We'll see how the long-term destruction of the supply chain for the gold and silver markets can also be a consequence of excessive money printing. Nevertheless, while the flight out of paper will probably be a direct consequence of excessive money printing, the destruction of the precious metals supply-chain is an indirect consequence of excessive money printing - together with price suppression. How high will silver go? Learn more >> http://www.kitco-
The dynamic right here is as easy because it is irrefutable:
Clearly the lower prices went, the fewer miners would/could decide to stay in production. So at exactly the same time that extreme/artificially low prices for gold and silver had been stimulating more demand, these low prices had been also destroying supply. The inevitable outcome was the collapse of inventories.
You will find only two feasible explanations for this incredibly abrupt collapse in the bankers’ gold dumping. One explanation is the fact that Western central banks have entirely exhausted their gold reserves (in spite of the unaudited reserves these banks claim to hold). Supporting that explanation we have the tireless efforts of GATA in drawing interest to the huge “gold leasing” campaign in which the banksters have simultaneously been engaged.
The central banks love to “lease" gold. Why? Because they are able to provide gold in to the hands of their minions to become shorted onto the marketplace (and gone forever), while the fraudulent bankers are permitted to pretend they nonetheless “own the gold”, although all they now hold is really a (paper) “gold IOU” which could by no means possibly be redeemed. The central banks aren't even required to help keep formal records of this leasing activity, so in all of the years they had been (officially)
The other explanation is the fact that the central banks decided that their remaining gold was so grossly undervalued (versus their overvalued paper) that these greedy bankers merely refused to component with any more of their gold in the “cheap” price of $1000/oz (at that time). Indeed, if that theory holds then the bankers had been also unwilling to sell their gold at $1500 or $1600 or $1700 or $1800 or perhaps $1900/oz - because it was also undervalued versus their very own paper.
As noted in the prior installment, these days central bank gold buying has currently accelerated to the fastest rate in 50 years, and (in the present rate) will reach the fastest rate of gold buying in background some time this year. In a span of less than ten years, we have central banks flip-flopping from dumping their gold for paper in the fastest rate in background to dumping their very own paper for gold in the fastest rate in background.
This brings us (at last) to the miners. Using the price of gold at $1600/oz and also the price of silver near $30/oz, we see the miners in their second (serious) depression in less than 5 years. Once more you will find only two feasible conclusions we are able to draw from the collapse in the share price of the miners. Either the banking cabal has manipulated the share prices lower through their automated trading algorithms, naked-shorting, as well as other illegal/illegitimate techniques; or the marketplace is telling us that with gold and silver at such low, low prices that it is impossible for the miners to survive over the longer term.
Realize that we do not even need to understand which of those two explanations will be the correct one, since the consequence of each explanations will be the exact same: the collapse in mine-supply simultaneously that low prices have stimulated huge purchasing - in this situation purchasing from the central bankers themselves.
The cause why the miners are struggling to remain afloat at these prices, and also the cause why central banks think about the price of gold so “cheap” versus their very own paper these days will be the exact same: because excessive money-printing has diluted the worth of our currencies to such an intense. Therefore, the bankers' rate of excessive money printing is now so intense that the supply chain can collapse even with (nominal) prices steady.
Globally, mining exploration is now grinding to a halt. They are the “feeder” businesses for the whole precious metals marketplace. If they quit discovering more gold and silver these days, the miners will have absolutely nothing to pull out of the ground tomorrow. And so we're presented using the exact same inevitable, relentless dynamic, which we saw in 2000: the collapse in supply causes a huge upward spike in prices. Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.kitco-
The distinction in between 2000 and these days is the fact that 12 years ago the banksters nonetheless had a large number of a lot of bullion to dump onto the marketplace to temporarily fill that supply-gap. These days they have zero. Simultaneously that the safe-haven appeal of gold and silver is at its highest point in background (due to the rampant insolvency of Western governments)
These days, nevertheless, with inventories stretched tight and stockpiles gone there's each and every cause to think we're poised for an even larger move in these markets than we saw in the first decade of this bull marketplace. Throughout that time, the price of gold soared by more than an element of six, while the price of silver (exactly where inventories/
I can't say with certainty that the Depression for the precious metals miners will finish tomorrow, or next week, or perhaps next month. What I can say with certainty are the inevitable dynamics of supply and demand: each and every minute longer that the miners (and also the price of gold and silver themselves) continue to become suppressed means that the next explosion for this sector will probably be that a lot faster/higher. The more intense the supply-destruction resulting from the bankers’ excessive money printing, the larger the bounce in prices that is essential to stimulate supply. We’ve all noticed this film as soon as prior to, and we currently know how it ends.
People will continue to become bombarded from the media propaganda machines with incredible “reasons” why they ought to steer clear of gold and silver - and particularly the businesses that generate these metals and leverage their price-gains. What visitors have hopefully gained from reading through this really is the understanding that all that media blabber is absolutely nothing but “white noise”. My recommendation is to buy gold and buy silver today before the prices escalate to much higher levels soon! How high will silver go? Learn more >> http://kitco-