Why Gold & Silver price will Rise!

For some time now I have been shouting from the rooftops, the many benefits of holding physical Gold & Silver.

What has and is most frustrating is when despite perceived economic and political activity, the prices of all precious metals is FALLING! How can this be so?

In short, its market manipulation (see previous posts for details); I offer my rationale for my continued up-beat assessment of holding physical metal asset classes:

The recovery that not only the US government but the UK government espouse is nothing more than vote fishing.  Do you think it is politically sensible for a party that wants to remain in power, to tell the public that after 5 years of austerity that the plan is not working despite the inflated currency programs (QE)?.

If the economy was really recovering, then the government would waste no time in raising interest rates to boost government income…. It has not done this despite, unemployment targets being achieved, and despite the stability in our domestic banks after recent success of European Stress Tests.  Still interest rates remain at an all time low of 0.5%.

The US government is proudly announcing an end to its QE program…HELLO! It has just printed over $1.5 Trillion from nowhere, and their economy has still not grown!  The US, UK and European econmies are addicted to cheap money, in the same way an alcoholic is addicted to alcohol.  Corporations are using cheap money to stay afloat and the mere indication that interest rates will rise triggers huge sell offs of stock thus de-valuing the stock market… why? Because those large investors (Hedge Fund Managers, Banks, etc) don’t want to hold their wealth in an asset that is beind devalued.

It is only at this point, when those ‘heavy weight investors’ move their investments from the stock market into Commodities (Gold, Silver, Oil…) will prices rise, but this will mean that the stock markets are falling, therefore the economy will reverse into another recession.

This is not good for governments that want to get re-ellected, so they keep the stock market afloat by ‘Printing’ currency into existence.

This cannot and will not last forever. 

In an earlier post, I told you the basic principles of supply and demand (PLEASE RE-READ TO UNDERSTAND THE GRAVITY OF THIS NEXT PART).

http://www.arabianmoney.net/gold-silver/2014/11/06/us-mint-stops-selling-silver-coins-because-it-cant-cope-with-a-huge-surge-in-demand/

In this article posted 6 Nov 14, informs us that the U.S Mint has stopped selling Silver Coins because it cant DELIVER on the demand for Silver Coins, read the article. 

The LAWS of supply and demand require the price to rise and yet it does not, but it will.

The missing piece of the jigsaw is for the US Dollar to collapse, and there are many forces at work in Russia and China, and recently Switzerland (public vote to mandate that the countries wealth has to store 20% in physical Gold!). When this happens (when is the Trillion Dollar Question), precous metal will be astronomically expensive, because its value will be readjusted to meet the inflated price of the US dollar.

Extract from the link above

We saw that last in April 2011 when what is selling today for $15 and change was almost $50 an ounce. Silver will go higher on its next bounce and that can’t be far away. Something just has to blow-up in the paper market for silver before long.

What if those paper holders all wanted delivery in the precious metal, or even a handful of them? Silver stocks are running low in the futures exchanges as well as the mints. Holding physical silver never made more sense. Watch what happens when a market that has been suppressed for 34 years rebalances…

When??? Certainly by the end of the decade; bide your time and you will be rewarded, alternatively you can keep all of your wealth in banks, hedge funds receive 0.5% interest (inflation adjusted) and be happy with that!.

Mokarimakka.