Bryan Slusarchuk: Disastrous Monetary Policies Will Push Gold & Silver Higher
Bryan Slusarchuk: Disastrous Monetary Policies Will Push Gold & Silver Higher by Rory, The Daily Coin
Our world would stop functioning without mining. Silver is one of the most important elements in most technology that is manufactured today. Without silver, you would not be able to receive this information or watch TV, have a cell phone and the list goes on and on. Mining makes that possible.
I sat down with Bryan Slusarchuk, Kendadyr Mining and K92 Mining, to get his thoughts about the GDXJ rebalancing, the effect on the mining sector along with how he sees the impact of China’s Belt and Road Initiative, Trump’s economic policies and how gold and silver should perform for the remainder of 2017.
The GDXJ became unbalanced when central banks purchased approximately $2 billion in mining stocks in September 2016.
- As investor cash pours in, a gold ETF may have to sell as much as $2.6 billion in existing smaller-cap holdings.
- Since December 2014, the fund has had to increase its market-cap threshold from $448 million to near-$3 billion.
- As much as 60 percent of the fund’s underlying index may change. Source
In 2016 central banks began adding to their stock holdings by purchasing stocks of mining companies. The total stock purchases by central banks was approximately $2 billion. As we have already been warned of this practice by Andrew Jackson:
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…. I believe that banking institutions are more dangerous to our liberties than standing armies…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Source
In April 2017 “regulators” of the small cap mining stock market, GDXJ, decided there needed to be a “rebalancing”. Why? Why would it be necessary to “rebalance” a market? Who would benefit? What role did the central banks play by owning a huge position in this market? Did these two central banks, from Norway and Switzerland, make huge profits from rebalancing? These two central banks are the reason the GDXJ became “unbalanced” in the first place. The GDXJ total market cap was around $1.5 billion when these two central banks decided it was time to make their move. By doing so, the market became unbalanced. Why was this allowed to happen and why would it happen?
What we know for sure is some of the best performing stocks on this market suffered a set back in their market price. These stocks had been performing quiet well and made significant moves to the upside. It has been said the rebalancing is over and as the market indicates it is a good possibility as most of the better stocks have already been moving to the upside once again. The potential to acquire high quality stocks at a better price point or add to ones position is now.