Although silver is traded as a commodity, it is also a form of money. You only have to go back less than a hundred years in the long span of human history to discover that silver once circulated widely as currency, typically in the form of silver coins.
In fact, the UK’s paper currency the ... Views: 1104
Defining “Intrinsic Value” in Precious Metals Investing
The mainstream financial media touts a variety of 'anti-inflation' investments that can be used to protect wealth against the ravages of inflation. These typically range from buying commodities like oil and coal to more sophisticated ... Views: 1045
History remembers the last nominal high in the price of silver before the more recent high of $49.77 seen in April of 2011 as an anomaly that was largely induced by the Hunt brothers' purported attempt to corner the market by buying large quantities of silver and silver futures to the point ... Views: 1002
The use of HFT computer systems to execute large deals rapidly in electronic markets typically allows their users to take advantage of short-lived pricing disparities in large size.
Furthermore, the growth of High Frequency Trading or HFT in the silver derivatives market is exerting an ... Views: 931
The price of silver has moved up from $27.50 seen just a week ago to stage a test of the $31.00 level. Although technical traders may consider this market currently over bought, the fact remains that a bull market can stay over bought for quite a long time.
It will be interesting to look back ... Views: 929
The Chinese currency the Yuan is still pegged to the U.S. Dollar at a level that undervalues it substantially, provoking criticism of this exchange rate policy. The world still believes that China cannot survive and prosper without the West to fund its development, and so most analysts are ... Views: 923
Many observers currently expect the Chinese economy to land softly, perhaps relying on domestic stimulus measures alone. Nevertheless, while the inflationary bias in the developed world made it easier to accept more economic stimulus plans in 2008, the situation is now different.
This means ... Views: 898
A Silver Coin to Save the Common Man
The interrelationships between money, credit and the banking system mean that the stability of the current system is dependent upon the ability to service credit expansion, or in general the debt/GDP ratio.
With very few exceptions, every country and ... Views: 876
When the price of silver eventually explodes to the upside, the silver market and those who are responsible for regulating it will probably blame the speculators.
Specs, or those who trade in a market without having an underlying commercial interest,have become the modern day scapegoats for ... Views: 838
As scandal after financial scandal take their toll on public confidence in the economic morass curiously called the financial system, what will be the trigger for a short covering panic in the metals markets?
With countries the size of Spain lining up to get bailed out and a lagging global ... Views: 835
As history has shown again and again, hard currencies like gold and silver are perhaps the only truly safe long term investments.
Part of the safety of these assets arises from the fact that they are traditionally accumulated and hoarded by individuals, especially in financially challenging ... Views: 832
Stock to Flow: Silver Supply in a Fiat Depression
Making a case for higher silver prices can involve two ways of looking at its supply:
(1) The total amount of silver ever mined.
(2) The total amount of silver available in investment grade bullion form.
The result of this supply ... Views: 804
Sadly, when it comes to precious metals investing, no entity seems as important as the Federal Reserve.The Federal Reserve sets U.S. monetary policy, which has a direct impact on the purchasing power of the U.S. Dollar.
This central bank has virtually complete control over inflation in the ... Views: 773
After having previously been found outside of the United States,tungsten filled gold bars have now apparently been making the rounds in Manhattan. Tungsten is a relatively cheap and readily available metal compared to precious gold.
Furthermore, it seems that such counterfeit bars can fool ... Views: 755
Financial repression may prove to be the policy that triggers the inevitable return to fair value in precious metals. The failure of this academic policy, originally deployed in the 1950’s,adds to the list of possible scenarios triggering the failure of the manipulative price suppression that ... Views: 743
Up to this point, no major or big money has entered the silver market or stood for delivery in a significant way outside of outspoken Toronto-based silver ETF manager Eric Spratt.
Yet it is rather hard to imagine why they would not be joining Spratt, with QE's stretching to infinity, Fiscal ... Views: 742
The aftermath of dramatic balance sheet expansion is bound to be a rebound in inflationary pressures, but Fed Chair Ben Bernanke said the central bank is not going to react to a short term increase in current inflation.
Basically, if the FOMC is convinced that a rise in inflation today is ... Views: 736
Silver bullion investors often feel as if they have become a basket case. As an investment class, they are increasingly growing weary of the suppressive manipulation that characterizes today’s silver market.To the outside observer, the situation in the silver market could seem even more ... Views: 735
People have a natural tendency to seek and understand value. The currently dominant baby boomer generation has a speculative mindset with regard to investment. The relatively frugal generation that lived through the first great depression is now fading in influence, along with their collective ... Views: 734
The vocabulary in which modern monetary policy is expressed has created complacency and acceptance. For example, people have learned to accept outrageous financial concepts like $1 trillion, when very few individuals have any sense of how much this actually represents.
Furthermore, people ... Views: 733
The reasons for holding precious metals as a relatively safe haven for one’s personal wealth are numerous.
One common investing thesis for buying precious metals is that these intrinsically valuable commodities can hold their value in times of rising price levels. This characteristic can ... Views: 731
As prices at the pump gradually move back up, one finds no shortage of people calling for new financial regulations.Frequently blamed on speculators, higher gasoline prices are — as some politicians say — the result of lax laws regulating the financial system.
Nevertheless, can it really be ... Views: 727
Silver is not going away. Its ongoing popularity seems to fly in the face of the modernist, the Keynesian and the visionary who dreams of a world without physical currency or money at all. Despite their viewpoints, silver and other precious metals remain sought after and valued by many ... Views: 709
Many observers, notably GATA, have characterized the more than decade long run up in the precious metals markets as a managed retreat orchestrated by the big bullion banks.
These banks typically profit by using their large transaction size and deep pockets when the market is vulnerable to ... Views: 671
If and when the Comex silver market implodes, so should the paper market for silver. Nevertheless, can this happen and will it happen?
Also, if a Comex default does occur, what are the likely scenarios and aftermath that will impact silver traders and the price of silver? The following ... Views: 668
In essence, taking possession of artificially cheap silver is not only akin to an act of wealth conservation, it is also a quiet form of protest.
Protest against a failed currency structure imposed by a government up on its citizens that has given rise to the extreme complexity and overgrowth ... Views: 660
The last years of mining silver could well be compared to studies that indicate the world is approaching the last years of pumping oil.
While the earth’s stores of silver may not actually run out anytime soon, increasing demand and increasingly difficult mining opportunities for silver tends ... Views: 643
The debate about buying silver rounds, “junk silver” or silver Eagles goes on and on.
Although better prices may be available on silver rounds, investors continue to worry about the “China scare” and rumors of counterfeit silver coins.
Also, the confiscation* of fiat money purchasing power ... Views: 617
For the long-term silver holder, investor or conservationist — as differentiated from the active derivatives or physical trader — two strong psychological phenomena tend to exert influence over their decisions:
1) The normalcy bias as applied to fiat currency - Investors have been conditioned ... Views: 600
Many parents looking to the future and concerned about their children’s financial security have been reframing reasons for owning silver as a long term investment.
Awareness seems to be growing among parents that an outstanding way to provide for their child's future educational expenses is ... Views: 589
Everything has been distorted by the media. Humanity may no longer believe that the sun revolves around the earth, but some people still think that they can control nature.
Nevertheless, with all the truly breathtaking science that has resulted in great social progress and technological ... Views: 587
If the pricing in the world’s commodity and financial markets accurately reflected anything but the culmination of decisions made by high frequency trading systems, then the recent price action in the silver market might have something meaningful behind it. In an alternative parallel universe, ... Views: 583
Some silver investors must be wondering why hang on to their metal at this point? Perhaps the most compelling answer is inflation, since an increase in the money stock will eventually lead to higher prices.
Central banks around the world must keep printing or electronically generating money ... Views: 583
Confiscation —both direct and indirect forms — and market manipulation tend to go hand in hand when it comes to forecasting the silver market’s future.
Furthermore, ongoing silver pricing issues include the overwhelming concentration of silver shorts, as bullion banks act like producers and ... Views: 581
A recent study about high, long-term government budget deficits published by the Washington Post indicates that such situations can be statistically linked to significantly lower future growth levels.
The National Bureau of Economic Research looked at 26 past examples of when the level of ... Views: 576
The price of silver remains at the mercy of the big banks that make of the majority of the short side at COMEX — which is still the primary paper pricing mechanism for silver.
Could silver prices go above $50 and beyond this year — and then perhaps retest $50 as a floor?
Concentration ... Views: 576
Regulation within a market tends to make it harder for legitimate traders to operate because every 'edge' they identify essentially becomes insider information. Nevertheless, the powerful electronic traders are still allowed legal access to front run pricing and large orders on the exchanges by ... Views: 562
Due to China’s huge size, its developing economy is having a growing influence on the global economic system. One commodity that has been particularly strongly affected by Chinese popular demand is silver and other precious metals like gold.
Not only has the Chinese government been moving ... Views: 561
From a technical perspective, the price of silver is obviously breaking down. The market has been 'trading heavy' for a while. Furthermore, the entire commodities complex is trading in a downward trending channel, except for oil. The U.S. Dollar is also stronger because of the Euro ... Views: 551