As the markets and financial system continue to be propped up by an ever-increasing amount of debt and leverage, precious metals investors need to understand the two most important reasons to invest in gold and silver. While one of the reasons to own precious metals is understood by many in the alternative media community, the more important critical factor is not.
The motivation to write this article is due to the increasing amount of negative sentiment and comments in regards to precious metals analysis and investing. There’s a very interesting notion put forth by many commenters that the precious metals analysts and dealers are the frauds and charlatans, not Wall Street or the Central Banks. I imagine they believe this because gold and silver prices haven’t performed as forecasted or compared to the insanely inflated stock, real estate, and crypto markets.
Before I discuss the two important reasons to own precious metals, I would like to provide some information about the fraud and corruption taking place in the financial industry.
Now, it is true that a few precious metals dealers have defrauded investors, but this is true with all sectors and markets in the financial industry. However, investors frustrated with the precious metals tend to forget the massive amount of fraud and losses that took place as a result of the 2008 Housing and Investment Banking collapse.
For example, according to the article, Financial Crisis Bank Fines Hit Record 10 Years After The Market Collapse:
$150 billion (127.6 billion euros) – that’s how much US authorities have collected in fines from financial institutions for shady dealings with subprime mortgages since the beginning of the credit crisis in 2007, according to research by the British business daily Financial Times (FT).
Of all the banks penalized since 2008, Bank of America (BofA) was hit the hardest by far, as FT research shows. So far, BofA has handed over a whopping $56 billion – more than one third of total fines paid – in settlements to cover the institution’s own mortgage sales as well as the conduct of subprime mortgage lender Countrywide and broker Merrill Lynch, two companies it had acquired.
JP Morgan Chase, the owner of Bear Stearns and Washington Mutual, has paid the second-largest amount with $27 billion.
So, in ten years, financial institutions have paid $150 billion in fines mainly due to the fraud behind the subprime mortgage industry. I would like to remind the reader that the banks don’t pay these fines from their pocket, it comes from their investors.
Then we had the wonderful Libor rigging scandal in which three banks paid $2.5 billion. In the CNN article, RBS Fined $600 Million, More to Come:
Three banks have so far paid over $2.5 billion in Libor fines.
The Royal Bank of Scotland has been fined $612 million by regulators after an investigation found 21 bank employees tried to rig global benchmark interest rates over a period of four years.
Yes, we forgot about how banks and financial institutions rigged one of the largest Interest Rate benchmarks in the world and got off with a few billion in fines. While banks and financial institutions have paid over $150 billion in fines since 2008, how much fraud hasn’t been accounted for by the industry??
Now, let’s compare the total value of all Gold and Silver Eagles sold since 1986:
The total current value of all the Gold and Silver Eagles sold (1986-2017) equals approximately $40 billion. Of course, Gold and Silver Eagle sales are only a part of the overall precious metals investment industry, but they are the leading precious metals official coin sales in the world.
If we look at total Silver Bar and Coin investment from 2007 to 2017, we can see that it pales in comparison to the massive fines paid by the world’s largest banks and financial institutions:
So, how does $36 billion in the total value of world Silver Bar and Coin investment compare to the $150+ billion in global financial fraud? You see, it’s easy for frustrated investors to disregard the tremendous amount of fraud, corruption, and deceit taking place in the world’s largest financial institution when it’s so much easier to point fingers at precious metals analysts and dealers.
Furthermore, I will suggest that the $150+ billion in fraudulent fines paid by banks (business as usual) is only the tip of the iceberg to come. However, when the markets roll over and crash lower, I highly doubt these banks and financial institutions will have the funds to pay the Bigger fines in the future.
One last thing on this subject of fraud and corruption. As I have stated over and over, the U.S. Shale Oil Industry is a Ponzi Scheme that Bernie Madoff would be jealous. According to this recent article, How Wall Street Enabled the Fracking ‘Revolution’ That’s Losing Billions:
The U.S. shale oil industry hailed as a “revolution” has burned through a quarter trillion dollars more than it has brought in over the last decade. It has been a money-losing endeavor of epic proportions.
If the U.S. financial crisis of 2008 has revealed anything, it is that Wall Street isn’t concerned with making a “shitty deal” when it means profits and bonuses for its traders and executives, despite their roles in the crash.
With Wall Street making substantial fees on BAMBOOZLING clients into investing in the shale energy industry, few if any will receive the return of their funds. Thus, a large percentage of the $250+ billion and growing of debt on the balance sheets of shale oil and gas companies will never be repaid. Therefore, the $250+ billion of shale oil fraudulent investor funds would equal nearly seven times the 2 billion oz of global Silver Bar & Coin purchased 2007-2017.
Again, just another lil tidbit that is overlooked by investors who are unable to understand the TOTAL FRAUDULENT PICTURE taking place on Wall Street and at the Central Banks.
Two Most Important Reasons To Invest In Gold & Silver
The first important reason to own gold and silver is for INSURANCE against a financial meltdown and or disintegration of fiat currency… just like what is taking place in Venezuela. Holding precious metals as an insurance policy isn’t anything new to gold and silver investors, but it seems as if a percentage may have forgotten this critical role.
Most individuals understand the importance of owning auto or housing insurance but have no idea why it’s also wise to purchase precious metals insurance. Furthermore, most people would choose to buy health insurance for at least catastrophic protection in case of major accident or severe illness. Again, insurance is designed to protect individuals against substantial financial losses from auto, home or health-related risks.
For that reason alone, precious metals should be purchased on an ongoing basis just like most other insurance policies. While some of us have paid auto insurance without any accidents, we are sure glad we have it when one finally arrives.
This should also be true for precious metals investment, especially when we look at the following chart:
As we can see in the graph above, the largest western countries in the world have the some of the highest debt to GDP ratios. Japan is the third largest economy with the highest debt to GDP of 253%. However, the U.S. with the largest economy in the world has a debt to GDP ratio of 105%. The last the U.S. debt to GDP ratio was this high was during World War 2. After the war ended, the U.S. was able to lower its debt to GDP ratio to 25% by tremendously ramping up its economy.
Unfortunately, the U.S. economy is now adding more than $4 in debt for each new $1 in GDP growth. This trend of adding four times the amount of debt to grow the GDP isn’t sustainable for much longer.
Here is just another factor that some investors fail to recognize when they are demonizing precious metals analysts and dealers. What’s currently taking place with the low precious metals sentiment is very similar to what happened to the main actor in the movie, THE BIG SHORT:
I would suggest everyone watch this short video which you can view by clicking on the image or here: BIG SHORT SCENE. Warning… there is a bit of harsh language, but even when things get rough, people become very frustrated and angry. While it is a movie, it is based on the factual evidence that large investors wanted their money back because they could not understand that the Housing Market Rotten to the core. Seemingly 99% of investors believed in the lies being told by the Federal Reserve and Wall Street.
What is coming this time around is even worse than 2008. But, of course, frustrated investors will continue to blame precious metals analysts and dealers because they do not understand the fundamental problems in the economy and financial system.
The second more important reason to own gold and silver is to protect wealth during the coming disintegration in the value of most Stocks, Bonds, and Real Estate. Owning gold and silver, for this reason, is even more important than just financial insurance.
If you watched the Big Short video above, then you would understand that most people do not see the problem in the next chart:
If the Dow Jones Index was in a bubble in 2007, its nearly twice the bubble today, and the MACD technical level shows it. I saw one of my Dow Jones charts on another website, and a someone commented that the person who made the graph doesn’t understand the MACD technicals. Not only do I find this amusing, if true, people are in serious trouble if a RED WARNING LIGHT now means everything is okay.
The Dow Jones Index took 16 months before it started to fall off a cliff in 2008. Watching the Index trade up and down in the 23,500-25,500 range reminds me of the same setup in 2007-2008. Markets just take time for REALITY to kick in.
But, this is only part of the problem. The major issue is ENERGY. While the U.S. Shale Oil industry is producing a record amount of oil, it has done so be defrauding investors by hundreds of billions of dollars. I have correspondence with people in the oil industry, and I can tell you, there is a big difference between someone who has been drilling for oil for 50 years and the new high-tech companies.
The old wildcatters took a lot of private investor money, so they dealt with them FACE TO FACE. Today, the U.S. Shale Oil Industry is predominantly made up of public companies because they need to get money from investors they don’t see or care about. Thus, the Shale Oil Industry is much like the Subprime Mortgage Industry that took crap loans and sold them to other naive investors. Same SCAM, just a different industry.
A perfect example of the SCAM called Shale Oil can be seen by the evidence from Fractional Flow on the Bakken:
Rune Likvern, who has decades experience in the oil and gas industry, shows that the Bakken hasn’t provided ONE PENNY of positive Free Cashflow since it started ramping up production in 2009. Moreover, his estimates the companies producing shale oil in the Bakken have suffered a combined negative $35 billion free cash flow 2009-2017.
While Americans used this oil to buy gobs of stuff from Walmart and Amazon to fill their homes and storage units, the investor will eventually be holding the bag for hundreds of billions in losses. But, I guess this is okay… IF IT AIN’T ME… correct? Well, that seems to be the mentality today, and especially coming from the management and investor relations folks running the Great U.S. Shale Oil & Gas Ponzi.
When the U.S. Shale Oil Industry finally collapses under the weight of debt and soon to be uneconomic wells outside the core shale fields, then it would be an excellent time to be invested in Gold and Silver.
However, it will take some and likely more frustrations as investors are blinded by the enormous gains in the stock, real estate, and crypto markets. But, as I have said many times… GOD HATH A SENSE OF HUMOR.
Please look out for my next video that will be on the Greatest Gold Conspiracy Of All Time. If you haven’t subscribed to my youtube channel, you can do so here: SRSrocco Report Youtube Channel.
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Good piece Steve!
Steve,
Well said. Great perspective as usual.
ThA\annks,
SteveW
I believe a market correction from current levels could be 25/50 percent or more as things stand.
I also believe though ,less likely , a move to exceed 26616 on the Dow whether it be 28000 or 30,000
Would occur just by the Central banks colluding further to keep stocks up as a last stitch effort to hold things together. A more serious drop starting in 2019/20 maybe what they are eying. After a collapse to 5000 ,
the central banks go into overdrive printing/buying everything they can and our worse fears of a hyper type inflation gets out of control. Dow goes to 100,000/125000 but the dollar’s value crashes.
Gold and silver will be the only thing left to save everyone.
After the #DOW Jones; back in October 2007 reached its high; it only took 9 months to establish this trend might be in trouble. That happened W/E 27/06/2008. From that moment in time the #DOW was only down 20%. Then the guts dropped out of it. It took ONLY another 9 months to drop 50% the October 2007 high.
The current trend (so far) is only 3 months into a possible reversal of the trend.
“Give me my fucking money!!!” LMAO!! Plain as a dead skunk in the highway–they refused to listen to rationale. AND, here we are again 10 years later. How STUPID are Americans?? And Japanese, Europeans, and Chinese investors. It IS MUCH WORSE this time because it’s global stupidity.
Hi Steve,
Good article as usually. A few comments clearly the banks did not really get fined
as they themself are the owners of this sick financial system they really can do all they want without consequences. It is very important to understand the timing when one buy silver or gold. Especially watch the gold:silver ratio. If your timing is correct one will be able to purchase fair value of silver/gold with fiat money at that moment. Without having regrets some time later.
Empires when they are desperate for energy go for it and just steal it as we can see in the middle east the usa wants with all its power control the oil resources overthere as they are running out of cheap oil at home.
As I wrote before if a currency gets flushed like in Venezuela , Argentina etc the stock markets tends to boom even more crazy. The real bubble is are the usa/eu bondmarkets insane is this bubble and it is still getting pumped bigger.
Therefore gold and silver are a natural protection outside of this fragile financial system just not even 1% of population realises this or is able to protect him or herself.
Some great definitions, Steve. The financial world is so filled with fraud at this point, you can now point in any direction to find corruption. Catherine Austin Fitts and Mark Skidmore have revealed that 21 trillion was spent in misappropriated funds recently. When will this blatant thievery end!? https://msutoday.msu.edu/news/2017/msu-scholars-find-21-trillion-in-unauthorized-government-spending-defense-department-to-conduct/
Great article, Steve!! What a brain….!
I so love his work…
Hi Steve!
Central Banks do not get fined. What they do is pay a small fee as the cost of doing business. If fines were meant to deter future
fraud, then the cost of those fines would exceed the amount the banks received for their fraudulent behavior…but they don’t. Another way to punish this behavior would be to imprison those responsible for the fraud…but they don’t
Please comment on this. If Japan is at 253% debt to GDP…what is to keep the US from achieving this same level. How long, given the current rate of US debt to GDP growth, will it take the US to reach 253%. If we can keep print money while expanding the debt to unthinkable heights…what is the event or catalyst that will cause it to stop. Thanks again!
Just looking for advice… we are carrying about 30,000 in debt. We figure we can pay it off in three years. We have about 4600 oz of silver stored safely and four oz of gold. Do I cash in enough to pay off the debt with these INCREDIBLY LOW SILVER PRICES or wait and try to pay the debt off through payments and wait …wait…wait till silver goes up to pay it off. Stressing over this as we thought silver would have gone up to thirty+ by now.
Why don’t you pay off part of your debt; like 1/4 or 1/3. You will feel better, raise your credit rating by paying it down, and maybe you can refinance the balance at a lower interest rate?
Thank you! Definitely considering it.
I think it was SRSRocco who once wrote, something like ten years ago, to figure out how small a move you can make and still feel like not kicking yourself for missing the boat if you’re right. That trade may be smaller than initially meets the eye.
That advice has saved my ass a few times when I was wrong.
“I saw one of my Dow Jones charts on another website, and a someone commented that the person who made the graph doesn’t understand the MACD technicals.”
Don’t stress Steve. (I know you don’t anyway.) Over the years I have observed a concerted campaign of disinformation all over the internet. Not just in articles, but also within comments. We see it here too with the likes of Dolph etc, but I think most people do not understand the magnitude of just how many people (shills) or AI (artificial intelligence) is being used to keep people dumbed down. What keeps this fraudulent system going is keeping them in the dark – if people knew the truth they would behave very differently both financially and otherwise. Peer pressure though comments is a key component, I would now say primary component since so many people are more curious and explore for more information, and other peoples’ opinions sway many people still. I believe that the fake news has been exposed enough to get people thinking and learning, and now the last frontier is to fake the broad public opinion. I can tell you from what I see that that battle is raging now. Lots of people jump in and correct/expose those fraudsters. We may not be far away at all. This will get ugly.
Great article with interesting information as always. However, I have yet to hear of a good, reputable company to buy precious metals
Go to stevequayle.com and call Renaissance Precious metals. Won’t get more honest or helpful than there.
Provident Metals, Plano. TX.
The following is real time here in Australia.
Royal Commission
into Misconduct in the Banking, Superannuation
and Financial Services Industry
https://financialservices.royalcommission.gov.au/Pages/default.aspx
Videos here…
https://www.youtube.com/results?search_query=Banking+Royal+Commission
All of the above is peripheral or noise IMO. Not much will happen unless they get into the Central Bank, the RBA (Reserve Bank of Australia) which is part of the western banking cartel.
Enjoy!
Good article again. I would disagree with the dollar collapsing “like Venezuela”. Great Britain lost reserve currency (along with an empire) , highest inflation jumped to a mere 25% for a year, then dropped and was under 6% in a few years.
http://www.inflation.eu/inflation-rates/great-britain/historic-inflation/cpi-inflation-great-britain.aspx
The average Brit retained his standard of living, and the Pound stayed strong – to this day.
Japan’s debt is insane. They have been printing for decades now, routinely doubling the money supply. Yet inflation is low, as is unemployment, and a good standard of living persists. They don’t continually keep voting for Abe because they are unhappy. This on an island with virtually no natural resources, and a demographic disaster.
One cannot compare advanced massive first world economies to banana republics. The US, Japan, can print as they like, (pay their own debt if they choose) -as they have – and their currencies seem to remain unaffected. That may change at some point, but it sure hasn’t so long, and it may not in our lifetimes.
Ps Most of the alt commentators deserve plenty of hate. They have been constantly calling for Gold to go parabolic – as it continues to suck for 7 years & counting – so they can sell coins, etc. The gullible who believed them are way down in their Investments, meanwhile mainstream investments & cryptos are making fortunes. Maximum of 10% into the metals as insurance is sound advice that is out of vogue because it would sell less coins.
Emil,
Once again, your comment fails all fundamental logic. But, please feel free to continue believing in the Greatest Bubble in history. Sounds like you learned nothing from the Big Short. So, it makes perfect sense that the BLIND continues to lead the BLIND.
steve
SRS, I have also some gold and silver and you make good articles but like 99% you forget one thing. It’s the thing calls ‘change with evolution’ and everyone that thinks it going always to be the same over again and again and again (we have crisis, gold silver goes up and the few that have it can make a good profit for when the crisis is over) it’s all missing a very big important point. There will be a moment in time that we have the Crisis of all Crises and then after that crisis we are nothing with our pile of gold & silver. I know you think all that I’m crazy but I’m thinking in the new system where people are standing up and when this happen there will be huge changes and we do our selves a big favor to not to gamble on one or two ‘old’ possibility’s that can happen or not. In this crisis we can have something with a little bit o gold & silver, yes but when the masses are waking up and DEMAND this time real change, there will be OLD blood in the streets. I mean that there will be many people out of their ‘old’ power that holds off the changes that we all need and in this NEW system the masses, that do not hold gold & silver, are not going to let us be rich while they will be building a new Society. This is what is coming and I hope that everyone will see this too when it happens and so you will have no need for gold & silver anymore because speculation is in this New Time ‘game over’. It’s the old vs The New and everyone that thinks that this old system has much left and the new will be the same as the old, are no looking in the right direction. It’s all up to the masses and so long they sleep then gold & silver has their meaning but when this ‘old’ time is over and you have gold & silver in your hands, you have nothing more then nice pice of metal with no further meaning for making big profits on it…
cryptonites now lament:’I could have had Pieces O eight’Silver is having closeout sale;Prices good while supplies last.It is late; Do you know where your cpypto is?
What the video does not show is that the insurance (options) did not change in value to reflect the tragedy of the falling housing market. If it did then he would have had a massive gain.
Thank you for this great article. Currencies have come and gone for centuries but gold and silver are forever. Gold and silver are God made not man made.
Steve you compare the 36 billion to the 150 billion in investor fraud but did the coin dealers not deliver the gold and silver coins to the investors.
If the dealers delivered actual gold and silver coins how is that fraud. As The Moneychanger says always take delivery. Great article as all of your articles are.
Robert,
I agree. The precious metals dealers make on average 2-5% on selling silver. They aren’t getting rich. And yes, even though the silver price has fluctuated, people still own the silver. I was just comparing the amount of Bank fraud to silver investment.
When the markets crack, it will be interesting to see how sentiment changes in the precious metals.
steve
Still no market cracks up to now as stocks and even oil continue to rise along with the usd. The only thing which is cracking is BRICS “partners” like venezuela, argentina and probably turkey in the future as they have moved away from NATO.
I forgot Iran real which is going into dustbin.
Putin ? No the russian uncle scrooge will continue to amass USD (remember the currency which should be replaced by the petro yuan anyday now !!!).
“So, in ten years, financial institutions have paid $150 billion in fines mainly due to the fraud behind the subprime mortgage industry. I would like to remind the reader that the banks don’t pay these fines from their pocket, it comes from their investors.”
Let’s make it clear also that the U.S. Government authorities made no effort to give any of this “windfall” back to the people/parties harmed by the fraud
Precious metals have NEVER been worth nothing. That is the reason to buy and hold precious metals. The banks are buying PMs like crazy because they know this. Just like the so call elite are buying PMs quietly. They run down metals, I believe to keep the prices down and when they quietly get enough the price will rocket up. Some of us poor folks that stack seriously know the PMs are being manipulated but most of us common folks do not know or even give PMs a thought. Watch the stock market and common folks are buying stock while the rich are selling. Much more selling then buying. Always watch what most of the rich are doing and emulate them as much as possible when it comes to finance.
Remember one thing that is absolute truth. God is in charge of everything and everything
belongs to Him and you can take that to the bank. Study the Bible very closely and you will see we are in the in of time. I don’t mean to preach but if you are not a believer become one. This is more important then money or any other thing. Don’t get me wrong. I stack and will continue, just don’t make that your priority. Make Jesus #1 because he is coming sooner then later.
Good Luck out there.
Not one person has went to jail in banking. Maybe, just maybe that might change with Trump as President but I would not hold my breath. Corruption is so rampant not just in the U.S. but thru-out the world and getting worse. We lost our Constitution back in 1913 when the FED was born. One of the reasons JFK was assassinated was he planned to dump the FED and get rid of the CIA and all of the so called secret societies. I fear for Trump because he is also trying this and these people are more powerful now then ever. If you think you are free just try to fly to a foreign country and pull out a wad of hundred dollar bills to pay for your plane ticket and see what happens. My wife and I wanted to draw a substantial amount of money from our savings account about 3 years ago and I thought we were going to be arrested. The bank did not want to give us our money until we told them what we were going to do with OUR money. They did not like it when we said we were buying widgets. I know the banks do not keep a large sum of money and we were willing to wait a day or two but a week or more is ridiculous and they kept insisting we had to explain are reason for the withdrawal. We were badgered constantly. We finally received our money and the next day closed our account. I keep a very small amount of money in a bank ( not that I have much anyway ) I bought silver with our withdrawal.
I am finding more and more corruption as time goes by and if you read the Bible it tells us that will become more and more prevalent as time goes on.
Please forgive my bad writing skills.
Good Luck Out There.
Silver and Goldjuniors at a 20 year low.I see no money flow in them.
Warrants and Option, private placements and Reverse Splits in the miner stocks.
To say it short Dilution.My question is what must change?
I could be debt saturation which is coming but we cannot know when. I cannot see how it cold contiue this way with Fed funds at 4% for example. It does not mean necessarly that PMs will have their day then.
This debt implosion could after a purge continue to increase in a new cycle again namely with public debt as Japan has showed.
Why don’t you do a report on Shale companies that we should short?
That is something I would be interested in and would pay for
This is not an investment advice column, and shorting is for the very intrepid.
The Gold is money only and that’s insurance indeed.
I been watching Dow Jones and SPX500 monthly MACD too for some time.
We will see soon what will happen!!?? Crooks are more desperate.
The only desperates are asian clowns believing the will rule the world just waiting the west to collapse. It would be interesting iran to be crushed and the close allies Putin doing… nothing as usual…
RD
If crook,present system doesn’t change , you going to be very desperate one day and they going to squash you and us. Don’t forget it.
Present system can’t go forever , there will be war or crush.
Wall street and Fed must go or there is no future for ordinary people.
I have no illusion at all, I just said that paradise coming from trade run by multipolar oligarchy rather than anglo-neocons are 2 quite close variations (in fact I am prefering those who reduce mass immigration in the west and agree that up to now the multipolar may be better). However I do not run anymore into the brandon smith’s or ron paul’s liturgy and probably yours: capitalism is perfect as it is the golden rule of nature created by God, so everything in the world is central banks fault ie globalist financiers who have injected the poison of statism/socialism into the pure minds of the people. Remove central banks and reduce the weight of the state and stable economic nirvana will naturally ensue. However, that does not mean that indeed statism will solve anything we are currently facing…
Steve, how you see the probabilities, that the crash happens in the next 2 years?
thanks.
Andy,
If we go by market indicators and cycles, then we are heading towards a major DEFLATION. Thus, the value of STOCKS, REAL ESTATE, COMMODITIES & ENERGY will be heading much lower by 2020. So yes… by 2 years.
steve
And then again the fed might inflate the “money” supply putting the Dow over $100,000. Who knows what a dying animal will do to save itself. Countries in the past have not seen the light and started behaving correctly, they have gone down in flames through hyperinflation, what makes US different?
However if this is indeed in the future, consumer products’ prices will skyrocket along with pms.
The above article speaks of two reasons, insurance and store of wealth both can be summed up as maintaining buying power, and after all isn’t that’s what life is all about? Working to live and storing surplus for future?
I tend to agree with you olegig. I think they don’t have a choice but to inflate. What that does with currencies, well, we all know that. Eventually, the currency will die.
Even Inflation don’t drive the silver price.
Too much silver-output.I told it years ago.
Comex set the price, not a few more or less millions ounces produceded yearly.
The only hope is when a debt crisis happens and that money “would” (not should or must) then go namely into gold and silver rather than in emerging credit or western stocks.
Besides, Chindia has 0 pricing power on anything which is quoted on an exchange. ZERO.
Despite oil at 70 USd and support from Putin, Iran is falling into dustbin :
https://www.zerohedge.com/news/2018-05-09/iranian-rials-economic-death-spiral
I wonder if the second uncle scrooge know as xi jinping will open his wallet ! I guess it would be the same that a few years ago like complete zeroes like jim willie wrote that Putin will take over Greece… Putin will sell russian babies much sooner that their USD…
http://si.wsj.net/public/resources/images/B3-AE400_Dshot_NS_20180424004454.png
the future of a past
Crash Scenario:
I have heard for the last 10 years that the system will crash but I have yet to see a detailed step by step process how this can occur. Only a rote statement that, “the current financial system will crash”. This statement is repeated over and over again with out elucidation. I would posit that any crash scenario must include the removal of the dollar as the world reserve currency which would especially effect residents in the United States. With out this dollar dethroning the PM manipulation will continue unabated. TPTB can eliminate the requirement of GAP; control the direction of fiat printing; control all the regulators and thus preserve the system until the dollar is removed from it’s “undeserved privilege”. Until the rest of the world says, “No more dollars for international trade” then unfortunately the rigged game continues…..or until there is a delivery default…….
GLP,
If you can’t see the indicators then I have some 2007 Subprime Bonds to sell you. Gosh, why is it that investors are so darn blind. Just like the wealthy investor in the movie, THE BIG SHORT who told the head trader running Scion Capital (betting against subprime), “GIVE ME MY F#CKING MONEY BACK.”
steve
Steve, what I believe you and others fail to see is the total control over the fiat system that the bankers have succeeded to achieve. The financial system’s regulations before 2007-8 and after 2008 are now vastly different. These criminals are now able to print without regulation or oversight to a level unheard of since Brenton Woods ended. So as long as “they” can provide unlimited fiat how can any favored entity “go broke”? The bleeding cash boyz like Amazon keep trucking, regulators look the other way, GAP is ignored….and the world keeps accepting the dollar in trade although some countries have had enough….no problem though the US can and are just buying their own bonds to keep interest rates low. Bottom line, this game can continue for a while and no one can determine when it will end IMHO. “The Big Short” is one of my favorite movies and I have watched it a number of times; however, the banks have altered the rules of the game to insure this won’t happen again….at least greatly minimize the damage and just print what ever the boyz need to print. I say wake up and see the situation as it is and adjust your investment strategy, accumulate physical metals with crypto profit and don’t look back. I told all my metals friends in 2013 to buy Bitcoin, Ether and Litecoin and others and they ignored that advice. If they would have listened, they would be thousands of ounces of silver ahead…..still not too late to listen…for now……
GLP,
I think this is an excellent post, and I agree with most of it. The cryptos future value in fiat is questionable I think. You apparently believe they will reach new heights, while I am skeptical Bitcoin will ever reach it’s previous high.
We will see how long the Fed + treasury + other entities can keep this going. Really no one knows, but I would be surprised if it is more than a couple years before the equities markets fall a lot. That said if they “allow” the markets to fall like 2007 – early 2009…this time pension funds fail and when that happens it will not be a recession. It will be depression.
Maybe it’s better for steve to get a good connection to the FED.Instead of writing who bought here and there some tons of gold, ask the FED about the price.
It’s obvious for everybody that the price is manipulated as long the dollar is the worlds money.
What is the reason for his analysis?It makes no sense.
Einstein once said:”Your are a fool when you make always the same mistake and hope that the result is changing”.
Go to the miners and tell them, that they have to reduce together the whole silver output about 30%.Then the price go to the moon.By the way the first thing from the earth that appears at the moon.
The USA for shure not.
Steve I love your work and you will be proven right eventually. However, your recent price call on oil was simply wrong. When oil was 40 you stubbornly called for a drop down to 12$ and where are we at now? With the restrengthening in the $ the dow/S&P might well reach NATHs (midterm), as long as they can keep the precious metal paper ponzi alive (“there is [quasi] no gold”). Gold and silver will retain generational wealth and purchasing power once this current paper system disintegrates for good. But are we really there yet? I certainly don’t know “when” I just know it will happen someday, likely out of the blue. could be next week, month or a few more years out (decades – highly unlikely IMHO). Forcasting prices in the short mid term is a hopeless enterprise as everything but physical PMs can be (IS) rigged up or down. Either way, keep up the great job, I highly appreciate you sharing your work and analyses, especially the fundamentals.