The end of this silver bear market will be marked by default in the physical silver market.
A bold statement that Chris Duane makes in his latest video below. He covers a good deal of ground in this video. We summarise it below for you and also give our perspective at the end:
—Why you should measure your wealth in ounces not dollars.
—How his March video said there is coming (Northern Hemisphere) summer silver collapse due to weak demand and the bankers will apply more paper pressure to get people to stop buying.
—How this worked for a while in April and May but at the start of July a lot of buying came back into the market. Unlike 2011 and 2012 when it was more the “masses” buying.
—How these big buyers liquidated rental properties and stocks. How they are likely wealthier types (millionaires not billionaires) who see the writing on the wall and don’t want to repeat 2008. So they’re getting out while they can and moving into physical silver.
—How the “mass consciousness” of the alternative media seems to think there is going to be some kind of collapse.
—How Greece is the “Bear Sterns moment” and we are now waiting on the “Lehman moment”.
—How since early July there has been gigantic demand in silver even though you don’t see it on websites and forums because everyone is so negative on silver.
—He believes this is the capitulation phase when even those who have been holding on are giving up. While the “smart money” is coming in and buying.
This is evidenced by:
- More silver eagles sold in the last 5 weeks than any other 2 month combined period
- Imports of raw silver into the US is at all time records.
- India is at all time records of silver as well.
—How historically the northern summer time is the weakest time for silver sales. So the fact we are seeing record demand hints at something very major going on that has been under reported so far.
—Why he believes that because the paper manipulation has been going on so hard and strong and for so long, that this has caused real systemic damage to silver miners and also retailers/fabricators. Who now can’t respond to the increased demand as they don’t have the manpower and manufacturing capacity to supply.
—The miners have taken the biggest beating. Which is why he said to stick to physical metal in your hand.
—How he still thinks we will see major defaults in physical silver. Where people will discover that not everyone has the silver they are meant to.
—How he believes JP Morgan has been shorting physical silver and stacking physical silver on a massive scale. While Citibank might be the next Bear Sterns as they have ended up with a huge pile of silver derivatives.
—So he implores get your paper assets out of the system. It’s a Red Alert warning before September which seems to be the period where on a global level things are due to go bad.
—Since it takes time to get your metal, deliver your metal and store your metal. So this may be your last chance.
—The main content of the video ends at the 8:20 min mark. The rest deals with how Chris is ending his Youtube videos and moving to a paid podcast. Plus continuing with the limited mintage silver shield coins for those in his Silver Shield group that already have enough silver bullion and coins from Government mints. If that isn’t you then get in touch for a quote here.
Our Perspective on the Silent Summer Silver Spike (Winter here in NZ)
Interestingly this commentary from Chris Duane on the big spike in demand beginning early July matches our own experience here in New Zealand. Prior to this things had been relatively quiet for us in terms of sales. But this changed in July.
However not in terms of a big increase in the number of transactions – as occurred back in 2013 after the big plunge in gold and silver then.
But rather we saw an increase in purchase size for silver and gold. In some cases these were people who had sold houses and elected to instead put the proceeds into physical gold and silver.
So this does seem to have been a global phenomenon perhaps kicked off by the ongoing ructions in Greece.
What about Chris’s other comments?
He is correct that summer (northern hemisphere) is usually the quietest time of year globally.
Physical Silver Default Coming?
His theory about a physical default is an interesting one. Rising premiums on silver are an indicator of a lack of production capacity as he mentions. But a physical default won’t likely be near until we see rising premiums in the wholesale silver market for the likes of 1000oz bars. However when this happens it will be too late as the real shortages in silver will have arrived – not just the fabrication bottlenecks.
Who knows if that is coming this September/October though?
It will of course be too late once it does, as getting your hands on silver will be very hard to do then. Not without a much higher price to entice sellers anyway.
We personally still like his tag line of “Listen to all – Follow None”. That is pay attention to what a wide variety of people are saying but don’t blindly follow what some “guru” reckons. You have to make your own decisions using reason and logic.