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But there are bread lines. They're called food banks and the number of homeless people keeps growing. I see cars (some nice cars) lined up on TV to get food at food banks.
Taibbi: Suck It, Wall Street! :
https://www.zerohedge.com/markets/taibbi-suck-it-wall-street
My Comment : Hooray for the Reddit day traders
Excerpt:
Even Nancy Pelosi, when asked about “manipulation” and “what’s going on on Wall Street right now,” said “we’ll all be reviewing it,” as if it were the business of congress to worry about a bunch of day traders cashing in for once.
The only thing “dangerous” about a gang of Reddit investors blowing up hedge funds is that some of us reading about it might die of laughter. That bit about investigating this as a “pump and dump scheme” to push prices away from their “fundamental value” is particularly hilarious. What does the Washington Post think the entire stock market is, in the bailout age?
In other words, it was all well and good for investment banks and executives of phoney-baloney companies to gorge themselves on funhouse profits on a funhouse economy, but when amateurs decided to funnel just a bit of this clown show into their own pockets, finance pros wailed like the grave of Adam Smith had been danced upon
From the article : It might want to keep some fiscal space in reserve in case of another disaster.
My comment: It's too late for that. Yellen says go big now. What happens when the next financial crisis hits (ie the bubbles burst) ? Go even bigger then ? It's a debt spiral from which there is no escape. At some point rates will rise due to the extraordinary amount of fiscal debt which I think will be at least $40Trillion by 2026. We're already over $30Trillion with the $0.9Trillion rescue package passed in December and the proposed $1.9Trillion that Biden wants. $2Trillion plus annual deficits for as far as the eye can see.
Reddit Preparing To Unleash "World's Biggest Short Squeeze" In Silver : https://www.zerohedge.com/markets/reddit-preparing-unleash-worlds-biggest-short-squeeze-silver
My Comment : Impact Silver (ISVLF) is one of the purest Silver miners around and it gets about 90% of it's revenues from Silver.
Excerpts:
The way the squeeze could occur is by forcing a much higher percentage of the futures contracts to actually deliver physical silver. There is very little silver in the COMEX vaults or available to actually be use to deliver, and if they have to start buying en masse on the open market they will drive the price massively higher. There is no way to magically create more physical silver in the world that is ready to be delivered.
The silver futures market has oscillated between having roughly 100-1 and 500-1 ratio of paper traded silver to physical silver, but lets call it 250-1 for now. This means that for every 250 ounces in open interest in the futures market, only 1 actually gets delivered
Global industry has been able to get away with producing so little new silver for so long because governments have dumped silver on the market for 80 years, but now their silver vaults are empty. At the end of WW2 government vaults globally contained 10 billion ounces of silver, but as we moved to fiat currency and away from precious metal backed currencies, the amount held by governments has decreased to only 0.24 billion ounces as they dumped their supply into the market. But this dumping is done now as their remaining supply is basically nil.
Also, with silver at $23 an ounce currently, this means all of the worlds investment grade silver only has a total market cap of $70 billion. For comparison the investment grade gold in the world is worth roughly $6 trillion. This is because most of the silver produced each year actually gets used, as I have mentioned. $70 billion sounds like a lot, but we don’t have to buy all that much for the price to go up a lot.
miners; I don’t recommend buying miners as part of this trade. Miners will absolutely go up if SLV goes up, but buying them doesn't create the squeeze in the actual silver market. Furthermore, most silver miners only derive 30-50% of their revenue from silver anyways,
Jim’s Rant For The Day. The Cheaters Are Cheating The Cheaters That Caught Them Cheating!
https://www.resetus.us/post/jim-s-rant-for-the-day-the-cheaters-are-cheating-the-cheaters-that-caught-them-cheating
Excerpt:
But more damages are ahead for the banksters because they fund Ameritrade and Robinhood to send them suckers by not charging commissions on stock activity. Because of the ownership, the Banksters directed the two trading platforms to sell the stocks without orders from their public clients. The Banksters tried to stop their losses by again resorting to cheating.
What we are witnessing is the Banksters demonstrating how they have been committing fraud on the unsuspecting public for years and the fact they will continue to commit fraud and contract interference to keep their money, all while the entire world watches the world of lies in real time. The Banksters just showed their hand and are about to get hit with class action law suites that can put them out of business in a real courthouse.
BIG BANKS CREATED A WHACK OF FUTURE CONTRACTS AGAINST GOLD YESTERDAY.... PERFECT SOTRM BREWING?
https://www.reddit.com/r/TheERAOfGold/comments/l86yvf/big_banks_created_a_whack_of_future_contracts/
Excerpt:
Yesterday, Goldman Sachs and JP Morgan created 8900 and 5729 future contracts out of thin air or a 41.7 TON gold (!) position for 2.7 billion.
Unbelievable they would do this in an environment, where we saw GameStop surge the way it did as the WallStreetBet crew recognized the opportunity to squeeze the hedge funds after they publicly announced their short positions.
I wouldn't touch it. The premiums are too high. The time to take a position is BEFORE the cat's out of the bag (ie before Reddit launches their attack on the shorts).
The Reddit group has turned their focus on the silver shorts, which JP Morgan has a large silver short position. I would really like to see JP Morgan take a big hit on their silver short positions. The question is how much will the regulators allow the price of silver to rise and thereby hurt JPM before they step in.
David Erfle Weekly Kitco Precious Metal Sector Op-Ed (mailchi.mp)
The WallStreetBets group is focusing on SLV as their next short squeeze target and the silver ETF was up 5.55% yesterday with huge volume. The futures market is a mix of physical metal and futures trading, but the SLV ETF takes physical delivery of the metal. The idea is that by buying shares in SLV, they could put the pressure on the physical market and make a spike profit, which some already did so yesterday when the silver price sold off into the afternoon.
JP Morgan is clearly the next target of the group after Melvin capital suffered a huge setback recently with GME stock. JP Morgan reportedly holds the largest short position in Silver and a short squeeze will affect them severely. Older readers may remember the Hunt brothers cornering the silver market during the late 1970’s.
Amen, brother ! -
"This Is A Financial Revolution..."
https://www.zerohedge.com/markets/financial-revolution
Excerpts:
But two days later I received an email from my broker explaining that they were CANCELING my trade.
The poor little investment banks had lost money because their fancy algorithms didn’t work. So the exchange was giving them a ‘do over’ at my expense.
Incredible. It hadn’t even been two years at that point since the banks had to be bailed out at taxpayer expense during the Global Financial Crisis of 2008.
Then, 20 months later, the Flash Crash happened. And the banks were simply able to wipe all their losses away.
The lesson is obvious: when we screw up, we pay the price for our mistakes. But when the banks screw up, the whole financial system comes to their rescue.
Individual investors are angry; comments on the subreddit r/wallstreetbets really sum this up:
“Hedge Funds have literally taken lives through their greed. It’s time for some long overdue taste of their own medicine.”
and
“It’s a class war. It’s time we fought back.”
and
“[Hedge funds: ] This is personal for me, and millions of others. . . I’m making this as painful as I can for you.”
and
“There is and has been a ruling class whose sole purpose is to retain power. They gaslight us into thinking they know what is best for us. 1% knows better than 99%. This is not [about] stocks, this is a financial revolution. . .”
And they’re right.
Small investors have been fleeced for years. It’s infuriating. People are angry.
If you think the stock market is rigged, you don’t have to play. Consider alternative investments instead– gold, real estate, private companies, crypto, etc. It may be more productiproductive to NOT play the game rather than take huge risks to fight the system. [My Comment : Of course gold is manipulated as well, Crytos are in a bubble, and RE is driven to extremes by Fed liquidity]
Either way, expect the anger to continue building. (Just imagine the fury if inflation starts to rise…)
My Comment : This article does a very good job of summarizing the market's disfunction. At some point I think there will be a tremendous price to pay for the market interference by the Fed. Reddit is just a reaction to the Fed's own manipulation. It's important to be protected from what's coming. I don't think we have long to wait for things to really come apart at the seams.
Is This 'The Market Spring'? | ZeroHedge
Excerpt:
This where this gets really dangerous for everyone.
For the last 13 years since the Global Financial Crisis we’ve seen the most incredible transfer of wealth from the real economy into financial assets; stocks and shares. This has happened because of central banks propping up the real economy by bailing out bank, keeping interest rates low and buying bonds via QE. Meanwhile, voters have listened and watched as a strong financial asset markets are equated with economic success. They listened to Donald Trump equate the success of his presidency with a rising stock market, and many applauded as Trump bullied the Fed into easing to push up the index as his popularity wavered.
As I highlighted yesterday, most of the money the Fed and other central banks has barely touched the edges of the real economy. Most has gone straight into financial assets, driving up the price of stocks – which is why everyone who knows anything from experience about stock markets thinks they are in bubble territory.
Lots of Americans now equate success with a strong market, and wonder why it doesn’t percolate down to them in their rotting cities. They want a bit of it, which is why lockdown and bored young people with nothing else to do are now playing stocks like it’s a game. They’ve never heard my first rule of markets: “The market has but ambition: to inflict the maximum amount of pain on the maximum number of participants.”
It’s not just the Reddit mob who will likely be disappointed. We will all lose out due to distortion. It’s killing capitalism. 19% of US companies are now Zombies – companies that will die if rates normalise. We’re seeing similar numbers in Europe and the UK. As long as rates stay low these dinosaurs continue to dominate and stifle market innovation.
Such firms defeat the purpose of capitalism – distorting the cost of capital and favouring the growth of corporate bureaucracy and inertia. Large companies that are too-big-to-fail, survive on the back of subsidy and bailouts, or can continue to borrow on the argument debt is so cheap, levering themselves higher and higher while doing nothing to improve productivity or their product lines either become long-term economic bed-blockers, or, as is happening now, become blocks on innovation.
Tesla is a great example of how a disruptive new company that created a paradigm shift from the old Internal Combustion Engine, and replaced cars with connected software driven Electric Vehicles, at a stroke reinventing the whole basis of personal transport and allowing us to move towards driverless cars, and new ownership models where cars can become financial assets making a positive return.
Maybe. But for every Tesla that’s created expectations of extraordinary disruptive profits, the end of Schumpeter’s Creative Destruction as the driving force of capitalism has created firms like Boeing: using the same old 1960s format plane with minimal and dangerous modification to reap windfall profits from mass production, which they invested in stock-buybacks to push up the stock price so the executives could pay themselves more.
If I was to bring a new planemaker to the market, based around new clean carbon battery technology that forms the wing and fuselage, with a power density enough to power meaningful lift capacity via electric engines, I’ll struggle to find finance. I’ll be told it doesn’t work because its too frontier finance, it will be tech risk, it will be “too expensive to succeed in current market”, and how-much-can it attract in subsidy.
But the real reason will be that money management has become as distorted as capital flows. All these years of financial repression hasn’t just killed business, but has killed investment as well. Markets are following money and not real growth and the real economy.
Finally, it’s worth bearing in mind some fundamental numbers about how this market is distorted – I took this from a piece on Linkedin: "Total stock market capitalization vs GDP on inauguration day of a new president: Ford: 40% Carter: 47% Reagan: 43% Bush I: 53% Clinton: 64% Bush II: 117% Obama: 60% Trump: 125% Biden: 190%"
It’s not just me that thinks the market is a bubble that should burst. There isn’t a single reputable name out there saying anything except this is dangerous. I listen to these guys because they suffer from experience. I’ve seen this in 1987, 1992, 1998, 2000, 2008 and today. I’ve seen this before.
Doug Noland's weekly Credit Bubble Report at http://creditbubblebulletin.blogspot.com/
Weekly Commentary: Short-Term Unsustainable
My Comment : Try raising taxes when the stock market bubble bursts and the economy is in a depression.
Excerpts:
Senator John Thune (from Yellen’s confirmation hearing): “I’m going to try and roll a lot of thoughts and questions into sort of one big package here. But the one thing that concerns me that nobody seems to be talking about anymore is the massive amount of debt that we continue to rack up as a nation. And, in fact, the President elect has proposed a couple trillion dollar fiscal plan on top of that which we’ve already done - which would add somewhere on the order of about $5.3 trillion to deficits and that’s according to the committee for responsible budget of which you have been a board member.
That’s 25% of GDP, and it would move the additional debt above 100% debt to GDP
And at some point, the risk/return ratio, that people who are lending us money are going to say, is not sufficient for the risk, and they’re going to demand a higher interest rate. That will happen at some point. Interest rates will start to normalize, and we have to refinance at a higher interest rate. And pretty soon the interest on the debt exceeds what we spend on even national security for our country.
Washington has employed massive fiscal and monetary stimulus despite ultra-loose financial conditions and booming markets. The big crisis commences – the unsustainable is no longer sustained - when financial conditions tighten and the financial Bubble bursts. The time for “acting big” is in a post-Bubble backdrop and definitely not while the Bubble is inflating madly.
From the Bit Short to ..... -
Bitcoin Surges As Microstrategy Buys Another $10 Million : https://www.zerohedge.com/markets/bitcoin-surges-microstrategy-buys-another-10-million
Could MSTR be the big short ?
Bitcoin could be 'wiped out' if this happens : https://www.kitco.com/news/2021-01-15/Bitcoin-could-be-wiped-out-if-this-happens-Ryan-Giannotto.html
My Comment : A report on the radio also said that 20% of bitcoin buyers could not remember their passwords and were unable to access their accounts to retrieve the bitcoins (they get permanently locked after a number of false tries). Still want to buy Bitcoin for $40K ?
Full Text :
(Kitco News) - Bitcoin is one of the most unequally distributed assets in the world, with just under half a percent of all bitcoin investors owning more than 80% of all bitcoins, and should they liquidate, the market could see a substantial sell-off, said Ryan Giannotto, director of Research at GraniteShares ETFs.
“It’s a major challenge for the asset class: it’s intended to be a financially democratizing force, yet it is so profoundly distributed in an unequal fashion. It’s really unlike anything we’ve ever seen. This is one of the perils of bitcoin investing that go unreported, undiscussed,” Giannotto said. “It is a seriously cornered asset class.”
Five hundredths of a percent of bitcoin investors control over 40% of all bitcoin, and just under half a percent of all bitcoin investors control over 5/6ths, or 83%, of bitcoin, he noted.
Most of these larger stakeholders, or “whales” as they are referred to as in the crypto community, are early adopters of bitcoin.
If these early adopters of bitcoin were to sell their holdings altogether, that would exceed the daily trading volume, effectively “wiping out” the asset, Giannotto said.
Typo, should be VanadiumOne (VDMRF)
Fed's Rosengren says need to keep buying MBS, Treasuries : https://www.kitco.com/news/2021-01-15/Fed-s-Rosengren-says-need-to-keep-buying-MBS-Treasuries.html
My Comment : The Fed keeps printing (watch their balance sheet explode higher) and the government keeps spending (watch the national debt explode higher). A symbiotic relationship.
Excerpt:
(Reuters) - Federal Reserve Bank of Boston President Eric Rosengren said on Friday he welcomes President-elect Joe Biden’s proposed $1.9 trillion stimulus package as “big” but “appropriate,” and signaled the Fed has no inclination to dial back from its own super-easy monetary policy.
I need to know before it breaks out...if you could continue to posts those potential breakouts. I'm buying into and watching ValadiumOne (VDMRF) which is mostly iron ore. Also buying small PM miners such as SMREF and waiting on Condor (CNRIF) and Impact Silver (ISVLF).
Link to post this responds to is https://www.zerohedge.com/markets/world-bank-head-sees-quiet-financial-crisis-brewing-pandemic-lingers
ECB's Lagarde Calls For Global Regulation Of "Reprehensible" Bitcoin : https://www.zerohedge.com/crypto/ecbs-lagarde-calls-global-regulation-reprehensible-bitcoin
My comment : I expect to see more of this. The CBs cannot allow a currency beyond their control.
Financial Crisis Ahead ? -
World Bank Head Sees "Quiet" Financial Crisis Brewing As Pandemic Lingers : World Bank Head Sees "Quiet" Financial Crisis Brewing As Pandemic Lingers | ZeroHedge
My Comment : It's just a matter of time. Will the PMs be a safe haven ?. The Fed will most certainly try to prevent a crisis, but at some point it becomes more than they can control. In the meantime both monetary and fiscal stimulus are running at full speed which forces the market bubble ever larger.
Excerpts:
She also said, "there's been a problem that has been delayed but not avoided" - that is the households' ability to repay their mortgage and service any other debt. During the virus pandemic, financial institutions worldwide agreed to grace periods for businesses and households, so they don't have to repay their debts.
Reinhart then asks the trillion-dollar question: What happens when those grace periods come to an end?
To sum up, Reinhart suggests the world faces a financial crisis if the pandemic continues to ravage the global economy.
This was a similar message that SoftBank CEO Masa Son warned about a couple of months ago of an impending "disaster" that could tank global markets.
More recently, GMO's co-founder Jeremy Grantham's latest research note suggested "this bubble will burst in due time, no matter how hard the Fed tries to support it, with consequent damaging effects on the economy and on portfolios. Make no mistake – for the majority of investors today, this could very well be the most important event of your investing lives."
And with 10Y nominal yields surging in recent days, maybe the bursting of the bubble is much closer than we think
Yields Surge As Stunned Traders Learn Biden To Propose Massive $2 Trillion Stimulus : https://www.zerohedge.com/markets/yields-surge-stunned-traders-learn-biden-propose-massive-2-trillion-stimulus
My comment : Throw in more health care spending and student loan debt forgiveness and so on and so on.
Look at CYP
Ever seen one of these ? -
This rare 1950s BMW cost $9,000 new and will auction for an estimated $2.3 million - tour the 507 Roadster : https://www.msn.com/en-us/money/companies/this-rare-1950s-bmw-cost-9-000-new-and-will-auction-for-an-estimated-2-3-million-tour-the-507-roadster/ss-BB1cBsWI?ocid=msedgntp
Things are degenerating from the preposterous to the surreal. I know political comments are frowned on here, but things in Washington have become unhinged. Both the Democrats and the Republicans are acting like fighting adolescents. The idea that Trump could actually incite people to riot and that the Democrats would try to impeach him when he only has 12 more days in office is absolutely absurd behavior for both parties. And it is not likely to change with Biden as President.
Biden says economic package will be in the trillions of dollars : https://www.kitco.com/news/2021-01-08/Biden-says-economic-package-will-be-in-the-trillions-of-dollars.html
My comment : No surprises here. Watch the national debt explode higher.
Full text :
WASHINGTON (Reuters) - U.S. President-elect Joe Biden said his administration’s economic package will be in the trillions of dollars and include unemployment insurance and rent forbearance.
“It is necessary to spend the money now,” Biden told reporters. “The answer is yes, it will be in the trillions of dollars, an entire package.”
Lance Roberts: GMO's Jeremy Grantham Is Correct, There's An 'Epic Bubble In Stocks' : https://www.zerohedge.com/markets/lance-roberts-gmos-jeremy-grantham-correct-epic-bubble-stocks
My comment : I'll hedge with SJB calls if I can buy them cheap enough. The Fed will need to buy a huge amount of Treasuries to keep interest rates down as bonds react to an economic recovery from the pandemic and to the potential of substantial fiscal stimulus from the Biden administration.
Excerpt:
While there is still potential upside for many of the stocks as central banks inject a record $1.4 billion in liquidity into capital markets every hour, there could be an adjustment in valuations as interest rates begin to rise.
The risk-reward for stocks has deteriorated materially, and the market is ripe for a drawdown.
Trade deficit widens in November -
U.S. labor market recovery stalling; trade deficit widens sharply : https://www.kitco.com/news/2021-01-07/U-S-labor-market-recovery-stalling-trade-deficit-widens-sharply.html
Excerpt:
A third report from the Commerce Department on Thursday showed the trade deficit widened 8.0% to $68.1 billion in November, the highest since highest since August 2006. The deficit was boosted by a jump in imports as businesses replenished inventories.
World's Top Economies Brace For $13 Trillion Debt Maturity Vortex : https://www.zerohedge.com/markets/worlds-biggest-economies-prepare-13-trillion-debt-maturity-wall
My comment : So, can the Fed keep interest rates low with the economy beginning to recover and fiscal stimulus likely to increase dramatically ? I doubt it.
Excerpt:
Despite surging coronavirus infections, hospitalizations, and deaths weighing on the global recovery as the vaccination rollout is much slower than first anticipated, central banks will continue to pin interest rates near zero to keep borrowing costs low to allow these countries to roll over their pandemic debt.
The largest government debt refinancing will be in the US, with $7.7 trillion of debt coming due, followed by Japan with $2.9 trillion. China has $577 billion coming due, Italy has $433 billion, followed by France's $348 billion. Germany has $325 billion.
All of the countries' respective central banks will need to hold interest rates as low as possible for debt refinancing. No country - whatsoever - can afford to pay higher interest on debt in these challenging times.
The bottom line: With sovereign yields plunging to record lows, it is only reasonable that governments across the world flood the market with as much debt as possible, to roll over 2020 pandemic debt, and also attempt to thwart a double-dip recession. As long as sovereign yields stay low, global debt will soar.
Art Deco Cars That Are Still Beautiful Today : https://www.brakeforit.com/classic/art-deco-cars/
My comment : WOW ! Todays auto designs all look the same. You can't tell one make from another. The art deco designs were distinctive and fantastic.
Fiscal stimulus prospects from Dem Senate win(s) boosts stocks (DJIA up 600), but not gold (gold down $45) ? Something is wrong with this picture.
How The Fed Juices Stocks : https://www.zerohedge.com/markets/how-fed-juices-stocks
Excerpt:
We came across the following bullet points from a Seeking Alpha article titled- The Fed is not Juicing the Stock Market.
It makes for a great headline, but the Fed is not the cause of this rally.
Every dollar the Fed has pumped into the economy is spoken for, and it is not in equities.
The truth is a lot more boring and scary than the conspiracy theory.
Cars...if you like cars -
The most beautiful cars ever made : https://www.msn.com/en-us/autos/enthusiasts/the-most-beautiful-cars-ever-made/ss-BB1bpQVn?ocid=msedgntp#image=1
My comment : They left out a few of my favorites : (1) 1971 Volvo 1800E and (2) 1957 Ford Thunderbird and (3) 1954 MGTF
The Decline & Fall Of Dollar Hegemony : https://www.zerohedge.com/geopolitical/decline-fall-dollar-hegemony
My comment : As I noted in an earlier post, this could restrict the Fed's ability to respond to market mayhem with more printed money.
Excerpt:
The US dollar’s position as the dominant global reserve currency is an immensely important factor in supporting the ballooning US government debt, the Fed’s drunken money-printing, and Corporate America’s ambition to offshore production to cheap countries, thereby creating huge and ever-growing trade deficits. They all have become dependent on the willingness of other central banks to hold large amounts of dollar-denominated paper. But from the looks of things, those central banks might be getting a little nervous.
This will not end well -
My comment : Everything depends on how the Fed reacts..at least until printing money becomes counterproductive as, for example, inflation really becomes a problem and/or the US$ crashes.
US Housing Enters 2021 In A Massive Bubble : https://www.zerohedge.com/markets/us-housing-enters-2021-massive-bubble
Excerpt:
And since the Fed won't do anything to address this - as per Powell's comments - and the Fed will certainly not hike rates, one wonders what will happen some time in 2021 or 2022 when we will live through the collective bursting of both the biggest stock market and housing bubble at the same time
Happy Holidays to all
Got Bugatti ? -
Ultimate Barn Find: 1937 Bugatti Type 57S : https://www.msn.com/en-us/autos/enthusiasts/ultimate-barn-find-1937-bugatti-type-57s/ar-BB1cdcys?ocid=msedgdhp
Excerpt:
This car will be sold by Bonhams as part of their Legends of the Road sale, which begins on February 19 in London. Bidding is expected to surpass $5 million.
'Silver may take the gold': Bloomberg Intelligence is looking at $50 silver price : https://www.kitco.com/news/2020-12-22/-Silver-may-take-the-gold-Bloomberg-Intelligence-is-looking-at-50-silver-price.html
Excerpt:
(Kitco News) Silver's bull market is just beginning, said Bloomberg Intelligence, which sees silver as the "primary metal" benefitting from electrification and quantitative easing next year.
More Treasure -
Up to $113Million for one find and priceless for another
These people's new homes contained hidden treasure : https://www.msn.com/en-us/travel/news/these-people-s-new-homes-contained-hidden-treasure/ss-BB1c6S45?ocid=msedgntp#image=01
Silver also looks to be a major beneficiary of the green phenomenom -
Silver Set to Outpace Gold in 2021 : https://www.kitco.com/commentaries/2020-12-18/Silver-set-to-outpace-gold-in-2021.html
Excerpts:
(Kitco News) - Although the gold price hit all-time highs this past summer, silver still has plenty of catching up to do. After temporarily trading at just $12 per ounce during the March panic in the marketplace, silver may look pricey now. But it has far more upside ahead than gold, as bullion likely struck a bottom in late November and is set to continue its rally after completing its recent 15% correction of outsized gains.
With silver at $25 per ounce, the mostly industrial metal has been a clear laggard. It’s estimated that around 60% of silver is utilized in industrial applications, leaving only 40% for investing. Of the 60% used for industrial applications, almost 80% ends up in landfills. This means that the rate of “loss” due to industrial use is much higher than gold’s, making it more susceptible to supply constraints. From over 50 billion troy ounces of silver ever mined, less than 5 billion remains.
Silver soared in the late 1970’s, as rising inflation rates sent retail investors, along with the billionaire Hunt brothers, into the lower-priced metal that went from $5 in 1978 to $49 in 1980. Chances are we will eventually see a similar percentage gain move at the end of the current bull run of this tiny sector, either with or without some billionaire attempting to corner the market.
So you want to play the markets -
"Insane" S&P Rebalance Ends With Tesla Smashing All-Time Volume Record : https://www.zerohedge.com/markets/insane-sp-rebalance-ends-tesla-smashing-all-time-volume-record
My comment : Just buy Tesla (how overvalued can this stock get ?)
Excerpt:
Yet what is even more bizarre is that not even "Greek" gurus like SpotGamma have a reasonable explanation for the sudden, last minute VIX plunge, although their guess was that the $50BN for sale by the indexing community likely finished up sometime around that VIX drop and subsequent SPX rally. The reality is that this market has become such a mishmash of signal and noise - all in response to the Fed's intervention - that nobody can possibly make any sense of what is going on any more.
I recently bought Palladium One (NKORF). Palladium is in short supply, it's expensive, and the demand will increase with the green solutions.