The r0ach report 17: Silver chart is now in a can't lose area in the long term

I decided to do some out of the box TA today while examining the price of silver. Before I get to that, in case anyone didn't know, the price of both gold and silver is entirely a derivative of oil. How it works is, the bankers practice Keynesianism in the commodity markets and naked short metals down capping them to 5-10% over cost of production. There is no form of price discovery whatsoever.

They don't go lower because it would bankrupt miners and create shortages, thus raising prices and being counterintuitive to their goal of price suppression in the long run. Why suppress the price? Because no sane person would ever touch debt based usury currency otherwise (fiat paper), which is designed to steal money from you and transfer it to the usurer.

If you're betting on metals, most of the time you're betting entirely on oil costs in reality. Asking when and how this paradigm can be defeated is kind of tricky. The bankers tend to hate anything resembling nationalism because no sovereign of a country is going to allow foreign usury bankers to exploit his people, but if said sovereign does not utilize a form of paper money that lets him steal from his citizens through inflation, he can't operate a military to defend himself from the same people who are commanding such a system.

If said person wants to stay in power, he either has to become a pawn of the bankers or start a world war against them and wipe them from the planet. It sounds like an insurmountable obstacle except for the fact that all debt based scam currencies are inherently frail with short lifespans. The cartel algorithm can end in numerous ways such as:

1. The USD going into shock either through deflationary collapse or hyperinflation

2. Since metals are just arbitraging excess energy production, oil supply becoming disrupted by collapsing EROI (Steve @ Srsrocco talks about this all day)

3. People or nations themselves taking physical delivery so computer manipulation has no effect

The mining industry likes to try and keep cost of production numbers kinda quiet, but most people believe cost of production is an average of something like $1050-1100 for primary gold miners and $15-17 for silver. Anytime I trade cryptocurrency, I like to use a rudimentary method of establishing a baseline estimate then determine where the outliers are in the current market period. Here's what I get when doing the same thing with the silver chart over the last several years:

Knowing there are far more outliers above this baseline than below it, while also knowing where cost of production is, now is an excellent time to buy silver and why I purchased a lot more yesterday and today. In the short term regardless of whether they try to dump it again or not, or cover shorts and raise it instead, it should be a mostly can't lose buy-in position in the long term.

(coin image - Wikipedia)