Tim Murphy
Precious Metals Advisor
Tim Murphy is a Precious Metals Advisor with over 15 years of experience. He started on the New York Commodity Exchange floor before founding his own brokerage firm. Tim joined Scottsdale Bullion & Coin to leverage the small-company feel with national exposure, focusing on personalized, client-first service and fostering long-term relationships.
You can avoid reality, but you cannot avoid the consequences of avoiding reality.–Ayn Rand
The Federal Reserve and US Government continue to avoid reality by manipulating market prices and skewing economic numbers in favor of their cause. (In addition to changing the formula over the years for determining the inflation rate, food/energy/rent are not included in the equation. I mean, give me a break. What can be more detrimental to the average Joe on Main Street than higher food, energy and rent prices? In another “give me a break” moment, the Fed announced today that our inflation is not transitory, but in fact has deeper roots. Of course, it took the highest rate in 31 years for the Fed to come out with their insightful diagnosis. The Fed began in earnest avoiding reality in 2008, when the mortgage crisis morphed into the Great Recession. After a decade of REALLY “kicking the can” down the road, the can is now bigger than a house. Ultimately and unfortunately, the Fed has no other choice, but to continue printing gobs of money. Otherwise, the whole world will shut down.
As reported for years, the Powers-To-Be, and most noticeably the Bullion Banks, have been repressing gold and silver prices on the “paper” exchanges, including the NY COMEX and the LMBA in London. And since August of 2020, the price manipulation has been especially aggressive. It is believed by some very smart people that the daily bombing raids on gold and silver are a sign that the bullion banks are acting out of desperation. Why? Because at these forced lower paper prices, big money investors and Central Banks worldwide are buying as much physical gold as they can get their hands on. Indicative of this strong demand are the higher premiums in the physical gold and silver markets, as well as, dwindling physical supplies. Can you imagine how high the premiums will get and how much worse the tight supply situation morphs as the public increasingly suffers the rising inflation pinch and demands more gold and silver?
For anyone concerned about bank solvency, a doomed US Dollar and a growing state of stagflation that is looking more like the 1970’s every day, owning physical gold and silver is the ultimate no brainer. And with manipulated gold and silver prices being so artificially low, anyone looking to get started or add to their position is being offered a gift. For anyone frustrated that gold and silver are not sharply higher, keep the faith. According to Alasdair Macleod, arguably one of the premiere gold analysts’ worldwide, gold and silver could be close to busting out. Macleod points out that physical gold in the LMBA vault has been drawn down at a time when the bullion banks need to be adding to their reserves. You see, January 1 is the deadline for all London related bullion banks to be in compliance with the BIS (Bank of International Settlements) newest regulations. Simply put, the bullion banks must begin to slow down or halt altogether the practice of holding and dumping the paper silver and gold contracts, AND they must increase their physical holdings in order to avoid stiff “penalties”. MacLeod insists this is “good news for anyone who knows why they are buying gold and silver.”
Further confirmation of higher prices to come was expressed this weekend by Andy Schectman, CEO of Miles Franklin. Schectman claims a “massive moment is coming for silver.” Very large silver (and gold) buyers are taking delivery and possession in mass quantity. With the biggest money in the world accumulating physical metals, Schectman believes in his soul that mathematics and logic will catch up to the gold and silver prices. Schectman also mentions that more and more of his clients don’t want to leave their cash in the bank. In the bigger picture, Schectman advises paying attention to your inner voice. And, the physical gold and silver shortages are only going to get worse. In closing, Schectman says, “the already low supply chain can disappear overnight.”