London Silver hits Lowest Level EU Bank Failure Risks Rise
This week began with a large rally in the spot silver price, rising nearly +9% this past Monday alone. The last time the spot #Silver price had such an extreme 1-day jump was in late 2008, as the first round of quantitative easing began by the fiat Federal Reserve. While we will update a few key data points for you, CNBC in India had the following coverage on silver this week.
The spot silver and spot gold prices rose in trading this week. The spot silver price closes just over $20 oz, and gold’s bid price finished just below $1700 oz for the week’s trading. The gold-silver ratio fell slightly to close at 84 for the week dipping as low as 81 early in the week. Despite the underlying fundamental bullishness for silver, market commentators and consultancy Metals Focus released a note this week stating their belief that silver and gold spot prices in fiat US dollar terms still face headwinds to close this year as the fiat Federal Reserve looks to raise their federal funds rate again this month. Driving what they expect will be further relative strength in the fiat US dollar to come. Perhaps some of the biggest risks underlying the global financial system at the moment has become the potential failure of major commercial bank names in Europe. Credit default swap rates are climbing on major European bank names, reflecting the increasing amounts of insurance being bought in case the likes of Credit Suisse, BNP, Deutsche Bank, or UBS fail. The Bank for International Settlement’s Financial Stability Board defines all four banks as (G-SIBs) Global Systematically Important Bank names.
If any of these major bank names failed, the amount of contingent derivative bet contagion could freeze up the entire global financial system. In late 2014, the G20, the world’s largest twenty economies, signed supranational laws stating that the next banking failure crisis will not be met with bank bailouts but instead with bank bail-ins. We made a video on the very real threat of bank bail-ins in late 2019, and we will leave a link to that in the comments below if you missed it. 6 Mega Banks Which May “Bail You In” | G20 #BankBailIn Laws – https://youtu.be/cnBPnLJzdYk – It is ongoing underlying fundamental facts that are driving more investors around the world, from India, China, the EU, and many North Americans, to increasingly become their own banks by owning prudent stashes of bullion #SilverSqueeze’n outright. Ongoing bullion industry data illustrates that this trend only appears to increase as the months and years progress.
