Global X Silver Miner

46 years ago today, the greatest squeeze in history began to unravel

• Start of 1973: Hunt brothers start buying silver at ~$3/oz

• Jan 1979: Price rises to $6/oz

• Dec 1979: Silver at ~$25/oz

• Jan 1980: Silver at ~$49/oz

Then COMEX stepped in and changed the trading rules

• March 25: A missed major margin call of ~135M

• March 27: Silver crashed -50% in a single day

The Hunt Brothers went bankrupt, were fined, and banned from trading after cornering 33% of the Silver supply

The bond market is not pretty right now.

The 10-year US treasury just passed 4.43%.

Yields across the world are spiking.

Many people are wondering how Gold & Silver, which are supposed to be safehavens during these times, are now down more than 25% from their peaks…

The answer is in bond yields.

If the cost of capital goes up (people sell bonds, pushing the yield to own a bond higher) then risk assets get hit. It’s hard to take the risk and buy stocks when you could do nothing and get 4.45% guaranteed from the US government, which is 90 basis points above the Federal Funds Rate.

Gold and Silver have become risk assets. I know they shouldn’t be, but when anything starts fluctuating 5-7% DAILY, it has turned into speculation more than a safe haven. These assets, just like $Grayscale Bitcoin Mini Trust ETF(BTC.US) and growth stocks, are now being hit.

The worst thing about all of this is that if oil continues to stay elevated…and people sell off stocks…AND people sell off bonds…then we are just going to see higher inflation with no demand for bonds to bring it down because the credit markets will be demanding a higher yield. At the same time, if equity markets won’t be buying stocks, you’ll see yields going up and stocks going down at the same time which is a recipe for disaster.

Trump knows this. It’s exactly what got him to pivot during April last year.

I wonder how long he lets this continue, but at some point…the credit markets will dictate how bad this gets.

Source: amit

Gold is crashing. Silver is crashing. Stocks are crashing. Crude Oil is rising.

So where is the money flowing?

I have the answer to that:

-> Cows.

The cattle index has outperformed the broader market.

Silicon Valley and Peter Thiel have poured billions into cow-related startups.

Markets are rotating to Cows as the biggest hedge against uncertainty.

Because while you don't know how Trump will react to new situations?

You know how cows do:

They say Moo and Eat Grass.

Markets might be telling us, that Cows are the greatest hedge against uncertainty.

Source: Serenity

It’s infuriating that so many people capitulated their positions.

Because of X influencer doomposters who are now pretending to be bullish on $Micron Tech(MU.US) or $EWY.

Or Bank Analysts who have 0 clue what they’re talking about.

99.9% of this place was bearish and posted:

- “KOPSI Crash”

- “Memory charts look like Silver?”

Or something along the lines of

“Helium/LNG/Oil” on the way down.

But now that $Sandisk(SNDK.US) and memory names are ATH (or getting close), everyone is now pretending to have been bullish all long.

The vast, vast majority of X are extreme noise.

Source: Serenity