Gold (and silver?) Will Destroy The Fed

In my previous blog I wrote how the central banks of the world want to have a worthless centrally controlled crypto like XRP to automatically execute tyrannical monetary policy.

Q has famously said that gold shall destroy the federal reserve.

So it seems the white hats want to bring back a gold backed currency.

But even if that doesn't happen, I still think the price of silver and gold will rise in the short and long term.

I spent some time focusing on silver due to the short term demand constraints on it that could result in price action.

For those of you who are unfamiliar with the term "secular" in finance it just means long-term trend.

1. Silver has (extremely) unique chemical and physical properties and since it is a finite resource with high demand, the price should go up over time.

• Silver is anti-microbial- It can be used in water filtration, air conditioning, and medical devices.

 

• Silver is highly conductive and is used in solar panels, batteries, electronics. 

2. There is a secular trend in increased demand for Solar, rechargeable batteries, and electronics sectors.

• R and D is just proving more applications for silver at the nanoscale and could even replace lithium as the battery metal of choice. See this manufacturer which uses a silver zinc mix for for rechargeable batteries and has several advantages over nickel and lithium batteries such as smaller size and more environmentally friendly. Smaller battery size and more environmentally friendly are two other secular trends.

3. All fiat money goes to zero eventually by historical precedent. All central banks are devaluing their currencies at the same time.

Indebted central banks have no choice but to default or inflate their way out of debt. Either way, precious metals go up in value as people latch onto them as a safe haven (as they have always done before in these situations historically).

4. Retail demand for physical silver is at historical highs. Premiums for physical silver in the retail market are diverging more and more from the spot price...indicating the beginning of real price discovery of silver. 

5. ETF demand for physical silver is at historical highs.

6. As industrial users of silver wake up to the increasing demand indicators, they will want to buy large portions of silver as a hedge against future price increases.

7. Demographics and Secular trends in eastern wealth are headwinds in silver's favor. When the price of silver and gold fall during the times that the NYSE is open, the buyers in the east tend to increase their buying.

Precious metal buying is even more a part of the eastern culture in the forms of jewelry and bullion. In the years ahead as China, India, SE Asia economies grow at a faster rate than the west, the demand for precious metals will increase.

8. Central banks are increasing gold holdings and silver price tends to follow gold. 

9. Supply is low. According to the USGS, silver supplies will be depleted by 2025.  Even when new discoveries are made, it takes a lot of capital and up to 10 years for a mine to get into production. Interestingly, above-ground silver is actually more rare than gold.

In fact, almost all the gold that has been mined to this day is still here, and its use is largely limited to currency, portable wealth, and jewelry. On the other hand, when silver gets used, it’s gone forever.

10. Silver is the people's alternative to gold. As central banks and the wealthy hoard gold, the rest of the population turns to silver because of it's lower price and ease of access.

Think of the farmer in south east asia that doesn't have a bank account and wants to preserve his family's money. He will automatically turn to silver jewelry. Gold and silver Jewelry are merely wearable wealth. 

There seems to be a concerted effort from the power structure to suppress the price of silver and gold. They don't want us to recognize it as real money. In the mean time, they are hoarding it themselves at lower prices.

Due to the industrial demand of silver, I think it is harder to manipulate and eventually the very banks that are shorting silver may have to switch to the opposite strategy, driving the price higher.

For those who are wondering, I'm not a financial advisor but I have one...Dr. Kirk Elliott. 

He has a Phd in Economics and gives free consultations. He specializes in converting a retirement account to holding physical precious metals like silver and gold.

His number is 720-605-3900 if you want to get a hold of him or if you want to make an appointment you can do so at this link:

https://sovereignadvisors.net/pages/seanmorgan