Behind-the-Curve Fed Fuels Gold and Silver Rally. When Gold Skyrocketed 5 X and This Set up is BEST EVER WITNESSED.
Gold, Silver Soar as Fed Lags. And the Pathetic Fed Wants to Cut 6 More times? Plus Neither Trump or Harris says Abolish the Fed!
Last time the Fed was this far behind the curve was 2007. Gold rose almost 3X from $700/oz to $1,900/oz over the next four years.
But the news gets better!
Silver rose over 5X from under $9 to $48.
The Federal Reserve's response to the 2007-2008 financial crisis involved lowering interest rates and implementing quantitative easing (QE) to stabilize the economy. Despite these efforts, some argue that the Fed was "behind the curve" in addressing underlying issues, as evidenced by the significant rise in gold prices from $700/oz to $1,900/oz between 2007 and 2011.
Silver Lags then Pops even Higher
Silver rose over 5X from under $9 to $48.
Quantitative Easing Explained
Quantitative easing is a monetary policy where central banks purchase securities, such as government bonds and mortgage-backed securities, to increase the money supply and lower interest rates. This approach was adopted when traditional policy tools, like lowering interest rates, were exhausted. The goal was to provide liquidity to financial markets, encourage lending, and stimulate economic growth.
Monetizing Debt
Monetizing debt refers to a central bank's purchase of government securities, which effectively finances government spending by increasing the money supply. This can lead to inflation if not managed properly, as it may devalue the currency and reduce purchasing power. During QE, the Fed's balance sheet expanded significantly, increasing liquidity but also raising concerns about long-term inflation and currency devaluation.
Impact on Gold and Silver Prices
The rise in gold and silver prices during this period can be attributed to several factors:
Inflation Concerns: As QE increased the money supply, investors feared inflation, prompting them to seek assets like gold and silver as hedges against currency devaluation.
Economic Uncertainty: The financial crisis led to a loss of confidence in traditional financial systems, driving demand for tangible assets perceived as safe havens.
Interest Rates: Lower interest rates reduced the opportunity cost of holding non-yielding assets like gold and silver, making them more attractive investments.
Again, gold prices almost tripled from $700/oz to $1,900/oz, while silver skyrocketed from under $9/oz to $48/oz over four years. These increases reflect both a reaction to monetary policy and broader economic uncertainties during that period
Eleven Reasons QE was never the correct fix for the so called Great Financial Collapse of 2007, 2008
QE leads to higher inflation in the long run by increasing the money supply too quickly. it is 100% inflationary, ( inherently inflationary by definition) and Silver Academy staff feel this is intentional way to make workers receive real world pay cuts while those standing closest to the money printers profit at the workers expense ( the inflation tax)
While QE aims to lower interest rates in the short-term, it can lead to higher rates and instability in the long-term due to inflation pressures.
The abundance of cheap money from QE can inflate asset prices and create bubbles in markets like stocks and real estate.
QE can create boom-bust cycles by first stimulating excessive lending and growth, followed by contraction when the policy ends.
QE may boost employment initially but lead to job losses later when the stimulus is removed.
Increasing the money supply through QE can weaken the local currency.
QE is not very effective at stimulating the real economy and that fiscal policy would be better.
QE (kicking can further down the road) incentivizes governments and banks to avoid addressing fundamental economic issues.
QE dramatically expands central bank balance sheets, which can be difficult to unwind.
There's no guarantee banks will increase lending with the extra reserves from QE which means they start “hoarding cash”
Large-scale asset purchases by central banks can interfere with normal market pricing mechanisms and distort market signals.
QE is a risky policy that may provide short-term stimulus but creates longer-term economic instability and unintended consequences. However, views on its effectiveness and risks remain debated among economists.
We have selected the 5 Best Silver Miners after vetting over 50 companies including:
Their balance sheets
Their Ore grades
Their Metallurgy
Their Management talent
Their volume of ounces in the ground
Commodities and Silver Miners Have Never Been Cheaper.
Stay tough with these winners. All of these could pop 5X in next 2 to 3 years
Silver Academy’s top 5 picks
Andean Precious Metals: TSXV: APM, OTCQX: ANPMF
The company operates the largest commercial silver oxide processing plant in Bolivia's Cerro Rico region - the San Bartolomé facility. This strategic asset has produced over 65 million ounces of silver equivalents since 2009, demonstrating Andean's significant production capabilities.
Their robust balance sheet provides the company with financial flexibility and stability in a volatile industry.
The company follows a two-pronged growth strategy, focusing on organic growth in Bolivia and expansion through mergers and acquisitions in the wider Americas. This approach positions Andean for sustainable long-term growth and diversification.
Andean has successfully extended the life of the San Bartolomé mine from eight months to potentially 10 years or more, showcasing the company's operational expertise and ability to maximize asset value.
The company is committed to sustainable mining practices and community engagement, contributing approximately $75 million annually to the local economy through wages, royalties, and taxes. This dedication to social responsibility strengthens Andean's social license to operate.
By acquiring Golden Queen Mining Company (USA), Andean Precious Metals has taken a significant step towards achieving its vision of becoming a multi-jurisdictional mid-tier producer in the Americas, while positioning itself for sustainable long-term growth
Aya Gold & Silver: TSX: AYA, OTCQX: AYASF
Aya Gold & Silver Inc. is a leading silver producer, uniquely positioned as the only pure silver mining company listed on the TSX, with a strong operational base in Morocco. The company has recently reported record revenues of $13.7 million in Q2 2024, reflecting a remarkable 42% increase from the previous year, showcasing its robust growth trajectory and commitment to maximizing shareholder value. With ongoing expansions at the high-grade Zgounder Silver Mine, Aya is set to increase its processing capacity to 2,700 tonnes per day in 2024, further solidifying its market presence. Additionally, Aya's strategic exploration efforts have led to significant mineral resource estimates, including a recent discovery at the Boumadine project, which highlights the company's potential for future growth and profitability. Committed to sustainability, Aya Gold & Silver integrates responsible mining practices into its operations, ensuring long-term value creation for its stakeholders
Dolly Varden Silver: TSXV: DV, OTCQX: DOLLF
Dolly Varden Silver Corporation is a leading mineral exploration company making significant strides in the heart of British Columbia's Golden Triangle, focusing on its 100% held Kitsault Valley Project. This project boasts an impressive resource estimate of 64 million ounces of silver and 1 million ounces of gold, positioning Dolly Varden as a key player in the precious metals sector. The company is committed to sustainable mining practices while leveraging its rich history, including the past-producing Dolly Varden and Torbrit silver mines, to unlock further potential in the region. With a strong management team and recent discoveries enhancing its growth prospects, Dolly Varden Silver is poised for a bright future in the booming silver market. Investors can look forward to exciting developments as Dolly Varden continues to advance its projects and expand its resource base.
Outcrop Silver: TSXV: OCG , OTCQX: OCGSF
Outcrop Silver & Gold is focused on its high-grade Santa Ana silver project in Colombia. Recent drilling has discovered high-grade shoots within multiple veins, including up to 6.9 kg/t silver equivalent over 1 m width. This has led to a maiden resource estimate of 24.1 million indicated and 13.5 million inferred ounces of silver equivalent. The resources grade very high, with indicated at 614 g/t and inferred at 435 g/t silver equivalent. Metallurgical testing demonstrates excellent recoveries of 93% for silver and 97% for gold. Santa Ana contains over 48 km of mapped veins, providing substantial upside as only 17% have been drilled so far. Outcrop plans ongoing drilling to expand resources and make new discoveries across the large vein system.
Kuya Silver: CSE: KUYA, OTCQB: KUYAF
Kuya Silver is at the forefront of silver mining with its dual-track strategy, actively mining the high potential Bethania Silver Mine in Peru and developing the historic Silver Kings Project in Ontario. With robust mining and exploration programs underway, Kuya is poised to unlock significant value from its assets. Kuya Silver's experienced management team, led by industry veterans, is dedicated to maximizing shareholder value through strategic growth and operational excellence. As the demand for silver continues to rise, Kuya Silver stands ready to capitalize on emerging opportunities in the market.
Gold rose 5X over the next six years.
$2,613 multiplied by 5 = $13,065