Have you seen what the price of silver has been doing? On Monday, it exploded past 20 dollars an ounce, and as I write this article it is sitting at $20.48. Earlier today it actually surged above 21 dollars an ounce for a short time before moving back just a bit. In late March, I told my readers that silver was “ridiculously undervalued” when it was sitting at $15.81 an ounce, and that call has turned out to be quite prescient. The Friday before last, silver started the day at $17.25 an ounce, and it is up more than 18 percent since that time. Overall, silver is up more than 30 percent for the year, and that makes it one of the best performing investments of 2016. So what is causing this sudden surge in the price of silver? This is something that we will discuss below…
This sudden spike in the price of silver has definitely caught a lot of analysts off guard. Some are suggesting that the fact that the Fed is now less likely to raise rates after the Brexit and the fact that the dollar has been slipping a bit lately are the primary reasons for silver’s rise…
This isn’t a gradual increase either. It’s an explosive growth spurt. Just three months ago silver had reached an 11 month high. Now silver prices have reached a 23 month high. Several factors appear to be influencing these gains, including a weakening dollar, and the fact that the Fed may cut interest rates in light of the Brexit vote.
Personally, I don’t buy those explanations.
To me, the continuing implosion of major banks over in Europe is the main factor that is driving investors to safe haven assets such as silver.
Rumors continue to spread that Deutsche Bank is essentially insolvent at this point, and many are watching for the imminent collapse of the largest and most important bank in Germany. When this happens, it will be a much, much more cataclysmic event for the global financial system than the collapse of Lehman Brothers was back in 2008.
But today I want to focus on the ongoing implosion of the major banks in Italy.
Italy, France, and Germany – all toast. There is no saving any of them. They are, each and all, in too deep to be pulled out of the sinkhole called the “European Union”. And in combining just those three, we can project a global economic meltdown as an absolute certainty.
The fact that the remainder of the ~26 EU nations (not already in declared economic emergencies) are in just as far over their heads, only adds additional credibility to something already as certain as tomorrow’s sunrise.
It is only a matter of time, before a falling rock strikes the earth.
It is only a matter of time, before the Euro has a value of zero.
BREXIT shall prove to be the beginning of the stampede, to get out of the Euro, and re-establish independent national currencies.
There is an old adage in banking, that “he who defaults first, defaults best.” Well, Britain hasn’t defaulted, per se, but they’ve definitely set a precedent which I expect the Dutch to follow in short order. After which, everyone else can compete for third place.
Sometimes, the only difference between tragedy and comedy, is who you’re rooting for…