Am I Alone?

Once upon a time, now long ago, I traded the precious metals markets – concentrating on Silver more often than not. The reason I chose silver was fundamental – not technical. Silver and gold had historically traded at a price ratio of about 16 to 1, gold to silver. Then that price ration started to grow. After it had increased 100 percent I started getting really interested in silver.

Unfortunately, I learned about the market manipulation being done by the big bullion banks. After studying it over a couple of years it became obvious to me that the paper market for gold and silver COMEX were being manipulated – so openly that it was virtually self evident.

I complained to the CFTC – and never heard a word back. I continued to watch those markets – and do so today. Precious metals are real money – and owning some is insurance against the eventual failure of fiat money.

Finally I realized that the big bullion banks were never going to be stopped from their illegal market manipulation – because they were doing the dirty work for the government – and of course making millions of dollars at the same time. I finally quit complaining – and trading the precious metals markets – but I still watch them.

Today silver trades on the COMEX at a ration to gold that is north of 60 to 1. Some might say that is just because gold has become more valuable than silver. Maybe, but the market for silver metal is tight – very tight. The short positions held on the COMEX (the paper market) are currently twice the size of the annual production of the metal.

Once upon a time I studied a bit of economics – and learned of a simple concept of how the pricing method of something worked – “the law of supply and demand”.

If demand is high and supply is tight – prices go up – and vice versa when demand falls and supply is abundant. Such as the petroleum market – we have all seen gas prices rise and fall like a roller coaster as the market perceived events that might affect supply.

But not silver (and Gold as well) – oh, there have been rises and falls like a roller coaster – but the supply has remained tight and continues to tighten. Something does not smell right to me.

And why does the government look the other way. Perhaps because it does not want the price of gold and silver to go up – perhaps it is because our paper money is becoming worth less and less – and gold and silver are yardsticks by which the value of paper money has traditionally been measured.

We live in a world awash with paper money that is backed by nothing – and governments all over the world are printing more at a record pace – a pace that cannot possibly be maintained – yet the authorities in charge tell us that they must do more. They think that money printing has not done what they predicted because they did not do enough of it.

I grew up in the country – common sense suggested that if you were doing something that was not working – something else should be tried. Doing more of what does not work defies common sense. The authorities scoff at that statement – they have PhDs they say – we are smarter than you. We little people just do not understand.

Well, I admit to being one of the little people, but I do understand one thing: It is our money, not theirs that they are debasing into oblivion, not just theirs. And If we don’t like it we should tell them to stop it.

I am beginning to think that PhD actually stands for “Pig Headed Dummy”!

Am I alone?

 

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