Big 5 Financials vs. Silver Price: A New Market Paradigm Amid Collapsing Markets
The terminal episode is near for the financials. Of course, society will be manipulated into keeping them on life support with the oxygen of Federal Reserve Notes until further notice. Nonetheless, there is no sound reason for throwing one’s money into the abyss of the black hole banking industry, and the charts prove it.
Bank of America
When measured against the silver chart, the share price performance of the “Big 5” paints them to be exactly what they are: expiring giants.
The current average share price of the top five largest United States banks is currently $38.434, although this number is obfuscated by a Goldman Sachs Group, Inc. share price of $94.50 which is clearly anomalous next to the share prices of Bank of America Corporation ($7.16), JP Morgan Chase & Co. ($32.91), Citigroup Inc. ($26) and Wells Fargo & Company ($31.55). When one removes Goldman Sachs Group, Inc. from the previous equation, the average price of the top four banks equals $24.417.
All of these numbers except for Wells Fargo are way off from recent highs and, in some cases, historical norms. Pre-2008 Bank of America’s (BAC) share price reached more than $45 per share, as did JP Morgan’s; Citigroup’s share price is off about $474 from a pre-crisis high of approximately $500; Wells Fargo’s share price has remained steady, despite a drop to approx. $10 in the spring following the ’08 banking crisis; and, lastly, Goldman Sachs has endured a fall in its stock price about $145 from its peak, from $240 to its current $94.50.
And so, the Bank of America share price is off 80%; the JP Morgan share price is off more than 25%; Citigroup’s share price is off 95%; Wells Fargo has been down as much as around 60%; and the Goldman Sachs share price is off more than 60%.
The silver price is up from its 2008 low of around $10 approximately 200%.
The average peak share price for the Big 5, pre banking collapse, was around $172.40. It appears that the share prices of these capstone financials are experiencing what happened to silver in the wake of its record $50 per ounce in 1980 – that is, fall tumultuously. Adjusted for inflation, the price of silver in 1980 was approximately $150 per ounce. Currently, it sits at sub-$30. However, before climbing back up to its current price, the price of silver fell to roughly $4 per ounce and sat there for two decades.
The share price of the Big 5 financials will do the same. All of them will one day sit near zero, either due to a stock market or banking crisis or a general systemic collapse. The difference is that silver could not depend on the United States’ taxpayer to bail the per ounce price out or at least become privy to real savings, thus increasing physical demand.
Nonetheless, even without trillions in liquidity (which would render silver bullion extinct as far as investors were concerned), the silver price has been the antithesis of the average Big 5 share price. The Keiser camp discusses J P Morgan – silver price conflation and the psychological factors that kick in when the silver price overtakes the JP Morgan stock price. What is not highlighted nearly enough is that the silver price is poised to take out not only the JP Morgan share price, but the average price of the Big 5 illuminist banks on the planet. Currently, the difference is about $7.