The notion that silver is just an “Industrial Metal” was utterly destroyed today as both the copper and oil prices were crushed as silver surged higher. This is precisely what I was looking for as a positive sign showing that silver is now disconnecting itself from the INDUSTRIAL METAL BALL & CHAIN.
While analysts will continue to regurgitate that the future silver price depends on industrial demand, we can now take this analysis and throw it into the dustbin. The world is heading into a new paradigm of “Building Wealth to Protecting Wealth.” And let me tell you, you cannot protect wealth in most STOCKS, BONDS, or REAL ESTATE. Those days are over for good.
Unfortunately, 99% of investors still haven’t figured that one out yet… but they will.
Today, it was quite an impressive day for silver (and gold) as the metals surged higher while copper, the king industrial metal, got destroyed. Here is a chart of the copper price versus silver.
As we can see, copper is down 5% while silver is up 2%. Thus, the leading indicator of the global economy, COPPER, just put out a very BAD SIGNAL, indeed. Now, if silver was just a mere industrial commodity, why didn’t it’s price follow along with copper???
And, if that isn’t bad enough, take a look at the WTI Oil price. The West Texas Intermediate oil price was down 5% as well.
With the U.S. oil price falling $2 in one day, that just wiped out $21 million in oil revenues to the oil companies. This is also terrible news for the U.S. Shale Oil Industry is being held together by DUCT TAPE, BAILING WIRE, and ELMERS GLUE.
Today, I also posted the broad selloff in oil on my SRSrocco Report Twitter feed:
Good Morning Everyone… another crazy day in the Oil Markets.
Silver isn't the only price that experiences big declines in a day.
A $2.00 decline in the oil price IN ONE DAY, destroys $21 million in oil revenues in the U.S. domestic oil industry. pic.twitter.com/C0k3QGDDNP
— SRSrocco Report (@SRSroccoReport) October 1, 2020
I have been forecasting for the past several months that the U.S. and global economy will continue to unravel towards the end of 2020 and into 2021. With the oil and copper price selling off significantly today, we now have our SIGNAL that ALL IS NOT WELL.
Another indicator suggesting that silver is now heading more towards a Monetary Metal than an industrial metal was explained in my newest member article below:
The silver market is rapidly changing, and new investors are just beginning to wake up to why it’s essential to own the shiny metal. As I have stated several times, we are only in the first stage of the coming Silver Fireworks.
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Don’t look now…..but….yep, here comes SILVER!
… And very strong investor demand for silver along with ever decreasing Ag mining is very bad news for the Global Industry. Those days when plenty of silver was available at a ridiculously low price imposed by the Paper Criminals are over for good. Soon all electronics and other silver-dependent companies will realize that to obtain silver, they’ll have to compete with millions of determined investors frantically buying the white metal. For their very survival.
Got no silver ? Then no production. You are dead.
I sincerely believe that the Central Banks will start to buy silver as a strategic reserve, just like gold. That day ia not far away.
I’m sure they have done that already, many years ago.
Maybe that will cause Samsung LG 🍎and the like to purchase pallets of bars to stave off problems with near-term supply and demand crunch.
Just to make things more interesting, shale oil producers Oasis Petroleum(yesterday) and Lonestar Resouses(today), declared bankruptcy.
The U.S. government should have already loaded up on silver (free, with printed dollars). Same with gold. You don’t have to back the dollar necessarily, but the U.S. could use precious metals as a strategic reserve to keep the dollar dominate.
China, Russia and a lot of countries would certainly love to be the controlling government in precious metals, no one cares in the U.S.
Brant,
Great point about how we should have used the printing press to load up on silver and gold. I’ve often thought along similar lines.
We could have owned practically all the available silver and gold in the world if we had just used the Social Security surpluses in the 40s, 50s and 60s to buy it. Then sold the stocks as the Baby Boomers reached retirement. No loss in purchasing power, rather a gain. All the Social Security surpluses were stolen by the Johnson Administration, rolled into the General Fund, and used to fund the “Great Society” program, the “Moon Landings” and the Vietnam “War”.
However, the greatest lost opportunity in history was the fact that we didn’t cap all our oil wells in 1971 and use the petrodollar and printing press to suck the Middle East completely dry.
We should have also closed all the THERMAL coal mines, moth-balled the coal power stations, built an additional 200 nuclear power plants and stockpiled enough processed and ready to use Uranium to run them for 100 years.
We should also have banned the export of silver, gold, timber, ores and scrap metals.
These examples represent extraordinary opportunities LOST, which will never again occur in history.
You rally are ignorant and suffering from Self-entitlement.
I rally am ignorant?
Sorry, Marko, I can’t help it. It’s genetic.
you will reap what you sow, endless wars are coming back to home
Marko,
I actually believe All Metals Are Precious wasn’t defending the U.S. War Machine. Rather, he was just pointing out what was going on. There’s a BIG DIFFERENCE.
steve
SRS: “This is also terrible news for the U.S. Shale Oil Industry is being held together by DUCT TAPE, BAILING WIRE, and ELMERS GLUE.”
Are you sure they’re using duct tape? Its pretty strong stuff.
As of 10 pm cst it has lost most of its gains today; this is so typical.
Jim,
Don’t worry… silver is likely to consolidate over the next few months and then a much bigger move in 2021. Time is on the side of precious metals investors and the opposite is true for the stock and bond market.
steve
Steve (and others)
Please excuse me for the (potentially) dumb questions to follow. What I am posting about now has been on my mind for over a year, and in order to stop wondering, I’m just going to come out with my dumb questions. Enough romancin’, let’s get on with the Honeymoon!
It is no secret that the USD is in trouble and very likely those troubles will get much worse in time. The best way I can describe the state of the USD as that it is anemic and still bleeding. Given the potential continued erosion of the USD, Here goes…
1. Should there come a time that I desire to sell some Silver (some, because I don’t own THAT much), and if I desired settlement in other than USDs, what companies or dealers would there be in this case?
2. What reporting requirements would be involved in the above scenario?
Uhhhhhh…that’s all of the dumb questions for now (but more sure to follow). Thanks all.
I’m not aware of anyone advertising (as an example) a tractor for a mint case of ASE’s. Or any other product for that matter.
Exchanging metals for dollars in some cases or quantities has tax reporting requirements. These are on the websites of several online metals dealers.
D.C.,
My question was geared towards selling some Silver. Barter and Trade are not 2 areas that I am unfamiliar. More specifically, where and how could I sell some Silver in other than USDs?
Thanks much!
JR2
I’m hoping for some dips,
Sold a bunch of silver at a tidy profit,
started buying again.
Of course I didn’t sell all!!!
Less than half. Just a little more pullback and I’ll buy half of what I sold.
Risky I know, when the music stops I don’t want to be empty handed.