Central bankers may never buy silver, but hundreds of millions of Indians soon will, and that is all it will take to launch silver’s value to a price which is many multiples higher than it is now.
Submitted by The Wealth Watchman:
First of all, my brothers, I wanted to let you know that things will all soon be fixed in the contractual, derivative silver and gold markets! You heard me correctly, things will be made “right as rain”, and all those responsible for helping the fraud and rigging within these markets will be brought to justice! Wanna know why? Well, look no further than this latest announcement by the CFTC!
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today launched CFTC SmartCheck, a new national campaign to help investors identify and protect themselves against financial fraud. The comprehensive campaign includes a new website, a national advertising campaign and interactive videos that will help investors spot investment offers that are potentially fraudulent. The new website,SmartCheck.CFTC.gov, unveiled today, is an educational tool that helps investors conduct background checks of financial professionals.
Yes, the CFTC has redoubled their efforts to protect us all from financial fraud, God bless them! Why, they’ve even made a brand new website to help check the backgrounds of financial professionals! You see, this is crucial, because once the investing public uses this new “SmartCheck” system on each member of the CFTC itself, they will discover that this organization has protected massive cons and market rigging in the commodity and precious metals spaces, by the largest investment and bullion banks on earth! Once citizens realize it, they will demand multiple arrests within the CFTC, and that law-makers shut down this shell organization for good!
Whew, and not a moment too soon, either! About time someone made this exceptionally helpful tool available to the investing public! Finally, justice for every regulator who has colluded with the banks, starting with the inventors of SmartCheck itself!
Onto the Matter at Hand
Ahh, ok, that’s enough Holiday humor! Ya know, sometimes ya gotta laugh to keep from weeping, as they say. In this case though, I suspect some of you may have laughed so hard that you did weep!
Recently, I took some time to highlight the silver investment demand numbers in India, because the figures we’re seeing there have staggering implications for every stacker. I’ve been watching India like a hawk because, believe it or not, their attitude toward silver is what largely holds the immediate present for precious metals in its hands.
I’ve been fairly positive throughout 2014, that we’d see investment demand there for the white metal, up at levels which are at least comparable to last year’s record tonnage figures, and India has not disappointed! This is why I’ve welcomed all the price raids: India is very price-sensitive, and last year’s raid only served to remove another 100 million ounces of silver from worldwide inventories.
I’ve kept my eye on India over the last 2 years, more than any other country on earth, in this regard, because I believe that the key to silver, going forward, is India.
Seriously, India? Watchman, why would you say that?
Well, there are several reasons, and I’d like to address them in this article, including one key question that nobody has asked, but I’ll get to that a bit later.
First of all, let’s remember the demand figures for 2013, and 2014, let’s review those. Here’s the chart from Koos Jansen again, laying out silver demand for the last two years in India:
Take a close look at the last 2 years, while this Watchman channels his inner Dwight Schrute here for a moment!
Fact: In 2013, India imported nearly 200 million ounces of silver, during a year in which world silver supply declined by about 3%.
Fact: In 2014, India is on pace to import over 210 million ounces of silver, in a year in which silver scrap supply is on pace to decline yet again.
That’s 400 million ounces of silver taken away from the market riggers, in just 2 blessed years! It has gotten so dire for the crooks in London, that SRS Rocco has reported that the LBMA has been almost utterly drained of silver, and that India is now actually having to rely upon Russia and China to slate its silver lust!
What I’d hoped would happen, has finally started to appear:the baddies in the banking West, are being looted of their silver….by their own price-rigging scheme.
The Crucial Question We Probably Should Be Asking
Now, why did this historic silver-buying spree happen in India? Well, there were two main reasons:
1) The price of silver has just become so low, that even a handful of serious bargain hunters in India can inflict serious damage, and, more importantly,
2) The 10% tax levied on precious metals, has made gold the lesser bargain when compared to silver.
In a word: India has bought 400 million ounces of silver in just over 700 days, because Indians were “taxed out of gold”.
The tax itself made silver preferable to gold for many of the less wealthy stackers, and bargain hunters.
This is key, because it showed me something I’d not considered before, something I’ve not seen anyone else ask. It is the question which, I believe, is the real game changer for silver going forward for decades to come, and now I wish to ask it of all of you, brothers! And that is this:
If a mere 10% tax on gold in India(a tiny bump in in-affordability), resulted in the largest silver buying spree the world has ever seen, when India was “taxed out of gold”…
Then, what on earth will happen when nearly 1.2 billion Indians are priced out of gold permanently??
Think about it! Think hard about all those numbers that the metals experts have put out there for an ounce of gold(and by the way, I’m not making price predictions right now, but these are numbers being offered by others):
$5,000, $7,000, $10,000, $12,000, $18,000, $30,000, and even $55,000 per troy ounce for gold! All those figures (and more) have been floated.
The average Indian family only can afford roughly 1 ounce of gold per wedding gift, already. Some can afford much more, and others much less, but what happens when the price suppression scheme is on the ropes, and gold flies(literally flies!) upward to a 5 digit dollar price?
A Reminder about Indian Culture
I remind everyone here about the soul of Indian culture. There’s a great piece on that nation’s mindset when it comes to weddings, family dynasties, and wealth. I encourage you to remember the statement contained within this excellent mini-documentary from CBS. The takeaway quote from that 14 minutes is:
“If there’s no gold, there’s no wedding”.
Historically that’s been true, due in large part to the market rigging, which has made gold affordable for most middle class, and even some poorer families.
Gold is as much about social status as it is about security for the families. Each bride’s family is responsible for saving and procuring the gold which the daughter will wear at her wedding.
What will happen though, when gold is out of reach of millions of brides(and their families) who wish to convey their status, and their daughter’s security, with their daughter’s adornments?
Remember, as much as Princeton and Harvard types would love to brainwash the Indian women, and turn them from this:
They will simply never succeed in making fiat, debt notes the chic way to showcase your family’s staying power in India! They’ve tried for decades to achieve that goal there, but to no avail.
That dog won’t hunt!
Thankfully only Western nations, who prize debt above actual assets, would ever foolishly flaunt their debt notes on their bodies!
Indian families will not stop wearing their wealth, period! Yet, where do they turn, if they can’t get gold, and don’t want paper junk? What options do they have?
Bitcoin? While this Watchman respects alternative currencies(and owns a little BTC himself, and by the way, thanks to the shield brother who donated to this HQ in BTC)….bitcoin will never have the psychological power of gold or silver, because….it’s not beautiful! It’s not tangible. Sure, you can put it on a thumb drive, or print it out on a piece of paper, but try as you like: fondling a thumb drive(or a bar code) will never speak deeply to the minds of mankind! You can’t really touch a bitcoin, you can’t polish it, you can’t shape it into anything. That just won’t fit the bill either.
While India and gold are inseparable, and while it’s true, and there will always be a very wealthy class of families that buy it, it doesn’t matter how much the rest of India may want gold. If they can’t afford it, they won’t get it!
I contend that India will return to its roots, and embrace silver as the ‘gentleman’s gold’, as the people did in India for thousands of years.
Watchman, that’s ridiculous! India will never do that!
They’re doing that already, Mr. Skeptic! Just a tiny tax on gold, has caused India to hiccup, removing about half a billion silver ounces from supply, without even trying! Just imaginewhat will happen when gold’s price reaches such lofty heights, that the average Indian family will have to choose:
Do we want to showcase our family’s wealth on our daughter, with a few grams of gold…..or with a kilo of silver?
I’m making the bold assumption here, that most will choose the latter.
The New Silver Fix
There’s something else going on here, too, which involves the new “Silver Fix”, which as we know, is just as criminal as the old “London Silver Fix”. It was a weird measurement of silver that was introduced in it all. Most didn’t hear about it, because it was buried, and not spoken of, and I wouldn’t have known about it either, except that BrotherJohnF found it out through his excellent detective skills.
BrotherJohn covered this new fix in great detail, but he was one of the only commentators that this Watchman remembers, who took note of the new silver measurement:called “the Lakh”. After he’d researched this term, he concluded that it was a measurement primarily used in Indian English. I recommend that all shield brothers go back and watch his video, “Fixing Silver , especially from around the 10 minute mark, and onward.
He speculated that the true headline was that this term was thrown into the mix, and after thinking it over for some time,I quite agree with that analysis, and I believe this could be the reason the term was chosen.
Once the average Indian family(who will continue to give wedding gifts which save their family’s generational wealth in a tangible, sovereign, precious metal) can no longer afford gold, what will they turn to?
Gold will again become the “money of kings”, and since few of us in this life are kings, silver will regain its place, as “money of the people”.
We’ve looked at the BRICS alliance before very carefully on numerous occasions, and what seems to be the case, is that each major power is taking something very big(some huge competitive advantage) from the deal.
China is acquiring the currency hegemony: all the gold, the Yuan swaps, and the direct convertability that goes with it.
Russia seems to be acquiring the energy hegemony: maintaining and expanding their dominant role in natural gas and oil trade.
But, what about India? What comparative advantage does India get?
Will they receive “silver hegemony”? Is India going to get “all the silver” in the end?
It’s a serious question, worthy of your attention today, while silver is still basically “free”.
Hundreds of millions of Indian families may not yet realize it, but these are the “golden days” of gold-themed weddings.
Gold was known as the “metal of kings” for thousands of years, and will soon return to that status, when the gold suppression ends. At that point, you either owned gold or you didn’t (unless you owned silver). The point is that you cannot buy what you cannot afford.
At some not-too-distant point in the future, buying gold for one’s daughter, will be like buying her a Maserati.
Sure, everyone may want a Maserati, but that is an extreme, luxury good, only accessible to a few.
Will Indians then turn away from “wearing their wealth on their sleeve”?
No way! This Watchman contends that they’ll return to their roots, and once again become the world’s largest silver-buying country.
This one reason alone is why those who claim that silver “is just a game”, and that silver will soar to immeasurable heights, only to crash land when “the bubble pops”, are all wet. Central bankers may never buy silver, but hundreds of millions of Indians soon will, and that is all it will take to uphold silver’s value at a price which is many multiples higher than it is now.
If price-sensitize Indian gold-buyers have already started to opt to for silver, due to a measly 10% tax hike on gold, what will price-sensitize Indian buyers do when the inevitable happens: when gold hits, say $15,000?
Will India continue to buy a “mere” 200 million ounces for wealth storage and weddings? Remember, 200 million ounces this past year, equaled an investment of roughly $4 billion dollars!
That’s it! India’s population is almost 20% of the entire world! They’re also a nation who just spent $25 to $30 billion this year on gold(of the non-smuggled variety).
What happens when an extra quarter of that money which normally moved into gold, tries to move into silver each and every year?
Say, $8 billion, by that time? Or, what happens when just half that money moves into silver? Three quarters?
Silver is a market so tiny, that it simply cannot continue to absorb these multi-billion dollar investments from India, without causing a price spike that would stun even me.
I highly suggest that the shield brothers here figure all this out right now, before those in India do. For once the smart money in that ancient culture understands this, they’ll be able to remove every last lakh of silver themselves…with ease!