You know the movie Wag the Dog? I think we are watching it right now...And 'Wag the Dog' becomes real before our eyesThis is how you know when there is manipulation and an illegitimate government, and it is being very very successful... A nemesis, the then partner and arms buyer, who was leaked to be dead in 2001 is declared dead-er with photoshop'ed pics, and BURIED AT SEAAA during recession and the prelude of a global financial crisis. At a time when the President's popularity and USD is tanking due to FED's printing-more-and-more-and-more monetary policy. AND people blinded by grudge are cheering for it in the streets...They will most probably need to find another nemesis within a year to distract people as there is no remedy to the ongoing plunge of the US economy, sad that those leaders will take down the world along with Americans...This all plot is just another indicator of the postponed US sovereign debt followed by the upcoming economic shitstorm that is about the hit the world... What to expect from this? There are many but I will juxtapose a few, this will: Effect 1: Let the American hawks breathe for a lil while, turning the public opinion in favour Effect 2: Turn into a long lost short-lived-to-be international sympathy for the US - go figure! Effect 3: Obama chewing this like a gum till the end of the election campaign making rednecks go 'yeaaaa', thereby increasing his chances for a 2nd term which will result in withdrawal of the military from the colonies...In other words, after granting enough time for the businessmen to settle in nice and comfortably on local assets... Effect 4: Boosting confidence in the market, encouraging the fund managers to find the guts to make wrong choices with other people's money... Effect 5: Distracting the small time investors into stocks and new entries into stock exchange who will be blinded by short term benefits and eventually run down by the upcoming crisis... --- Effect 6: As I wrote earlier going from GSR 68 in August 2010 to testing GSR 30.45 in late April 2011 in less than a year is just crazy. This confidence boosting attempt of the US, which is doomed to fail, might mean, new investors or old investors might 'remember' and turn into gold rather than silver - allowing GSR to recover from vertigo by faster increase in gold spot. Effect 7: I would expect the means to suppress the silver price will get stronger for a while, which suggests that we might see a 'correction through time' in silver spot price, which in turn may suggest that silver would not shoot over $100 this year and float in between $60-80 at most - which is a great thing as this will prolong the 2nd stage of the bull market... To sum up, I think although it is very very very sad to see how people fall into manipulation and cheer up in streets to this diversion, this already successful diversion will hopefully let silver enjoy the predicted long 2nd stage of the bull market...Experts suggest that it wasnt still a parabolic, I agree, but it is fair to say that it was going crazy for silver in the past month. I would expect these events to turn into a more balanced increase in silver price allowing for a $60-80 2011 finish. It felt like silver was heading to $65 by the end of May before the Wag the Dog occurred. It is the times of hypocrisy and manipulation, but I would expect what I call the Wag the Dog effect to be a positive occurrence that will let stackers accumulate more ounces before the end of the year...
It is an interesting thing...I have been preparing to invest a bit of money into silver, however when you do look at ishares (SLV) the price is the highest it has been for some years at $45. There are silver ETF investors that are unsure of whether to bet on and increase for silver or even a decrease. My idea now is to invest in Gold and wait to see what happens over the next month or so to silver. If it drops then I will be in a position to buy knowing that at the most it could go back to $50....this is still a better %return on my money if I compare it to the banks... I certainly do hope it continues to increase but with all the hesitation I would it expect the POS to stabilise around the $35 - $45 mark. (I do not want to get scared into selling but it certainly may assist in watching the price for a little while). IMO the silver holders have the paper investors uncertain of what is going to happen this in itself is possibly a reason to sit on the fence.. I am not an economist, just my thoughts....???
Loved that film... I'm keeping my position for the moment, which is overweight in silver (Ag 80%, Ag 20%). When I do start buying again it will be the yellow stuff, but only enough to bring things back to my target ratio (75%/ 25%). I think your "Effects" are either happening now, or about to happen. One you could have mentioned is the very real effect of USD hyperinflation now that the Fed has confirmed the US long bond market is more important than the USD itself. Since noone else wants to buy their shit, they have no option but to print more money (they just won;t call it QE3).
Excellent post The effects you came up with are not too much of a stretch of the imagination. I notice you are in Adelaide too, hope you can make it if we have another meet up soon
I agree with everything you said. On top of all of your points I also think there are some other shady invisible hand type military moves going on in the background that are being drowned out by all the white noise in the media about osama. Time will tell.
I'd say that it is not solely a case of silver selling for more than it has in so many years, but a case of a dollar buying less. I think what we have seen to this point ($45-50) is just normal inflation. What comes now is the exciting thing. Silver running out, silver demand increasing, printing paper in excess, a return (officially or unnoficially) of PM's as money etc. etc.
