No Time For Complacency!
Since the creation of Comex gold and silver futures fifty years ago, for the express purpose of suppressing their prices from reflecting their true value versus a depreciated US dollar, gold and especially silver have not experienced true, unfettered price discovery. That is about to end very soon and not with a wimper but a bang, that will be heard around the world. Sentiment has been as low as it ever gets and complacency is as widespread as it so often has been during these five decades. So why is it about to change now after all this time? Because for the first time since this scheme began, when the US stopped redeeming dollars for gold, there is a real challenge to the US dollars role as the only global reserve currency. The new system being implemented by Russia, China, India and a number of others is already making a difference and it isn’t even fully in place yet. It doesn’t have to replace the dollar(and probably won’t) but it is bringing about the end of the Comex/LME monopoly and control of both metals pricing. Their inventories are being drained and both metals are flowing from western hands to eastern ones. As I stated recently in a comment on this topic, when they don’t have enough inventory to attract buyers, these two exchanges will no longer be able to create the unlimited number of paper contracts to short and suppress the prices any longer. That means real price discovery will take place in the east, at prices reflecting the actual value of the metals.(at significantly higher prices) This is something that can happen at any time now(like was seen with the nickel short squeeze) There probably won’t be much time to prepare and as I suggested in my comment, it may not even show up on the charts in advance of the repricing. This is not the time to be complacent. Whether it is days, weeks or possibly even months before it happens, it is inevitable. Better one month early, than even one hour too late!
the GRAND nickel event squeeze was a 2 day event. nobody made millions on their penny stocks. Been hearing this ‘comex squeeze’s for decades, if it does happen why will it be any different than nickel?
https://www.tradingview.com/x/Mwj9bhoS/
Sirs HR and CM,
Like both of you, I have been watching these markets like a hawk for a few years now.
A TWO DAY EVENT?
I’ll be happy to partly sell 40-50 juniors (of mixed “quality”, positions built over the last 4-5 years) and raise a ton of cash even if it is a two hour event!
If the “event” fizzles out, which it most likely won’t, I can still sleep peacefully with my trades.
The nickel, and even the lumber “events” were non-monetary commodities.
Therein lies the difference for such an “event” for PMs.
What am I missing?
GL
I checked my change drawer, full of nickels and pennies. They used to be monetary, silver is non existent in our coinage today so how is it a monetary metal? Go buy a cup of coffee with your 1 oz bar.
Great points, Sir HR.
So I’ll try to play along with your line of thought.
In the US, I couldn’t possibly go buy a cup of coffee with a one ounce silver bar.
But how about in Latin America? And I’m not even talking about the countries with extreme hyperinflation, for there this thought process is a given.
Or even Europe?
Do you think that a one oz Silver bar bought a few years ago in any Euro-zone country will fetch more today than what was paid to buy it a few years ago?
And, time and time again, I have mentioned here that I have not bought any phyzz as in the US we live under continuous fear of confiscation as it happened once in the 1930s? Any phyzz bought with a credit card will be tracked, so cash is the way. How do I raise more cash to buy phyzz? By buying juniors at a discount and selling them for hopefully many multiples?
You have many times suggested that I’ve been right on many juniors, the charts were giving all sell signals, while sudden turnarounds gave huge profits in weeks, if not months.
I’m trying to garner as much fiat as possible.
Gas prices came down 30-40% in the Bay Area, Northern California.
Food prices will never come down, ever, even in the next 10 years.
Hence my monetary metals junior PMs trade plans
Respectfully yours, as always.
GL
What difference does it make that nickel was a two day event? That was because they bailed out the Chinese billionaire who was short. You obviously didn’t understand the point. I explained what was different this time. FOR THE FIRST TIME IN THE 50 YEARS THAT GOLD & SILVER CONTRACTS HAVE BEEN IN EXISTENCE there is developing a system where that venue will soon have NO INVENTORY. End of the ballgame. The 50 year suppression that has had no reason to change up until now is changing as we speak. That was my point. You don’t have to believe it, just like millions didn’t believe the truth about Covid and vaccines either.