| | I’m buying silver.
I bought a nice slug of PSLV, the Sprott Physical Silver Trust, yesterday. With both gold and silver bouncing back strongly today after a disheartening, two-day sell-off, it might look like I picked the bottom. | I don’t know…and I don’t care. It was close enough for me yesterday, and it’s still close enough today. | We can discuss and even argue about what silver and gold are doing right now and where they’ll head tomorrow, but if you look at the unprecedented situation we’re in right now — with globally-coordinated monetary accommodation, plus debt and currency creation, like nothing ever seen before — I’m confident that the metals will be trading at far, far higher levels over the months and years just ahead.
So I’m buying now, with that long-term view in mind.
That said, there are also some very exciting short-term dynamics in play. | Kudos To The Silver Squeezers | I have to recognize and applaud the loosely-coordinated, Reddit-inspired “silver squeeze” going on right now.
When I started working for Jim Blanchard as a junior copywriter in 1985, he took me under his wing and educated me on some of the timeless truisms of the “hard money” world. | I remember one of his lessons: “Brien,” he told me earnestly, “gold bugs are crazy. But silver bugs are f**kin’ nuts!” | Jim was a card-carrying gold bug himself and one of the craziest of the silver bugs, so he said this with both authority and affection.
And I’ve never forgotten the lesson, even as I matriculated into both statuses myself.
So it’s with an equal measure of admiration and entertainment that I watch as these Silver Squeezers post pictures of their silver hoards on the Reddit r/Wallstreetsilver board, displaying them with pride similar to those who post pictures of their kids on Facebook.
Like anyone with years of experience being pummeled by the paper silver trade, I have my doubts that their attempts to squeeze the physical silver market will have any effect on the metal’s price.
It certainly hasn’t happened yet for any sustained degree, although we are seeing world mints — most notably the Perth Mint — being forced to limit or halt silver bullion sales in the face of the demand.
So maybe it will work. I know I’ll be pulling for them, and contributing in my own way.
And even if it doesn’t work, what’s the harm? I’m confident that silver will soar beyond $50 to new record levels over the years just ahead, so those buying silver right now are doing themselves (and the rest of us silver bugs) a big favor. | An Explosive Situation
— As Detailed In A Remarkable Report | And that favor could be delivered very soon. The recent sell-offs in silver and gold have a lot to do with month-end book-squaring and other gamesmanship.
That all ends today.
Plus, in addition to whatever effect the physical silver demand from the silver squeezers may be having right now, there’s also the growing recognition among investors that their silver purchases need to be directed correctly.
And that means not buying SLV, the iShares Silver Trust, which uses JP Morgan as a custodian for its silver. (Talk about putting the fox in charge of the hen house!)
Instead, anyone buying paper silver for the sake of convenience should do what I’ve been doing — focus on the Sprott Physical Silver Trust, PSLV, that holds allocated units of bullion in your name.
By investing in PSLV, you can actually have an effect on the physical silver market.
To learn more about the differences, and the dramatic situation setting up right now in silver, I urge you to read a remarkable report recently posted on Reddit by “The Happy Hawaiian.”
This is one of the best analyses of the silver market I’ve ever seen (and I’ve read just about everything on the subject over the last three decades). | Mark my words: You need to read this report. | It shows why the first attempt at a silver squeeze on the Comex failed, but also shows why, as the author puts it, “we may be entering another silver bull market like the one that began in the fall of 1971, where both a short squeeze and fundamentals-based rally occur simultaneously.”
In short, there are fireworks ahead in both the silver and gold markets, and I urge you to get ready for it…as I’m doing right now. | |