Home Entertainment Steve Penny : Ignore Gold! It’s A Historic Time For Silver | Silver News

Steve Penny : Ignore Gold! It’s A Historic Time For Silver | Silver News

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where with silver i think there’s plenty of opportunity for capital appreciation um and a lot of people also conflate volatility with risk from a historical perspective i actually see silver as a lower risk play on uh you know that the price is going to go up then i do gold i mean it’ll be a much more volatile ride but i think silver has a much more compelling risk reward setup especially right here right now you know just from a potential upside perspective i look to uranium sector and the silver mining sector as really having the most upside potential of any sectors right now in across the whole spectrum and uh you know silver’s about the only commodity on the planet trading below it’s 1980 high and it’s like half of where it was in 1980 so the upside here is really really quite compelling 1980 silver peaked at like 49 bucks and here we are at 28 and change so that’s almost half of where it was as far as i know silver is the only one that’s trading where it was four below where it was 40 years ago and we’re not talking just like a little bit below i mean it’s almost half of where it was 40 years ago so that that alone is pretty compelling and you think about all the currency units that have been created over this past 40 years and uh compare that with this tiny little market it just takes a little shift in global investor psychology to say hey you know i want a little bit of exposure to silver yeah investors are waking up and i think some of that money is coming into the silver market it’s just you know there’s a distinction between the paper price and the physical price so if you just pull up your favorite internet site and look at the price of silver it’s going to tell you the paper price uh supply and demand of paper contracts that are set on the comex but if you want that physical silver you know we’re seeing it there because premiums are exploding so if you want to get your hands on physical you’re probably going to pay at least 35 36 bucks if not more and i define inflation as an increase in the currency supply that’s inflation rising prices are a symptom of that inflation and we’re starting to see the symptoms right now um and you know that’s translating over into investor psychology and you know i think that’s beneficial towards commodities and especially silver and what i found just over the last 15 years of studying these markets is that often very smart people with well-reasoned opinions and conclusions they’re both right but in different time frames so i think ultimately almost all of us would agree we’re going to see very big inflation coming the question is do we see a deflationary bust first i’m in the camp that i i don’t think we’re gonna see that i think we saw that last march i think that was the deflation i think we’re on i don’t think this is transitory and with the fed and uh other central banks around the world pumping in so much liquidity that’s inflationary but you couple that also with governments around the world paying people to not work so that decreases the productive output of all these economies economies so there’s less goods less services available and you’ve got more currency units chasing a smaller quantity of goods and services so right there that that leads to higher prices people are talking about inflation i was just uh i got my dirt bike fixed the other day and you know the guy getting it did the work on it was talking about the parts you know this part used to be 40 bucks a couple months ago now it’s 80 bucks and it’s on backlog it took like six weeks to get it you know this is just uh you know he doesn’t strike me as someone who studies the financial system and all this but he’s noticing hey the price of this thing just doubled and i have to wait for it you know when you’re paying people to not work it’s hard to take those benefits away whenever the government gives you something which by the way the governments have nothing to give you they can only take from one person and give to another they’re not giving anyone anything but that aside when they create incentives to not work it’s hard to take that away um so we’re seeing you know labor shortages all around um to create products and services um so i think this is a trend that’s only going to accelerate and you know maybe shifting a little bit uh i think now is the time to maybe consider stocking up on some things from a preparedness perspective practical preparedness is what i like to call it so you know there’s more than just silver and gold what we face here from an economic perspective is a predicament there’s no solution there’s no cure-all for this um you know that this is there’s gonna have to be some short-term pain at some point and the crux of the matter is that when you the further you kick the can down the road you make that day of reckoning that eventual day of reckoning even more painful so you know the right thing would to do would be to burst this bubble now raise rates and um get back to a real economy sooner but that would be incredibly painful that would involve politicians telling people hey we promise too much we don’t there’s not enough currency units available to make good on all these problems the promises the money doesn’t exist they’re not going to do that there’s no way they’re going to do that so instead they’re going to try and inflate away the debt and there’s a term called financial repression that’s where you have steady inflation and it erodes the real value of debt but it’s not enough where people lose full confidence in the currency and they they don’t really notice so they’re trying to thread that needle you know have just enough inflation to eat away the real value of their debt without people noticing and revolting in the street but at some point we’re headed to a point if this trajectory just continues at some point 100 of federal tax receipts are going to go to service just interest on the debt we’re headed to that point and obviously it can’t go that long people will lose confidence before that and the variable in that equation is interest rates we if you double interest rates you know we get there twice as fast um so there’s no good solution to it and these are things we all need to ask ourselves and prepare prepare for there’s a shift in the general market from momentum related stocks and sectors towards value stocks and sectors and uh you know we’re starting to see some inflows not only to just gold and silver but more value-oriented you know kind of stocks and sectors but you know you look at this wall street bets movement that started back in what was in january and then a small segment of that movement was like you know they’re they’re looking for what’s the next thing that’s undervalued that can be a potential mania and boom they identified silver well it because it’s obvious well it just takes you know another a small percentage of the investing populist to come to that same conclusion that they correctly came to so i i think that’s going to happen silver is right for speculative mania it’s got a lot of the real characteristics that uh bitcoin had you know a lot of people say hey bitcoin there can only ever be 21 million of them so it’s right for you know the speculative media well silver there’s only what uh you know less than a billion ounces mined every year that’s a small very small market cap called billion ounces times 30 silver that’s 30 billion globally that’s a market right there that’s right for a minion i’m not predicting when that’s going to happen but i am confident that we will see that most of um silver’s output mining output goes to industrial uses and by the way there’s more and more industrial uses industrial demand is projected to grow especially with this you know green revolution and electronic vehicles all this so there’s going to be more industrial demand for silver but really the variable is investment demand that’s good what’s going to see the price really move and back in 2020 was the first time in a long time investment demand actually exceeded industrial demand for the first time in a very long time um i don’t have the source data for that but um i i read that somewhere and uh from steve san angelo so that’s key right there i mean that that right there is an indicator of a shift in psychology of investors so um you know that’s something i’m looking to a trend i look i’m looking i’m expecting to continue i believe the silver market is the most manipulated market on the planet and um we can see that like uh ted butler uh puts out a lot of data nick laird i look at his charts a lot and it shows like the days of you know the amount of short positions relative to uh global production so like silver is so heavily shorted and if the end uh industrial users all try and take delivery at the same time i mean it’s ripe for a squeeze that could potentially cause a default on the comex and again i don’t when i say default you know there’s fine print in there that says they can settle in cash but you know i don’t base a comex default that’s not like my primary investment thesis i that’s not why i invest in silver but it’s just another thing that could very well happen in the years ahead that could send the price rising i’m not banking on that but it’s very it’s very possible [Music] you

Steve Penny : Ignore Gold! It\'s A Historic Time For Silver | Silver News

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