Loading ...The Tail Or The Dog
While most would think that Gold is the dog and silver the tail, what if we get some role reversal? With many believing a revaluation of the long standing “official” gold price is inevitable, either from the coming BRICS confab or possibly an unexpected preemptive move by the US and it’s western allies. One could see that rather than wait for the BRICS or worse yet, the collapse of the COMEX because of a shortage of silver, the powers that be, decide to announce a revaluation of the official gold price in advance of those eventualities. If gold’s official price is significantly increased to better reflect the loss of purchasing power of all fiat currencies since Bretton Woods, it would provide cover for the ultimate move higher by silver that is coming soon because of the past 60+ years of price suppression. We are now just one trading day away from the month of August. Before the calendar flips to September, we are likely to see violent moves in financial markets, as well as in political and geopolitical circles. To paraphrase a saying about time and events, some years little happens, while some months bring decades worth of change. August 2023, is likely to be one of those months.
Silver has been showing relative strength to gold. This is not normal for this phase of an uptrend. I (and Ted Butler) attribute it to the shortage of silver that the exchanges are covering up, or at least addressing by the rapid movement of physical in and out tof the Comex. I see it as extremely bullish and ultimately will result in an excellerated move to the upside. In other parlance it’s called “to da moon”
I’m all for silver heading “to da moon” but I know the power of the hidden hand so am always cautious. Ted Butler made me realize years ago that a deficit was possible in silver due to the US silver stockpile. When the stockpile ran out I expected silver to head to da moon and it didn’t. If I remember correctly it did move up but not to da moon. Then I believe I read Bix Weir saying that some particle collider was disassembled and that brought forth another 500 million oz of silver for supply. So I’m always a little cautious with silver because there is a lot of supply out there. Governments may not have it but someone does and you never know how this supply might come forward.