Silver and S.M.S.

Silver prices have been crushed for over 4 years, especially in the paper futures markets.  The predictable result has been reduced interest in real money – silver and gold.  The media is more focused on Donald Trump, Caitlyn Jenner, and Hillary’s emails – not the reality of exponentially increasing debt, out-of-control spending, failed economic policies, and expensive wars.

Does anyone care that silver and gold have been real money and a store of value for 3,000 years, or that all unbacked paper money has eventually been inflated into worthlessness?  While the central bankers and politicians distract the populace with Donald Trump stories, they prolong the game   …   and the wealth transfers.

IN THE BIG PICTURE:

The US gross domestic product and US government revenues rise as the dollar is “over-printed” and devalued.  Does silver rise accordingly?

Examine the 20 year graphs of the Silver to GDP ratio and Silver to US Govt. revenues.  Data source is the Federal Reserve Bank of St. Louis and silver has been multiplied by a trillion for the ratios.

E-SI to GDP

 

E-SI to US REVENUE

These graphs show 20 years of data and indicate that silver prices are at the low end of the ratios.  Expect higher silver prices in the next several years, probably soon.

Population adjusted national debt shows a similar story.  Silver prices are at the low end of the 20 year range, about where they were in 2001.  Silver prices hit $4.01 in November of 2001 and rallied by over a factor of 10 in the next decade.  Some version of that will probably happen again.

Y-SI-PAND

S.M.S.:  Silver Means Safety.  Debt increases exponentially.  Until we see action from credible politicians (not likely) demanding balanced budgets and debt reductions (not likely), debt, consumer prices, and silver prices will increase.  Silver will help protect our assets from the inevitable central bank devaluations and wealth transfers.

S.M.S.:  Stacking Measures Sanity:  (self-evident to stackers, not so much to paper pushers …)

S.M.S. could also represent Silver Manipulation Strategy.  All markets are manipulated to some degree, especially silver.  Suppose the financial elite wanted to purchase a massive quantity of silver bullion at low prices, knowing its true (immensely higher) value would manifest by the end of this decade.  A winning strategy might be:

  • Run the price up too far and too fast – say to $49 in August 2011 while sucking in as many silver investors as possible. Close longs and sell short aggressively in the paper markets.
  • Sell it down to about $30 in 2013, let it stabilize, and then crush it again to below $15 in 2015. Politicians, Wall Street, the media, and the CME assist.  Most investors will exit at a loss.
  • After 4+ years of crashing prices most people have given up (capitulation) on silver and are more concerned with the latest Kardashian story.
  • Maintain silver prices at a very low level – nearly equivalent to the drastic lows of 2001 – for as long as possible – say into the summer and fall of 2015.
  • Move silver profits and other profits out of the stock market (before it crashes again) and buy silver bullion at these near historic low prices.
  • Keep the populace distracted and disoriented while the wealth transfers occur.
  • When “they” can’t run the scam any longer, find a foreign nation to blame and move on.
  • It has happened before and it will happen again.

Why not, if “they” can make it work and not be indicted?

 

Silver Means Safety:  We don’t know precisely when, we don’t know exactly how, but we can be assured that, come deflation or inflation, Trump or Hillary, war or peace, Iran or Syria, Caitlyn or Kim, Democan or Republicrat, then:

  • Politicians will make promises and spend,
  • Debt will increase,
  • Currencies will devalue and occasionally crash,
  • The “fix” is in,
  • There will always be a “Kardashian” distraction,
  • Silver and gold are real assets, will increase in price as measured by fiat currencies, and will retain value.
  • It has happened before and it will happen again – S.M.S.

Read:  Charles Hugh Smith “What if the Crash is Rigged?

Keep stacking while you can!

 

Gary Christenson

The Deviant Investor

 

 

15 thoughts on “Silver and S.M.S.

  1. Hi Gary,

    Your scenario and premise in your article that this massive ‘pump and dump’ over the last five! years (if you count from the start of the run-up in Sept. 2010 is quite plausible except you have missed an important bit of evidence which, actually, as an American, I wouldn’t have expected you to notice, which rather ‘puts a different spin’ on what happened.

    At the point silver reached $49.95 at the end of April 2011, Britain was readying itself to celebrate the marriage of Prince William to Kate Middleton. This seemingly unrelated fact is important because of the timing. A 2-day national holiday was declared for this event – itself unprecendented because Prince William in not heir to the throne – his father, Prince Charles is the heir to HM Queen Elizabeth. So why did it warrant to 2-day holiday? The days chosen were Friday 29 April (the wedding day) and Monday 2 May. Therefore, all markets were closed in the UK on those days, including the LBMA!

    All this suggests the shut-down was pre-planned and under cover of the celebrations in the UK, preparations were made to take down gold and silver which, in itself, suggests that they were not in control of the climb up to $49.75 (and the concensus was that silver would climb even higher) given that the rise in prices was more or less orderly (if you look at the charts). What happened starting on Monday 2 May 2011 in silver markets (mainly the Comex and Globex) was not orderly. It was violent and continued to be violent until silver was at least below $40, if not $30, and then the price decline was maintained by a system of steady attrition to the (joke) price of $14.57 at Friday 4 Sept. 2015 close.

    So, all this suggests that the run-up in 2010/2011 was not planned, as some commentators say that JMPC was covering naked shorts into the rise but the price got away from them after $40 an oz. which is why the events at the end of April/ beginning of May 2011 took place.

    If you look at it like this, it reveals (given the right circumstances) the true power of silver!




      • When the gold window was closed, it was closed to protect the illusion of durable value and to gain more control over the currency. Cash controls are already in place and the water is being heated by degrees. When the illusion is again threatened by people voting with their feet by stacking, the gold window will be closed for a second time, maybe forever.

        THEY may not even bother collecting the stacks as the total control that a cashless system provides will obviate the need for it. Then people will have to decide. Participate in a black market that will be fraught with risk, snitches and terror labels, or yield to the majority in a sleek warren a la Watership Down.

        It is the easiest thing in the world to smugly stack and feel that you are doing your part in the good fight to prepare and strike. Stacks are such a wonderfully concentrated form of durable resource that can be exchanged and deployed in an endless variety, but what if the ability to exchange is stolen… then the durability becomes fragile and the endless variety is limited to what THEY say.


        • You present a solid argument. But silver is needed industrially and much of the gold has gone East. Perhaps “they” can’t or won’t bother.
          Regardless, stacking seems like one of the better choices now.
          The Deviant Investor


          • That may be true, but those who think stacking buys peace of mind, are not really paying attention. I do not include you among those of this opinion, but some, ironically see stacking as a silver bullet, and are building stacks they will never use, nor their heirs.

            Many are storing up treasures where thieves break in and steal.

            Yes, east… I have wondered if the war brought about with “the kings of the east” will be sparked over a conflict between the gold being accumulated in the east and the intractable addiction of funny money in the west.



            • Peace of mind is an individual experience. I for one do not worry about the daily, weekly or monthly fluctuations in the price of silver. Like Gary says, the manufacturing demand is tremendous & before long the manipulative shorts involved will get burnt. Low prices simply allow one to buy more. Safe storage is essential & mandatory. Good luck!


              • Yes, I agree that being concerned with short term fluctuations is counter productive, and having a longer view is healthier. I also agree that in many possible scenarios, and hopefully the likely ones that circumspect stackers will be rewarded for their foresight. Still, I hate the whole need to stack, and would prefer a world with less distortion and more market driven solutions or true balances. That world would demand more creativity and afford less opportunity to profit from watching the criminal cabal, but where many stackers see their stacks as some kind of talisman to bring brainless, easy pass-go-collect-$200 cards, I see it as a burdensome, martial dance. Many circumstances will take much forethought to gather the potential profit, and even more to redeploy any gains.

                I appreciate the opportunity to reply to you. It helps me clarify my thinking and afford me some peace. 🙂 There is a Peace that surpasses understanding, and individual experience, but many times the need to be engaged in this struggle steals my joy of resting in that Peace.

                When I point at others taking mental refuge in their stacks, I really have 3 fingers pointed back at myself. I cannot see the perspective of someone else by a post here, and my replies are not meant as a personal attack. It is more a means to examine my own motivation and blind spots. I find it cathartic, and would find it more difficult for some of these things to coalesce in my mind without reading what others say and evaluating what I think in response.

                Mahalo.



  2. S.M.S. – Stacking Measures SANITY – Gary this is so true for those of us who know what lies ahead. With this sanity comes tremendous piece of mind, calmness, better sleeps, lower blood pressure, less anxiety etc. Remember “Stress Kills.” When possible, everyone should add to their physical stack of silver. Such thinking deserves a 10 star rating.
    Thank you again!


Leave a Reply

Your email address will not be published. Required fields are marked *