"Silver and Gold News" from Palisades Gold Radio 2-18-2021
Ed Steer: Silver Price is About to Blow Sky High
Palisades Gold Radio: Feb 17, 2021
Tom welcomes Ed Steer to the show, Ed writes a weekly subscriber column on the gold and silver markets. He brings us a bombshell overview of what is happening in the metals market.
Ed explains how tight the silver markets have become and why the Comex is attempting to roll over as many contracts as possible to avoid delivery. They have reduced the fees to rollover contracts to near zero.
There is some backwardation in silver for contracts in late 2021, revealing weaknesses in their ability to deliver. Thousands of traders use the Comex markets, but eight large investment banks control more than half of the paper metals market.
These big players are short 412 million ounces of silver, and it's them versus the world.
The thousands of other traders are entirely net-long as they understand this scheme is ending. If these large players were to let silver go, the price would rapidly become a sizeable three-digit number.
He feels these investment banks were caught completely flat-footed by the actions in the market in recent weeks. They have been forced to double down on their shorts to keep the market suppressed.
Ed says, "Right now, these guys are fighting for their lives." Physical premiums are through the roof if you can even find the metal. The lead times from the mints are growing, and it will be many months before dealers can fully restock.
He says, "There is no physical metal to be had...the market is tight everywhere you look." If the sleeping giants (aka the industrial users of silver) awaken to what is happening, they will want to buy everything available, making the situation much worse.
Those in power are now desperate as these problems could lead to a massive currency crisis worldwide.
He doesn't believe these banks can cover their shorts, and March deliveries will be very interesting.
Ed cautions, "Things are now in motion that can't be undone. It's going to be like the long-term capital management collapse we're talking trillions, not billions... Hopefully, there is a world left to survive in once this is all over."
Jim Forsythe: Stampede Coming Into Gold and Silver
Palisades Gold Radio: Feb 18, 2021
Tom welcomes a new guest Jim Forsythe to the show. Jim discusses visiting Russia in the mid-80s and working in the Air Force as a KC 135 pilot and later an instructor. In part, these experiences led him to campaign for Ron Paul in 2008, and he became a New Hampshire State Senator from 2010-2012.
Learning from Ron Paul helped him understand the economic system that the world is under, and "The bigger problems facing the U.S. that are internal." He has been a firm gold and silver believer since 2007, investing in both miners and physical.
He says, "People need to make their own choice to have gold and silver as money." He believes many politicians do understand how the system works and take full advantage of this understanding. There is bipartisan support for maintaining the status quo.
We are in a 100-year sovereign debt supercycle, and the bond market has been in a bull market for forty years. Whenever there is a hint of recession, they lower rates, and now we've hit the zero level, which he believes is a tipping point.
They can no longer claim that they can raise rates and normalize, and most investors now understand this fact. They will try yield curve control next, which means retirees and pensions will get wiped out.
Gold and silver don't receive much yield, but you will see a stampede coming because the alternative to gold is negative yields. Gold is a once-in-a-lifetime opportunity. He argues that gold and silver volatility is unnatural and serves to keep investors out of the markets.
Jim explains the dynamics of silver in both its industrial and investment demand. The price suppression has increased the potential upside and provided a lot of buying opportunities. Silver is a small sector, and just a little attention from the WallStreetBets crowd has caused physical supply issues.
Silver is far more undervalued than gold, and for that reason, there is more upside potential.
Jim outlines the differences between SLV and PSLV and what you should consider when investing in an ETF. In any investment, you need to trust the counterparty, and there is room for doubt with SLV. Lastly, Jim discusses a possible future for digital currencies.