Finding Zero
By Dr. Jeffrey Lewis
“If you want to find
the secrets of the universe, think in terms of energy, frequency and vibration.”
― Nikola Tesla
The silver market is
always one day from panic. The same could be said for the bond market or the
dollar. In the age of electronic price discovery and massive reckless monetary
Imbalance anything can happen - and it probably will.
It will happen whether
by virtue of just in time delivery practices of the user or the massive (and
very real short) concentration within the large commercial category of traders
on the most important world price discovery exchange.
The lower the price,
the less produced; from mining to scrap recycling. It gets worse because the
expectations of the future are distorted by the fictions of the present.
One example of this is
pension funds that assume a set level of growth to ensure their survival. These
numbers are based on a fictional level of GDP growth to begin with, which is
based on erroneous estimates of costs for consumption.
The point is that just
about everything we believe about our state of economy and money is a fragile
fiction. Silver and gold always lead the way for other commodity sectors - as
the inflation signal for the investment/speculative trading world.
Despite persistent
efforts to 'forget' about their natural monetary status.
Interest rates, CPI,
and safe haven flows are key indicators for this group. Everyday we should
acknowledge that precious metals are a long term hedge against the stupidity of
the interventionists. Also, remember the butterfly effect and confidence.
Silver and gold are
first and foremost "emergency hedges". Banking and finance in the money for the
sake of the money itself.
And yet the money isn't
really money - in the true sense of the meaning - any more than the political
parties today reflect the true meaning of what they were in days long ago. The
control of currency in the name of politics distorts the meaningful movement of
capital and savings.
Think about the
politics:
What difference does it
make? National politicians, with few exceptions, do whatever their handlers tell
them. Follow the drunken funny money. Votes 'count' only as a statement of
completely irrational and inaccurate world views.
Powerful public
relations, marketing, and/or propaganda make it easy to sell large swaths of
populace with a story consistent with their world view.
Changing world views
can only happen naturally, on its own, and usually as a reaction. But sadly the
next shift will come with pain. None of the elite class concerns itself with
these issues.
The concern, spawned
nearly 100 years ago in the wake of the creation of the Federal Reserve cares
about making money for the sake of money. The more risk free, the better. And
this is the system they've been able to operate within for generations.
The power that
surrounds it is unstoppable except by the forces of nature itself, whether that
force comes in the way of natural disaster or the collective will of the
starving masses, it will manifest.
Money for the sake of
money - the mindset always fails around precious metals and short term
valuation. For centuries, precious metals have been an annoyance to this power
structure. They can't be traded.
Policy is cantered on
behavior. Behavior of the masses - but also the behavior within the entire
capital complex. They have not been able to fully suppress the prices of metals
because there is a physical limit. No matter how often it is denied, there is a
severe limit and scarcity associated with the precious metals.
Pushing too far on the
price opens up new opportunities for predators. They can’t afford an infestation
of longs standing for delivery. Nor can they risk a natural retail flow to
physical metal during the next crisis.
But they can look the
other way...while the speculative longs chase each other over the cliff.
The risk: You risk not
being able to obtain metal in spite of lower prices by waiting. Retail
availability can dry up very quickly, especially if the government mint
restricts production.
The only precious
metals dealers will be able to offer is that which they buy across their counter
from the public.
For more articles like
this, including thoughtful precious metals analysis beyond the mainstream
propaganda and basically everything you need to know about silver, short of
outlandish fiat price predictions, check out
http://www.silver-coin-investor.com