The New CS Board

[jumanji0881]

Silver Shortages Suggest We Are Only Months Away From $50 Silver

https://seekingalpha.com/article/4404967-silver-shortages-suggest-are-only-months-away-from-higher-silver

My Comment : Meanwhile cryptocurrencies (eg Bitcoin) are exploding as a hedge against a depreciating US$ (but not silver). Are the banks behind the curve ?

Excerpts:
In that sense, a silver run is similar to a bank run. Bank runs tend to feed on themselves. Monetary demand for silver is essentially a run on the dollar, which is itself primarily a monetary reserve. The way you stop a run on the dollar is you raise interest rates on the dollar. But what if doing that is impossible because the level of debt in the economy is so enormous that raising interest rates would collapse the economy and the stock market?

But if you can’t raise interest rates, the only way to stop a dollar run and a flight into precious metals as a monetary reserve is to push the paper price of silver down by shorting silver futures. Banks have a vested interest in doing this because if the dollar falls too fast, the value of the bonds on their balance sheet plummet, causing a systemic banking crisis. If silver stops rising in dollar terms though on the paper markets, the demand for it as a monetary reserve tends to eventually ebb, stabilizing the dollar that way.