Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver in the Aftermath of Fragility

Commodities / Gold and Silver 2014 Jul 11, 2014 - 12:33 PM GMT

By: Dr_Jeff_Lewis

Commodities Despite the persistence of the recovery meme, financial markets are more fragile to risk than ever before. On top of this, witness the slow creep of policy disguised as regulation. It comes for the low hanging fruits. The final labors of society. What lies ahead is a paper blood bath.

They are coming for your pensions and retirement accounts.


The French led IMF, with Christine Lagarde at the helm, has presented a concept report that debt cuts for over-indebted states are uncompromising. They present the concept that are to be performed more effectively in the future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem.

And we thought the evolution of Obama's "MyIRA" was a bad omen. Just add the IMF's plan to the "Cyprus" template.

Remember that the real power in financial markets (which, of course, are by definition the same as the members of the central banks) have also bought, paid for, and fully captured regulators and politicians.

In addition, institutions across the board have not acknowledged the ills of mispricing risk from each of the previous cycles. Obviously, no one very high up the responsibility chain has paid for the damage. In fact, much of the failure was simply socialized in a rare overt demonstration of the power of finance over government.

Investors seem to have forgotten once again how this will end.

Instead, new all time highs in equities are bought. And bonds are still considered to be safe havens.

Many believe that there is this magical wealth sitting out on the sidelines, ready to be deployed at a moment's notice - or in a down-turn.

Few are likely to realize apparent wealth by selling, and those that do will essentially be redistributing it from the investors who buy.

Of course, redistributing fiat.

Take a look at the state of the equity market today.

Low volatility in S&P 500 indicates enormous complacency about potential risk.

The ratio of market capitalization to GDP is beyond every point in history except for the final quarter of 1999 and the first two quarters of 2000.

While millions of investors appear to have the same expectation that they will be able to sell before everyone else, the question of who sell to will probably remain unanswered until it is too late.

For physical precious metals investors, selling is always on our minds. And while given that we cannot change our psychological makeup, it is healthiest to consider holding in order to make it though the insanity of a rigged market.

And why it's safer to consider holding above all else.

The decision to hang on as we cross highs will be much more difficult. The pain of loss is much greater than the fear of missing the move up.

The worry we experience once the price really begins moving back toward equilibrium will make the wall of worry we've been on seem like a walk in the park

By that time it will be clear to all that currency is not wealth.  This great trickle of confusion will end once and for all; or at least until the next generations have sufficiently forgotten all over again.

Most investors today view wealth as 1s and 0s, quotes on a screen or ink marks on a paper with a time stamp. Representations that will soon be gone with the wind. In the aftermath, nothing will be left. The opportunity to diversify, to prepare, will have long ago passed.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in