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RE: Lions, Stock Market Updates Plus: Gold, Silver, Dollar, Bonds. By Gregory Mannarino

in #money7 years ago

Why should we follow you when you think that paper silver or gold is the same as silver or gold mining stocks?

They are two completely different things, a mining stock is a share in a mining company, whereas a paper ETF is a load of nonsense. It is basically fractional reserve banking, you think you are purchasing a real asset but in reality you just have an IOU. If everyone tried to cash out the whole system would collapse, because it is leveraged over 200:1.

http://www.zerohedge.com/news/2017-05-17/paper-vs-physical-amazing-amount-leverage-silver-market

That means over 200 people would be fighting for the same piece of physical gold or silver.

This is how they keep the physical market suppressed. They can essentially create an infinite supply of paper just by increasing the leverage. So what do you think happens when people lose confidence in this market and want there actual assets? People are going to be left with their dick in one hand and their IOU in the other.

I'm not a huge physical bug, I just don't like people thinking they are always correct.

Any monkey with some cash could make money in the current stock market. What happens now that countries are performing quantitative tightening and companies are no longer capable of purchasing their own stock, artificially elevating their share price? I wonder if the price will go up or down? Hmm interesting thought...

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Nooooo, I was only pointing out that if you bought mining shares, which are in fact "paper" assets if you ask your ave card carrying gold or silver bug, you could have taken the next 5 years off from trading/holding/stacking "physical" as the returns you are "hoping" for were already achieved in this sector. And whenever this sector "deadcat" bounces, "paper" will outperform "physical" once again...during that purrtickler deadcat bounce. I was just stating facts. You guys n gals are going to believe what you want to believe.