Why is the price of precious metals going down
Precious Metal Prices 2020 (what is going on?)
market's been dropping over the past
days and prices of silver and gold has
been
no stiffing like a crashing airplane
one of the main reasons why is because
the markets have been
showing a slower recovery than expected
second waves in europe and new
restriction providing
uncertainty and a fed has been speaking
about
creating even more economic stimulus
money printing but all those news
are bullish for precious metals right so
what is going on
[Music]
hello precious people who likes precious
metals
let's talk about what the hell is going
on
in the silver and gold market today
in short prices
this week fell to a two-month low
silver gold and even platinum is on
discount
this dramatic drop came as response to
uncertainty in the market caused by new
shutdowns in europe and
increasing levels of well you know what
the fed told us the new economic
stimulus might be needed
to keep the economy alive what the fed
is actually talking about
is let's take those money machines and
even more money even more money
to put this into perspective
the balance sheet from the beginning of
time until the
end of 2008 was less than
one billion dollars in
february 2020 the balance sheet went up
to four billion dollars
four times the amount that were ever
created in the history of united states
how crazy is that oh
sorry wait a minute we are not in
february right now we are in september
so what is the balance sheet today
hey wait for it wait for it
seven billion dollars
come on man this is just
i don't know and now they want to create
even more
have you ever seen the movie austin
powers why make trillions when we could
make
[Music]
billions so
to summarize this the fed printed
two times more money in the past five
months than
were created totally through the whole
history
european central banks are bad as well
well
not quite as bad but still bad we see a
similar trend
all over the world but wait a minute
so with all this money creation and also
new
discussions around printing even more
money
silver and gold went down
but why we thought that silver
and gold were safe heavens so what is
going on right now
right i'm going to say something
that not a lot of people say today my
answer is
i don't know
i don't know what is going on in the
precious metal market i don't
but from several years of experience
i do have some thoughts and i have two
theories
about what is going on in the precious
metal market so one
i believe the whole precious metal
market is manipulated by much
much larger institutions why
because silver is mainly controlled by
paper assets
i know this is not a popular opinion you
know i don't really care
because it is the true for every ounce
of silver
there is 250 ounces of
paper silver assets today
as you can see most of the silver
investments in the world
is not backed by real physical
silver in fact
it is a fake scheme think about it most
hackers dislike cash because it says
useless papers without real backing
but most silver assets is the same it's
companies
selling paper silver assets that is not
backed by you know anything
remember when oil prices went down to
negative price this is exactly what
happened
so many people were betting against the
oil price that in the end
the rate for physical oil went negative
this is only possible in a world where
commodities are sold
as an etf or paper asset
think about it there is no real backing
then all paper assets are the same it's
just the use of paper claiming something
it won't even matter if you invest in
gold all sheep
corn you know i don't know i mean
whatever right
so so to wrap this up
one reason why silver and gold prices
went down this paid
despite fear in the economy is maybe
because
someone wants people to stay away from
precious metals
because it's well you guessed it
it sweetens the con economical system
since the price of precious metal is
highly dependent on paper assets
it also make it very very very easy
to manipulate i mean
any economical institution can throw a
lot of cash on the commodity
to affect the price either to hold it
down or
you know make it go up so do you have
any proof of this
no but i have some data that point in
this direction you see
gold silver and platinum is
three highly different metals
gold is used as a financial metal that
is hauled by
central banks traded between countries
and it tends to go up when the industry
and stock market
goes down silver on the other hand is
mainly used in
industry on well also jewelry
so when the economy goes well silver
tend to get more expensive because the
demand increases
of course some of it is also used for
investments but that's a smaller part
and platina
is like silver on steroids it's also
used in the industry in jewelry
just like silver platinum tend to go up
when the economy is doing well
so this past week when prices of silver
went down
also gold and platina went down so if
you ask yourself
how can three so widely different metals
all go down in around the exactly the
same time
by around the same percentage if the
market is not
manipulated i'm not gonna say anything
think about it yourself for a moment
okay so that's one theory and
the second thought on this it's a quite
logical one but with a twist
silver metal is an industrial metal
i know this is an unpopular opinion
among stackers but
sometimes you have to look at the facts
seventy-five percent of silver
is used in either the industry or
jewelry production
the rest for coins and bars if you think
that silver price ratio between
paper assets is close to 250 to 1
then you also understand that it's not
stackers that drive prices
but you know rather the industry
so if so it makes very much sense that
the price of silver
drops to the news that the economical
situation is worse than we thought
that european market is taking a second
hit it
all that adds up right but
what about what about gold
gold should not go down to this news
the fed is talking about printing more
money and gold go down to
a two-month low again what is going on
here
so here's my last thought on this all
this
does not make sense because the price of
metals
are not connected to these physical
pieces
of metals that i have
here in front of the table
this is the only way to think about it
if you want the prices to make sense
right now
if silver went to price negative like
oil do you think that bullion dealers
would give away silver coins for free
i don't think so what i think
is that we reach a point where the price
of physical metal
is starting to de-de-attach
itself from the spot price of metals
i think we will see a much larger gap in
the coming years
we might not even need to create a new
physical spot price for physical metals
because it does no longer reflect the
price of them
but hey people this is what premiums
are right this is premiums you might
have noticed that the premiums
have not gone down a lot even though the
price spot
is lower why because it reflects
the real price of
silver and gold this is probably
another unpopular opinion but again i
don't really care
i believe we will see a larger gap
between physical prices
and spot prices because real metal has a
price
and you know the unicorn paper
assets spot price does not reflect
anything else than a gamble of the crazy
stock market
if you really think that gold will
protect your wealth against a bad
economy
why would you ever invest in paper acid
it's it's not it's not gold and it's
that
it does not reflect the true value of a
metal
okay people my rent here is done
but i will be back no seriously
this is what i think is going on right
now love it or hate it
if you agree please click the thumbs up
button
and you know if you disagree with me
feel free to press the
thumbs down button i don't really care
i'm just speaking my opinion here
and in any case
i'm super bullish long term for both
silver
gold and platinum maybe most
bullish for silver long term because
silver has real value in the
industry and and the demand will
skyrocket while the production
is more or less steady right now
so in the future the demand for physical
silver
will go up a lot maybe not the spot
price
of silver remember but for sure the
physical
metal price so if you want to preserve
your wealth
and buying power in the future then
stacking
real gold and silver is a great way
hey this is all from me thank you so
much for watching
love to you all and i'll speak with you
soon oh
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have a great day everyone cheers
you
