Silver Will Be The Trade Of The Decade At It’s Current Price

I’m starting to warm up to the idea that the fraudulent silver price fix on the LBMA a couple weeks ago marked the final “capitulation” of the nearly 5-year price pullback in silver and 4+ year pullback in gold.  We have yet to hear a satisfactory explanation from the LBMA for the exceedingly odd price behavior of silver seconds before the  a.m. London silver price was set on January 28th.

I believe that event marked the “last gasp” effort by the highly corrupt LBMA bullion banks to shakedown the physical silver market in order to get their hands on as much physical silver as possible at as cheap of a price as possible.  I believe, not uniquely by the way, that the synthetic short interest (paper derivatives shorts) in silver is even worse than for gold, which we know is at least 100:1.

Big banks hate losing money and will do anything – legal or illegal – to avoid losing money or to minimize losses.  I saw this first-hand and peripherally participated in activities designed to minimize losses when I worked on Wall Street in the 1990’s.  Everything is worse now in that regard and the people who are supposed to enforce the laws and oversee trading activities at these banks are now in on the corruption.

With that as the preface, I believe silver is beaten down and cheap relative to gold and any other investment alternatives and I think buying silver now – at it’s current price – will prove to be the trade of the decade.

Right now gold is outperforming silver on up-days BUT silver outperforms gold when the metals sell off.  Typically gold will outperform silver in the early stages of a big bull market move.  Gold current outperformance vs. silver is reflected in retail activity, as noted by Doc at Silver Doctors and some other bullion dealers to whom I spoken about the market recently, in which sales volume of gold coins is outpacing volume in silver.

But this will soon crossover as gold appreciates in price and waves of new buyers flock to silver rather gold because it feels better to buy more ounces of silver than gold.  Silver is poor man’s gold and always has been for 1000’s of years.  When this dynamic kicks in, the gold/silver ratio will drop quickly from its current 78x.   I suspect before this bull market is over, the GSR will drop well below 20, if not 10.

We saw this in 2011, when silver began to go parabolic before the western Central Banks had seen enough and began to throw 100’s of tonnes of paper gold and silver at the market in order to not only prevent the metals from moving higher but to beat down the price on gold and silver to their current levels.  In the bull move from late 2008 to April 2011, the GSR dropped from 100 to 32.

Eric Dubin and “Doc” hosted me for their weekly metals and markets podcast last week.   We discuss a range of topics but focus on the precious metals.  Note:  I mention a new emerging junior exploration silver miner that I featured in a recent issue of my Short Seller’s Journal.  Anyone who subscribes to the SSJ and mentions that they heard about it on the Silver Doctors podcast will receive a copy of that back-issue when they subscribe:

11 thoughts on “Silver Will Be The Trade Of The Decade At It’s Current Price

  1. Along with the now apparent new strength in precious metals caused by real shortages, I can’t help but think that a looming major escalation in the Syrian conflict, along with all of the war drums the western media is banging, might be a factor also.

    This might also help the Oil pricing situation somewhat as well, though I would guess no where near as dramatically, as there’s just SO much of it sitting around in ships and storage tanks.

  2. I think silver is a GREAT investment right now. But, I think you overstepped when you said ” I suspect before this bull market is over, the GSR will drop well below 20, if not 10.

    We saw this in 2011,”

    No, we didn’t. As you state numerous sentences later. “In the bull move from late 2008 to April 2011, the GSR dropped from 100 to 32.” 32 is a great target. I am looking for about 40 – 45 myself. But to state you suspect it will drop below 20, if not 10, is something you should SUPPORT, as it is quite a statement. to show that it dropped to 32 as your illustration doesn’t lend support to 10. Please show some support for such a bold statement.

    Although we’ll all be happy if gold is at $2,500 and the ratio is 40 to 1. 🙂 (Silver at $62.50) And if gold is higher, even better.

  3. Silver will play no part in an environment where gold is eventually and inevitably revalued. Ever wondered why Central Banks have gold as an asset on their books and not silver? Why does the ECB have Gold marked as a tier 1 asset, marked to market? Silver will forever languish being the commodity it is.

    I suggest you read FOFOA and if you like that, go back and read The Gold Trail in which FOFOA extrapolates……………….
    In the words of ‘Another’………”Everyone knows where we have been. Let’s see where we are going!”

    http://fofoa.blogspot.com.au/

    1. WHo the fuck made FOFOA GOD? Silver has been a monetary metal for longer than gold. Central Banks used to have silver but they all dumped it into the markets in the 1960’s and 1970’s in order to help contain the price of silver. Why the FUCK do you think the Hunts were able to go after the silver market in the late 1970’s? Oh wait – I’m guessing you were not even born yet then. FOFOA can lick my balls and so can A.

  4. Just another disgruntled Silver-ite – bitter, ignorant of grammar, crude, and making blanket, wishful, predictions without support. You challenge his AG-beliefs, he lashes out at you. Perhaps you could support your statements by quoting some other “Silver Gurus” like David “Silver will never go below $30” Morgan or Max “Buy Silver Crash JP Morgan” Silver. They carry as much, if not more, weight than you do. Heck, Sprott was calling Silver “the investment of the decade” 4 years ago ($49->$14)… Perhaps it’s time to admit you don’t fully understand the market you preach about. Maybe, just maybe, taking a fresh perspective might enlighten you to new truths. OR you can continue being incorrect and shake your fist at the evil banksters – you always have a scapegoat, that way. Pretty sad when emotions and a tainted world-view take over from logic investing…

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