Today, both silver and gold are achieving record highs but silver’s accelerating price indicates silver may indeed be the canary in the gold mine, the leading indicator for gold’s long-awaited explosive move upwards, a move the Fed and major bullion banks have colluded since the 1980s to prevent...
Today, aggressive rate increases to prevent high inflation are almost impossible. As inflation moves higher—and irrespective of distorted US figures, it is already doing so—higher Fed rates would end the Fed’s liquidity-driven recovery and cause payments on the now astronomical US debt to rise to unsustainable levels.
Expect, then, that gold will move far higher before the Fed is finally forced, if ever, to raise rates. This long-delayed reaction will cause gold to move even higher as a slowing US economy would more than offset any potential rise in the US dollar until the US dollar crashed; and, in such an event, gold would be the only safe haven left standing.
The reason why gold is not rising as rapidly as silver as in the 1970s is because since the 1980s the Fed has focused on keeping the price of gold low à la Gibson’s paradox; and, as a consequence, instead of rising equally with silver, gold is lagging and silver is leading...
Inflation is already here. Excessive central bank liquidity and loose monetary policies since 2008/2009 have unleashed global inflationary pressures that cannot easily be controlled.
Just as inflation drove gold to a high in 1980, it will do so again today, three decades after Nixon literally pulled the gold out from under the world’s monetary foundation. Inflation is now about to finish what Nixon started, the end of fiat money is in sight.
Increasingly consumed by inflation, today’s paper currencies will worthlessly inflate ad infinitum and disappear like cotton candy into monetary oblivion like all fiat currencies. This time is no different. Gold and silver will again soar and, as in the 1970s, a short squeeze will again be a factor.
Unlike the 1970s, however, it will not be silver that is squeezed. This time it will be the bullion banks who have colluded with central banks to keep prices of gold and silver low; for as silver and gold rise, at a certain point the bullion banks will be forced to cover their enormous short positions (see below) driving gold and silver higher...
Read more:
http://beforeitsnews.com/story/553/230/Silver,_the_Canary_in_the_Gold_Mine.html
I love the picture at the top of this post. It holds so much symbollic meaning. The Golden Elephant is trying to fly away free witht the silver eagle but is weighed down by the numerous corporations.
ReplyDeleteI also find the picture strange as elephants do not normally have wings. This must be a rare form of flying elephants that I have not yet discovered. I will have to document it in my book about all the earth's animals that I am currently writing. I am only up to Crocodiles, so I have not yet reached 'E' for 'Elephants' or should it be 'F' for 'Flying Elephant'? I should remind myself to look it up.
I wouldn't have a clue. I couldn't find an interesting graphic so I used the one provided in the original article. Sorry to confuse you...
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