What in the world
is going on with silver? It's lighting up the markets and is the talk of the
town once again. This metal exploded last week, gaining 4.5% in one week
alone and is showing no signs of slowing down.
The reasoning for this is not fully known, but many
notable and well respected names in the industry are raising the alarm and
speculating as to what's happening.
Some are suggesting that it has something to do with the
pending crisis that the global markets are soon to face. This crisis is the
one we alluded to last week, in which the FED held a series of secretive
meetings, involving FED board members, the President and the Vice President
in an unprecedented event.
Others are stating that it has to do with the Chinese
market and their recently issued gold-backed yuan, an event that is going to
rock the Forex markets and put China in a key position to smash the paper
cartels whenever they feel the need to do so.
Given the fact that the Chinese are so heavily invested
in precious metals, this scenario is incredibly likely and may be closer than
ever, especially with the uncertainty that is unfolding in China and their
increasingly more precarious financial situation.
Another scenario that seems to come up every time that
precious metals are moving higher in a significant way is a COMEX default.
Although this story has been told many times before, it doesn't go without
warrant, as COMEX reserves are laughably low and it would take only a small
fraction of investors to take delivery to collapse this entire paper system.
The catalyst is yet unknown. Yet, what is here and now is
a renewed bull market, that could take silver to its previous $50.00 highs.
Already the algos and "hot money" chasers are in pursuit of silver
and are creating a self fulfilling prophecy that is sending silver higher as
more and more money pours into this tiny market.
This renewed bull market is flashing red hot and is
setting up for a long move higher. I personally am in the camp that doesn't
believe it will go straight up, but will face a series of ascending moves,
met with short- to medium-term resistance. Either way, get ready for a fun
ride - our patience and discipline may be finally paying off.
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Nathan McDonald is a libertarian, entrepreneur and
precious metals enthusiast. He has always taken a keen interest in free
markets and economics since an early age, which naturally led him to become
a true believer in precious metals and all that they stand for.
Nathan served eight years in the Royal Canadian
Navy as an electronics technician, seeing the true state of the world,
before starting his first successful business. He has since gone on to
create a number of businesses, all of which are still in operation and
growing.
In addition to this, Nathan runs a network of
successful precious metals blogs, and a growing newsletter that has
attracted readers from all around the world.
He is a regular and highlighted writer for the
highly respected Sprott Money Blog, which covers world events, geopolitics
and of course precious metals.
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The views and opinions expressed in this material are
those of the author as of the publication date, are subject to change and may
not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does
not guarantee the accuracy, completeness, timeliness and reliability of the
information or any results from its use.
