Hi-Ho

The prices of precious metals like gold and silver, have long been prone to manipulation by the dealing desks of nefarious banks who, every now and then, received a naughty-naughty wag of the finger from the high courts coupled with an easy-to-swallow fine. It has even been suggested that the nefarious banks are possibly acting on the instructions of money mandarins to suppress price discovery as they continue to torch their own fiat currency to finance ever increasing deficits. Hmm. The actions of largely Eastern Central Banks over recent years as they stack record quantities of gold. then, has stoked all sorts of wild-eyed theories: one of which is to create some sort of new currency backed by a shiny metal that has seen off many civilisations. Some commentators appear now to be quietly whispering that the BRICS+ may even use a pow-wow in the dog days of August, as a platform for a press conference of what would be, quite epic proportions. Hard to believe. The demise of the dollar has long been talked about but, thus far, there has been nothing really to change the status quo bar the odd lurid headline on Reuters. But that might be about to change, there being no better time to make such an announcement than when the moneyed Western elites are bobbing up and down in some azure bay with sketchy Wi-Fi, wondering whether it’s too early to open a bottle of rose. Aside from the potential bonfire of fiat currencies, the underlying fundamentals for silver, look particularly interesting. A precious and industrial metal, shunned by sane investors due to eye-watering volatility courtesy of the po-faced puppeteers – the market is currently being drained of physical metal at a time of rip-ripping demand. The impending deficit is colossal enough to have any politician up on their feet, fist-pumping and hollering approval. The demand is largely being driven by the steady drip-drip of eager government officials, announcing massive new investments into solar. Silver being a must-have component, in the must-have panels. There is no reward without risk, and in a market where many asset prices are looking bloated after a bullwhip YTD hee-haw, those who reach for a 1-iron off a tight lie may want to look no further than the precious metals. Particularly silver. Given the recent pull back now could, possibly be, the right time to take aim. Time will tell.