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WARNING: COULD GET NASTY FOR SILVER!

This article was contributed by Lior Gantz of the Wealth Research Group. 

I know many want to hear that silver is ON ITS WAY to hitting $50/ounce at the SNAP OF A FINGER, but it might take a while for that to occur.

In March, $30tn worth of stocks and bonds WAS SOLD, creating enormous demand for dollars. This squeeze caused the paper price of silver to drop to $12/ounce, EVEN WHILE the physical metal was selling for double that amount.

The spread was big as it ever was. The return of liquidity to markets, ORCHESTRATED by the Federal Reserve, reassured businesses and individuals the world over that this isn’t a credit contraction. Instead, they can safely resume MARKET ACTIVITY and they did, with bullish fury.

Millennials and, in general, retail investors, who have either been staying at home, laid-off or put on paid/non-paid leave, have been looking for ways to replace their NORMAL WAGES. They have turned to the stock market, a phenomenon that has pushed valuations for certain stocks to LA-LA-LAND.

This recent correction in the NASDAQ has brought down some of the greed factor, but it’s still here and won’t be COMPLETELY DIMINISHING for the foreseeable future.

Courtesy: Zerohedge.com

Market forecasters thought that once the professionals STARTED SELLING, these retail traders would be shaken out and run back to their caves, but as you can see, hedge funds have begun buying, NOT SELLING.

What’s really interesting is that the wealthy and the institutional money have been either SELLING or MARGINALLY BUYING throughout this period, certain of themselves that cash is better than owning stocks.

While central banks have been SHOWERING LIQUIDITY, the wealthy have been sitting in the stands LIKE SPECTATORS, viewing the match from the sidelines.

This has been A HUGE MISTAKE!

Contrary to their tactic, we’ve not been fighting with the FED and, INSTEAD, have been buying LEFT AND RIGHT, which has resulted in MASSIVE GAINS.

Courtesy: U.S. Global Investors

Is it time to RECONSIDER BULLISHNESS? The true answer is that it’s an ETERNAL QUESTION that an investor ought to ask himself on a daily basis.

We believe that the STRONG BOUNCE is largely over, in both silver and tech stocks. The justification for higher prices will come after the UNKNOWNS become known:

  1. Who will win the elections? American historian Allan Lichtman, who has correctly predicted all election results since 1981, save for Al Gore’s loss (cheated by voter fraud and voter count suppression in Florida, though), has predicted A BIDEN VICTORY- we shall see…

If that happens, corporate taxes and probably CAPITAL GAINS taxes are going higher, thus companies will be worth less.

Consider that possibility for a second, because it’s one reason that Ray Dalio is diversifying OUT OF U.S. EQUITIES and into other regions.

Courtesy: Zerohedge.com

Could anyone have predicted how much FANGMAN (Facebook, Amazon, Netflix, Google, Microsoft, Apple, and Nvidia) would be COLLECTIVELY WORTH, driving the indices into all-time highs, even while the other 490 companies are relatively flat? NO! This is the value of owning AN INDEX FUND!

Now, though, with the index at all-time highs and with this HUGE BOUNCE back, the best investors are looking at the DICHOTOMY, which is to say that they’re investing in the distressed industries, which are cheap, not solely in the ones that enjoyed a STRONG TAILWIND from stay-at-home orders.

With regards to silver, you can see that investors are taking profits, AT THE MOMENT (the red lines are monthly NET OUTFLOWS):

Courtesy: Zerohedge.com

This is GOOD if you understand that it means that there’s NO BUBBLE in silver, but it’s BAD if you leveraged and are overweight on silver at present.

Silver is up more than 100% since March.

Trade with AGGRESSIVE PATIENCE; in other words, let opportunities come to you!

 

The post WARNING: COULD GET NASTY FOR SILVER! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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IMMEDIATE TRIPLE-DIGIT UPSIDE: $27 Silver – It’s INEVITABLE

This article was contributed by James Davis at Future Money Trends. 

We are on our way to potentially hitting $2,400 gold, a POTENTIAL 50% MOVE from today’s price, and $27 silver, a nearly 100% gain, all within LESS THAN two years.

Because of everything that’s happened and is STILL occurring, many have lost sight of the fact that the Federal Reserve, Congress, and Treasury department have just PUT THEIR JOCKSTRAPS ON and defended the system from swirling into a hyper-deflation default free fall that could have taken the system DOWN for good.

As you know, I’m not exaggerating. The Federal Reserve has embarked upon operations that make Bernanke look like a believer in limited government compared to Jerome Powell’s EMERGENCY measures. Not only did he slash rates to next to ZERO, but he is also implementing INFINITY QE, open-ended swap lines with Europe (to keep their banking system alive), $1T DAILY repo lending, and is buying corporate debt, stocks, bonds, mortgage-backed securities, making small-business loans, and BLANKETING the global economy with UNRIVALED liquidity.

I’ve never been more certain that precious metals and mining stocks are going to stage a STUPENDOUS rally that might be the LAST bull market under the dollar system!

Courtesy: Zerohedge.com

As you can see, the Federal Reserve is on a SUREFIRE trajectory to double the size of its balance sheet because the U.S. Government has funding requirements that are too large to be met by normal lenders (foreign countries and domestic investors).

In the next 2-4 years, the Federal Reserve will be buying between $3T-$5T worth of bonds, and that will make the NATIONAL DEBT rise quickly towards the $30T range.

NO ONE on this planet wants the dollar to become weaker more than the people in Washington, and this is the only time I believe politicians when they say they will debase it.

What I’m telling you is that since we’re not on a gold standard and since China is hoarding gold, Washington’s best weapon is to reprice gold through some legal procedure.

When they do it, every foreign country that owns gold has just lost 50% of its DOLLAR PURCHASING POWER!

This was done by Franklin Delano Roosevelt, in a sense, and I believe it is one way to lighten the burden of debt without defaulting.

Courtesy: Zerohedge.com

In our last HYPER-DEFLATION meltdown and rush to cash, which happened in 2008, it soared over 100% from its bottom to its top. Silver JUMPED by close to 500%, making both incredible candidates for the reflation.

The mining shares, though, were far more lucrative.

This is a great time to consider taking profits on our FANTASTIC numismatic trade from last August and to assume a CASH-RICH balance, as we get ready to begin nibbling at the juniors.

I’m working feverishly to put together the ULTIMATE SHOPPING LIST, and it will be completed shortly.

What’s already been done can’t be put back in the box.

The fiat monetary system is predictable once it HITS extremes. Right now, we saw a $12T LIQUIDITY SQUEEZE in the dollar. That cash needs to go back into equities. Is it a safe bet to predict that with bonds at ZERO RATES, no matter which country you look at, GOLD is far more attractive than ever before? And with mines GETTING SHUT DOWN, are the junior miners like MINI-ROCKETS on their way to new heights?

LP(L) /gold

 

LP(L) – Gold

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BREAKING: Army Patrolling – America Goes 3RD WORLD!

This article was contributed by Tom Beck at Portfolio Wealth Global. 

Since 2008, the middle class and the working class have SEEN ENOUGH of corporate bailouts. Now, when CEOs shout that they’ll go bust if Washington doesn’t provide liquidity, Congress isn’t so quick to be the lender of LAST RESORT.

Americans distrust the wealthy. Americans distrust government and, for the most part, Americans distrust each other.

Therefore, when coronavirus has caught the country in the later stages of an incredible economic boom, it (economic improvement) was the only thing keeping the ship sailing smoothly.

The losses have been MONUMENTAL since the Covid-19 started spreading, though. In 2008, homeowners lost a collective $8 trillion. In less than a month, investors have lost $30 trillion in the 2020 pandemic. That’s 50% MORE than a full year of GDP.

These sorts of losses are not only shocking, but they’re CALLING INTO QUESTION the very fabric of the fiat monetary system.

The most obvious short positions of the past three weeks have been airlines, hotel chains, casinos, oil companies, and cruise ship businesses. The profits have been STAGGERING.

MGM Resorts, for example, is down 77%. Norwegian Cruise Lines, which is part of the S&P 500, is down 85%. Gap, the clothing giant, is down 60%. Halliburton, famous for its Dick Cheney days, is down 80%.

Look at this HISTORIC calamity:

Courtesy: Zerohedge.com

Stock prices have forfeited the last 3.5 years of gains. The S&P 500 and the Dow Jones Industrial Average are LOWER than they were on the day that Trump took office.

I’m beginning to BELIEVE that the upside of short positions are over and done with since these companies are priced for bankruptcy and the government will NOT let them fail.

We know as much because Washington has just approved a $2,000,000,000,000 PACKAGE. No, you’re not seeing double; the folks at the hill decided that $2 trillion will be enough to start with.

Our system is so stupidly rigged. The federal government can just borrow $2 trillion and if not enough lenders are willing to assume the risk, the Federal Reserve will simply purchase a large amount. The money JUST APPEARS, when we need it.

We’re reaching the MAXIMUM LIMIT of our dollar structure.

Literally, in the last nine days, the dollar has been all that anyone has wanted to own.

Courtesy: Zerohedge.com

We’ve seen DEFLATIONARY scares in the past, but this takes the prize.

Through the use of swap lines, the Federal Reserve has worked with all major central banks to make sure the banks even stay open.

Any day now, if things worsen, there might be announcements of ATM issues and no one wants to be locked out of his checking account.

This operation has led Jerome Powell and his team of bandits to cut rates to zero and to launch QE again.

The scope of the program is already twice as large as in 2008.

At this point, I want you to know that the central banks and governments, at large, have SACRIFICED everything to keep the world from imploding altogether, so they’re past the point of no return.

This absolutely means that inflation waits on the other side of this.

Courtesy: Zerohedge.com

What that means is that I’ve noticed that PREMIUMS on physical precious metals are going through the roof!

Keith Neumeyer, who is CEO of the world’s purest publicly-traded silver mining conglomerate, has challenged investors to find ANY physical coins selling for the spot price – it’s IMPOSSIBLE.

The spot price has DECOUPLED from reality!

Once the U.S. Treasury and the central bank manage to push the dollar’s EXCESSIVE demand back to normal, the cash reserves that everyone’s sitting on will push silver towards $20/ounce in minutes.

Then, it will begin price discovery, which to me, suggests $30/ounce and HIGHER.

On Tuesday, I’ll publish a SUPER-IMPORTANT update; the most comprehensive one ever made about the effect coronavirus has had.

It will include BOMBSHELLS regarding the crisis management skills of President Trump, from inside sources.

 

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“They Know Nothing” (Again): Jim Cramer Calls For Government To Suspend Taxes, Print Way Out Of COVID-19

This article was originally published by Tyler Durden at ZeroHedge. 

Jim Cramer on Thursday called for the federal government to immediately print $500 billion to address the coronavirus outbreak, and suspend all taxation during the crisis.

Everyone owes the government at all time. Everyone in this country, individuals, corporations. That has to be suspended right now so they have more money,” he said.

Are these radical actions? You bet they are,” Cramer added. “This is the time for radical action and the action can be done by the federal government.

“They know nothing,” the CNBC host began to rant, referring to the government’s response to the crisis, ” there are no signs anyone in government understands the problem.”

“We know more than they do, and that’s not acceptable either,” he added.

Cramer also recommended that companies tap their credit revolvers and that there should be no stigma attached to it when they do so.

His comments come on the heels of President Trump’s prime-time Wednesday address in which he announced that travel would be suspended to most of Europe for 30 days in an attempt to slow the spread of coronavirus. He said he will also ask Congress to provide payroll tax relief for Americans – and would instruct the Small Business Administration to “provide capital and liquidity” to small businesses.

Cramer’s Thursday comments were reminiscent of his infamous “They know nothing!” rant in 2007.

‘They have no idea how bad it is out there… NO IDEA. They know NOTHING!’

Of course in 2008: ‘Bear Stearns is fine.

Investor Peter Schiff disagrees with Cramer, big time:

The feeling was largely mutual across Twitter, though some agree:

 

 

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