Month: June 2021

Buying Opportunity?

Mike Savage of Raymond James | 6/6/21

As I am writing this gold, silver and other metals are on sale right now- even more than they have been in the last few weeks. There is a lot of talk about Basel 3 rules and that the US and UK banks will likely be neutered in their assault on the gold price by these new rules which take effect at the end of the year.

Basically, the banks, up until now, could list their unallocated (unowned) paper gold on their balance sheets. Basel 3 rules will not allow the banks to count paper contracts as assets. I haven’t heard anyone else mention it, but this will take most of the assumed supply that exists and likely expose just how tight physical supply really is. Of course, many are reporting that the US Mint is having trouble sourcing silver and is basically allowing everyone to know that there is, indeed, a global shortage of physical silver.

My guess is that gold will have a similar epiphany in the next few months. This should lead to drastically higher prices shortly.

Of course, there are also EU banks which are involved in the price suppression scheme that have the rules take place at the end of June. This is why June could be a volatile month as many of these banks will attempt to extricate themselves from deeply underwater short positions. Those same naked shorts that they use to manipulate the prices lower.

Let’s look at the facts. Demand is off the charts by central banks, major banks and sovereign wealth funds. Premiums for actual metal products are skyrocketing, there is a physical shortage, The US dollar is being “printed” into oblivion …..  To me, this may be the last, greatest buying opportunity for these assets that we may have in our lifetimes.

Of course, I am not saying that the coast is clear. Right now, at least until the end of this month it appears that any pressure that can be brought to bear on the prices of particularly gold and silver will be applied so that those rigging the markets can avoid being wiped out.  But, for those who have a longer time horizon than a few weeks or months this appears to me to be one of the best set-ups I could imagine.

There is a lot of speculation that the BIS (Bank of International Settlements) the central bank of central banks, was forced to act by Russia and China who were rumored to be announcing that their currencies would have a tie to gold- which would likely undermine the US dollar and could cause it to actually implode if that action were taken.

In addition, those in charge may just believe that they have procured enough gold and silver at discounted rates that they can now let the price fly and in the meantime bolster their bottom lines at a time when it appears that the debts are becoming insurmountable.^[1]