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Independence Day Breakout! Silver Has Begun HISTORIC Run-Up – Jim Willie

Jim Willie, via Silver Doctors:

The spot prices scream loud. The Silver breakout will be one to behold in the history books. Silver has broken the shackles of the vile banker cabal. Silver has begun its historic run-up. Silver will capture the world’s attention. The equivalent of the 1980 Hunt Brothers breakout in today’s terms would be $200 per oz. The fundamentals for Silver look better than almost every commodity on earth. Silver has declared independence from the control rooms and their paper gimmicks.

The Silver imbalance is monstrous.

Gold has broken the gates down with the British Exit vote, pushing its price over the tough stubborn $1300 resistance line. In the following days it has been adding to its gains. But Silver has emerged amidst the political smoke and deceptive din to ride hard through the gate. Silver is on a rampage, and has begun to make the news headlines. Silver has chosen July Fourth as the day to declare INDEPENDENCE from fiat paper money. Silver will be part of the new monetary system and trade payment system. The Jackass has advocated that Silver be 80% of investment portfolio, with Gold at 20%. The silver proof will be easy to see.

MASSIVE BREAKOUT AT THE 18 LINE

The initial breakout occurred with Gold surpassing the $1300 resistance mark after the British Exit vote in favor of leaving the European Union. It is increasingly recognized as a fascist dictatorship. The second thrust was with Silver surpassing its $18 resistance mark a few days later, when the big contract holders stood for delivery at the COMEX, a giant crime center. The range between 19.0 and 22.5 might not hold for very long. Do not expect much resistance at the 22-23 level, not given the current crisis circumstances. Plenty of washed out positions occurred in late 2013 and the several early months of 2014, which is a long time ago. The Cup & Handle reversal pattern is plain as day, with an 18 top and a 13 bottom, thus a 5-point potential upon breakout. The target at 23 will be easily reached, not in weeks but rather in days. It might take several days or a couple weeks to reach. The stochastic cycle indicator is powerfully positive. Sentiment is exceedingly strong. The monetary crisis is in full bore. Central bankers are viewed as the problem, not the source of solution. The true solution is the newly imposed Gold Standard, in which Silver will participate in a monetary role. The bigger Cup & Handle reversal pattern shows a 35 neckline. With the same 13 bottom, the indicated potential is 22 points, which produces a target of Silver $57 price. It could happen next year, or possibly sooner. Any announcement on international USDollar contract conversion into Gold terms could produce a massive non-linear upward dislocation in price, for both Gold and Silver.

The monetary crisis is in full swing. What remains is its powerful wrecking ball within the USEconomy and Global Economy in a climax phase. The USFed Quantitative Easing has wrecked capital in gigantic effect, from four years of application. Save the big banks, while ruining the capital base of the economies. The price weapon is on the verge of being unleashed, in a manner never witnessed before in the US centers.

Price inflation is ready to be imported back to the United States after three decades of its export. The monetary crisis will bring about a new US Scheiss Dollar with a purely domestic role, its instant and repeated devaluation, strong price inflation from imports, followed by a call to arms to reduce the $500 billion trade deficit for the United States. Next comes investment by foreign entities, upon open invitation, then commercial colonization.

The USDollar is dying, its head cut off by the Golden Sword and Silver Spike, the USEconomy put into the chopping block by highly destructive monetary policy and political influence. The banker elite killed the system.

SILVER PROOF FACTORS

Many are the factors pushing up the Silver price. The fundamentals and sentiment are perfect for a bull run perhaps 10-fold in the next two to three years or more. The factors are numerous, diverse, convincing, and powerful. The monetary system is destroyed, while the banking system has been wrecked. No faith exists anymore with the stewards of money. Their supposed solutions are contributing to ruin. The following are over-arching factors driving up the precious metals, which are money:

Official USFed (and other central bank) monetary policy has been a dismal failure
Official USDollar monetary supply dictates Gold & Silver prices at least 5-fold higher
Rescues of banks with easy money will continue forever, to treat intractable insolvency
Banking system will re-capitalize using Gold bullion as reserve asset
The USGovt and European Union Commission have been revealed as fascist dictators
Another round of QE to Infinity is at the door, waiting for announcement
Cracks are showing in the USTreasury Bond market after the fake rate hike
Negative rates push investment funds into precious metals, not business lending
Threat of bank account bail-in pushes working funds more into precious metals
Money market shifts within financial firms hint of Special USTreasury Bond arrival
The USGovt suffered a hidden debt default a few months ago
War by the USGovt to defend the USDollar has failed, and unmasked evil motive
An end must come to money counterfeit by Langley and certain camps.

An over-weight in Silver versus Gold in investment strategy makes perfect sense. The central banks own huge vaults of gold bullion but no silver bullion. Thus on supply side, Silver wins. The industrial demand for silver is massive and growing in uses, but not for gold. Thus on the demand side, Silver wins. The following are powerful factors related to Silver, driving up the Silver price:

Massive contracts are standing for Delivery at the COMEX (like 530 moz), volumes not seen in many years, as buyers are not rolling into future month contracts
Shanghai demand for Silver in June was 4265 tons, up from 3250 tons in June 2015 and way up from 1850 tons in June 2014
COMEX warehouse is down to less than 22 million oz (moz) silver, whereas a year ago it was in the 60 moz range
Total Silver coin demand is six times greater than pre-Lehman, and 50% greater than during the Lehman crisis in 2008
A 34 million oz deficit coin demand from US & Canada, over mine output, has underscored the shortage, without any consideration of industrial demand
Silver scrap supply is down 44% since 2011, an important supply component
A 42-to-1 ratio of paper silver claims per physical ounce has emphasized the corruption in the COMEX price mechanisms toward price suppression
Huge demand from Silver powder in solar panel construction, with Japan the leading powder supplier and with China the leading producer
Indications that China is stockpiling Silver, and might have hired JPMorgan as broker in order to conduct the accumulation
Mine shutdowns have hampered silver output, due to suppressed price and lower profit potential
Chronic economic recession has reduced industrial metal demand, thus shutting down some mines that have By-product Silver output, thus further reducing its supply.

BIG NEW DEVELOPMENT ON GLOBAL FRONT

THE CHINESE FINANCE OFFICIALS AND THE BASEL-BASED BANK FOR INTERNATIONAL SETTLEMENTS ARE NEGOTIATING A GLOBAL REFORM OF ALL BILATERAL CONTRACTS. THEY STRIVE TO ALTER USDOLLAR-BASED CONTRACTS, AND CHANGE THE CONTRACT TERMS TO GOLD SETTLEMENT. THEY ARE WORKING ON A GLOBAL CONTRACT AT THE $5000 GOLD PRICE IN CONTRACT CONVERSION. CHINA REPRESENTS EASTERN INTERESTS, WHILE BASEL REPRESENTS WESTERN INTERESTS. It is not yet clear what will happen to commodity price mechanisms.

If and when the global contract reform is completed, all bilateral contracts will be shifted into Gold settlement, no longer USD settlement. The result will be the USGovt is then made free to launch a domestic-only new USDollar, called disrespectfully the New Scheiss Dollar by the Jacksass for the last two years. It will resemble a Third World currency, and be subjected to a sequence of devaluations. A $500 billion trade deficit will require several years to overcome. If reduced by 50% in five or six years, it will be a miracle. The $1 trillion federal deficit has a different solution in mind. The USGovt plans to commandeer pension funds, forcing investment in the Special USTreasury Bond. It will not be a confiscation, but rather forced conversion with all the disadvantages of currency devaluation that come.

NEW SCHEISS DOLLAR & GOLD TRADE STANDARD

In time, expect an eventual refusal by Eastern producing nations to accept USTreasury Bills in payment for trade. The IMF reversal decision assures this USTBill blockade in time, and might accelerate the timetable. The United States Govt cannot continue on five glaring fronts of gross negligence and major violations. These violations have prompted the BRICS & Alliance nations to hasten their development of diverse non-USD platforms toward the goal of displacing the USDollar while at the same time take steps toward the return of the Gold Standard. The violations are:

1) to import finished goods and crude commodities, paying with IOU coupons

2) to commit multi-$trillion bond fraud in its big banks, done without legal prosecution

3) to do QE bond purchases in applied hyper monetary inflation, monetizing debt

4) to rig all major financial markets in favor of the primal USDollar

5) to engage in numerous regional wars to support the USDollar.

Read More @ SilverDoctors.com

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1 comment to Independence Day Breakout! Silver Has Begun HISTORIC Run-Up – Jim Willie

  • Chuck

    The central banks own huge vaults of gold bullion but no silver bullion. Thus on supply side, Silver wins.

    This looks more like an omen that silver isn’t going to be part of the trade payment system. Do you think bankers will let an opportunity to make money just scream by them?

    The industrial demand for silver is massive and growing in uses, but not for gold. Thus on the demand side, Silver wins.

    This could be another omen. With strong industrial demand, silver might be destined for the factories and not the bank vaults.

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