Silver Is Not “Schizophrenic,” Silver is Controlled
The tired metaphor of silver as a schizophrenic metal, suffering from split-personality disorder, does not accurately explain the dynamics determining price movements within the silver market. Over-and-over again, silver is referred to as a “schizophrenic” metals suffering from “split-personality disorder.” This is an attempt to explain the unpredictable price movements in the metals, with huge price swings to both the up and down sides, but truly merely serves as more propaganda distorting the true market dynamics at work in silver. That is not to say the writers who refer to the metal as such are propagandists for the ruling classes, but, instead, that they are promoting a false view of silver. Under the post-soviet global system, which has seen a merging for the soviet and western capitalist systems to create a “third way” – a synthesis between the two systems – price controls have defined economic life. Silver is a victim of this, and it’s price movements are based in price propaganda. Downswings in the price of the metal do not reflect supply, demand and industrial outlook. Instead, it reflects an agenda by central planners heading transnational banks and corporations to shake the confidence of free-thinking individuals looking to save their hard-earned money.
Silver is not schizo. Schizophrenia is a mental disorder that encompasses a breakdown of thought processes and by poor emotional responsiveness. It often entails auditory hallucinations, paranoid and bizarre delusions and disorganized speech and thinking. It does not explain a unconscious, lifeless metal. Silver does not float along the timeline of supply-and-demand responding to hearing contradictory signals in the market, which pull at it in every which direction.
There is a well-developed narrative that silver’s Q2 price drop is due to silver’s split-personality – that is, it has followed the base metals down on a poor industrial outlook. This is false. The reason for silver’s fall in price is a part of a financial agenda, which has many different aspects to it, such as breaking the confidence of the silver investor as well as setting up the circumstances so that commercial hedgers can exit from their short position. The price fall in silver is not because the metal is industrial. It is already well-known that, from an historical perspective, the metal is under-priced. Wherefore? Well, it is the only commodity lower today than it was in 1980. Indeed, it is much lower. To be adjusted for inflation, as is well known, we are looking at a silver price of $150 – at least.
And so for that reason, silver’s price is not a product of a schizophrenic nature. It is an interesting metaphor, but not one that tests under the slightest academic scrutiny.