By The SRSrocco Report
It's no secret to the precious metal community that silver is one of the most undervalued assets in the market, however 99% of Mainstream investors are still in the dark. This was done on purpose to keep the majority of individuals invested in Wall Street's Greatest Financial Ponzi Scheme in history.
You see, this is the classic PUMP & DUMP strategy. Unfortunately, it's not a lousy penny stock that Wall Street is pumping, rather it's the entire market. Most pump & dump stock campaigns last a day, week or a few months. Sadly, this one has gone on for decades and the outcome will be disastrous for the typical American.
The problem is quite simple...
there are way too many PAPER ASSETS floating around backed by very
little PHYSICAL ASSETS. Or, let me put it another way. There are way
too many DEBTS in the market masquerading as assets, while very few
investors hold true STORES OF WEALTH.
I was inspired to write this article due to a recent announcement by one of the well known silver analyst in the Mainstream and alternative media. Jeff Christian of the CPM Group made this statement which was reported in a recent Bloomberg article, Why Poor Man's Gold May About To Get More Investor Love:
Not everyone is convinced.
“There’s a lot of bullishness forming around silver,” said Jeffrey Christian, managing director at New York-based CPM Group, a precious metals adviser.
“We are of mixed minds. Silver is in surplus, plain and simple.”
Investors will only increase their purchases if there are more worrying economic, financial and political developments, Christian said in an e-mail dated March 3.
CPM Group data on supply and demand show annual surpluses from 34 million ounces to 177 million ounces stretching back to 2006.
As many of you know, Jeff Christian's CPM Group publishes the Silver Yearbook. According to their figures, the global silver market has enjoyed annual surpluses since 2006. Several of my readers forwarded this statement to me and asked me what I thought of it.
As we can see, global Silver ETF's added a whopping 500 metric tons in the past several weeks. That turns out to be 16 Moz. I would imagine Mr. Christian will also omit this data when he regurgitates his 2016 silver surplus figures next year.
I believe the reason Christian suggests that the silver markets has been in a surplus because he doesn't see investment as true demand like industrial consumption. Most of industrial silver is lost forever, while a Silver Eagle coin is likely held in private hands waiting for the opportunity to sell it at a much higher price. However, most physical silver investment is being held TIGHTLY and will enter back into the market because its owners realize the Global Financial System will get flushed down the toilet when the Central Banks lose control.
While we have no idea if all of this silver is actually being deposited at these ETF's, it is a sign that the Mainstream investor has a lot of leverage in the market. Actually, the Mainstream investor has more leverage because they comprise 99% of the market while the precious metals investor is 1%.
It makes a great deal of sense why the Fed and Wall Street continue to downplay gold and silver. Because a small percentage switch of investors into these metals would totally overwhelm the market and price.
Fortunately for precious metals investors, this is only a matter of time. While Ponzi Schemes can go on for many years, they all end in a disaster. The present insanity and extreme volatility in the markets provides us a clue that the END maybe coming a lot sooner than we realize.
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