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<p>[QUOTE=&quot;afantiques, post: 2689127, member: 71234&quot;]Some of his statistics are correct but I don&#039;t think much or any of his conclusions are.</p><p>He assumes some sort of overall plan to everything that real life experience simply does not support. The bull run on silver in 2011 was just a typical bubble, like any before back to the South Seas Company and Tulipmania in Holland ( <a href="https://en.wikipedia.org/wiki/Tulip_mania" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Tulip_mania" rel="nofollow">https://en.wikipedia.org/wiki/Tulip_mania</a>&nbsp; ) </p><p>in the 17th C.</p><p><br /></p><p>As soon as a few big dealers decide to take profits, the&nbsp; apparent unstoppable rise stops and slips back a bit, and there is a panic to get out as&nbsp;&nbsp; strong as the panic to get in. Think more of a huge flock of starlings in flight than any directed cunning scheme.</p><p><br /></p><p>His most serious fundamental error is to treat a day&#039;s trading volume as a sum of underlying assets, when in fact much is simply the same material being repeatedly traded over and over again. If a thousand ounce silver contract gets traded a hundred times in one day this is not creating 100,000 ounces of traded material, it is still a single thousand ounce contract.</p><p>This is still pretty crazy, for every profit someone makes a loss and the house continues to make a steady mini-percentage on everything but it is no more sinister than the operation of any casino and any bunch of random betters.</p><p><br /></p><p>He has a valid point in warning that trade in derivatives can lead to some massive losses, we have 2008&nbsp; as an example of that, but it&#039;s not organised or under the control of anyone, it is just people getting away with whatever they think they can get away with, as usual.</p><p><br /></p><p>The cause of the huge&nbsp; increase in what can only be called playing with money is the huge amount of excess money available in the world today. </p><p>I know there are very many people in the world to whom&nbsp; an extra couple of dollars a day would make a real difference, and countries where the GNP is less than the paper wealth of some individuals but looking at developed countries like the USA and much of Europe, there is a serious oversupply of wealth and people have to find something to do with it. </p><p>If you have assets of five million, not a remarkably high figure, you might consider personally that losing four million would be serious. It is not, you still have a hefty chunk of change and doing without the yacht and the country place are not real hardships as most of the world understands the term.</p><p><br /></p><p>On a smaller scale, in money terms, I&#039;d be willing to bet that almost every member of Cointalk could lose&nbsp; a few thousand without it having any real impact on their life. Hanging on to your current&nbsp; car for an extra year does not count as &#039;real impact&#039;.</p><p><br /></p><p>So, arguably far more money and assets around than people actually need. What happens is that they play with the excess, although if you call it investment it sounds less frivolous. </p><p><br /></p><p>People take their play seriously, even though they may call it playing the&nbsp; market, which is tantamount to giving your excess to someone&nbsp; else to play with. All this play money gets spun around and&nbsp; around, drawn out like candyfloss from a few grains of sugar, but it does not really matter. No one lives or dies by candyfloss starvation. </p><p><br /></p><p>To get back to the rather boring video, my opinion is that the maker takes both himself and his theories far to seriously, and in a search for reason in what is very much a chaotic system, tries to fix causes on specific people and elements of the system that are not&nbsp; really justified.</p><p><br /></p><p>How this all relates to bullion investing is insignificant. It is arguable that a steak in the hand is a lot more useful than ten vouchers entitling you to a free steak if you happen to be hungry and have no other food. It has happened time and again in history that precious metals have been the only reliable store of value in troubled times. I have a few kilos of silver lying around in case there is another bubble and I can make a substantial profit, but I am not really bothered what happens, it is all play money as far as my life is concerned and most of it is in the form of useful&nbsp; and decorative silver objects anyway.</p><p><br /></p><p>I think there is more wisdom in this video.</p><p><br /></p><p>[MEDIA=youtube]azxoVRTwlNg[/MEDIA][/QUOTE]</p><p><br /></p>

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