From
KWN:
Suppression will be with us until the powerful acquire and confiscate as much of the metals as possible, and then the currency will be reset. Trillions of wealth will move from holders of paper wealth to those entities holding gold, silver and energy assets.
... and Bitcoin
It's a game. There is an illusion masking the gold pricing mechanism; it is the same one obscuring the fundamentals that are supporting Bitcoin. It's a war of attrition, and
whoever blinks first, loses. Time is on gold's side (and Bitcoin, silver, etc).
... we ended up buying about 47 times more silver than gold, but it’s only available 7/1 for investment because most silver has to go into industrial uses.
At a GSR of 1:7 a silver holder would have about 720% more purchasing power than there is at 1:51 today. If the ratio does fall that far, averaging down every 10, and finally at 7, there would still be well over 300% gain. Aside from Bitcoin, and perhaps some other less certain investments, silver could easily be the best returning buy-and-hold strategy for the next few years.
The psychological impact of a year-end price
decline in precious metals would be enormous. Short-sighted holders would be inclined to let go, while large accumulators scoop it up with abandon. This is no accident, and it has no bearing on reality - supply and demand of promissory notes is completely different from supply and demand of whatever asset the promissory notes
represent.
World leaders seem to be hoping that the progress curve, which has been increasing geometrically, will prevent further collapse of the global economy. The issue with this is that the traditional economic system that they are trying to support is incompatible with the structure that is accelerating the growth.
For now, Bitcoin is much more interesting than the sluggish decay of the necrotic western hegemony. It appears that $12.60 has been tentatively breached to the upside; from here, $13 and ever whole dollar above will pose a challenge. In particular, $15 is a strong battleground because after that there is little standing in the way of a rise to the $30 range ($17-18, $20, and $25 are relatively minor resistance points). An overshoot would likely push the price up to double the prior high, which would be ~$35 on a weekly closing basis and ~$60 on a daily closing basis.
Finally, here is some
perspective from FellowTraveler, especially on the notion that there will be a dynamic monetary ecosystem, not just a single currency; Bitcoin may dominate several years from now, but it will not be alone.
Edit: First Tuesday of the month - employment reports, CoT cut-off, etc... price knockdown to be expected; concurrent USD decline ominous for gov't
