President Nixon closed the “gold window” in August 1971. That decision enabled the exponential growth of debt, paper currencies, and prices. The process is simple and clear. Remove the gold backing from the dollar, enable the creation of nearly unlimited dollars and debt, many more dollars chase somewhat more goods, prices increase, proclaim it is “all good” and then create even more dollars and debt.
So what about silver?
Silver prices have increased but in a disorderly manner. Rather than focus on details, examine the big picture – 43 years of monthly price data in one chart – represented by four megaphone shaped price patterns.
My interpretation is that zone 4 – a long and aggressive move upward – is still in progress, with a round number target for silver is $100 or more in 2016 – 2019.
The magic of compound interest is well known. What is lesser known is the magic of the gold/silver ratio, not as a measure as it is mostly viewed, but as an application for increasing one’s holdings substantially, over time.
What is so great here is that no magic is involved, rather simply utilizing the market to more than double your holdings.
So-called “Gold Bugs” are considered ardent supporters of the PM [Precious Metal].
Silver stackers are just as avid. Then there are those willing to buy either or both.
The chart below is the gold/silver ratio going back 15 years, and this is a hindsight analysis brought forth to the present tense for future consideration that can greatly increase net holdings at almost no cost, those being transaction costs from a dealer.
The coming derivatives collapse is one of the primary reasons the price of gold (and silver) is going to the moon. Gold will start moving well in advance of this event but it will go parabolic once it becomes obvious to everyone.
Our derivatives Armageddon series continues with Part 2 below.
In this video we discuss some of the insanity that lies behind U.S. derivatives accounting rules and how they favor the banks at our expense: [Read more...]
While the criminal conspiracy to FIX silver and gold continues, and as the criminal cartel dumped $2.3 BILLION IN FUTURES in 5 minutes Tuesday, causing gold to plunge back below $1300 — down more than $40 in just a few trading sessions, Bix Weir joined the SGTReport for his take on the “end” of the London silver FIX – and the current state of the CRIMINAL CONSPIRACY to FIX silver and gold. [Read more...]
Rick Rule, Chairman of Sprott US Holdings Ltd. said in early March that the market looked overheated and was due for a pullback.
Gold and silver had just delivered double-digit gains in a few months. Sure enough, from mid-March until early June, the precious metals gave up much of their gains.
Since early June, resource stocks have surged higher once again.2 So the question on my mind was: Where is gold headed for the remainder of the year? Will this rally pull back?
Rick recently gave me his answer: [Read more...]
Following Monday’s $1.3 billion paper gold dump on the COMEX open, the cartel has hit gold and silver again Tuesday, and has finally succeeded (for now) in driving spot gold back under the critical $1300 level- but it took twice the amount of paper used yesterday, as an astonishing $2.3 BILLION in gold futures were just dumped on the market. [Read more...]
Confirmation of why Europeans might be buying physical gold arises from concerns over the financial health of Portugal’s Banco Espirito Santo, which has undermined share prices of the entire Eurozone banking sector.
The ghost of the Cyprus bail-in may be returning to the financial stage. [Read more...]