As we’ve seen this entire decade so far, there are a lot of interesting things happening all at once.
It’s even stranger in gold and silver.
Central Banks don’t have to tell you why they do things.
In the case of dozens of central banks all around the world, they are loading the F up on gold, and we are left to wonder why.
This site here goes over the Q4 2022 gold purchases by central bank. The only bank that really dumped was Kazakhstan for whatever reason, but the dumps after were very small. The gains were extraordinary.
This Reuters article illustrates just how large the overall purchases for 2022 were. The largest in recorded history.
The question of course is “why”?
I can say this much. They don’t all decide to come in and buy at the highs, so they can all be bag-holders later and the little guy ends up winning. How much sense would that make?
Something is happening, and they don’t want the public to know.
Because after all, a high gold and silver price is like a high oil price — it’s not good for the world.
So what have banks and entire nations done this past decade?
They’ve illegally tamped it down.
Yes, Captain Dingdong said the quiet part out loud.
But after the regulators finally decided to do their job and stop accepting bribes for the time being, arrests were made.
This report shows two low-level spoofers getting yanked, which I guess is something, but they missed a good 200 or so others who will never see a day in prison.
Note the date as well – August 2022. Central bank buying was going on before this. Perhaps they knew?
It doesn’t matter, because either way, we have a confluence of events taking place here.
1 – Record central bank buying (Why are you sleeping on this?)
2 – A possible end to the daily tamping and manipulation
And let’s not forget 3.
3 – We’re running out of silver. And gold and silver usually run in tandem.
Over time, you can be as shady and as unscrupulous as you want. You cannot prevent the inevitable.
Source: Kitco
The word “Lead” in the title is a long ‘E’, so not the other metal we know as lead. They’re referring to silver here.
And if you follow Michael from Silversqueeze on Twitter (has a rainbow flag in his profile), you cand see how day to day, this supply does almost nothing but decline.
There may be a big retracement day, but the trend shows no sign of stopping.
Conclusion
With all of the speculation and zigging and zagging in our industry, having hard facts in front of us like this is quite the luxury, no?
I like investing in things we need, but have less and less of every single week.
I continue to own physical gold and mining stocks.
And I have said before as well, the cheapest silver is in the ground. I continue to own mostly silver miner ETFs and large producers, with one smaller mining stock play, and a few others that contain silver deposits though not primarily so.
The pullback I was calling for in Discord may now be upon us. Barring anything crazy, I’ll be moving a bit more USD over to this sector during this time.
DYOR and NFA.
— VP