Reaching The Economic Breaking Point At A Rapidly Accelerating Rate: Chris Marcus
Reaching The Economic Breaking Point At A Rapidly Accelerating Rate: Chris Marcus by Rory for The Daily Coin
I sat down with Chris Marcus, Arcadia Economics and Miles Franklin to discuss the state of the silver and gold markets and found a lot more to the picture than just numbers moving up and down on a chart. While both metals have enjoyed a lot of attention for most of 2019 the charts still are as ugly as pond scum.
Silver, according to the basics of fundamentals, should be screaming higher at this point instead of languishing just below the cost of mining production. The second largest primary silver mine in the world, located in the most prolific silver country in the world, recently closed its doors. This piece of information alone should have given silver a very nice rise north of mining production cost, but alas Comex silver is stagnant.
This is to say nothing of the ongoing production of solar panels to meet the massive projects in China, India and Morocco. With a combined total north of 600 million homes between the three nations the volume of silver going into these projects is beyond comprehension. Comex silver doesn’t move. These projects have been ongoing since 2015 and should be close to winding down, however, the fact that multiple projects of this size have had zero impact on the acquisition cost of silver should be turning heads – nothing; crickets.
Gold, on the other hand, is experiencing massive acquisitions by central banks around the world. As we continue to document the number of the central banks that continue to increase the volume of gold acquired and Comex gold continues to hang around the $1,300 mark seemingly trapped below the $1,350 mark. Gold hasn’t moved above the $1,350 mark in almost 5 years! Let that sink in just a minute. What other item on planet earth has not risen in cost in the last five years? What other item, outside of silver, has actually gone down in cost over the last 5 years? See my point? Gold and silver should both rising on a daily basis, but instead they are range bound by bullion banking manipulation.
If you don’t think these markets are seriously rigged please help me understand the two questions I just posed. If there is a logical answer to both of those questions I would love to hear it. In the mean time, sit back, grab your favorite beverage and get caught up on what is happening around the gold and silver markets that we can address with confidence. Real numbers, real information without all the hype.