The death of commodities is the death of silver?

SpacePete

SpacePete

Well-Known Member
Silver Stacker
Commodity prices are in a death spiral, there's just too much of everything. Efficiencies are going up, energy prices are going down, demand is slowing, growth is stagnating, stockpiles are growing and silver is slipping into the sinkhole along with everything else.

Given that the world is awash with a tsunami of fiat churned out after 2008, it seems non-sensical that silver (and to some extent, gold) are continually falling in price beyond what would seem logical. Of course most of that cheap money is chasing yield in other assets, but then you'd think at least some would be directed towards a store of value like precious metals, if only as a risk-mitigation strategy.

Something is not adding up.
 
SilverPete said:
Commodity prices are in a death spiral, there's just too much of everything. Efficiencies are going up, energy prices are going down, demand is slowing, growth is stagnating, stockpiles are growing and silver is slipping into the sinkhole along with everything else.

Given that the world is awash with a tsunami of fiat churned out after 2008, it seems non-sensical that silver (and to some extent, gold) are continually falling in price beyond what would seem logical. Of course most of that cheap money is chasing yield in other assets, but then you'd think at least some would be directed towards a store of value like precious metals, if only as a risk-mitigation strategy.

Something is not adding up.
Click to expand...

its been a FANTASTIC store of value since 2011
 
SilverPete said:
Of course most of that cheap money is chasing yield in other assets, but then you'd think at least some would be directed towards a store of value like precious metals, if only as a risk-mitigation strategy.
Click to expand...

It is.

Only it's in the form of shorting the worthless paper.. :)
 
14335_sammy.jpg
 
SilverPete said:
Commodity prices are in a death spiral, there's just too much of everything. Efficiencies are going up, energy prices are going down, demand is slowing, growth is stagnating, stockpiles are growing and silver is slipping into the sinkhole along with everything else.

Given that the world is awash with a tsunami of fiat churned out after 2008, it seems non-sensical that silver (and to some extent, gold) are continually falling in price beyond what would seem logical. Of course most of that cheap money is chasing yield in other assets, but then you'd think at least some would be directed towards a store of value like precious metals, if only as a risk-mitigation strategy.

Something is not adding up.
Click to expand...

You need a new calculator.

Commodities are priced at the margin. Until price and supply find a new equilibrium, they are likely to continue to fall. The printed fiat is being stashed away. Money supply * velocity = price. Right now, velocity of money is low. Until the money supply increases a lot more or the velocity of money increases, supply is going to be the major price determinant of commodities.
 
SilverPete said:
Given that the world is awash with a tsunami of fiat churned out after 2008, it seems non-sensical that silver (and to some extent, gold) are continually falling in price beyond what would seem logical.
Click to expand...
Why on earth? Oh why on earth?? Oh why why on earth???

Do you really think that silver must follow the money supply? Corn too? And what about timber? Sand? Paper? Coffee? Oil? Does everything need to follow the money supply? Or is anything exempt?
 
Cheepo said:
SilverPete said:
Given that the world is awash with a tsunami of fiat churned out after 2008, it seems non-sensical that silver (and to some extent, gold) are continually falling in price beyond what would seem logical.
Click to expand...
Why on earth? Oh why on earth?? Oh why why on earth???

Do you really think that silver must follow the money supply? Corn too? And what about timber? Sand? Paper? Coffee? Oil? Does everything need to follow the money supply? Or is anything exempt?
Click to expand...

1344_fed-balance-sheet-vs-silver-price.png


it did for a long time and it made sense as silver was money over many centuries.

Suddenly in 2011 "someone" decided it should no longer make sense for the next comming years/decades

For sure some thinktanks in the US are more educated than most of us stupid people who are trying to diversicate from paperpromises and US gangsters.

Thats the price we have to pay to not promise some people who are for sure not worth beliving any word comming out of their mouth.

We all should better have bought their dept instead of crappy silver. For sure they will pay back and well never see any inflation with surging parabolic money supply.
That are some really good fairy tail.

Really funny is now that the majority on SS is negative for PM today. Good job made by these storytellers.

Dont get me wrong, i like fairy tails very much and i use them for my children too, but always be careful who the storyteller is.

I know what will be the response from some members here, PM dealers and their lobby are the real kings of fairy tails.

Good luck !
 
1344_fed-balance-sheet-vs-silver-price.png


This figure is meaningless, because it only goes from 2003 to 2015. So during 8 years there was a close positive relationship, and during 4 years there was a negative relationship. Which one should we focus on? The negative?

To be able to reach any useful conclusion, you need to look at a much longer period than 12 years. What about 100? 200?

This is the usual figure put forward by someone with an agenda. And why look only at the US Federal Reserve? You do know that there are other countries in the world, don't you?

And what is the "Fed balance sheet"??? If anything, then look at Money supply.
 
@cheepo, it does not matter wich centralbank you use, they all do the same - Europe, GB, China, US, Japan ... money printing.
Only reason why to choose a chart with the FED balance sheet is because they orchastrate the financal markets with only being 25% of it worldwide.

You want to see longer teerm charts ? You do not need any chart as you know that 1US$ 100 years ago was around 27gr silver in circulating money.

Can you see the hugh mountain of pure silver in your mind if you use 27gr silver for each US$ out there ?

Price of silver and money supply only have one direction longterm and the break in 2011 is everything but not normal.

Maybe you are brainwashed to long by mainstrem media.
 
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