Silver goes ballistic and shakes the financial system

[axj]

I do have one question for those that know more though. I've read an opinion that the price always returns to the mean, but what term is the mean calculated over?

Probably the mean gold-silver price ratio, since with the current levels of inflation the prices need to be higher for both over time just to keep the value.

And that is not accounting for factors that increase prices even more than just keeping up with inflation, such as increased industrial demand for silver or the increased stockpiling of gold by central banks.

On the other side of the equation, the prices of both seem to have been suppressed for a long time - probably to make fiat currencies and the financial system look more stable than they are. Especially a large rise in the price of gold has always been interpreted as signifying financial and currency instability.

 

[daddycat]

Q: (Odyssey) On the money issue, would it be a good idea to invest in silver or gold?

A: Partly, but what about "needful things"?

Q: (KJN) So we should spend it on things we need now, versus spending it on gold or putting in a bank or that kind of thing?

A: Mostly. Money will soon be worthless, ownership will survive awhile longer.

I think most of us are not past the point of needing to spend on needful things.

There's also this perspective of silver falling back to the $50s.

But I also like Jeffrey Christian, and he’s telling me, wait a minute, $50 is this area where silver can’t stay for more than an extended period of time.

...

So the longer that silver stays at prices where it makes sense to mine more, it makes sense to recycle more, it makes sense to use less in fabricated products, and it makes sense to take profits if you’re an investor, the longer it stays up there, the greater the probability that the price will come down.

And that’s why we say, look, the price of silver, the price of anything can spike to anything. But staying there is another story. So we saw in 1979, the price went from Silver run from $5 to $50. And Two days later or a month later, it was $35. That month that it hit $50 for five minutes, the average price was like $35.

And for the full year, 1980, it was $20. 2011, Given the price spiked to $50, and it stayed up there for about 20 minutes. And within five days, it was $32 an ounce. And then it fell to $15 within five years. So that’s the economics. It’s not theories, it’s economic realities. What does it cost to produce an ounce of silver from mines or from scrap? And what does it cost to use it? And what does that do to the price of my the price of my products. At what point do people stop buying mirrors?

Gold And Silver Hit New Highs—Here’s What Eventually Stops The Rally | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[Aeneas]

The 'experts' are doing their best to tell people to cash in and that silver is just about to go down. They don't explain the massive silver shortage which has been going on for 6 years, nor the big discrepency between prices on the papir silver contracts (eg. ponzi scheme) and the physical silver market. I have a tab with kitco.com open and the headlines are laughable (and has mostly always been as it was part of the gate keepers). Such as this one from 3 hours ago:

After silver’s massive price rally, it may be time to take profits while momentum lasts – HSBC​

The truth is that they are very likely heavily invested in paper silver contracts which they wish to offload.

Here is another beauty:

Slight gains in gold, silver sells off on profit taking​

This has been a common headline over the years, but the truth is that people with physical gold or silver don't do profit taking and then buy back when it is more expensive. So again ponzi schemers wanting to scare people into that now is a good time to sell some physical silver. The funny part is that it was published 4 hours ago, yet silver hasn't gone down today. As a matter of fact, it is up $8+ per ounce with gold currently up $165+! Looks like something has spooked the market and crypto is also up.

And another

Silver’s rally may be topping as prices impact industrial demand, gold shrugs off Greenland deal to move above $5,000/oz – Heraeus​

It does impact the industry, but industrial demand is not something which changes day to day. The contracts which the industry fills are made years in advance. Massive solar panel projects which have been years in the making and where the contracts are signed, don't just get shelved overnight. That is a longer term policy reevaluation which takes time.

It should also be said as it already has, that new mines don't just spring up nor does recycling just happen. Investment in a recycling plant which takes 5 years to bring on board or a new mine which takes 10 years to bring on board, is only going to happen if the investors think that the prices will stay up. If spending billions in making it happen, they want to be sure that there also is a good demand for the silver when it comes online.

It is hard to tell where this will go other than it is interesting to observe (regardless of whether one has any precious metal or not), as it is a financial war taking place and where some of the big players are showing signs of desperation. It is just another perspective to be observed of the geopolitical and cosmic play taking place. The way I look at it, then the latest massive solar storm could well play into this, just in ways we don't quite understand.