Special Message to People of The Silver & Gold Persuasion
The comments below are an edited and abridged synopsis of an article by Goldfix
CNBC says silver could touch a 9-year high in 2023. Here are three ways to make sense of that news:
1. It’s bullish.
2. It’s not bullish, because this media source is frequently late to the party, the quoted sources are all on the industry side (refiners, miners etc.) with something to gain, and there are no banks recommending silver at this time. It’s a trick. If it was bullish, we would have rocketed higher by now.
3. It’s bullish, and shows the growing interest that is now being taken seriously by the press, and despite the info sources being on producer side, the banks are aware of this and want to make money. Temperatures are changing. Along with everything else, it’s the next logical step towards metals being resuscitated as investment tools.
The author discusses the behavioural bottom line; new conjecture—the mother of all flow trades; and a Zen moment.
Bullion banks don’t hate precious metals. They want to make money. Finally there may be proper incentive coming to make money from the long side for them. This isn’t just about inflation anymore. It’s about international economic security. This is a recipe for the mother of all flow-trades, years of flows to make up for decades of neglect. Neglect of what is real needs to be fixed in supply chains, infrastructure, manufacturing, and collateral.
Countries are going to rebuild. Gold and silver are a small piece of the change facilitating that.