The following is a discussion with the Man In America Podcast taking a big-picture look at the gold and silver market and what is currently transpiring therein.
I specially like a couple of points (Which might even have been expanded more):
-Firstly that 'The Fiat money prices of precious metals is mostly irrelevant because the traded item is derivative, not the actual metal. The same is largely true for all Commodities, where there is only a tenuous connection between the futures price and the price paid by consumers.
-Secondly you mentioned how the prices of materials is often less important than the "Availability". I have based my entire strategy on the "Thousand Mile production": Eg. If a critical product is not created within a reasonable distance the risks of unavailable supply increases exponentially. I refer both to supply chain issues, but also to legal jurisdictions.
Finally, I would like to say that anyone holding or contemplating Precious metals should have a firm plan for "WHY" they want to have gold and silver. Is this purchase 'A Speculation" or "An Insurance Policy"? Digits in the Bank Balance are easy to acquire in a high inflation environment, Real wealth is somewhat more difficult.
You are talking in Fiat Money terms. More relevant to look for the comparison to beef or rice. I don't think this is just a Gold and Silver phenomenon?
Honestly , I thought the entire ponzi scheme was up in 2010. The level of engineering and papering it over appears to finally ending. Much much much worse than had it happen 2010.
Gold and silver are going to become priceless while everything else goes through one very very ugly melt down.
I know that this question is off point. Because the point is to have the metal, which I understand.
However, I have partaken in the fraudulent silver futures market because I do understand how they manipulate it in several ways, and I thought I could gain an advantage over the banksters, knowing it. In fact I do have a six figure paper profit and wonder what do you think will become of the contracts once the COMEX breaks. Will a force-majeure dictate that contract-holders will get paid at the present value of the contract or do you think they just say they're sorry, and close their doors?
Paul, I appreciate your comment and of course, I have thought of that!!
The problem is that it seems apparent that the price will skyrocket prior to the exchange imploding. So, being the gambler that I am, (love the dice) I think there is time to milk the leverage prior to cashing out, and buying the real thing.
Fortunately, we still have some ability to make our own choices?
I don't value having great "Financial Wealth". I just want to have enough to eat and reasonable assurance of Security. Financial comparisons with other people, mean nothing! So long as your endeavours make you happy, that is the only purpose. I laugh greatly at those who 'Claim' a certain $ value is needed for retirement.....
I wish you the best of luck, because that means 'The wheels have stayed on this bus"......D
Excellent interview David, you spoke articulately with great subject matter knowledge.
Is it the Gold price or bond yields which is the price warning signal?? What happens with $4k or $5k Gold to the rest of asset markets then??
So is the signal Gold or Silver?? So many people now talking about gold or is silver the real show in town??
The Canadian and Australian housing markets are so overpriced and so fragile, the collapse will scar many for life and some will never recover sadly, that is why i am keen to know when rates will rise, i agree with your assessment that they will definitely rise.
That was a very good explanation David.
I specially like a couple of points (Which might even have been expanded more):
-Firstly that 'The Fiat money prices of precious metals is mostly irrelevant because the traded item is derivative, not the actual metal. The same is largely true for all Commodities, where there is only a tenuous connection between the futures price and the price paid by consumers.
-Secondly you mentioned how the prices of materials is often less important than the "Availability". I have based my entire strategy on the "Thousand Mile production": Eg. If a critical product is not created within a reasonable distance the risks of unavailable supply increases exponentially. I refer both to supply chain issues, but also to legal jurisdictions.
Finally, I would like to say that anyone holding or contemplating Precious metals should have a firm plan for "WHY" they want to have gold and silver. Is this purchase 'A Speculation" or "An Insurance Policy"? Digits in the Bank Balance are easy to acquire in a high inflation environment, Real wealth is somewhat more difficult.
Nice seeing the cup and handle pattern materialize.
You are talking in Fiat Money terms. More relevant to look for the comparison to beef or rice. I don't think this is just a Gold and Silver phenomenon?
The gold/lentels ratio may become an important measure. ;)
At least "Lentils" are "Real"..........!
But, I think Copper/Lentils might be more realistic?????
As always / very solid analysis
Its coming. Sooner rather than later.
Thank you Steven.
Thank you David.
Following close.
Honestly , I thought the entire ponzi scheme was up in 2010. The level of engineering and papering it over appears to finally ending. Much much much worse than had it happen 2010.
Gold and silver are going to become priceless while everything else goes through one very very ugly melt down.
Staying alive is the real challenge
I know that this question is off point. Because the point is to have the metal, which I understand.
However, I have partaken in the fraudulent silver futures market because I do understand how they manipulate it in several ways, and I thought I could gain an advantage over the banksters, knowing it. In fact I do have a six figure paper profit and wonder what do you think will become of the contracts once the COMEX breaks. Will a force-majeure dictate that contract-holders will get paid at the present value of the contract or do you think they just say they're sorry, and close their doors?
I suspect the value of contracts on exchanges that participate in the paper fraud will go to zero as the market recognizes the fraud.
LOL...That is the 'easiest question'. Id you have a "6 figure Profit", then cash out immediately and purchase physical the same day!
Your "Paper Profit" can go to zero in a matter of hours. The Physical Metals will never go to zero in any market!
Paul, I appreciate your comment and of course, I have thought of that!!
The problem is that it seems apparent that the price will skyrocket prior to the exchange imploding. So, being the gambler that I am, (love the dice) I think there is time to milk the leverage prior to cashing out, and buying the real thing.
Honesty (with yourself) is an important thing!
Fortunately, we still have some ability to make our own choices?
I don't value having great "Financial Wealth". I just want to have enough to eat and reasonable assurance of Security. Financial comparisons with other people, mean nothing! So long as your endeavours make you happy, that is the only purpose. I laugh greatly at those who 'Claim' a certain $ value is needed for retirement.....
I wish you the best of luck, because that means 'The wheels have stayed on this bus"......D
A good reply. I guess I do have fun doing this and I am not risking anything that matters, except for my pride.
Gains can be used to help the people around us.
"Give a man a fish, and he will eat for a day. Teach him how to fish, and he will eat for a lifetime."
I don't have anyone who wants to "Learn"......
Excellent interview David, you spoke articulately with great subject matter knowledge.
Is it the Gold price or bond yields which is the price warning signal?? What happens with $4k or $5k Gold to the rest of asset markets then??
So is the signal Gold or Silver?? So many people now talking about gold or is silver the real show in town??
The Canadian and Australian housing markets are so overpriced and so fragile, the collapse will scar many for life and some will never recover sadly, that is why i am keen to know when rates will rise, i agree with your assessment that they will definitely rise.
On Sprott/Craig yesterday, it seems that you equated 2000 tonnes with 56mil ounces ...
there are 32150 troy ounces in a tonne. ????
The StoneX report specified 2,000 tons (imperial).