silvervigilante.com / By SV / December 4, 2012
When measuring the likelihood for specific direction in the modern precious metals secular bull market, most analysts point towards destructive government printing and hyperinflation as key reasons to anticipate gains. Indeed, hyperinflation has not come to fruition, yet an incremental devaluation in the value of fiat currency across the board (because an abundance thereof) has led to an increase in the price of goods that can not be magicked by the MK Ultra servant running the Federal Reserve at any given time. But, there are sporadic and decentralized human actions at the grassroots level sowing the seeds of tomorrow’s precious metals paradigm right alongside bloated bureaucrats. Namely, this vector has manifested itself in the form of strikes, which have hampered precious metals mining operations on multiple continents, although South African skirmishes have stolen the spotlight.
In past centuries, the skirmishes might have led to prolonged movements across sectors of the economy, leading to a new paradigm of the “social contract.” But, instead, the plebes do not even receive platitudes about a “responsible” or “moral” democracy, but, instead, mechanization. For the near term, the strikes have given the precious metals bull market – especially in platinum and palladium – a solid footing with which price wise to move into the new year. In the medium term, police state antics will ensure the mines are productive. Un-work is punishable by death.
The new wages demanded by the workers would drive up the bottom line of miner’s, thus driving up the cost of production of the metals, thus driving up price.