Our financial system is stacked against the average person. We work harder and harder to feed the system and get less and less from it.
There is more and more siphoned off before we ‘share’ in the spoils.
I just read about Mexico’s plan to NATIONALIZE the silver mines. A few minutes later I saw an article saying ‘ Strong sell’ Mexican mines First Majestic, Gatos Silver, Endeavor Silver, MAG, Vizla Silver, Pan American Silver.
Why issue a sell on silver when the evidence is that prices in real value are at an all time low?
It is important to see the reasoning from at least two sides. That of the government and on the other side, investors.
“Nationalization is the action of a government seizing control of a firm or industry, which usually occurs without compensation for the loss of the cumulative value of seized assets and potential income.
The action could result from a government’s attempt to consolidate power, dislike of foreign ownership of businesses important to the local economy, or to prop up faltering industries”
Before going into the advantages and disadvantages it is important to evaluate whether this could happen in your jurisdiction or your investment jurisdiction. From my observation, it happens usually suddenly and often without notice.
The state should own the means of production, distribution, and exchange, according to certain brands of state socialist policy. Socialists believe that public ownership allows people to exercise full democratic control over the means by which they earn a living and is an effective means of more fairly distributing wealth and income.
Because nationalized industries are owned by the government, the government is responsible for repaying any debts incurred by these industries. Furthermore, except for short-term borrowing, nationalized industries do not typically borrow from the domestic market.
Nationalization can occur with or without compensation to the previous owners. Expropriation occurs when something is taken without compensation. When a government seizes illegally obtained property, nationalization may occur.
| Reasons Governments Nationalize | Reasons Not to Nationalize |
|---|---|
| For strategic reasons, usually during conflict against the conflicting party. | Government owned firms normally are badly managed and inefficient. |
| To avoid exploitation either from outside the country or internally. | Private initiatives are discouraged and competition is thwarted. |
| In order to salvage a company, usually with a large staff complement which has financial difficulty. | Discourages foreign investment. |
| To avoid wasteful competition. | Abuse of citizens who are exploited because of the monopolistic situation. |
| To ensure continuous service of essential supplies such as water or electricity | Corruption and mismanagement are usually prevalent in government run companies. |
| To prevent exploitation by other companies. | Political interference is usually imposed to the detriment of the company and its customers. |
| To promote efficient use of resources. | |
| To eliminate monopolies. | |
| To protect strategic industries. | |
| To utilize national capital. | |
| Political gain | |
| Corruption |
My view in terms of Mexico
If companies are fairly compensated for their sweat waiting while silver has been selling for miserable prices over the years, there may be a case for nationalization, but the shareholders are entitled to fair compensation. (I certainly do not advocate for nationalization).
Will the Mexicans benefit from the revenue the government gets from the mines? Will the mines be run as efficiently as they are being run now? Will the funds be utilized for the benefit of the people or the benefit of the politicians?
My mind immediately goes to ‘Atlas Shrugged by Ayn Rand”. A worthwhile easy read if you have not read the book.
Every person employed in government should be tested on the content of this book before employment.
BITCOIN AND GOLD
BTC:GLD below does not support BTC outperforming gold. The spike low means we watch carefully for a reversal. The indicators are not confirming the BTC buy yet.
ETHUSD is out.
BTCUSD we have a spike low and the signals have turned down. No buy yet.
GOLD AND SILVER STOCKS
Gold physical is outperforming gold stocks.
Silver outperforms Silver stocks.
GOLD AND SILVER
The melt value of an ordinary 1964 silver quarter is $5.13. Face value $0.25 that is up 20.52 times the value over the period. Of course if you have a rare MS64 it was worth $7188.00 in 2004 apparently worth $700.00 this year.
Silver to Gold Ratio > Gold is outperforming silver.
GOLD TO USD
USD is now outperforming gold.
A LOOK AT THE GOLD AND SILVER CHART
| Today | Last Week | |
|---|---|---|
| Gold Price | $2,522.00 | $2,524.00 |
| Silver Price | $28.83 | $29.50 |
| Gold:Silver ratio | 87.56:1 | 85.66:1 |
| Gold Miners bullish percent index | 78.57 | 78.57 |
| Dollar Index | 101.11 | 101.32 |
| Dow:Gold Ratio (BahaUS 40,964.00 Gold price, $2,522.00 ) | 16.24 | 16.38 |
| Current USA inflation rate (Dept. of Statistics) | 2.9% | 3.0% |
Gold’s low of the week was $2,471.00 and the high was $2,523.00, now trading at around $2,517.00. The Gold Miners Bullish Percent Index is 78.57.
- Gold Monthly: is a hold. We bought in at $1,800.00 in October ‘23 and have held it to date. It looks overbought but the indicators are mainly positive.
- Gold Weekly: is a hold. Money is still flowing into gold. The chart is rolling over but not a sell. (Chart below).
- Gold Daily: is a sell.
The low for Silver this week was $27.70 and the high $28.97, trading around $28.92 at present.
- Silver Monthly: This chart is looking weaker with funds moving in and price weakening. No sell on our system yet.
- Silver Weekly: We are out of weekly silver and the price is weakening and funds are flowing out. (Chart below).
- Silver Daily: We are still holding silver daily. Even though prices are falling, no sell signal has been triggered.
Our partner has a stock of both Gold, Silver and Goldbacks in our vaults available in Panama. Please contact us for more information.
A video by Mike Adams on the Goldbacks.
Well worth a look!
On the Stockcharts.com charts, the blue vertical lines are our proprietary system buy signals and the red vertical lines are system sell signals – for information purposes only
Please contact us to arrange the purchase and storage of your gold and silver requirements in a safe, insured location outside of your jurisdiction.
If you are interested in an overview of Fort Kobbe, you may want to have a look at this video: Mike Brown, Director, Fort Kobbe, International Vaults, A DotCom Magazine Exclusive Interview
This is my interpretation of the market and is not to be taken as financial advice. Before making any buy or sell decisions I recommend that you consult with your professional financial advisor.
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