Silver Could Go Vertical…
My friend Gary Christenson recently wrote a must-read article. I wanted to pass it along to everyone at FutureMoneyTrends.com.
This is not a sponsored email, it really is me just forwarding you something I think you should have a look at.
P.S. It states in his article that he was sponsored by MilesFranklin.com, who is also a good friend of mine and happens to be where I purchase all of my own precious metals. I have no financial ties to either Miles Franklin or Gary Christenson’s Deviant Investor.
Silver: Supported by D.C. and the Deep State
The U.S. Government and the Deep State are monster porkers. Government runs on dollars, debt, and devaluation. It spends too much supporting corporations and cronies and buying votes. The Treasury issues debt to fund the revenue shortfall. Prices rise and devalue dollars, just as they have since 1913.
The Deep State runs on dollars and energy. It supports wars, military contracts, surveillance, and inexpensive energy.
The Deep State encourages debt, ever-increasing spending, and dollar devaluation.
The national debt increases exponentially. Dollars devalue in purchasing power.
Year National Debt New Truck Cigarettes
1913 $2.9 billion $525 $0.10
1965 $317 billion $2,000 $0.30
2018 $21,700 billion $45,000 $6.00
The ever-expanding debt feeds dollars into circulation. Those dollars levitate stocks, bonds, real estate, and/or commodities. Stocks have rallied since 2009, bonds have since the early 1980s, and real estate has reached bubble territory again in 2018. Commodities have been weaker for five to ten years. The Deep State, Federal Reserve, and U.S. Government want rising stock and bond markets because they increase wealth for the political and financial elite. They have created a “borrow, spend, blow a bubble, let it collapse, and rake in the spoils” game, and it will not change easily.
What Does This Have to Do With Silver?
Silver is necessary for modern life, which includes computers, medical devices, electricity, military applications, energy production, and thousands more uses. Silver prices, like stocks, rise as the dollar is devalued. Similarly, they also occasionally bubble higher and then crash.
Year Silver Price
1919 $1.33 War
1980 $50.00 Bubble
2001 $4.01 Multi-year low
2011 $48.00 Multi-decade high
2015 $13.61 Multi-year low
2018 $14.14 Significant low
11/17/18 $14.44 Now
The Deep State and U.S. Government need ever-increasing debt, more dollars in circulation, and devalued dollars. Silver and stock prices rise as dollars are devalued.
The Deep State demands more dollars for the military, missiles, bombs, and computers. Military hardware requires millions of ounces of silver. Silver prices must rise unless:
- Congress balances the budget and reduces debt (ha!).
- The economy suffers a massive, uncontrolled contraction (oops!).
- Congress dissolves the Federal Reserve and free markets determine interest rates and the value of gold and silver (dream on!).
- Several other “impossible” policy changes (not likely!).
The Deep State, central banks, and governments will not abandon their control over the economy and the populace, and they will support the political and financial elite at the expense of the bottom 90%.
From Ellen Brown:
“Their [central banks] US and global holdings [of stocks] are so large that their withdrawal from the market could trigger another global recession. That means when and how the economy will collapse is now in the hands of central bankers.”
Silver prices will rise!
The Dow Jones Industrial Average (Dow) is composed of a changing group of 30 stocks. Survivorship bias boosts the apparent growth of the Dow. Compare the Dow and silver prices for over a century.
Is silver high or low in 2018 compared to the Dow?
The Dow rises as dollars purchase less. Silver prices also rise faster or slower than the Dow. Based on a century of data, the ratio shows that silver prices were too high and vulnerable to a collapse in 1980 and 2011.
It also shows that 1971, 1993, 2001, and 2018 were excellent times to buy silver based on the excessive valuation of the Dow and the beaten-down silver prices.
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FUTURE SILVER PRICES:
Many people, including myself, have expected a significant rally since 2015. As of November 13, 2018, the price of COMEX (paper) silver was $13.98. Silver prices reached $13.98 in 2006 on their way to over $48 in 2011.
Silver is necessary for military, computer, and medical applications. Investors often prefer silver bullion and coins because they don’t trust government, the Deep State, or the Federal Reserve to protect the value of currencies. Investor demand for silver will rise as central banks and politicians lose credibility. Expanding wars will increase demand for silver. Rising energy prices will escalate mining costs. The price of silver has little downside risk and considerable upward potential, perhaps to triple digits within a few years.
Examine the “more of the same – borrow and spend” log-scale trend for silver prices below.
But a “blow-off” silver price rise is also possible. One likely stimulus is a market correction/crash followed by massive QE. This graph shows a possible “blow-off” rise for silver prices.
“We’re going to see quantitative easing in our future on a scale that will shock everybody.”
- The Deep State and U.S. Government need ever-increasing spending, debt, and devaluation. Spending and QE will continue. Prices will rise.
- Silver prices will rise as people realize they must protect their purchasing power. Consumer price inflation and dollar devaluations are “locked into the debt system.”
- Military contractors will buy silver regardless of price.
- The Federal Reserve wants to avoid blame for a deflationary depression. Expect additional QE to offset market crashes and debt defaults.
- Silver prices are low compared to the Dow and low relative to past decades of silver prices. Expect the Dow to fall and silver prices to rise, probably more than most people expect.
Miles Franklin will recycle devalued dollars that were issued as a liability of the Fed into real money: silver. The risk is minimal.
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
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Legal Notice: This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.