Is It Time For Silver?

Judging from the broader stock market, it looks like a lot of that money pouring back out of silver, gold, and GameStop is going back into businesses that, you know, make money.

 

Log in or Sign up to hide this ad.

That didn't take long!

 

The wind are out of the sails.

 

Still up pretty high though...in a historical view.

 

Well, at least they have a nice picture of some ancient coins...

https://www.marketwatch.com/story/s...-lines-11612274733?mod=MW_article_top_stories

 

Still see $16+ premiums on 2020 ASEs.

Crazy.

 

Yes, that will continue for awhile! After all, some still expect silver to go up to $40 and some expect it to go higher you can find them on Youtube!

 

Funny thing is, a few weeks back, I got the silver bug again. After years of being into Numismatics only. I started into silver stacking through bank mining back in '09, but really ramped it up in '10. I sold all of my holdings on the back side of the peak.

Fast forward to a few weeks ago, the thought of the current President being elected, made me think back to the Obama administration. Silver spiked not long after he was elected. I knew that Biden would be more of the "Meet the new boss, same as the old boss". So I set a short term goal of accumulating more silver. I met my goal last Thursday. Then I heard about all this Reddit stuff and well, I was glad I followed my instincts again. I'd really hate to be trying to buy silver with an $8.00 - $15.00 per ounce premium.

Moral of the story, this kind of run is not hard to foresee. When the dollar is being printed and spent like it's Monopoly Money, it's time to convert that Monopoly Money to something that is REAL money. The signs could not be broadcast any louder throughout the world. The only way to miss it is to be an ostrich with your head constantly in the sand.

This is just the beginning of this wild ride. I think this is where we will see the true separation of the paper from the physical. The price of SLV is what you see on the ticker, the price of SILVER is what you see at your local dealer and online dealers.

The powers that be can manipulate the price of the ticker all they want to suppress the paper value. But, just try to buy an ounce of physical right now at those suppressed prices. I've been watching customers coming into my local dealer since the beginning of the year wanting to buy silver. I know it's been going on since November. This last weekend was a booster in the arm for the physical market.

I know someone will come out and say that there is TONS of physical in vaults. When that physical is put out onto the market, it will be absorbed like it water being poured into a sponge. I think these premiums are going to act like a yo-yo for a while. At the end of it all, we will see the true price of silver, and it won't be a number being broadcast from an exchange...

(I, in no way claim to be an expert in the exchanges. I am simply using logic to draw conclusions to what "I" feel is going to happen. I could be wrong, I could be right. You have to come to your own conclusions.)

 

And you're tying that printing to... the beginning of this year?

 

No, the spending has been going on since the inception of the Federal Reserve. But now, they have cranked the press up "Ludicrous Speed"... They've gone plaid....

 

The nerve !!!

 

Early Reddit Investor:

 

Could you integrate that curve please?

What are the vertical grey "bands"?

 

Whenever someone doesn't like the price of something, they yell "manipulation." Not claiming you, JT, but sources that we all see.

Physical and paper can diverge, but they ultimately follow the same trajectory.

The Reddit flop over, watch silver rise SLOWLY to match increased demand with reduced supply.

 

Sorry, inadvertently posted the dM2/dt curve instead.



Grey bands are presumably recessions. Page I'm stealing from: https://www.thestreet.com/mishtalk/economics/23-6-of-all-us-dollars-were-created-in-the-last-year

 

Also, remember the hyperinflation in the wake of those previous money-printing spasms since the early 1990s? Neither do I. It's almost... almost as though doubling the money supply in the face of increasing productivity or to fight a recession does not double prices.

 

Yikes

 

I wholeheartedly agree with you. I am in Crypto as well and there has been some very curious price fluctuations as well. XRP being one of them. I've been holding a position since before the SEC filed it's lawsuit and LONG before the WSB's set their attempted crosshairs on it. Let's just say that this past Sunday night was a very difficult night of sleep, watching the markets. Then Monday morning happened.

The price of physical silver has very much detached from the price of silver, but it uses the paper price plus a premium to establish it's price. I was just talking to a dealer today who told me that tomorrow he's raising the premiums of Government issued silver to spot +$15.00, it's currently at +$10.00. People are flooding in trying to procure physical. There is no way I would touch silver at spot +$15.00, but people are buying it...

 

"If they believe fiat dollars will eventually go to zero, why are they willing to swap their PRECIOUS metals for them?" Doesn't matter where the dollar goes eventually, as long as you can keep selling PMs for 1.5X and replacing them for 1X...

 

Not as long as the Velocity of Money falls.

MV = PQ

But if it starts to rise.......