The debate continues between the SRSrocco Report and CPM Group’s Jeff Christian on the fundamentals of the silver market. After my article, in which I questioned the CPM Group’s exclusion of silver investment demand from their supply and demand analysis, Jeff Christian responded with a comment on my website. I am glad that Mr. Christian responded because it now allows me the opportunity to explain in more detail why I disagree with the CPM Group’s analysis.
As I have mentioned before, this has nothing to do with the individual or the company, but rather what I see as faulty analysis. The whole idea of public writing is to be able to look at all sides of the story. I have the right to disagree with someone else and to explain the reasons in my articles. However, I have seen individuals in our alternative media community call names or ridicule individual’s that they are in disagreement. I don’t believe that is the correct way to provide open debate as it focuses on the messenger, not the message. (photo above left, courtesy of Kitco.com)
Before I get into the details on why I disagree with the CPM Group’s analysis on the silver market, I wanted to share a few things. My analysis of the precious metals market has changed since I started writing articles in 2008. Early on, I didn’t consider the impact of energy on the precious metals or the overall market and economy. Furthermore, I stopped putting out price forecasts several years ago because it became apparent to me that it was impossible to do so. Analysts who continue to put out specific price forecasts have been met with a great deal of frustration.
…click on the above link to read the rest of the article…
The gold market is heading towards a big fundamental change that few are prepared. While many analysts in the alternative media community suggest that the gold price is manipulated due to Fed and Central bank intervention, there is another more obscure rationale that is the likely culprit. I call it, “The Blind Conspiracy.”
File under “reasons to buy gold”: A famous photograph by Henri Cartier-Bresson of a rather unruly queue in front of a bank in Shanghai in 1949 in the final days of Kuomintang rule. When it dawned on people that the communists couldn’t be stopped, they frantically tried exchange their government-issued paper money for gold. In preparation for its exodus to Taiwan, the Kuomintang regime had forced everyone to exchange their gold, silver and foreign exchange for a new paper currency, the Jingyuanquan in 1948 (“golden yuan”) – which it promptly inflated with gay abandon, belying its name. It then tried to combat rising prices with price controls – a strategy that has reliably failed since at least the times of the Roman Empire. It reversed the policy a few months later, as even its main supporters became thoroughly fed up. The people in the picture above were among those who had clearly waited too long to take advantage of this policy reversal. [PT]
