The speculative frenzy in silver has provided welcome relief from AI claptrap, but will it last? There are a hundred theories about why silver has come exuberantly to life after lagging gold for so long. I’ve been puzzled myself, since my technical runes suggest that gold futures could make an important top at $5132, about $800 above Friday’s settlement price. Silver would likely peak at the same time, unless the squeeze on physical supply were to pick up enough climactic energy to cause an historical readjustment in the gold:silver ratio. The Founders thought 15:1 was the correct peg, implying silver could be trading for $342 with gold at $5132. That sounds farfetched, but stranger things have happened in the financial world, especially in markets caught in short squeezes.
What is most peculiar about the current run on silver is that it probably couldn’t have occurred without Trump’s blessings. He has said he wants a much higher gold price in order to monetize America’s few remaining, unhocked assets (including residential real estate). Letting silver off the leash would make almost everyone feel at least a little richer. The problem is, some of Trump’s most powerful buddies in the banking business are short silver up the wazoo. Citi and B of A alone reportedly have loaned out at interest $4.5 billion of silver they do not possess, exposing themelves to potentially catastrophic losses if AG quotes should soar anew.
Trump’s Fortunes
And what if gold goes no higher than $5132? A corresponding top in silver followed by a steep slide in both could cap Trump’s fortunes. It would certainly destroy the comforting illusion that financial markets are under control. Of course, crazy ideas like that can only persist in bull markets. If stock averages were to sell off by 30%-40%, which they absolutely will at some point, whoever is President at the time will be not just a lame duck, but a dead duck. Keen for more of my latest rantings? Find them on This Week in Money by clicking here.
“Trump has said he wants a much higher gold price in order to monetize America’s few remaining, unhocked assets (including residential real estate). Letting silver off the leash would make almost everyone feel at least a little richer.”
I wish it would make everyone a little richer, but… most people do not have any silver, so they’ll never see any benefit from a significant price rise. If anything, since the very interests you mentioned also don’t have any, and if/when this shell game of theirs fails, it will surely be the majority have-nots who will pay the heavy toll for the games of the minority have-nots.
But about monetization of real estate… I’m genuinely confused about what you said. Not in hock? Most of the residential real estate is under 30 year mortgages. And because the economy is doing so great and people are paying them off _too_ fast, Trump wants to extend those mortgages out to _50 year_ terms. Black Rock and some of those anti-silver buddies you mentioned have also been “quietly hinting” that they would like to see that happen. So residential real estate is only going to go further into hock than it already is. If it would be monetized, then it will be the monetization of debt, as per usual.
But here’s the thing about monetizing gold: gold doesn’t need a particular price in order to be monetized. All it needs is for governments to find the ‘nads to tell the financial interests to go to Hell (figuratively and literally). Anything other than that is just more shell games (then again, we do have a Carnival Barker in Chief). So, whatever that 🫏 says and does concerning gold and/or silver monetization, I would dismiss it. Given his stance on mortgages and his “we can borrow and spend our way out of this!” road map to “Making America Great Again”, he clearly is the very globalist establishment scum that many of his voters thought they were voting against. And that establishment is anything but in favor of monetizing gold and/or silver and for people getting out of the debt slavery they’ve worked so very hard to place them under (us, actually, because no one really owns the land they live on; the government not only collects taxes on it, but government is so far into debt… forget about it! The “true owners” are the false lenders, who also have not what they say, be it paper, gold, silver… or anything!).
Oh, and, uh… Happy New Year!