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August 15, 2018 | Real Money (Silver) is $14.32 as I write! How Low can it Go?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

I watched the spot price of silver decline to $14.32 today. This, to me, is shocking as a one ounce coin (480 grains of pure silver) is tangible and real. The price, however, is intangible and a fantasy. Today, we live with fantasy prices as most people can not discern the difference between VIRTUAL reality and OBSERVATIONAL reality.

 

The price of silver changes from moment to moment within our computer screen as this PRICE is virtual. Virtual means that the price is now determined by a computer algorithm. Supply and demand for the physical metal is unimportant to an algorithm. This software trades this metal and manipulates the price in milliseconds.

 

But is a virtual price of $14.32 a good buy? I would suggest, absolutely. Our cyber money system still works and as long as our banking system survives, we will have virtual prices to accept or reject. A price of one ounce silver (coin form) is a great buy. It is insurance for the day when the entire cyber money system collapses. It is also a wise decision as this virtual price will likely increase to multi-hundreds at some point.

 

So far, investors have not discovered the virtual nature of price discovery. I talk to investors and educated traders daily and I find that they all THINK that a cyber price is real. They look at their computer accounts and assume that all is well as the numbers have mostly increased for years. They assume this will continue.

 

In reality, however, these ‘numbers’ will soon head south (decline) as our cyber investment system is in a huge bubble. This bubble goes unrecognized by most as when numbers go up and up for years, the assumption is that they will continue to go up and up for years. This lack of discernment to our sentiment cycles is shocking to me.

 

Sentiment changes these rising numbers to declining numbers. We live with an emotional money system which can go south suddenly. Emotion is fickle and temporary. Cycles of emotion happen suddenly and without prior notice. Get ready for a change in sentiment soon. I can’t give a date, but I can say that sentiment will change. Think for yourself and watch the fake cyber markets to discern.

 

I am: https://kingdomecon.wordpress.com.

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August 15th, 2018

Posted In: Kingdom Economics

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