In Case You Missed it…trading in Silver recently has been nothing short of Schizophrenic Sessions of madness.
Why, you ask?
Silver is not merely a metal.
It is the schizophrenic child of the monetary system, torn between its ancient role as money and its modern fate as an industrial commodity.
Estimates are as high as 70% of all Silver mined in the world gets consumed by commercial production…and most of that is in electronics. (More on that later)
Silver doesn’t trade on a single narrative, but on the violent intersection of multiple cycles: the long-wave debt-cycle, the technological adoption curve, and the inherent volatility of a market smaller than a Mid-Cap stock.
And silver is approaching the point with a convergence of cyclical pressure that will resolve its identity crisis…with explosive volatility.
Translation:
This is not an investment for the faint of heart…It is a leveraged bet on monetary disintegration, technological transformation, and raw human fear.
Silver is the ultimate contrarian bet on system failure and technological necessity. (Cough! The build-out of Artificial Intelligence, Cough! Cough!).
The cycles are aligning.
The data is clear.
The only uncertainty is the precise catalyst and the magnitude of the market’s recognition of this fundamental dislocation.
And now that China has been squeezed out of their Venezuelan Oil, (with the U.S. not honoring Venezuela’s $19 Billion debt to China) the risk of China restricting exports of silver should set this in motion.
This combination of geopolitics intermixed with physical shortages of silver could also prompt Mexico to follow China’s lead in restricting exports of silver.
If that happens, things will get really chaotic in the pricing of silver every day.
Schizophrenic Sessions
Ironically (or NOT) Silver’s Schizophrenic Trading Sessions have not involved the average investor per se.
Because the average investor doesn’t own any silver.
Read that sentence again.
Most of the madness is from the Boyz in the “Club” panicking over the silver that they don’t own.
Huh?
The big players in Gold AND silver use the futures market to leverage their bets.
And estimates are that they are holding paper silver (futures) in the amount of 375-1 vs bullion.
Translation: Your silver ETF’s DO NOT have the physical silver to back it.
And when big players “stand for delivery” (meaning, “Give me my silver”) is when panic sets in.
This is just the tip of the iceberg.
So, for more in-depth knowledge of where this is going, be sure to read our upcoming January newsletter (HERE).
And if the price of silver dips before then, buy some.
Because when the price hits $130+ you’ll find yourself wishing you bought some at $80.
Share this with a friend…especially if they are still thinking about buying silver and/or mining stocks. They’ll thank YOU later.
And tell them:
