Another quarter ends, another silver slam begins and ends.
The panic which ensued with the newbie silver bulls is not shocking, in fact, for those of us of age it’s pretty typical and expected.
The amount of shorts on silver contract futures has always been as ‘nekkid’ as the chicks at the Mons Venus in Tampa (or so I’ve heard) and now with silver on breakout velocity there is panic in the shorting community.
Reality however eventually catches up to all commodities where in excess or shortage and in the case of silver it is the latter. While it’s monetary value is more historical than practical in the current era, the fact that we might see a shortage of some 3,300 plus tonnes by the end of 2025 (per various industry sources) is enough to move the metal higher on its own.
Thus when a long term cup and handle appeared to form in the silver price over the last several years, any breakout above $36 has to be considered a long term signal for a potentially major bull run. June simply confirmed that the price levels are holding and have not been seen since the Hunt Brothers era.
With this breakout the all time highs are now quite potentially a layup as the so-called “new new” approach to monetary policy is beginning to look a lot like the Janet Yellen Modern Monetary Theory idealism that was supposedly abandoned with the election of President Trump.
If one is not obtaining some “poor man’s gold” it might be time to consider the necessity of adding some physical to one’s private portfolio on any price dip. The economic consequences of the policies being engaged in by the powers that be is dangerous and foolish which might have an impact for decades to come.
