It’s not hard to understand, but it is hard to accept…
(by Half Dollar) Of course I backed-up the truck.
I haven’t been waiting on silver in the teens for all of this time so that we could all hold hands and sing Kum Ba Yah.
Much less have I been waiting on silver in the teens so that I could brag about being right.
I would never do that.
I have been waiting on silver in the teens so that I could convert some of my unbacked, debt-based fiat currency dependent on exponential, unsustainable growth into real money for a good price.
And I did.
Although people don’t believe me when I say I actually purchased silver in the teens.
Which brings me to some of what I think about all of this now that reality has unfolded in a way that 99.999% of people were not expecting.
First, please allow me to make my new call, which, I suppose, is superficially nothing more than a doubling-down of the call that I got right: Physical silver, in hand, in the teens, obvious to all.
The key part of my new call is the phrase “obvious to all”.
That’s my current new call.
And yes I have dry powder.
Indeed, I think the next thing to happen is for price to fall even more, for premiums to fall back down to earth, or for some combination of both a better price and lower premiums, because let’s face it, nobody enjoys seeing a price on the screen and then getting sucker punched in the gut when going to make an actual purchase.
Does the phrase, “fool me once”, come to mind?
Moreover, if you want to understand what is happening to the psyche or to the sentiment in the retail physical silver market, in my opinion, then take a look at what has been happening in modern video gaming to get a good idea.
That is to say, in part, much like the micro-transactions generally and the pay-to-win specifically are killing modern video gaming for actual Real Gamers, all of this high-premium generic and pseudo semi-numismatic stuff is killing stacking for the actual Silver Stackers.
And while this has been a trend that has been creeping up for years, mostly under the radar, like, who actually becomes a stacker in 2020, in 2021, or in 2022, paying $3.50 to $20 per ounce over spot for silver?
Like, three to five dollars over spot per ounce of generic?
That dog don’t hunt.
But you know what dog does hunt?
Those gold Centenarios I bought for spot price and zero premium from Apmex in 2017, if I recall the year correctly.
Or the multiple times I purchased 90% silver for spot price and zero premium at SD Bullion over the years.
And no, I’m not talking about some “insider price” either, but rather, I’m talking about a price that Joe Deplorable can actually pay.
To be clear: If a person makes his or her first purchase of silver in the form of an over-valued generic ounce, or, worse yet, sadly, a “semi”-numismatic, and let’s say the person paid $30 to $35 for that ounce of silver, well now, that person is looking at a huge loss in the purchasing power of his or her real money, and that quite literally more than just sucks for the person who needs to convert that real money back into dollars or something.
Indeed, those loses are real.
And yes, I have been that person before too.
I speak from the financially painful experience and the bad taste it left in my mouth.
So if people at the margin have kept a floor under silver’s price, as in, the Hardcore Stackers out there, are those Hardcore Stackers really going to pounce if the spot price goes to $15 yet an ounce of silver, in-hand, can’t be had for less than $23?
I may be an idiot, but I’m not stupid!
For I do know that in this current environment, this current “State of Stacking”, for lack of a better term, unconstitutional US dollars are arguably better spent on canned meat or some other useful thing, especially when the silver market, overall, is having a huge problem with “value”.
You see, like it or not, for the minnows, for the whales, and for any and all in between, the concept of price versus value is still a thing.
It always is.
Just go ask the “Crypto” “Currency” Fanboys.
On second thought, don’t.
They don’t get it, for they’re just Gamblers in the Rigged Casino.
But wait, there’s more!
That’s right folks, because I’ve developed my new call for myriad reasons.
For example, if we are in an actual recession in the real world, then people with an excess of savings but a deficiency of income will need to do something about that.
And, um, there wouldn’t be a reason they would want to wipe out Joe Deplorable’s savings, would there?
Furthermore, if we are in an inflationary, rising interest rate environment, were purchasing things needed for life, things such as, oh, say, housing, have become less affordable, then aren’t people going to need to somehow tap into any and all savings to be able to afford those things?
The last time I checked, housing prices are going up despite the rising interest rates.
Obviously, when you can’t just print up a bunch of dollars and do what you want to do with them, it’s basic math, and you are pretty much stuck with it.
Additionally, I do not think there will be this “rush into silver” that all of the so-called Silver “Advocates” want you to believe there will be.
Remember: Most people lose, most of the time.
That’s just how it goes.
Said differently, and I’ll ask it as a question: How will the overwhelmingly ultra-vast majority of people, the Brainwashed Masses, the Walmart Zombies and the Sheeple out there, somehow rush into silver when they have nothing to rush in with?
Just like you can’t go in guns blazin’ if you don’t have any guns, much less if you don’t have any ammo, if you don’t have anything to buy silver with, then you can’t buy any silver.
See how that works?
There is more I could say.
So much more.
But I think I’ll just stop right there.
I apologize in advance if this article is abruptly anticlimatic.
Or if I haven’t written down all of my latest thoughts on silver.
I have not, after all, seen the capitulation I’ve been looking for:
Perhaps I missed it, but I doubt it.
Perhaps people will get it?
Don’t count on it…