In essence, taking possession of artificially cheap silver is not only akin to an act of wealth conservation, it is also a quiet form of protest, a protest against a failed currency structure imposed by a government upon its citizens that has given rise to the extreme complexity and overgrowth in the financial sector and which allows those closest to the free money a significant advantage over the populace.
The ownership of silver represents real savings or capital formation, two things that policy through action is against. Policymakers fear that if people are too concerned about the future, then they will not spend, which in turn, reinforces the issue, especially in a consumer-driven economy.
Of course, this assumes the idea that people need to eat and burn fuel to survive, which is the most basic form of consumption.
A Relatively Quiet Silver Rally
Comments in the media have been largely absent from the latest rise in silver. This should not come as any surprise, since the media in all categories is misinformed or manipulated to say the least, and the financial media is no exception.
Mainstream media has either missed or kept quiet about the real reason for the rise in silver, as well as the entire reversion back to the natural upward course that the price of silver has resumed. Maybe when silver has moved up 30 percent from its present levels, the media will be forced to take notice of its rise. Perhaps only then will it comment to call a top in silver - yet again, in order to manipulate the price lower?
Furthermore, the fundamentals for silver have not changed. No new supply has come onto the market nor has a major form of consumption been identified. Nevertheless, the case for investment demand has become even stronger.
The silver market currently appears to be moving higher off of a very large base completed during a time of even more negative sentiment than what was observed after the 50% 'correction' seen in 2008.
The macro picture continues to be shaped by world war of currencies. Europe is a mess, and the situation is much more serious than it would appear on the surface. The notable rise in youth unemployment in the United States and Europe (see chart below) since 2008 should say it all.
Also, since when has the Middle East not been a tinder box? China continues to quietly gather wealth as it spends its remaining coupons and leaves the party to go home and deal with its own mess. Japan is creeping back into the news.
And for all the rhetoric, no one comes close to accepting the impossible math on the United States paying back its $16 Trillion national debt - or for that matter ,the chances of it paying back the over $200 Trillion of unfunded future liabilities.
The Missing Media
Outside of the GOP's chatter about a new gold standard, the political media theater is in full swing intensity ahead of the upcoming national election. If anything, this provides a good cover for the rally in silver and gold.
Perhaps the relatively invisible silver rally might be preferred, rather than a noisy and costly spike upwards that could well be induced by panicked short-covering by the financial institution run by everyone's darling banker, Jamie Dimon.
In a tiny market such as silver, where a few big players typically dominate and manipulate global price discovery, being invisible may be the real and only power held by those who would one day choose to buy or continue to accumulate precious metals. Basically, the media remaining quiet for a little while longer while silver prices adjust might serve to quell any policy or political backlash.