I feel bad for “stackers” of precious metals, these days. They’re getting absolutely screwed by fraudulent banks that trade “paper metal”. Let’s face it: the gold and silver markets are totally rigged. I would love to see stackers have their time in the sun because they deserve it. Paper metal is not real metal. Paper metal doesn’t exist, yet it can be bought and sold. How are the silver and gold markets ever going to have true price discovery when they are constantly barraged by an unlimited amount of paper selling? If it’s true that for every ounce of real silver or gold there are more than 100 paper claims, then it’s not a real market. It’s another bullshit, rigged market.
Stackers need a systemic financial breakdown, a chain of events, to occur before markets even begin to reach toward a fair price for the physical metals. At that point, governments would be forced to re-price the only asset they possess that can remotely restructure their balance sheets: gold. There is seemingly little to no support from Federal authorities willing to expose or dig deeper on the fraud being committed. They have been provided proof of market manipulation and yet take no action. Deutsche Bank came forward with its own evidence of price fixing in the silver market and offered to provide names and disclose similar activities of other large banks. There has been no reported response from lawmakers.
Enter crypto currencies. Would you rather buy gold and silver and hope those markets will undergo true price discovery one day, or would you rather invest in commodities that cannot be counterfeited? Where 24 hours a day, 7 days a week, a market price demonstrates true supply and demand. Whether it’s Bitcoin, Litecoin, Ethereum, Z-Cash, Dash, Monero or a host of the more than 500 digital assets now in circulation, investors and citizens facing asset confiscation have the option to opt out of markets – and currencies - they have lost faith in.
These new decentralized markets provide investors a path toward a new monetary universe. This new solar system has bootstrapped itself. It could leave behind the monopolies of the oligarchs. In what may one day be looked upon as one of – if not the greatest – of human inventions, these decentralized asset markets have arrived at a most ideal moment in history. From the 2008 financial crisis to the global asset seizures, cash and gold bans of today, the trend is clear: sovereign debt, overcooked by governments and central banks, is rotting to death. This time they are coming after you, believe it or not, to pay for their mistakes. Whether you are Indian, Australian, Turkish, or even god forbid American, you are not immune.
People around the world are learning that government control of money has led yet again to hardship, war and famine. This repeating cycle will eventually land in the United States. It’s already here in the form of the exploded welfare and warfare state, real estate priced to perfection, and inflation rates that are burying families while the Federal Reserve says inflation is not high enough.
Precious metals enthusiasts point at decentralized digital assets and say they “aren’t backed by anything”. The problem is, precious metals are backed by an endless avalanches of paper counterfeit. When that will end, no one knows. At least currencies such as Bitcoin are free to find their own price, and that’s enough to release them from the shackles of bureaucracy. Isn’t it interesting that given such a chance, people around the world may over time experience wealth and freedom creation rather than evaporation from the working class up toward the 1%.
I hope the metals have their day, which may last for years, in the sun. Only then will the destruction that needed to happen in 2008 be allowed to occur. Until that time, the world is only staving off the inevitable. If we had allowed the chips to fall in 2008, we could now be in the midst of new growth and lower prices which give everyone a shot at a more sustainable, happier life.
Lastly and in closing, Paul Krugman really does seem like an absolute douchebag.