While we have only recently witnessed digital wire and ACH bank runs, mostly.
We are beginning to see further cracks in the global bank and financial system that are only further propelling the world into a run for their liquid cash, clean balance sheets, and physical bullion products.
Strap in cause this was a wild week of bullion-related news.
- Bank Bail-Ins of G-SIBS are still G-20 and US law.
- SVB & Signature were arbitrarily saved by 2018 US law $50-$250 billion regional bank exclusion.
- There are published studies and estimates that over 500 banks are still teetering on a knife's edge of mark-to-market solvency.
- This past Sunday, UBS offered 25¢ a share for failing tier G-SIB Credit Suisse.
- The fiat Fed's Discount Loan Window to banks has already blown through 2008 GFC high levels.
- QT is over, and ∞QE∞ returns as fiat Federal Reserve's balance sheet ballooned nearly +$300 trillion. Still on pace to multifold by the end of this decade, the 2020s.
- Mimicking collective record gov’t central bank gold buying, US investors are buying bullion in record fiat-denominated size and troy ounce volumes.
The spot silver price ripped, closing the week over $22.50 oz in fiat US dollar terms.
The spot gold price closed this week, now threatening to blow through the key $2,000 oz price level.
The spot gold-silver ratio tightened a bit, finishing a still historically high number of 88.
Technically the spot gold-silver ratio has a massive cliff to jump off, and seeing how it performs during ∞QE∞ cycles, it would not surprise me to see a lowering GSR as this year continues.
The more important technical price chart I want you to see at the moment is the current gold chart, the leader of this 21st Century's bullion bull which eventually gets outperformed by silver with a collapsing gold-silver ratio.
The $2,000 oz gold price chart resistance will get passed at some point. When it does convincingly, look for it to eventually act as long-term price support. As this 21st Century bullion bull market goes further global in nature, getting more media attention and eventual institutional inflows and larger investment allocations.
Current data shows that +2/3rds of investment advisors have either 0% gold price exposure or below a measly 1% allocation. This is truly pathetic, as a combination of secular bear markets in stocks and bonds is hitting their collective P&Ls.
These large institutional investors are the coming western world capital inflows that will likely help spur gold into an eventual mania and a likely exponential valuation climb to come.
That is all for this wild week’s SD Bullion Market Update. Keep your head on a swivel out there.
And, as always, take great care of yourselves and those you love.