The Reader’s Digest version of Force Majeure is simple… “an unexpected and disruptive event that may operate to excuse a party from a contract.”
In Layman’s terms: Trading can be stopped in a stock or commodity (COUGH! Gold/Silver, COUGH! COUGH!) and the issuer doesn’t have to honor their commitment.
Reality Translation: to Impose Force Majeure is a fancy way of saying “You’re gonna get screwed.”
Wait! What?
That’s right…and you can’t do anything about it.
Example: Let’s say you bought some silver – or at least you thought you bought silver – on the futures exchange for $35 per ounce (the price of silver in July 2025).
But you never really bought it.
You simply own a piece of paper that says you’re entitled to take delivery of an ounce of silver for $35 at a certain time in the future.
And if the price goes up to $50, 60, or 70, you can then: 1) take delivery of it or: 2) cash it in for a nice profit.
Force Majure in 3…2…1…
However, if the market for silver goes crazy (Cough! a short squeeze forces the price to skyrocket, Cough! Cough!) the value of your “Paper Silver” could go to $90 per ounce.
And if the house where you bought it doesn’t have the physical silver to deliver to you, they’ll plead to the regulators to declare Force Majure.
Once that happens, the house (who didn’t actually have your silver) must honor your contract based on the last closing price of silver.
Let’s say the last closing price was $65.
That means they must pay you $65 in cash for your “paper silver.”
However, it could take them weeks or even months to settle with you.
In the meantime, the price of silver skyrockets to $150 per ounce. And by the time you get your $65, you won’t want to buy real silver at $150.
We know this sounds a bit extreme.
But have you noticed the extreme activity surrounding silver lately?
For the long term we believe silver will reach the $150 price.
But in the meantime, you should expect some interference/manipulation along the way.
Why?
The companies representing “Silver Paper” (ETFs, Cough! SLV, Cough, Cough!!!) DO NOT HAVE THE PHYSICAL SILVER TO DELIVER TO CUSTOMERS IF DEMANDED).
Suffice it to say they are in dire straights and could face bankruptcy in 24 hours…unless the regulator Boyz declare Force Majure.
We’re not saying it will happen tomorrow.
But we do believe if silver has a severe drop down into the 60s price range, then bankruptcy will have been avoided for the Boyz in the “Club.”
Ironically (or NOT) if silver has a severe drop, take it as a sign to back up the truck because it may be your last to chance to get it on the cheap.
The frenzy surrounding silver is being jacked-up by geo-political chaos…similar to how sharks are drawn to chum.
Instead of fearing it, learn how to profit from it in our January newsletter (HERE).
Share this with a friend…especially if they own REAL silver and not Paper Silver. They’ll thank YOU later.
And tell them:
