Could Silver "Do A Palladium"?

Therefore, it's probable that – just like the gold-to-platinum, and platinum-to-palladium ratios – silver is set to massively outperform gold.

The First Stage: Just moving the ratio into the lower range of 40:1 gives us all-time nominal highs and vast outperformance for silver.

The Second Stage: Turning the gold/silver ratio on its head. Another underappreciated factor is that Bitcoin's meteoric rise, if sustained, could blunt global gold demand.

Let's say that silver, as factored above, goes through the roof and briefly hits $500 the ounce while gold hits $10,000. Doing the math gives us a 20:1 ratio.

Then if silver recedes to $250 you would have a "normal" 40:1 ratio. Under this scenario, primary silver producers would be "digging up money" in exchange for fiat!

Meanwhile, it's not a good idea to "challenge" the COMEX.

In The Art of War, Sun Tzu cautioned against attacking an opponent head-on. He also said you should set the field of battle so that you had already won before the conflict began.

This is exactly what the denizens at the "CRIMEX" do, and why they continually defeat all comers.

They can:

  • Change the rules (-see The Hunt Bros. 1980)
  • Alter margin limits and sell unlimited paper silver.
  • Enforce a trading rule of "offset positions only."
  • "Settle" silver obligations with fiat.

A (much) better way to "un-game" the silver system.

Uber-trader "Plunger" writing on Rambus1 com, comments: So why the strength in silver? I think it’s because the bullion bank silver cartel is in the process of unraveling and its ability to maintain its concentrated short position is entering into its last days...despite the army of silver detractors out there, the charts signal to me that silver is on the verge of a breakout..."

The WallStreetBets-Robinhood-GameStop fiasco poked a hole in the vaunted Masters of the Universe's game plan.

View single page >> |

Disclaimer: Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advise about or advocate the purchase or sale of any regulated security, listed on any ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.