Silver: The Sleeping Dragon
(George Duncan) Why are the societal powers trying to distract us from the recent action in the stock market? What exactly is the significance of silver? Is it time to reinvest or to continue to “hold to line”?
It’s very likely the “silver squeeze” we’ve been hearing about is mainstream propaganda. That’s enough to let us know that the uprising of Wall Street Bets (WSB) struck a big nerve. However, there are at least a few perspectives on the next move.
Days after the Gamestop Revolution began, a hashtag for a “silver squeeze” started trending on Twitter. On Monday, physical silver was basically sold-out online. Pre-market trading showed an initial rise on stocks like SLV, PSLV, and AG, and the anticipation to purchase options was huge.
However, as the mainstream media assured the public that Reddit’s focus had shifted to silver, the members of WSB were outraged. By the afternoon, a number of posts on the front page of Reddit were calling out the mainstream media for spreading lies and misinformation.
A user wrote, in a viral post:
“. . . this ‘squeeze’ that all these people are referring to is definitely not a ‘squeeze’ at all and is an artificial hedge-fund driven attempt to reduce the GME momentum and we should be cognizant of the media manipulation happening everywhere including right here.”
Reddit users insisted that the “silver squeeze” was antithetical to their work in the stock market. When it was discovered that Citadel owned a substantial portion of SLV, the situation became a lot clearer.
Investing in silver stocks would drive up the price, and thereby allow the hedge funds to be saved by the very same momentum that had defeated them before. The members of WSB were not going to let that happen.
For another group, however, the “silver squeeze” was being celebrated.
Historically, one of the largest discrepancies in trading markets has been between silver stocks and physical silver—more like decade long price manipulation.
In 1971, the U.S. dollar was untethered from the price of physical gold. This allowed agencies like the Federal Reserve to manipulate the price even more. Today, the U.S. dollar has lost far beyond its original value. The price of gold, silver, and other precious metals, has remained relatively stable.
Let that sink in. Why then, has gold shot up by silver’s price not gone up proportionally.
It has long been rumored and completely ignored by mainstream journalism, that paper silver and gold certificates are bogus or counterfeit.
It works like this:
You buy silver from a brokerage house.
They say they’ll keep the silver in a warehouse for you so you don’t have to worry about protecting it at home.
They send you a certificate of ownership for the dollar amount you paid. This acts like a transaction affecting the price of silver in the markets
Here’s the problem, silver doesn’t exist. It’s a scam.
They just print the certificates with nothing to back them (there is no warehouse full of silver). This is why owning real silver is the only way to be sure you actually have it.
The value of silver is based on imaginary numbers. When “they” need to drop the price, they just print up more certificates and sell them, and the price goes down.
Awarewolf Podcast broke it all down last week.
For years, “silver bugs” have anticipated a correction in the price of silver—meaning that the manipulated price of silver will one day go to its true value, skyrocketing in price. If you own silver, you’d make millions.
On Zero Hedge, articles about the “silver squeeze” had millions of views. The comment section was filled with excitement, as well as skepticism at the possibility of another false alarm.
By the end of Wednesday, the stock price of silver had fallen from its momentary rise. The message to “hold the line” was maintained, as most investments stayed locked on GME, AMC, NOK, and other shorted stocks.
There’s a level of truth in people’s fascination with physical silver.
A solid argument can be made for the eventual correction in relation to the U.S. dollar. It would likely require a combined effort—a singular force and not the scattered narratives of the past week.
If the users of Reddit continue to work together, a brighter future may be in sight. For the moment, physical silver remains a sleeping dragon.
