A STAMPEDE Into Silver is COMING! -GATA’s Ed Steer

Ed Steer Says the Leash Breaks When the Public Rush Begins

Ed Steer came back on Commodity Culture and treated the $70 cap like a crime scene, not a ceiling.
Silver ran to within pennies of that number, then sat near $63. The boys, in his words, stepped into the metals at the end of January and have not let go. “They’ve kept them on a very short leash since. The runup to silver, which would have continued to 80, 90, and beyond. They just didn’t allow it to happen.”

Once it tagged 70 they came back with “spoofing and bid pulling and all kinds of dirty tricks.”
He has watched that movie for 25 years. “The price management of the precious metals is just becoming more blatant all the time.”

He will not pretend he knows what a clean tape looks like. “It’s hard to know what normal natural market activity is because the world’s bullion banks are active in the precious metals 24 hours a day, 7 days a week.”

Open COMEX, gold and silver jump, miners jump, then five minutes later “somebody came in and sold all the precious metal stock lower.”

Same bash into the FOMC window. “You can pretty much set your watch on the fact that as soon as the FOMC, even before anybody opens their mouth at 2:00 p.m. in the afternoon, the precious metals are going to get bashed.”

The quarter point hike is, to him, a sideshow dressed as inflation fighting. Conventional wisdom says higher yields steal bid from metal. Steer says the Treasury market is already being repudiated. “Nobody wants to own a treasury that’s like 3 years or 5 years or 10 years or 20 years. The only buyers out there for the US treasuries right now is the Federal Reserve.”

Bonds are “a fixed income certificate of confiscation.” The West has hit the brick wall. People want out of paper and into hard assets. The official sector sits on those prices so the public cannot see them rising. Rates can still go up.

The bond market, he says, will take a hit anyway. “Once interest rates started rising and the bond deal start rising, there’s no stopping it.”
The physical argument is the one he will not price to the penny. The deficit is in year six and still has not exploded on the shop floor the way the models promised. He still thinks the math ends the same way. “At some point, there’s no question about it, there’s going to be a reckoning here where the physical metal just runs out.”

Then the line for SilverTrade readers. “People are going to say, okay, I’ve had enough of this, and they are going to rush into gold and silver and the powers that be are going to get completely overrun. It’ll only take one or two or 3 percent of the population to decide to do that to send the prices of precious metals to the moon.”

After that the stampede is on. “Then you can pick a number as far as what the price is going to be.”

Year end, he admits, is an impossible call if oil and currencies keep getting managed. “Prices should be far higher than they are today, and there’s only one reason why they’re not.”

Steer also walked through Shanghai premia, whether official buyers ever treat silver like a reserve metal, Rand Paul’s Fort Knox theater, a US gold revaluation, the debt end of empire, and miners that get hit even harder than the bars.

The plot does not change. Keep the leash tight until the metal is gone.
Then the leash does not matter.