Understanding precious metal price reality is like walking through a house
of mirrors.
I spend a lot of time examining eyeballs. The magnification required to
focus light on the retina is very strong. This causes an inverted image.
What I see in the lower right of my view is actually the upper left area
of the patient's eye.
Like everything, it takes some practice. In the days before digital
records, I would turn the paper chart upside down to record my drawings.
It is similar to the interpretation skills required when following
precious metals.
Prices ought to go up during times of geopolitical crisis or tension. They
typically do not.
They do predictably go down during certain monetary-related announcements
or during paper market-related events such as options expiration.
Or any other times that are ultimately profitable for the large banks -
because of the sheer size and concentration of their naked short positions.
This is also somewhat backwards.
Most people understand cornering a market on the long side. But the
opposite requires one to stand on their head.
Stand on your head, and one begins to see a reflection in these
otherwise-considered commodities. The monetary side.
But it goes even deeper.
At this moment, the market is viewed as bearish by an almost giddy trading
culture - drunk on free money and the ever rising DOW and S&P 500.
Traders riding the mountainous waves of liquidity.
They speak the language, yet refuse to acknowledge that their game is
rigged. Like children arguing about the World Wrestling Federation.
Yes, with precious metals, you have to stand on your head to see things
accurately.
There are two main factors holding silver prices back, making things
appear upside down.
- The long-term price controls have enabled ridiculously
bullish physical fundamentals.
- Monetary policy has resulted in an inflation adjusted
price that would be orders of magnitude higher if properly factored.
Low inflation adjusted prices, plus physical fundamentals.
Adding up to a potential price well north of practically anything we can
imagine.
For now, lawless financial intervention maintains the grand illusion.
For investors seeking shelter, preparation, and a physical store of
wealth, silver prices represent the granddaddy of all subsidies - viewed
upside and backwards.
