by Jeff Nielson, Bullion Bulls:
It’s time for another infrequent edition of the (once-daily) “Daily Grind”. Why? Because we have been granted an even more-infrequent, Big Picture glimpse into the fundamentals of these markets — from the liars and criminals themselves. Observe this headline, straight from Basher Central:
Gold, Silver Mine Supply Expected To Finally Start Withering In 2016
Who could have predicted this? Well, me, for starters:
Going back as far as six years; I’ve regularly reminded readers, in different ways, that while the banksters can (and do) manipulate markets, they can’t alter the Law of Supply and Demand. Under-price anything, and it will be over-consumed. Under-price anything to enough of an extreme, and you’ll kill the supply chain (and obviously the reverse applies to over-pricing).
Silver has been under-priced (and grossly under-priced) for at least the last thirty years. That’s not my opinion, I just finished proving this:
…and what is directly implied by three, continuous decades of supply-deficits in the silver market is that there has been zero PRICE-DISCOVERY in the silver market during these decades. Since price-discovery must occur in any legitimate market, in turn this proves the endemic/systemic corruption of the (so-called) silver market.
But now we are past this. First the official stockpiles of silver were drained. For the last decade; this deficit market has been kept in supply via the Oligarchs’ “secret stockpile” of silver. Now, even the incremental supply to this market (mine supply) is starting to fall — meaning that the chronic supply deficit can get only worse.
In any quasi-legitimate market; “news” (and fundamentals) this extremely bullish would trigger an immediate catapulting of the price of silver up to-or-over the $100/oz level. But (of course) we don’t even have “markets” any more — let alone legitimate ones. So we’ll continue to see the choke-hold remain on precious metals markets, while knowing that the fundamental PRESSURES on both the gold and silver market have now been ratcheted higher.
Markets with large, chronic supply-deficits are now also exhibiting falling supply, perhaps the ultimate proof of market corruption. Prices rise to address supply deficits, and then those higher prices stimulate supply, this is the very definition of price-discovery. Instead, we see manipulated prices falling even lower, as the bullish fundamentals get more and more extreme.
This CAN’T continue, and this WON’T continue…
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