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My favorite investment of all time as you know is physical silver. The question I am posing today is when will the physical silver market disconnect from being priced according to the fiat paper contract silver markets? It’s getting quite ridiculous really and it is extremely frustrating for physical silver savers right now. But don’t fall for the fiat price trap and don’t sell it unless you absolutely have to. Let me explain.
We’ve all heard of the many reasons that the physical silver’s price should by rights be at historical valuations of about 16:1 to gold or even less provided its increasing rarity compared to gold. So why is it now over 50:1 when there is overwhelming evidence that physical silver is rare and will become much more scarce as the next decade progresses? And also considering its monetary value globally, everybody should own some silver if they want to save and want to hold real money.
Some have crunched the numbers and show that the paper silver market trades at 100 times the underlying physical silver available to be bought and sold. If that’s not price fixing and corruption of the real supply and demand, I don’t know what is? How can fictional physical silver be traded and a real price be determined if you can buy and sell unlimited amounts of it without having to dig it up, process it and make into pure bullion?
Let’s face it…the markets are simply a rigged game. The central banks are pumping and priming the markets and inflation is rampant as is shown in the increase in market prices, especially with food, gold and oil. A simple trip to the grocery store these days will surely slap you in the face with the inflation hand. If it keeps up, we will see hyperinflation destroy our wealth unless you hold physical silver or gold. So what the hell is going on with physical silver and the valuations we are forced to accept from the silver paper markets?
There will be a day, and I believe that day to be in the near future, where the world will realize that physical commodities traded on paper contract markets and stimulated by free paper currencies from central banks, are being valued completely wrong. Real supply and demand forces are trying to correct prices and at the same time, the plunge protection team through the central banks are holding them back in an effort to create the perception of value in their paper dollars. They cannot allow real money, gold and silver, to overtake the fiat currencies like the US dollar. But when you look at prices out there in the real world, it’s very easy to see that real commodities are showing us that monetary inflation is rampant no matter what the rigged CPI numbers say.
For those who are forced to sell some or all of their physical silver to provide for their everyday needs, it’s very frustrating seeing the prices being manipulated down. But that is their intention. They are trying with all guns blazing to scare the savers out of their real money and back into their paper currency debt notes.
Hang tight if you can because I have a feeling that physical silver will disconnect from the paper price soon. I look at E-bay on occasion and there you have a better indication of the real price of silver and gold. It’s global market place for real physical items that people want and need. The markets have an influence as many people price their items for sale based on the paper market price, but the bidders are bidding up and paying much higher prices for physicals than the market prices in many instances. And it’s not just the collectible coins and bars either. Investment bullion is selling for many dollars over spot in many of the auctions.
This E-bay pricing tells me that we are seeing a break away from the paper price to the real physical price. And it should just continue to get exponentially higher as the disconnect continues to break out. All you have to do is watch CNBC and watch the circus to see that traders are baffled by the numbers and the charts. Data and chart reading that used to yield perpetual profits are all messed up. Prices are up and down like a kid on a trampoline, as the plunge protection team battles the everyday investor. Real supply and demand factors can no longer be relied on. That is why the market now jumps when Ben Bernanke does as little as take a crap in the morning. The minute his mouth opens on TV, the markets react in one way or the other. That folks is market manipulation and the traders are forced to rely on government stimulus, inflation and money printing to try to time the market to make profits.
BUY PHYSICAL SILVER AND HANG TIGHT. Now is the time to do it as they have prices manipulated so low. And buy your metals from a dealer who prices their metals according to the live spot price. It’s a steal of a deal right now. Only $32 USD for an ounce of silver!! In just a few years and then even further to a decade from now we’ll be looking at silver as we looked at gold back in the sixties. Hold enough of it until then and you could very well find yourself a very wealthy person. Windfall taxes, confiscation and other factors may have an effect, we’ll only know in time. But I would rather hold silver than paper as we know for sure that the paper will become worthless with inflation. The silver will not and will definitely be valued very high in the new currency system back by gold and silver. What would you rather hold?
I had to add this report that was just sent to me: TRReport26
Regards, Frank
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I don’t know how much longer before the disconnect will come, but I’m with you in felling like it isn’t too far off. Gold and in tandem, Silver, are slowly being allowed to rise in a managed fashion so that citizens don’t get alarmed too fast. But I think they are running out of ammo to keep it suppressed.
You should check out the video by Kyle Bass if you haven’t seen it. It’s telling:
Great video. Thank for posting it in the comments. It went to my spam inbox, I noticed it there, then pulled it out so sorry it took so long to approve. I’ll be blogging it on the main page this morning. It’s just more evidence of fractional reserve practices throughout the the banking and investment industry. It’s as though it has been become such common place that the regulators don’t even look it at any longer and the public is oblivious to it. Like he says, “…what if only 4% of investors want to take delivery?”. That would likely take all of the metals held in reserve and they would have to source more to cover the rest. (Then they also need to replace the reserves on top of that). The market doesn’t have that much metal so they’d be forced to settle in cash at the going price. When the masses realize how this works, does anyone believe that they will feel safe in an SLV or GLD anymore? Not a chance…they will get out there and start buying physicals and take delivery. Possession is 9/10th of the law and I’m sure once people realize they can’t really take possession of their metals they think they own…watch out.
Glad you like it. You’re dead on, MFGlobal should have been the wake up call for people to take delivery on metals but so few listened. Once the MSM and gov can no longer cover up the fraud with their spin, there’s going to be a rush on the metals that will be a huge shift economically around the globe. It’s just a matter of time, in my opinion.
The Bernank is a typical Phd: (like all doctors), He has a God-complex. His experimental theories are about to end like they always have with people who think they can break The Common Law… they get punished.
Round and round and round we go…
Agreed wholeheartedly my friend. Cheers, F
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