Buy. Silver. Now. Or forever regret it.
* Traditional silver to gold ratio: 16:1
Current silver to gold ratio: 43:1
* Overextended leverage, 160 ounces of silver is traded on the market for every 1 ounce of physical silver.
* Price/supply imbalance, inability to satisfy the above problem because there is not enough silver mined in a year to satisfy the amount that is traded in a week at current price levels.
* Market Manipulation, JPmorgan and others found guilty of taking massive short positions on silver in order to affect the price of gold and profit on gold derivatives trading. Rinse and repeat. Now stuck billions in the hole in leveraged long term contracts. Still playing the same game, trying to drive price lower in waves in attempt to get out of toxic derivative positions. (silver market is much smaller than gold and big money buying or selling has a significant effect.)
*Central bank monetization. The monetization of debt, or printing of money to pay for debt, is occuring in multiple european countries as we speak, and has been a long standing tradition in the US, this is a bullish point for both gold and silver.
No comments:
Post a Comment