Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Gold Price Trend Validation - 22nd Aug 19
Economist Lays Out the Next Step to Wonderland for the Fed - 22nd Aug 19
GCSE Exam Results Day Shock! How to Get 9 A*'s Grade 9's in England and Maths - 22nd Aug 19
KEY WEEK FOR US MARKETS, GOLD, AND OIL - Audio Analysis - 22nd Aug 19
USD/JPY, USD/CHF, GBP/USD Currency Pairs to Watch Prior to FOMC Minutes and Jackson Hole - 22nd Aug 19
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

Finding Zero

Commodities / Gold and Silver 2014 Sep 19, 2014 - 01:34 PM GMT

By: Dr_Jeff_Lewis

Commodities

“If you want to find the secrets of the universe, think in terms of energy, frequency and vibration.”
― Nikola Tesla

The silver market is always one day from panic. The same could be said for the bond market or the dollar. In the age of electronic price discovery and massive reckless monetary Imbalance anything can happen - and it probably will. 


It will happen whether by virtue of just in time delivery practices of the user or the massive (and very real short) concentration within the large commercial category of traders on the most important world price discovery exchange. 

The lower the price, the less produced; from mining to scrap recycling. It gets worse because the expectations of the future are distorted by the fictions of the present. 

One example of this is pension funds that assume a set level of growth to ensure their survival. These numbers are based on a fictional level of GDP growth to begin with, which is based on erroneous estimates of costs for consumption. 

The point is that just about everything we believe about our state of economy and money is a fragile fiction. Silver and gold always lead the way for other commodity sectors - as the inflation signal for the investment/speculative trading world. 

Despite persistent efforts to 'forget' about their natural monetary status. 

Interest rates, CPI, and safe haven flows are key indicators for this group. Everyday we should acknowledge that precious metals are a long term hedge against the stupidity of the interventionists. Also, remember the butterfly effect and confidence. 

Silver and gold are first and foremost "emergency hedges". Banking and finance in the money for the sake of the money itself. 

And yet the money isn't really money - in the true sense of the meaning - any more than the political parties today reflect the true meaning of what they were in days long ago. The control of currency in the name of politics distorts the meaningful movement of capital and savings. 

Think about the politics:

What difference does it make? National politicians, with few exceptions, do whatever their handlers tell them. Follow the drunken funny money. Votes 'count' only as a statement of completely irrational and inaccurate world views.

Powerful public relations, marketing, and/or propaganda make it easy to sell large swaths of populace with a story consistent with their world view. 

Changing world views can only happen naturally, on its own, and usually as a reaction. But sadly the next shift will come with pain. None of the elite class concerns itself with these issues. 

The concern, spawned nearly 100 years ago in the wake of the creation of the Federal Reserve cares about making money for the sake of money. The more risk free, the better. And this is the system they've been able to operate within for generations.

The power that surrounds it is unstoppable except by the forces of nature itself, whether that force comes in the way of natural disaster or the collective will of the starving masses, it will manifest. 

Money for the sake of money - the mindset always fails around precious metals and short term valuation. For centuries, precious metals have been an annoyance to this power structure. They can't be traded. 

Policy is cantered on behavior. Behavior of the masses - but also the behavior within the entire capital complex.  They have not been able to fully suppress the prices of metals because there is a physical limit. No matter how often it is denied, there is a severe limit and scarcity associated with the precious metals. 

Pushing too far on the price opens up new opportunities for predators. They can’t afford an infestation of longs standing for delivery. Nor can they risk a natural retail flow to physical metal during the next crisis. 

But they can look the other way...while the speculative longs chase each other over the cliff. 

The risk: You risk not being able to obtain metal in spite of lower prices by waiting.  Retail availability can dry up very quickly, especially if the government mint restricts production. 

The only precious metals dealers will be able to offer is that which they buy across their counter from the public.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules