Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver Smart Money Exits Too Soon

Commodities / Gold and Silver 2012 Dec 01, 2012 - 12:11 PM GMT

By: Dr_Jeff_Lewis

Commodities

“Too little, too late” could well describe the current plight of the 'smart money' silver investor, since many seem to be arriving late to the party when the market has not even yet entered the final phase for investment demand in either silver or gold.

Of course, some investment money has trickled in to the precious metals, but to the average investor, prices are still correcting and the market’s fundamentals remain very much misunderstood.


The Financial Media Circus Aids the Manipulators

The controlled financial media continues to recruit from within its ranks those market analysts who have incorrectly predicted and portrayed precious metal fundamentals and market conditions. This has further helped to inhibit more accurate price discovery in the metal markets.

There also remains a suckling reflex among those investors that cling to the status quo, apparently unconvinced by the reality they can actually see with their increasingly blind eyes.

Such people demand the circus presentation of information by the media with little regard to its accuracy or to the long term performance of touted pundits that seem to gain instant credibility by their simple presence in print or on television.

When Silver Breaks Beyond Manipulation

On its surface, the paper silver market appears to portray a starkly different picture compared to the reality of what lies underneath or at the root of each futures contract.

When the door is officially shut on the sacrosanct social contract at the center of price discovery, and the scales tip toward public understanding, the silver market could finally see its long awaited price release.

The resulting sharp rally would probably overshoot substantially to the upside, as the silver market suddenly finds itself in a vacuum when its price finally becomes dependent upon physical supply and demand for the first time in decades.

When widespread understanding of the intrinsic value of silver instantly overwhelms available supply, the misunderstandings of this decades-long market manipulation will end.

Fundamental Price Discovery May Finally Return

In many ways this dramatic event will be symbolic and could well herald the return to fundamental price discovery in all other commodity markets. Unfortunately, most people remain totally unaware that the sudden upside risk created by systematic and manipulative underpricing has existed for many years.

Once the return to fair value occurs, the offers will finally recede, giving way to an unprecedented influx of demand for silver.

While participation in the precious metals market is currently low relative to other asset classes, a large amount of liquidity is lying in wait for the time when frustrated investors finally discover that their apparently never ending search for a meaningful yield has become all but fruitless.

At some point the realization of the importance of having a return of their money — rather than just a return on their money — will dawn upon them, but for most it will be too late to save their wealth from devastation.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2012 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in