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The Truth about the Silver Market

It has been a long time since I have written about the precious metals market on my personal blog. I don’t know that this will reach many involved in the recent silver market machinations but the few that still read my musing will at least receive an education.

Today, I was sent and article posted on ZeroHedge. These articles are typically anonymous and sometimes do have some good and valid points. But in this case, the author or authors have absolutely no understanding of the silver market and try to create a mountain out of a mole hill. This is an ongoing theme where the merchants of retail silver products armed with a minute understanding of the commodities markets and create a fictitious theme to promote more sales of their products.

The article today was quasi-fake news. What I mean is, they took legitimate news about changes to the legal documents of the SLV and the SIVR Exchange-traded Funds (ETF) and twisted what they said to have a totally opposed meaning to the actual purpose of those changes.

But before I proceed, for those who have not been following the news; the Reddit group Wallstreetbets famously known for putting the squeeze on the traders who shorted the GameStop stock and were quite successful, had decided that the silver market would be their next target. They believed that bankers and hedge funds were shorting the market and that this was holding down the silver price.

There is no doubt that there were some naked shorts in the market. Then when the Reddit crowd came into the market they shook them out on the rise to $30. However, they bought the metal mostly in the silver ETFs and also bought physical silver from the retailers wiping out physical silver stocks.

What does this mean? Silver stocks were wiped out? It means that physical silver in certain locations were no longer available and those that were available were demanding high premiums of as much as 50 cents an ounce. This is and was a short term a major aberration.

Silver is rather large and bulky. In large quantities it typically ships by boat and tractor trailers. Silver is produced all around the world, and it is principally a byproduct of Zinc, Gold and Copper mining. Then we have to mention that silver is also recovered from scrap recycling. One fact never mentioned by the silver promoters is that NONE of the producers of silver are in London or New York. These two are the primary markets for delivery to exchanges and vaults which are behind the ETFs and the COMEX.

Hence, lets do simple math. For example, a market may have a few million ounces of silver unsold in the hands of physical traders on any given day. Suddenly, there is a sharp increase in demand to ten million ounces in a short period of time. All gone! What does this mean? Is there no more silver? No, it means there is no more silver in New York or London for delivery to the investment market. This will mean that these funds and exchanges will need to get more metal into their vaults. Now they have to have it shipped from where they are produced which in this hemisphere is Canada, Mexico, Peru and Chile to name a few. They are also limited to only accepting silver branded and approved for delivery by the LBMA and the CME. Believe it or not there are brands that are not accepted by some exchanges. This is because the producers never felt the need to get the designation. Also, for the exchanges and funds there is only one size acceptable and those are a thousand ounce bars (this is approximate because these individual bars vary in weight). Hence, no other product on the shelf is acceptable.

On top of all that there is exploding interest from the retail market and manufactures of the small one ounce rounds, ten ounce bars and a hundred ounce bars are also competing for immediate delivery of metal and are willing to pay higher premiums. They need metal to make their products for resale. Hence it is a short-term battle to secure immediate deliverable metal in any form.

This occurrence was not something that the creators of the exchange-traded funds ever envisioned at their inception. They pictured an orderly market, which is the norm. Hence, after this occurrence they became aware that the language in the documentation did not work with the current market scenario. It became obvious they had to correct this language to buy them time to secure the metal in adverse market conditions.

This is what all the hubbub is about in the article Twilight Zone As ETF Provider Warns Buying Silver Will Harm Hedge Funds And Large Banks on ZeroHedge. They add, an additional twist, that the managers of these investments are more concerned with the banks and hedge funds than that of the investor’s interest. Again, what they conveniently fail to mention is that the ETFs are managed by banks and hedge funds, and it is in their vested interest to make sure that their investors are protected by managing the market conditions so that the business can progress in an orderly fashion.

They quote the following from the SIVR prospectus:

“As of the date of this prospectus, the Fund and other Silver ETPs are experiencing a sudden increase in demand of shares following an online campaign to harm hedge funds and large banks with substantial short exposures to silver.

The campaign encourages retail investors to purchase shares of Silver ETPs as well as physical silver in order to intentionally create a short squeeze. This activity could result in temporarily inflated prices of Shares and the difference between trading price and NAV per share may widen.

The problem here is not the quote but the spin they give it. The authors intentionally picked these snips to infer collusion between the fund managers and the banks against the investors. They also imply that the managers do not want to see the price go up. This is the furthest from the truth, a higher price means more management fees. Explain to me why would they work against their own interests?

The quotes only state the truth of the cause of the market conditions and their just moves to correct and protect the interest of the owners of their product.

Finally, I am not taking a position on whether the price of silver will go up or down. The purpose of this post is to neutralize the false narrative being presented elsewhere. There are plenty of reasons to own silver but the false conspiracy theories being spread about are not one of them

Is it Time to Cut off the Infected Part of the Body to Live?

It has been a blatant scandal going back many years when now President Joseph Biden turned his back on being obedient to the Catholic Faith. He has outwardly and openly rejected support for the Pro-life cause, and today he has gone full-blown evil and is rescinding all the achievements of the cause to defend innocent human life in the womb.

Worse than promoting abortion, he is also funding it with our tax dollars. He and his party insist that it is a right to kill babies even after they are born. What is behind all this? First, Joe Biden is not a practicing Catholic as all the media proclaim. He is a poser that uses this to garner votes. Just because he goes to mass does not make him a practicing Catholic. What you can say about him is that he is a hypocrite. It has worked for him and continues to work. The blood that is on his hands will cry out from the very earth. I pray that he will repent for the great evil he is participating in before he dies. If not, there is only one place where he and the likes of Nancy Pelosi will go, and it will not be a place of bliss.

But who is really to blame for the situation where our most visible “Catholic” citizen is an apostate? The blame lies at the feet of the Bishops. As bishops, their job is to lead the faithful and discipline them when they do not follow the teachings of Jesus Christ and cause scandal. They as a group have not done this and worse have come out and supported Joseph Biden who remains in open opposition to Catholic teaching.

The first time Joe Biden ran for Vice-President he met with the Bishop Cardinal McCarrick, who then gave him his seal of approval. Of course, those of us not paying close attention would not realize until later that these two men appear to be cut from the same cloth. This is not a compliment. Both these men have blood on their hands for supporting the Marxist communist regime and ignoring its blaring Human rights violations. The regime under McCarrick’s direction would sign an accord with the Vatican which undermine the Catholic Church in China while increasing religious persecution. All the while Vice President Biden is increasingly undermining the USA favoring China in his dealings under the Obama administration.

One interesting fact, the Chinese abort females over males with their two child policy. Where are the women protesting the rights of women to live? It is another blatant lie that the so-called defenders of abortion care about women. All they care about is making money.

The body of Christ here on earth is the Church which has been infected. Some would say that the United States Conference of Catholic Bishops is the principle part that is riddled with gangrene. This gangrene has spread throughout the faithful and is causing many to be led down the wrong path. A doctor would say it would have to be removed, or we will surely die. But can the gangrene be removed, and we survive as a church?

Then we must recall the teaching of Jesus Christ in the parable of the weeds among the wheat. The earth is the farm and there is a lot of good healthy wheat growing but sadly, there are many weeds. In the parable Jesus is telling us it is not our place to judge and discard the sinner. Let them be for when he comes he will separate the sinners from the righteous. Woe to those that are the weeds in this world for their punishment is certain. We can only correct them, move on and pray for their souls.

Of course, I write these things about the punishment for the sinner, but it means nothing to them because they are certainly not believers. If they were, they would have changed their course long ago.

The work of Satan is to make us lose hope and fill our minds with lies and darkness. You know the work of his demons by the (rotten) fruit of their labor. They know they belong to him. So do not fret, for we live for the future and a happy present in the presence of the Lord. Yes, the Church is sick, but our good God is watching, and he will make sure that His Church will return to Him in the proper course.

We must love, for this is an action word and the command of our Lord. By doing so, you will be filled with peace and joy among all the difficulties you face every day.

Socialism is the Opiate of the Masses

You read the title right. Socialism which is a euphemism for communism is the opiate of the masses. Not God-centric religion as the founder of the Communist religion Karl Marx stated.

My point will be easily made. What does an opiate actually do to a person? It changes their perception of reality. It makes them see things not as they are but in some twisted manner that it is not. It is an aberration of reality and truth.

As human beings we only have our physical senses and our studies of nature. Building on research and science to understand and know our reality. We have hundreds of years of scientifically proven studies that give us true clarity. We know that there are two sexes, male and female. We know the earth is round and it revolves around the sun. And we know that death comes to all men.

However, enter the socialists. They believe that all truth is not immutable. They believe that every individual can determine their own inner reality, as long as it does not upset the ruling power. They have opened the flood gates of lies that have no basis in science to extol that there are more than 50 sexes. They believe that a baby is not a human being unless you want it. They believe that sexual relations are purely for pleasure.

These are all lies. But this is just the tip of the iceberg. They believe that only by the destruction of the existing political systems can they bring in their Communist Utopia. This is done by building on more lies and pitting people against each other. By falsely creating division and the mentality of Men vs. Women, Black Vs. White, Right Vs. Left. These lies, they spend their lives promoting and fomenting to destroy all that is good. Because the socialist beleive, most people are too stupid to take care of themsleves.

They ignore reality and fact. This is because they have taken a full drink of their opiate. Their false religion of Communism. A religion which is totalitarian and will strip every individual of their rights. The communist religion has been tried, and they deny it claiming it has never been done correctly.

Meanwhile, since its inception in 1917 from the Bolshevik revolution until now over One hundred forty-nine million people have been killed by the regimes or starved to death. That is 149,000,000- dead. Each country that has turned to this socialist agenda has been decimated. The people are mere slaves to the state and have no ability to improve their place in life.

So much of Latin America has fallen to this ideology and been destroyed. The most recent obvious case is that of Venezuela. A once wealthy country, although imperfect, once boasted a strong growing economy. Now they are a disaster, their people luckily are not on an island and are fleeing in the hundreds of thousands to other countries for safety and food.

Then you have the communist country of Cuba spreading their lies throughout Latin America while its people are starving to death. The average person in Cuba earning less than $30 a month. Nowhere in the world can anyone survive on this. A person can go on and on with more examples of the disasters of the Marxist religion.

Getting back to my point. With all these existing facts and realities about the effects of the implementation of their ideology, how can you not say that the Socialists must be on some kind of hallucinogenic?

It is apropos that Karl Marx first made that claim about the widely held religions in the world. The simple reason is that the playbook of the socialist is to always accuse others of the evils they actually represent.

Christians and Jews have been around for thousands of years and even Muslims over 1,500 years. They live to their moral code in the hopes of a reaching heaven after this world. They have existed under multiple different governments but never have they lied to themselves about simple realities and facts in this existing reality. The people of the United States of America need to wake up to truth, not to false realities perpetuated by the socialist in our society, it is time to fight back simply by presenting the facts.

The Right Tools on the Path to Success

After my last melodramatic post, I feel relieved to be moving forward. One of the things that helps you to succeed in anything you do is having the right tools.

It’s apropos that I am writing this during the Christmas season. This is because of a memory of my first one as a married man.

Before I was married I did works with tools. I recall taking out the radiator out of my car and replacing it. Before that taking apart and assembling my bicycle on a regular basis. I also worked with wiring for my stereo and electrical connections. Outside these cases I was not involved in any major projects. That is unless you call a bongo board made in shop class in 8th grade a major project. In other words, I really did not have any tools of my own.

Interesting thought, I think back to all the gifts we received when we were married. I don’t recall getting a hammer, a screwdriver set or any tools for that matter. I just remember many kitchen goods and an overabundance of fancy glassware. I mean, was I real supposed to swoon over that I received expensive glass gifts of the brand Baccarat? If you ask me, a tool box loaded with all the essentials would have made a better gift.

This leads me to today’s story. We went out to get a Christmas tree for our apartment. I don’t recall if we had already bought the base or if we purchased it when we got the tree. Either way, we got the tree home somehow. Probably, used the Toyota Starlet since it was a hatchback. Upon getting home I learned that I had to give the tree a fresh cut or it would die quickly. I had never had a real tree before because I was allergic to them. I had no idea, now I was going to learn the hard way.

This is 1987, so the stores are not open after 6 PM for the most part. Tools are what I would need and I could not get a saw at 7-Eleven. I had to do the job with what I had. Guess what? It was not fun and it took me over an hour to do it with just a screwdriver and a steak knife. It apparently was later than 9 PM or surely, I would have gone to my brother’s house and borrowed tools. I was extremely unhappy with the situation but one thing I am not, is a quitter. I got it done and decided that would never happen to me again.

You are probably wondering by now why am I sharing this story? The reason is since I have invited you along on my journey to get healthy I have to point out that having the right tools is the right foot forward.

In October, I weighed 201.50 pounds. I know, a shocking admission. I was fed up and acted. I bought a stowaway treadmill for the apartment and a Bluetooth scale. I started tracking my exercise and food intake again. I joined Noom two weeks ago and got a new Fitbit Versa 2. These are not necessary, but the better the tools you have the easier it is to persist in the job at hand.

This morning I am proud to say, I weighed in at 192 pounds. My short-term goal is 185 pounds. I am a little over half way there. It is not going to be easy with Christmas, Vacation and New Year’s Eve in front of me, but I am determined and with my toolbox, I am certain that I will keep the weight off and hopefully lose some more.

I am a happy man today. I may not be at either my short or long-term goal yet. But I am getting there.

Healthy Diet ….the constant struggle

You would think that a person that wrote a book about dieting would be slim for life. Well, not me. I fell off the wagon. It didn’t happen overnight. It was a matter of years. Little by little, the struggles of a divorce and difficulties at work just piled the stress on me.

I would meet people in business and socially. They would never know how tired and hurt I was. I am a positive person but sometimes it is difficult to put a smile on your face when deep down there is serious pain. Yet, I still did it. I smiled and laughed when deep down inside me, I knew things were not right. Not at home and not in my interior life. I was a boat without a rudder.

This stress and anxiety over the years expressed itself through the seeking of pleasure in food and drink. Yes, this would give me some pleasure but in the end I pay dearly for those years of neglect and abuse of my own body.

Overweight and deceptively happy!

Here I am bloated, obese and in poor health. But do not fret! I am rising from the ashes. I have joined Noom to force me to be honest with myself. I am on the right track and with Aymee’s support lost 3 pounds in two days. Ok, its not significant yet, but persistence is the key.

Stay tuned my friends and pray for me while I battle my own weaknesses with the help of God and your prayers.

By the way, bigger clothes make you look thinner than you are…..

I’ll update you soon.

I love you all! 🙂

PS: When I say I am unhappy, I am directly talking about my weight. Actually 2020 has been a good year otherwise.

Why Black Beans Matter!

It has been quite a long time since I have blogged. It seems I did not believe I had anything worth saying. But for the first time in a long time I do have something that needs being said.

Recently, the CEO of Goya foods was attacked by the intolerant socialist for praising the President of the United States of America for creating an environment where his company was able to flourish. This is a company created by immigrants serving the immigrant Latin American community and employing them. This company gave my father, a back then recent escapee of the intolerant communist dictatorship of Cuba and destroyers of free speech, his first decent job in the USA. It was that job that enabled him to get into the food industry and have success with Progresso foods. It was that ability given to him by the hand of the company of Goya Foods that enabled him to later on also become successful and found the money transmittal company RIA ENVIA which after being sold, many years later has become RIA Financial Services.

Black beans are a staple foods of many Latin Americans. They are the food shared by the Cubans when they fought for their independence. They are the food that united Blacks, Whites and Mulatos as they fought side by side to their death against the Spaniards in their war for independence. They are the food that sustained them through hardships and freedoms hard fought for and eventually won. They are the heart of the real and recognized ending of slavery and creation of an unprejudiced independent people that are called Cuban.

Even now across the gap from the USA to the island nation of Cuba there is a love that never ends. The Cubans that make it to this free country work hard and send money back to the Island nation to support family and friends. Meanwhile, the cruel criminal dictatorship, which robs the people of their freedoms and ability to earn a good living still exists. The system has been able to continue to keep the people under their oppressive feet by the help of external funding, though now some of that is beginning to falter.

The Cubans here, both born here and recently arriving still dream for the days we can be reunited with our fellow islanders in a free Cuba. Where we can go and enjoy a real Cuba Libre with breaded steak, black beans and rice. It is a dream I always had hoped I would be able to share with my father but sadly he passed before it could come true.

My Dad

Now, in this great free country of the United States of America there are those that want to continue to try the failed experiment know as socialism, or rightly known as communism. Well, I for one will not stand for it. I will fight if needed to protect this great nation from the evil that has persecuted generations of Cubans with poverty, imprisonment and death for speaking their minds.

In search for food

I have great respect for Robert Unanue for standing his ground. I have great respect for the company which brings pride to many Latin Americans such as myself. And I say again that Black Beans Matter because they are a real symbol of our unity as a people representing freedom and love.

Covid-19 and its Effect on One Life

It has been several months since the announcement of the spread of the deadly virus Covid-19 became news. As it creeped over the borders and began making its presence know in the European continents it seemed the measures being taken in some countries had become Draconian and extremely exaggerated. I admit I thought the Italians dramatic; I thought this distancing us from people a cruel way of dealing with this issue.

Now the virus has made it to the shore of the United States of America. Living in the metropolitan area of New York City, I have become particularly effected. As an asthmatic and a person with borderline high blood pressure I am considered a high-risk candidate if I would contract the virus. I was asked to stay home until such time the risk is minimized. However, my understanding is that it will not be minimized and the measures we are putting ourselves through is only to slow the virus down so that hospitals can cope with what will be a tidal wave of illnesses. As of this moment, as the media and government paint of picture of death and gloom the numbers of death and illnesses globally, statistically speaking are not as severe.

I am now on my fourth day of quarantine from the office. The first two days were interesting getting situated. The third, I was totally overwhelmed as the markets continued their insane downward spiral and the fourth day, I am feeling isolated and trapped. But I am blessed at least for the time being.

I am blessed because our business is fairing well. I am blessed because I will still have a job coming out of the other side of this and because I will likely survive the virus.

I though, am very concerned about the collateral damage which I believe will be much greater than the actual virus. The global economy is being crushed. People are losing their small savings overnight and worse those with no savings are losing their jobs.

If I feel trapped and angry while having security, I cannot imagine the anxiety of those who are losing jobs and money. How will they feed their families if they cannot work? We have shut down restaurants, bars, movie theaters, concert halls and gyms. These are all industries that employ lower earning part of our economy. This quarantine cannot be sustained for a long period. Because we will be passing one form of suffering up for another which may in the end analysis be worse.

The world has become so averse to suffering that we go to any extreme for individualism. The concern for death of individuals over the concern of death of our society. Don’t get me wrong. I don’t mean to say that we should do nothing. I mean to say that this has got to be done with a balance. There must be controls in place to protect the system we have all worked so hard to build.

For instance, allowing the stock market to free fall since these state actions have come about is a serious misstep. Just as the government has shut down many businesses, the stock exchanges should have also been shut down. In the current scenario being played out by state governments, only the wealthy will come out the other end unscathed while the public working in the entertainment and service industries sectors will suffer greatly. This is not at all equitable.bernie

It has not been a week and I want to go back to the office.  I want to walk the streets and I want to buy a lamb gyro from the street vendor. Now I know what it would be like to live under a totalitarian socialist government. Maybe a taste of this medicine, though harsh and perhaps necessary will also serve to remind people of the importance of liberty.