Silver Soars 90%, $100 in Play Amid CME Outage, JP Morgan Mystery

Key Concepts

• Silver Price Surge: Silver has experienced a significant price increase, reaching over $58 and marking its best year since 1980.
• JP Morgan Trading Desk Rumor: A rumor suggests JP Morgan moved its precious metals trading desk from New York to Singapore over Thanksgiving weekend.
• New Money Buyers: The current silver rally is attributed to new money entering the market, not a short squeeze.
• Overleveraging: A common problem in precious metals trading is overleveraging, forcing sales during market downturns.
• Depleted Above-Ground Stockpiles: Growing investment demand has reduced available physical silver.
• Economic Concerns: The US economy faces issues like job losses, inflation, and a Federal Reserve potentially cutting rates amidst an overvalued stock market.
• Inflation Hedge: Gold and silver are seen as inflation hedges due to rising prices and government policies.
• CME Outage: A temporary CME outage occurred during a silver rally, sparking speculation about market control.
• Long-Term Investment Strategy: The advice is to buy physical precious metals for the long haul, not for quick profits, especially during dips.
• Historical Market Performance: Comparisons are made to historical market events and the long-term appreciation of assets like the Dow Jones and housing.
• Undervalued Precious Metals: Gold and silver are considered undervalued compared to certain tech stocks.

Silver Price Performance and Market Dynamics

Silver has seen a remarkable surge, surpassing $58 and achieving its best performance since 1980. Todd "Bubba" Horowitz, chief strategist at bubbatraining.com, suggests that the price could even break $60 before the year ends. He emphasizes that this rally is driven by genuine new money buyers, not a short squeeze, indicating a strong underlying demand. Horowitz advises against overleveraging in precious metals futures, recommending instead the purchase of physical metal that one can afford. He notes that the market's charting, patterns, and industrial uses of silver all look positive.

JP Morgan Trading Desk Rumor and Singapore Relocation

A significant rumor circulating is that JP Morgan quietly moved its entire precious metals trading desk from New York to Singapore over Thanksgiving weekend. While unconfirmed by official sources, Horowitz finds the logic behind such a move plausible. He points out that New York may no longer be the undisputed financial capital, and high taxes in New York could incentivize such a relocation. Singapore, already a safe haven for investors similar to Geneva or Switzerland, offers a potentially more favorable environment. The rumor gains traction given JP Morgan's past involvement in market manipulation allegations, suggesting a potential desire to operate in a jurisdiction with less scrutiny. Horowitz believes such rumors are likely to be proven true due to business pragmatism and profit-driven decisions by leadership like Jamie Dimon.

Economic Concerns and Inflationary Pressures

The discussion highlights growing concerns about the US economy. Issues such as job losses, economic instability, and the Federal Reserve's monetary policy are brought to the forefront. Horowitz criticizes the Fed's mandate, stating they are failing to ensure employment and stability, and instead are fueling inflation. This inflationary environment is seen as a primary driver for the "inflation trade" in gold, silver, and platinum. Anecdotal evidence from everyday conversations suggests that people are feeling the economic pinch, with rising costs of living, exemplified by the increased price of dining at a New York diner.

CME Outage and Market Control Speculation

The recent CME outage, which occurred while gold and silver prices were rising, has fueled speculation among conspiracy theorists. Horowitz acknowledges that while technology can fail, the timing of the outage raises questions. He draws parallels to past market shutdowns and the implementation of circuit breakers, suggesting that such events could potentially be used to control market movements and halt buying frenzies. While not accusing anyone directly, he states he wouldn't be surprised if the outage was a controlled shutdown to manage the market, given the existing mechanisms for market control. This is seen as another symptom of a broader issue where markets are controlled rather than allowed to trade freely.

Investment Strategy for Precious Metals

When considering buying gold and silver at current highs, Horowitz differentiates between traders and long-term investors. For traders looking for quick profits, he advises against buying at this moment. However, for those looking to hold precious metals as a long-term investment, he advocates for continued buying, especially on dips. He emphasizes a consistent buying strategy, using investment dollars that are not needed for immediate expenses like mortgage or car payments. Horowitz believes that hard assets like gold and silver will appreciate significantly over time, especially in the current economic climate of inflation and government policies. He envisions a future where silver could reach $100 or even $200, drawing parallels to the historical appreciation of the Dow Jones Industrial Average and the increasing ratio of housing prices to income.

Historical Perspective and Market Cycles

Horowitz draws on his extensive experience in the markets, having lived through significant collapses like 1987, 2001, and 2008. He warns that markets do not rise indefinitely and that current warning signs in the equity market are similar to those seen in previous downturns. He agrees with analysts like Jim Chanos and Michael Burry that certain tech stocks are overvalued, while gold and silver remain relatively undervalued.

Conclusion and Call to Action

The overarching theme is that nothing surprises Horowitz due to his long tenure in the markets. He reiterates that the current economic situation presents significant risks, including the potential devaluation of the US dollar. He advises viewers to position themselves like central banks by investing in hard assets to protect their wealth. The video concludes with a reminder of silver's impressive year-over-year performance (over 100% increase from $28 a year ago) and an invitation for viewers to seek further information and education on precious metals from ITM Trading.