Two Scenarios for Next Precious Metals Rally

Nielson discusses how to recognize when the next precious metals rally will occur, not to facilitate placing bets beforehand but rather to prepare so that investors won’t do something stupid in a moment of panic (or greed) – the opposite of what they should be doing. When circumstances dictate, bankers like to start panics during which they continue to operate calmly in the face of the confusion they generate.

A market crash is a unique event because of the extreme and unusual sentiments that accompany it. In addition, the circumstances prior to a rally caused by an orchestrated crash will be markedly different from those of an ordinary, event-driven rally.

One signal that we are on the edge of a banker-created crash is that gold and silver will begin to rise strongly with no identifiable cause for the strong price surge. The media will be unable to give any reason for soaring prices.

They won’t say that precious metal price increases are nothing more than catch-up for the previous out-of-control money printing. Decades of suppression and manipulation mean that gold and silver are move undervalued today than they were at the start of this bull market.

With fiat currency grossly overvalued, most commodities should be soaring. Here we come to the ultimate fear of the bankers and politicians: they know that the end of their paper Ponzi scheme is imminent when prices for hard assets begin to soar without any explicit short-term causes. They know that the ultimate cause of all hyperinflation is a loss of confidence in paper currency: when prices begin to soar (paper begins to crash) ‘for no reason’, the answer is that people are losing confidence in paper and dumping it in favour of hard assets.

This is what happened in 2008, and it explains why bankers decided that nothing less than a crash would put the brakes on a looming hyperinflation. The world’s bankers will not quietly allow their paper trillions to evaporate. They, and the ultra-wealthy, are firmly in charge of our governments today. They will not hesitate to inflict any hardship—including war—on the general public in order to protect their trillions of fiat dollars. They would certainly do this before allowing any hyperinflation to reduce their mountains of paper.

To read Jeff Nielson article: Two Scenarios for Next Precious Metals Rally

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Tagged as: Banknote, Fiat money, Hyperinflation, Metal, Paper, Ponzi, Precious metal, United States