Wednesday, June 19th, Thursday June 20th, and Friday June 21st are three days I do not plan to forget soon. They will stand out as May 1st 2012 and other Presidential meetings with systemic bank CFOs.
On Wednesday and Thursday, when gold had its monster move, silver rose in lockstep, tick for tick. Then on Friday, silver lagged. Then the following Monday silver lagged more and on Tuesday it actually went down while gold was up to $1438 in the late hours.
Here is the British media explaining to us that the GSR is what it is because it is forecasting a recession. You can’t make this stuff up. Yes, silver is an industrial metal, yes, it is tied to industry, but tied to the military industry, the solar industry, the medical industry, the nano-tech industry. If these industries no longer need silver, then our worries are over. No bombs, no NSA, no smart phones, no Facebook, and no nuclear war. Low and behold, it seems silver is tied to the conspiracy nuts who still believe it is warranted as a worthy investment, if not the only investment other than gold which has no liability or reverse leverage in a debt leveraged world. In this debt ridden world that cannot even service it own debt without printing more digits is resulting in pension failures and negative interest rates. Which do you prefer….negative interest rates or gold and silver?
People need to watch this and understand how ridiculous their methodology really is. They didn’t say anything about the fact we are not printing any more silver. They didn’t say anything about the fact silver mines cannot mine silver for under $15 unless its a byproduct. They didn’t say anything about the fact the registered deliverable inventory of the COMEX would cause a signal failure if any reasonably large contract requested delivery. They didn’t mention silver is used up and will be exhausted in less than 20 years, unlike the derivatives they generate. They didn’t say anythings about how derivatives extract pricing out of real things and divert that value to the banks.
They did profess the derivative is worth more than the underlying asset in so many words. This may be one thing they are correct about until they are not. Give me silver without liability please, don’t give me a leveraged promise without substance.