Why Past Gold and Silver Prices May Be Irrelevant to Future Prices

gold and silver bull run of 2019

Today’s article is a follow up to yesterday’s article in which I warned against a short-term pullback in gold and silver prices and provided price targets for those short-term price pull backs. Though people say history always repeats itself, and this is largely true when it comes to Central Bankers’ history of deliberately creating global crisis time after time, such as the roaring twenties followed by the Great Depression, the 2008 global financial crisis, and the future global financial crisis that is manifesting right now in emerging markets but has not yet reached developed markets in full force as of yet. If my short-term price targets are met, will a deeper price pullback manifest? Since these type of predictions are best left until after short-term price targets are met, I will likely provide updates in my free weekly newsletter, of which I’ve already released three information packed editions. To sign up for it, just click here. In the meantime, though I won’t have a better idea of gold/silver price direction until we reach the next crossroads, I wanted to clarify some of my comments from my last blog posting.

Gold and silver investors became accustomed to the bankers winning the war against precious metals between 2011 and 2015, because during this time, every time prices caught a bid, pro-petrodollar Western bankers always subsequently artificially slammed gold and silver prices lower. As a result, much like the dogs shocked into learned helplessness during psychologist Martin Seligman’s infamous experiments conducted at The University of Pennsylvania in 1967, many investors were shocked into states of learned helplessness and resignation of an inevitable large raid on gold and silver prices every time precious metal prices rose.

This is a belief that many gold and silver investors still carry with them today. Consequently, we must be wary of becoming too negative in our outlook every time a gold and silver price pullback manifests, especially pullbacks that follow very strong runs higher in precious metal prices. We must not automatically assume that every small pullback in prices during this current gold and silver bull that will last at least for several more years, will develop into a larger price smash. Certainly, it is very possible that bankers’ gold and silver price suppression schemes could get overrun by developing panic in the free-falling purchasing power of global fiat currencies.  

Furthermore, countries that have stockpiled gold for their national treasuries since the 2008 global financial crisis, like China and Russia, are certainly better prepared today to take countermeasures to any pro-petrodollar banking cartel scheme to smash gold and silver prices significantly. Should Western bankers try to aggressively take down gold and silver prices as they did in 2011, once gold prices reached $2,000 and silver reached $50, surely they will face much more resistance on the second attempt.

Thus, we should not always assume that everything is the same in gold and silver markets, and that because precious metal spot prices are still largely set in extremely immoral and fraudulent futures markets in London and New York, that other nations that wish to cut their economic dependence upon the petrodollar have not spent a considerable amount of time and effort into developing countermeasures to combat the type of Western banker aggression that resulted in gold prices plummeting from $2,000 in 2011 to about $1,045 by the end of 2015, and silver from $50 to about $13.60.

If countries that have been large consumers of gold since 2008 have not taken aggressive countermeasures to prevent such a farce from repeating itself in the future, then they would qualify as the most poorly and irresponsibly nations in the word. In fact, in recent years, even foreign ministers from long-time US allies like Germany and numerous other normally US-friendly nations have stressed the need to develop alternative financial systems to reduce their nation’s risk of being controlled by the owners of the US Central Bank and of being at the economic mercy of the decisions of the Belgium-based, but largely US subservient SWIFT (Society for Worldwide Interbank Financial Telecommunication) cooperative.

Consequently, should the pro-petrodollar banking cartel seek to destroy gold and silver prices again, as they did during 2011 to 2015, I believe that they will not be able to do so with nearly the same level of success as they executed back then, simply because the rest of the world has learned from their mistakes of being unprepared to deal with the prior attack on precious metal prices. In fact, for the first time in history, there may be even a chance that such a decision to attempt a massive gold and silver price smash might backfire on them.

J. Kim

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