by Gary Christianson, Miles Franklin:
Breaking news: The DOW rose 1,985 on Friday the 13th. However, the DOW was down 2,679 for the week ending March 13. Gold fell $155 for the week to $1,516. Silver declined $2.76 for the week to $14.50.
From February 12th to March 12th, the high to low tic loss on the DOW was over 28%. Falling over 25 percent in one month is a rapid reset and an ugly dose of reality for believers in “buy-the-dip” and “Fed-puts.”
The gold to silver ratio hit a historical high this week of 104.6, even higher than in 1991 when silver bottomed at $3.51.
The Four Horsemen of the Apocalypse bring pain and reset expectations. They are, according to some sources, pestilence, war, famine, and death.
Pestilence: News stories besiege us about the dangers of COVID-19, the pestilence released upon the world by (take your choice) bats, the United States, China, or a bio-weapon lab. This pandemic is creating trauma for everyone. Confidence in governments and health agencies will decline. Trust in central banks will, hopefully, reset to much lower levels. Paper assets and fake money will be unmasked and understood for what they are. Real money will (someday) be appreciated as the only money without counter-party risk. But until that day… the paper derivative exchanges on COMEX “manage” prices.
War: The wars in Afghanistan, Iraq and other countries cost lives and trillions of dollars. What have they accomplished, other than transferring assets from governments to corporations? National debt increased over $23 trillion and prices rose, but the “piper must be paid.” Perpetual wars weaken economies, currencies and governments. Fake money will thrive until it fails. That moment of failure could be close.
Famine: Starvation has been a fact of human life for centuries. Expect central bankers to use their primary tool—“printing fiat currency units”—to address the consequences of pandemic and famine. Central bank actions cannot alleviate a famine nor diminish a pandemic.
Death: Several thousand people have died because of the pandemic. Many more will die in the coming year. Zombie corporations, over-indebted corporations, and small businesses will die by declaring bankruptcy. Real money—gold and silver—will thrive. Paper silver and paper derivatives are fake money.
BUT PAPER SILVER PRICES HAVE FALLEN HARD!
Yes, COMEX prices for silver in fake money—fiat debt-based dollars—are down over $4 from three weeks ago. But each silver eagle remains an ounce of real money that has been valuable for centuries and will stay valuable for many more decades, regardless of how many paper contracts are dumped on the COMEX to lower prices.
The fiat-money silver prices have dropped, as have prices for most stocks and other assets. This bear market will devastate all debt-based assets.
THE FOUR HORSEMEN HATE SILVER.
Pestilence ravages people, countries, and economies. The COVID-19 virus will impact everyone and all countries for months or years. Global economies and monetary systems will reset and a “new normal” will emerge. But an ounce of silver will remain an ounce of silver, valuable and necessary for industry, electronics and thousands of applications. The virus will show the ephemeral nature of fake money. Silver bullion will thrive.
War creates price inflation, wealth transfers, massive debts, and demand for commodities. Silver prices rise as currencies devalue. They show the consequences of excessive spending and unpayable debt. The war horseman hates silver for telling the truth about wars and spending.
Famine occurs when food is unavailable, or the currency has devalued so much that it buys little food. Think Venezuela. The famine horseman hates silver for retaining value and food purchasing power.
Deaths of individuals, businesses, governments and economies show that life is tenuous and easily lost. Enron, Global Crossing, the Ottoman Empire and the U.S.S.R. are gone, but silver remains. The death horseman finalizes with deaths and bankruptcies. It hates silver, a real and lasting asset.
SILVER DURING THE PAST SIXTY YEARS:
Paper silver prices on COMEX are volatile. For this discussion, assume an ounce of silver costs $18.00. Prices could exceed $50 in one year.
(Approximate data from St. Louis Fed and others.)
CONCLUSIONS:
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