Silver and the Reddit Short Squeeze

What an interesting time to be holding positions in precious metals. Silver has now become the latest target of the Reddit group after them getting shut down on the GameStop play. Talk about market manipulations. Of course the price of silver has been grossly manipulated since the JPM takeover of Bear Stearns silver short position with the blessing of the Federal Reserve and US Treasury way back in 2008. I find it rather amusing, that instead of federal agencies established to provide oversight and protection from such unlawful activities, it’s a group of rebel investors at Reddit who are the ones bringing such nefarious activities to light. So much so that the average person is waking up to the fact that there may be real opportunity in the unjustly manipulated precious metals market. Especially when the shackles of manipulation are lifted. So as the Puppet POTUS might say, “C’mon man, what took you so long?” All of a sudden speculators/investors are racing to get in the action and make some quick profits. But that’s not why you want to hold precious metals and especially silver. The real reason is to protect and preserve wealth from the scourges of insatiable spending by unscrupulous governments on a global scale. APMEX, a metals supplier, has seen 12 X more business than normal due to the recent developments pertaining to market manipulations by those Big Wall Street players. Funny how Main Street has subjected them to such exposure. I guess ‘Main Street really can beat Wall Street’. Good call Coach!

 What ever happens with this latest Reddit Squeeze, one thing is for sure; more people have become aware of the fact that the silver price is much lower than it should be. As prices rise and supplies become more desirable due to the “snow storm mentality” (as I watch the snow falling steady) and people rush to buy essentials prior to a storm. Silver may just be that necessary essential that should be part of every investment portfolio prior to a perceived storm. And I believe that with all that’s happening in this country and in the world, that a perfect storm is brewing may just be an understatement.  As Robert Kiyosaki says, “Silver is still affordable and everyone should own some”. The sooner people adhere to that realization, the sooner we may see much higher prices. Time will tell. But in the mean time I’d say let’s get a head of the crowd.

 The current administration is hell bent on undoing, via executive fiat, any and all policies from the previous administration that may have given those in need an opportunity to succeed. Instead, money printing policies and government handouts are on steroids in order to support massive stimulus expenditures to offset the impact of the pandemic and subsequent lockdowns. None of which will fair well for the value of the US dollar. The National Debt for Fiscal Year 2020 is 102% of GDP. Our debt obligation is larger than our economy, YIKES! The FEDs quest to manipulate and control the money supply while desperately trying to keep inflation and deflation at bay is a dangerous game. Federal Stimulus spending, Bond purchasing and the distinct possibility of buying into the stock market in order to maintain the façade that all’s well that ends well, actually won’t end well. It’s precisely times like these when precious metals shine and although there may be some temporary opportunities offered by the squeezes put on short position holders, the real opportunity may very well be in the long term. Trading precious metal ETF’s and mining companies for sport can be profitable short term but in the long run, there ain’t nothing like the real thing!

As I watch the accumulation of snow outside, I can’t help but think that when it comes to silver we should be in the “Accumulation Zone.”

Invest wisely…

John