bars from Metals dealers for $13,000. I think anyone buying that bar for that price is allowing themselves to get fleeced.
@dc
For $13,000 that is under spot !
Must have been on 3/17-20 when spot closed below $13
Slightly off topic, but you must have seen this Steve – first ever: Negative oil prices
https://www.zerohedge.com/energy/its-happening-oil-producers-are-now-paying-clients-wyoming-sour-price-turns-negative
What’s happening right now will prove to be a historic turning point. GLTA.
Love your work, keep it going. I don’t pay much but will continue to support your independent views. All the best.
In this highly interventional and manipulative environment, any rational thinking does not work, at least for short- and intermediate-term.
Keep buying silver when the price is low, and ignore paper price movements for at least the next 2-3 years, and then evaluate what to do next.
G. Edward Griffin, the author of The Creature From Jekyll Island, once said that the elites would create such a bad situation that the mass would beg them to do something/anything so that poor could bring food to the table. This is where we are now. It seems that the elites would have dramatically more control over us soon.
The Whites abandoned Jesus Christ. Satan is ruling the world now, unfortunately.
Or Moneychangers…same murderous bastards that killed Jesus.
They own the banks, insurance, the pols, the fed…don’t lose sight of who they are and what they want.
https://www.zerohedge.com/energy/whiting-petroleum-files-bankruptcy
Hats off to you Steve you nailed it
Excellent video Steve!!
Because of you and several others I started buying silver years ago.I can’t tell you how relieved I am to be holding some. Thanks again for all the great analysis you’ve been putting out for years. I never miss one of your reports.
Thank you, Steve, excellent analysis (as usual) ..
I’d like to bring to attention another good analysis by Jeff Clark, featuring the silver mining hit after COVID-19. This is a recent, but apparently very severe event: Jeff’s data indicate an unbelievable 51 % reduction in global silver production currently. Which could worsen even further.
https://goldsilver.com/blog/silver-shock-update-a-new-and-major-threat-to-supply/?utm_campaign=20200401_Silver_Shock_Update_Jeff_Clark_Newsletter&utm_content=touchpoint_1_newsletter&utm_medium=email&utm_source=zaius
Even a possible drop in industrial demand cannot be a remedy to this situation. On the contrary, industrial silver users too, would most probably want to have a strategic reserve for their future. Just as we do. And let’s not forget that a slowdown in global industry could have the nasty consequence of decreasing lead, zinc and copper mining – all base metals for secondary silver production. Read: further drop in Ag supply.
Add to that: continuing criminal suppression of silver prices, political instabilities ever present in Latin America, consistently falling ore grades, falling EROI, and COVID-19 .. won’t make silver miners’ life better.
Mehmet,
Yes, indeed. I did read Jeff Clark’s article. However, his estimates are “best guesses.” Peru didn’t declare a lockdown on its mining industry until mid-March. And due to the delay in releasing official mine production data, we won’t be able to know how much silver production was lost in March until late May or early June. But, I do believe global silver production will be down considerably by Q2-Q3 2020.
Right now, the first PUNCH to the Silver Market is demand. We are seeing demand destruction. The exact same thing is taking place in the oil market. Demand destruction has destroyed at least 25 million barrels per day of oil. However, the oil industry still hasn’t cut much yet. That’s starting NOW, but won’t pick up speed until the end off April and early May.
The same situation is taking place in the Silver Market. First, we get demand destruction and then we get supply destruction. At that point, on top of rising physical investment demand, will we finally see a nice RALLY in the Silver Price.
steve
I am thinking that many consumer items would be in the same boat: Now is demand destruction, and soon supply destruction—rising prices and limited availability.
It is time to stock more items we will need in the next half years or longer.
Hi Steve. Somewhat off topic, but indirectly related. The oil companies are going to meet with Trump ad mark my words, they are going to get bailed out. People are going to lose everything, but every major company is going to get bailed out until the Fed owns everything and the people own the debt attached to the currency created out of nothing.
I agree that eventually oil will go to zero and these industries will be done, but long before that happens the public will be eviscerated. Trillions and trillions of dollars are going to be created until they decide they’ve got enough and then the new digital currency with total control will be rolled out. None of this ends until we collapse from resource depletion which is baked into the cake. The planet is doomed because of our ignorance, greed, complacency and cowardice. The psychopaths in charge are in their glory, nirvana achieved as they gobble up the earth FOR NOTHING!. The Corona virus was the perfect cover and the public isn’t even aware of the financial catastrophe now being unleashed. My only slight glimmer of hope is that when it gets intolerable we will hit the streets. If we don’t, then it’s game, set, match.
Your thoughts.
I’m with you Bill. We will hit the streets so to say. They will be revealed and it’s game on. No one will be able to hide…even them.
I know so many sheep that are clinging to there iphones and closing their eyes to the madness that it could care less what happens to them.
They love their servitude.
Steve, you bring to mind just how complex industry and commodities can be. For instance, fresh food (produce, dairy, meat, baked, etc.) require a complex structure from farm to the retailer where any number of infrastructure problems, such as we’re having, could destroy the supply. People put the face of the retailers on these products but a lot has to happen to get these things on the shelf. We can also thank our glorious corporate retailers for shortages that may be coming for the lack of shipments from overseas. If we’re all going down, may these retailers be the first to fall.
What about something like onegold while it’s hard to obtain physical silver?
Going to ask the same question as I did in the Cloud deal above.
What good is a 1000oz. bar in the scenario that we are facing? Do those of you buying them really grasp the situation that we are facing?
I just makes absolutely no sense to me. Hell, 100 oz. bars are barely sellable in my ao.
Don’t give me that silver is silver shit either…let’s discuss it.