Cyprus was “fixed” overnight. The decision was made that 40% of deposits over 100,000 Euros would be lost (stolen) at the Bank of Cyprus and 100% lost (stolen) at Laiki bank. The decision was made by the Troika and the bankers. The Cypriot legislature has no say one way or the the other. So much for sovereignty. One can only wonder what Mr. Putin and the Russians will think of this as they have a “few” of these uninsured deposits that are being “lost.” Mind you these “Russian deposits” are not those of the working class. No, these deposits represent the “silent polonium” class. It will be quite interesting to watch what “happens” to the international banking class over the next weeks and months.
So, like the title implies, “nothing here to see, please move along” …which is what you may be seeing soon in Italy, Spain, Portugal and even France. Depositors holding balances above (and even below) the “insured” amounts may have been incentivized to move their monies around. Will they move 1 million Euro balances into 10 different banks? Will some of this “movement” have a little bit of leakage which finds its way into the precious metals held outside of the banking system? Which country is next? Which bank? How will the next bank be handled? Oh, and the “stress tests,” didn’t all of the Cypriot banks pass these with flying colors over the last 6 months? Questions, lots and lots of questions and only one answer… “please move along, nothing to see here.”
THE most important lesson that I hope people learn from Cyprus is just how fast something, anything, can happen. Two weeks ago Cyprus was not even mentioned in the news. 99.9% of CNBC employees could not even pinpoint it on a map (even with names printed on the map). I wanted to mention “speed” because as I’ve written before, in today’s computerized world things can change faster than even a floor trader can react in real time. You, sitting at home or in an office stand zero chance of moving fast enough or competing in any fashion with the “computers.”
Just look at what happened in Cyprus with no warning. Look at what happened across the board if you needed to buy shells for duck season or rounds for deer season. Ammo is basically gone… and this happened over a 30-60 day period of time based on fears that politicians would ban and confiscate arms. My point is this, if you are “waiting” to buy the dips in precious metals, what are you waiting for? A lower price? Really? When the day comes that you can no longer source or buy metals will it matter whether you paid $1,900 an ounce for gold or $250? Will it matter whether you paid $50 an ounce for silver or $4?
What WILL matter? What will matter is how many ounces you own and control; “price” will be meaningless. If you were hungry, really really hungry would it matter whether you paid 50 cents for a can of baked beans or $10? Or even $100? What will matter is whether you have them or not and whether there is enough to satisfy you and your family’s hunger. Please understand that the supply and demand numbers in the precious metals markets make no sense and do not add up any way. Sprott Group shows how for the first 3 months of the year the U.S. Mint has sold every single ounce of U.S. Silver production in Eagles alone. What about jewelry demand? Industrial demand? A shortage is already here, it has not shown up in “price” yet because COMEX sets the price. When the physical market finally sets the price there will be no physical to be had. Everywhere you go to search for ounces will tell you “nothing here, please move along!”
If you don’t acquire physical silver immediately, it will be too late sometime soon.
The Cyprus event shows the world that your money in any bank in the world is not safe and is on loan to the bank if the bank needs it.
Ammo in Oklahoma is non-esistent. Any one that tells you otherwise is not being truthful. Oh, yes Wal-Mart gets a few boxes in several times a week and puts them out at 6:30 am or 7:00 am, but the lines are already long and the few boxes they got in are gone before everyone in line can get some. This is a joke and the majority of Oklahomans can not get ammo.
Silver is a major bargain at these prices and is “real” money, unlike the paper “fraud” money.
It would be wise to protect yourself and your family while you still can. Watching your own children and spouse go hungry would be terrible. Real money, such as silver, will buy any thing at any time.
Gold is “real” money also, but once silver and gold get beyond the manipulation the prices will shoot to the moon and silver would be your best bet for every day transactions. Especially pre 1965 USA silver coins.
You may go ahead and call me a nut if you wish and it will not hurt my feelings, but I love my family and when Cyprus hits the USA, I plan on taking care of my family the best I can.
If it never happens, that would be great and my heirs can figure out what to do with the precious metals.
I wish every one the best.
EU: “We had to destroy Cyprus in order to save it.”
RE Farrell’s comment: “If it never happens, that would be great” AGREED!!! If paper with ink on it goes up in value compared to gold (it never has in my life time), if the U.S. Government can keep all the promises it has made to pay people NOT TO WORK, if pigs fly, if-if-if… But these “ifs” are comparable to a defiying gravity. It will happen, it is not a matter of it, it is just a matter of when. Currently I am reading “Socialism” by Ludwig von Mises. He points out that anarachy occurs when people decide they are better off without the current form of government than they are with it…