I’ve said many times that silver, not gold, is really the Achilles heel of the PM cabal – By Derek K. Van Artsdalen

Posted on September 23, 2015

The PM price managers are now in a really awkward pickle regarding silver. When faced with allowing the price of silver to rise, they’re damned if they do and damned if they don’t. Here’s why…

We already know that silver shortages are developing around the globe. THEY know this too, of course. If they allow the price to rise in any significant way, they know they’ll simply add to an already intense silver buying frenzy, thus exacerbating the very shortage they have themselves created. Any real excitement in silver has got to be immediately squashed. Hence today’s smackdown as silver was nearing its next major resistance point of about $15.50. I felt almost certain this would happen today and sure enough it did. One problem they face, among others, is that millions of PM investors around the world have learned how to play the game. That is, instead of running for cover and fearing the all-powerful OZ, folks have simply learned to buy with both hands when these regular price whackings occur. They’ve figured out that the cabal is merely offering them the gift of a lifetime by creating these absurdly low silver prices, prices that, in most cases, are well below the few primary silver producers’ cost of production.

Retail buyers now know this charade well, and every time these price smashings take place, retail buyers step up and load the truck. This, of course, makes the shortages even worse. On the other hand, if the criminals allow the price of silver to RISE to any meaningful extent, ironically the same phenomenon takes place (more intense buying) but now has the doubly damaging result (in the view of the cabal) of drawing exponentially more silver buyers into the market—the criminals’ worst nightmare. As I said, they’re damned if they do and damned if they don’t.

But the crooks’ predicament is even worse than this. As we’re ALREADY SEEING, if they smash the silver price any further, silver dealers simply raise the premiums to offset their quite fixed cost of replacement. As mentioned the other day, APMEX, for example, is now charging a whopping $5+ premium on Silver Eagles, the number one go-to silver investment for many stackers. But even the premiums on bullion coins are rising. As dealers and primary producers alike have already told us, there is barely any investment silver available even at the $15 per ounce level. So it’s a no-brainer that there won’t be nearly a sufficient supply at prices BELOW $15. Silver investors are now in the process of learning that the “price” of silver quoted on sites like Kitco is really just a bogus posting. Why? Because there’s not a single ounce of investment grade silver available for anywhere near these artificial prices. You could say that silver premiums are now offsetting criminal price suppression.

Thus, the psychopaths have boxed themselves in. For if they try to smash the silver price down further, they gain no additional benefit while proving to the world that the so-called COMEX silver price is meaningless and that silver cannot sell indefinitely at (or, in many cases, even below) its cost of production. Therefore, any lowering of the silver price is completely wasted effort, except to further fleece the idiots who were dumb enough to play the highly rigged casino by going long over at the CRIMEX.

In short, buyers of physical silver at current price levels have NOTHING LEFT TO FEAR from lower COMEX prices. They know for sure now that dealers aren’t going to sell their silver at a loss and so they can know with absolute certainty that prices at silver dealers will not be dropping significantly from today’s levels. In a way, the criminals who control the silver market have painted themselves into a corner, and now millions of silver buyers around the planet can buy with certainty, knowing that any price declines will be quite temporary and in fact meaningless at the dealer level.

In other words, silver buyers know that they’re buying at the bottom. And even if there are a couple of dollars to the downside, there remain perhaps hundreds of dollars to the upside (in a true hyperinflation the upside would be essentially unlimited). Where else on earth does one find this kind of spectacular risk/reward ratio!? This is a situation that comes around only rarely in the commodity markets. And even if the rumors about JP Morgan Chase buying several hundred million ounces of silver are true, it won’t do them much good when the day comes that they’re asked (ordered?) to sell some of their hoard into the marketplace to quell a buying frenzy. Even if they have, say, 350 million ounces, that’s about ONE lousy ounce for every man, woman, and child in the U.S.! And of course that completely ignores the rest of the earth’s investing population, at least several hundred million of whom will ABSOLUTELY become interested at some point soon in protecting their wealth from the fiat currency race to the bottom by purchasing hard assets, the most desired of which are gold and silver.

I’ve said many times that silver, not gold, is really the Achilles heel of the PM cabal. And the end game is nearing, I think. They cannot hold back the tide forever. Something must give. I doubt it will be the resolve of silver investors, who have already endured investment hell over the past four years and have become, no doubt, the strongest hands in the silver market. Whether it be a few weeks or a few months, the silver cabal’s Waterloo fast approaches, and I predict that when the worldwide silverfest begins, almost all forms of physical silver will disappear from dealers’ shelves in a matter of hours—and it may be several years before the market reaches anything near equilibrium again.

Finally, I predicted in Bill Murphy’s “Midas” column many years ago that the day will come when a silver contract won’t be worth anything near 5,000 ounces. I believe the facts above will guarantee that this change comes about, since the eventual price of silver will likely be many, many multiples of its present levels. I suppose time will tell…

Anyhow, that’s my story and—for today, at least—I’m stickin’ to it.

Kind regards as always.

Derek K. Van Artsdalen

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