It is shockingly apparent when looking at the fundamentals for silver that the silver price will explode in the coming years. The amount of silver above ground has been dwindling at a shocking rate over the past 20 years, and industry along with the investment community, are demanding much more.
Silver plays the role as not just a monetary metal, but also functions as an industrial metal. Many applications are consuming massive amounts of silver in industry today. Electronics, batteries, water filters, solar panels, medical equipment, and much more are using silver at shocking rates and each application it is used in is not recoverable. All of the silver consumed in industry is thrown away in landfills, not recycled like gold.
The strong demand coming from investors seeking a safe haven is pushing the silver price higher. Silver has been way undervalued for a long time due to suppression tactics by our government, and public unawareness that silver is quality money. People are quickly becoming aware that our dollar is falling fast, and that they need to hedge against inflation with silver coins, silver bars, silver bullion, and silver shares.
For your own safety and the safety of those around you, spread the word to investors who are seeking shelter for their dollars. Staying in dollars right now will kill your financial dreams. If you are in stocks, bonds, cash value policies, or anything denominated in U.S. dollars, you must get your money into silver and gold.
Economist Bob Chapman on Silver and Gold
Silver has a long, long, long way to go to reach it’s historic ratio to the price of gold, which is 15:1. It has historically taken 15 ounces of silver to buy one ounce of gold, and right now that ratio has been floating between 60-70. The gold/silver ratio is way out of wack due to government manipulation of the silver market.
The COMEX short sellers are way over their contract limits, illegally, and they have kept the price artificially low for a long time. The way these short sellers (JP Morgan, HSBC) do this is by borrowing contracts and then short selling them onto the market. Most people who choose to sell short are betting that the market will go down. If it goes down then you take a profit.
The banks that are shorting the COMEX silver contracts are shorting massive amounts of silver, and they are way over their contract limits, illegally. When they flood the market with the massive amounts of silver they are being allowed to short sell, the price must go down to find buyers to fill the orders. This is how they have been manipulating the silver market.
Even though it is illegal, these banks continue to be way over their position limits. This is coming unraveled as we speak, and the COMEX has already proven they do not have the gold they claim to have. The COMEX is close to defaulting when people have asked for physical delivery of their metals.
All it takes is 1/10 of 1% of the U.S. population to buy silver to send the price to the stratosphere. The silver market is so tiny that the smallest increase in demand could send it into price territories never dreamed of before. If you are not invested in silver when this price explosion occurs you will not be able to get into the market. Position yourself now for the greatest bull market in history.
Gold is a hedge against inflation and a way to preserve your wealth. The movements in gold have been huge lately. The rate of inflation is about currently about 10%, and its essential to be invested in gold coins, gold bars, and gold bullion.
Smart investors are getting into gold coins, gold bars, and gold bullion as the inflation rate rises to 10.2%. To protect yourself from rising inflation, its important to be invested in gold bullion, gold ingots, and gold bullion coins.
If you have not seen the gold price lately, it is going to the moon. The demand continues to surge as worried investors seek shelter. Many countries China, India, and Russia are diversifying out of dollars and into gold bullion. The IMF recently sold 200 tons of gold bricks to Indias central bank.
The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.
The amount of gold above ground is--0,000 tons and that number goes up by 2,600 tons every year. With this 2% increase each year, it doesnt scratch the surface of demand placed on the yellow metal.
The demand is 4,000 tons/year and rising exponentially. Gold has been selling for about the price of production prior to this price rise.
The laws of supply and demand have surely been lacking, and not making much since in this market. In 2001 the price of gold was about $250/oz and the current gold price is about $1,040/oz. So, even though the price has risen significantly, economists suggest that it should be at around $7,000/oz due to inflation.
Supply and demand have not played a part in these markets since price manipulation has been occurring. Even though the price of gold has risen to current levels of $1,140/oz, the inflation adjusted price puts gold at around $7,000/oz.
The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.
Another factor that has suppressed the gold price is the advent of paper gold (i.e. exchange traded funds, futures contracts). These investment vehicles simply give you the price exposure to gold. The futures contracts on the COMEX will allow you to take physical delivery of your gold, but many investors are finding that the COMEX is defaulting on the delivery. The default is occurring because the COMEX does not have the gold that they claim they have.
The way the default happens is that the COMEX will either give a cash settlement upon delivery, or shares of the GLD (exchange traded fund). Either way, you do not own the physical gold, which means that you are still holding paper. These paper investments have kept investors in dollars, which has fraudulently propped up the dollar.
All of these gold suppression tactics are starting to come unraveled, and with inflation setting in there is no doubt the gold price will continue to explode. Stay away from paper investments if you can, unless you know for sure that they are legitimately holding the gold. Stick with American Gold Coins, American Gold Eagles, and gold bars.
You have every reason to buy gold now due to the falling dollar. Just look at the gold price in the past month. The price of gold per ounce one month ago was $1,058/oz, and the current price of gold is at $1,140/oz. Smart investors are going crazy for gold coins because gold is the only safe investment right now. Educate yourself about the benefits of investing in gold and how to buy gold. You wont be sorry!
Read this gold investing guide before making a purchase. It will probably save you money and is informative at the very least.
It is important to buy gold to protect your wealth. Gold is the go to money in times of inflation and economic crisis. Gold is a hedge against inflation. If you are saying to yourself right now that gold is not money, and that it is just a shiny relic that people wear around their necks, then you are dead wrong.
Gold has been money for over 6,000 years. Gold and silver were the first forms of real money that met the requirements of sound money. Plato and Aristotle spoke of sound money to have
The ability to be durable. It must stand the test of time and not wither.
The ability to be portable. Good money needs to hold value in a small space.
The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamonds are not fungible because each diamond has its own value.
It must hold a rare value or quality.
Those four requirements are important, because Plato and Aristotle knew something that most people today are not aware of. Our paper dollar, and all paper money for that matter, do not meet any of the requirements of sound money.
Paper has no intrinsic value because it’s paper. It can be produced on demand. There is no rarity or durability. The only thing giving value to paper money is the trust that we put into it.
A dollar bill is nothing more than a piece of paper with ink stamped on it. That’s it. It would be the same thing if someone gave you a sheet of writing paper to mow their lawn. There is no difference between the two. The two are paper.
It would be different if someone gave you something with real value like oil, copper, silver, or gold to mow their lawn. Those are hard assets. It means that someone’s blood, sweat, and hard work went into it so you could use it.
Since our government can produce as many dollars on demand as they want, the more they print the more worthless our money becomes. This means that a dollar collapse is happening under our noses. That is the sole reason gold and silver were the first and only currency used for thousands of years. Gold and silver can not be produced at will.
Gold and silver exploration companies have to survey and drill sites, and then they must mine the ore out of the ground. All of this takes energy and time. Only until relatively recently have governments used paper money as currency. It is important to know that there have been hundreds of paper currencies in history, and they all effectively went to zero.
Buying gold coins and silver coins are the only proven way to protect your wealth during times of inflation. Gold will hold its value while paper money falls in value. That’s why you buy gold to protect your wealth!
Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It’s because gold can not be inflated. What does inflated even mean?
Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.
Inflation does not mean higher prices, it simply means printing more money. Higher prices are the result of printing more money. So, get out of dollar related assets now before you lose out big time.
Gold, silver, gold bullion, silver bullion, and mining stocks are the only assets you should be invested in right now. China, India, Arab countries, and others are diversifying out of dollars as we speak, and India’s central bank just purchased 200 tons of gold from the IMF. You decide if it’s time to get invested in gold and silver.
I would highly recommend checking out this gold investing guide before making a purchase.
Gold Investing is becoming more main stream as governments around the world continue to print more and more paper money. In this post I talk about how to invest in gold, why to invest in gold, gold coins, American gold coins, gold bullion, gold bullion coins, gold bullion bars, gold prices, and other related stuff.
The thing about gold investing that makes it so great is that gold has been money for over 6,000 years. People have used gold and silver as a unit of exchange because it has real intrinsic value.
Gold is recognizable in every country in the world. Our U.S. fighter pilots even carry British Sovereign gold coins in their survival kits, not dollars. Aristotle, who lived from 384-322 b.c. stated the qualities of good money. Gold is the only money, other than silver, that has all of the qualities to qualify as a unit of currency.
Gold is rare.
Gold is easily divisible and easily measured as a currency. For example, diamonds are not a currency because of the simple fact that diamonds are graded for their quality. That would make each diamond a different value. Gold is not because gold is gold. Period.
Gold is small enough to be carried and used as an exchange of currency, and is durable enough to last virtually forever.
Gold is rare and that’s what gives it value. Oil could technically be used as money, and there have been currencies backed by oil, but it does not meet all of the requirements listed above. You wouldn’t buy oil and store 100 barrels in your backyard to use as currency.
But my financial advisor said…
First, I just want to say that nobody will look after your finances better and in more detail than YOU! A financial advisor is not going to take an hour a day, each day to look after your finances. Only you are going to be that diligent about your money.
That seems pretty straight forward and practical, but it’s amazing how many people don’t get that or say they don’t have the time to look after their own money. Do your own research and determine what’s best for you. Trust yourself.
It’s important to note that financial advisors get paid a commission on the products or services that they sell you. It is their job to promote their products or services. They are there to make money and give advice, however, many times they are selling products that bring the biggest commission.
If your advisor is arguing against buying gold and tells you to keep your money in stocks and just wait out the storm, he is either intentionally giving bad advice to make money or isn’t informed himself. Let me tell you why.
The Media
Our mainstream media is bought and paid for by the powers that be. By that I mean that everything that is shown on the major news networks, be it a two hour special on Michael Jackson every night for two months, or someone spouting off about how our economy is showing “green shoots” is put there to distract you.
What they do on those news networks everyday is far from reporting the truth. They are calling for a “jobless recovery”. That’s like being almost pregnant as Gerald Celente would say.
What the media and our government won’t let you know is that if people sell their dollars and buy gold, it could cause a systematic collapse of our economy. That sounds bad on the surface, but it’s important to know that our government has created the collapse by printing trillions of dollars.
Bill Murphy-Fed Audit=Gold To The Moon!
The media and government hide the need to protect other forms of investment from nonperformance due to economic conditions. While a mortgage bond can protect certain
assets, only gold and silver are guaranteed to weather the storm.
The Dollar
Gold, and silver for that matter, are the only sound money. The dollar is what is referred to as a fiat currency. This simply means that the currency is not backed by any gold, silver, oil, etc. All of the currencies in the world now fiat currency. The Euro is the only currency backed by gold, and it is only a 7% backing.
What is gold backed currency? A currency backed by gold means you can take your paper dollars and exchange them for gold. For example, in 1930 you could take a $20 bill and exchange it at the bank for a $20 gold piece.
So, every dollar you had in your wallet could be exchanged for gold at the bank. The paper dollar was simply a means of making your money more transportable.
Here lies the problem
President Nixon took us off the gold standard in 1971. Today, if you took your $20 dollar bill to the bank and tried to exchange it for a gold piece they would laugh hysterically. Why? It’s because today the gold price is at $1,032 for a one ounce coin.
So, you may be asking what your paper dollar is worth since you can’t exchange it for gold. Well, I’ve got news for you. Your paper dollar is just that, paper. The only thing giving your dollar any value at all is the faith that you put into it.
We have all read this note written on a dollar bill:
This note is legal tender for all debts public and private.
This is the governments’ way of saying that you have to accept paper dollars as a currency, even if it has zero intrinsic value like paper does. This is the fraud of the dollar. There have even been governments who have enforced the death penalty to citizens who refused to accept the government printed fiat currency.
How did the gold price go from $20 to $1,032? It is what our government calls inflation, but I will give you an easier and clear cut definition. Inflation is not when prices magically rise over time. Have you ever thought about that? Why would prices just rise for no apparent reason? Inflation is just that, inflation. Have you ever inflated a balloon? Well, that’s what they are doing to the money supply. They are inflating it which simply means printing more and more.
Taxation vs. Inflation
See, our government gets funding for their everyday operations either by taxing the citizens or by printing the money they need. Governments want to use taxation as a means of funding first. When they can no longer tax the citizens due to outright revolts, they opt for the other choice which is to print money.
This printing of money is why all fiat currencies in history have failed, and there have been hundreds of them. There has actually been more than one fiat currency in the U.S. The first was called the “continental”. The continental was around about 200 years ago, and it became so worthless due to over printing that it earned the saying “not worth a continental”.
Inflation is a hidden tax
What the Federal Reserve and all other central banks would hate for you to know is that they are stealing from you everyday, and it’s not by accident either. Every time they print more money to bail out companies or wage wars, that means there are more dollars chasing the same amount of goods and services.
Overtime, prices gradually begin to rise because the businesses must adjust prices to the supply of currency. That means the value of your dollar is going down, to certain death even.
The only winners in this scenario are the gold owners, because the same amount of gold has historically bought the same amount of goods. For example, in Roman times you could buy a nice toga and pair of shoes for a one ounce gold coin. In 1930 you could have bought a nice men’s suit for a one ounce gold coin. Present day you can still buy a nice men’s suit for a one ounce gold coin. So, gold never loses its value. It may fluctuate in price, but it will never lose its value. Before you even get started investing in gold and silver, check out this information.
Hyperinflation
During the 1920’s in Weimar Germany, their people experienced hyperinflation (which is an extreme inflation of the money supply) so bad that it took wheel barrels of money to buy a loaf of bread. The currency finally became so worthless that people burned their money to stay warm. The few people that did well during the crisis were the ones who owned gold. You could even buy up square blocks of real estate in Weimar Germany for a few gold coins.
Many economists believe that we are headed towards this kind of scenario. One thing is for certain, you do not want to get caught holding paper currency in a situation like that.
Stock Market
The pundits on main stream news are all talking up stocks, and it’s no wonder they are. They are not stupid, and believe me they are not ignorant to gold. They just aren’t going to promote something that may not be in their best interest to promote. There are a lot of ties with these financial guys on tv to government and wall street.
It is in everybody’s best interest to keep people invested in the stock market, and out of gold. Why? Because people who buy gold are essentially getting their money out of dollars, and that’s bad for the stock market.
Finally, GOLD!
With all this said, and with your new found knowledge, let’s talk gold. When it comes to buying gold you have several different choices. You could buy government issued coins, numismatic coins, bullion rounds, bullion bars, and mining stocks. I will also talk about gold that you will want to stay away from like the COMEX contracts, ETF’s, and gold jewelry as an investment. The idea behind buying physical gold as an investment is to get the most gold for your money. That is why I would recommend buying government issued or bullion coins and bars only. They offer the best prices for your money. If you are a collecter, then the numismatics would be your choice.
Before you get started investing in gold or silver you should take a look at how to safely buy gold. It will explain everything you need to know before you put your money into gold and silver.
Government Issued Coins
These include coins that are minted specifically by governments. They include coins like the Gold American Eagles, Canadian Maple Leafs, Austrian Philharmonics, and South African Krugerrands. These coins are considered bullion coins which means they are 99.9% pure gold and produced in mass. Each of these coins has a face value on them. For example, the American Eagles have face values of $5, $10, $25, and $50. This is because you can buy the coins in different sizes. Sizes include 1/10 oz, ¼ oz, ½ oz, and 1 oz.
The face values mean nothing and are just there to show that the coins are legal tender. In other words, a one ounce gold coin will always be redeemable for $50. I say the face value means nothing because it drastically undervalues the price of the coin, and who knows if the dollar will even be around to redeem your coin even if you wanted to.
I highly recommend buying government issued gold coins.
They are 99.9% pure.
They carry a low premium.
They are recognizable around the world.
Numismatic Coins
The first time I heard the word numismatic I was taken back. It is just a fancy way of saying that the coin carries some kind of rare or distinguishable quality. A one ounce numismatic gold coin may fetch twice as much or 100 times as much than the gold content itself.
Do not invest in numismatic coins unless you are a collecter. Remember, you are investing in gold for the metal itself, not because it is rare. Numismatic coins can cost considerably more money than the bullion coins and are best left to collectors.
Bullion Coins & Rounds
Bullion coins, like the Gold American Eagle, are a good choice for investors. There are, however, bullion rounds on the market that may offer an even better deal than the coins. Coins vs. rounds: what’s the difference? Coins are minted by the government, whereas rounds are minted by independent companies. Many mining companies will mint their own rounds with their company name on the round. Rounds should be on the top of your list because they are 99.9% pure gold, and they do not carry the premium that government coins carry.
Bullion Bars/Ingots
Bullion bars (a.k.a. ingots) will give you the most gold for your money. Why? Well, because you are buying in bulk of course, and with everything bulk you get a discount. You can buy gold bars for considerably less than bullion coins or rounds.
There is such a premium on coins and rounds because it’s more labor intensive to produce. The bars are simply poured and stamped with 99.9% pure gold. That’s it. The only problem with bars is that most people cannot afford to buy gold in bulk amounts. This may not be the best choice for most people.
When you are ready to purchase, I would like to refer you to the most reputable dealer I know. The company is run by an expert in monetary history and his name is Mike Maloney. His website GoldSilver.com is a great place to get started and he provides a great selection at good prices.
Gold Mining Stocks
Mining stocks offer unmatched returns for those who choose to take a risk. They can make millionaires in a very short time, as was proven with “Lion Mines” from 1975-1980. The share price went form $.07/share to $380/share in 5 years. You do the math. Before you choose to invest in mining stocks it is imperitive that you read the Mining Stock Investor Guide.
There are choices when it comes to mining stocks. By far the highest profits are taken in the junior mining stocks. These stocks usually trade around $.10-$3.00 and can be risky, but the payout is huge. These stocks are referred to as penny stocks since they trade for very cheap. Do not invest in penny stocks until you read this.
Diversify
I don’t think that gold is any different than any other investment. You need to diversify your gold holdings. I wouldn’t just buy only American Gold Eagles. I would buy some other coins or rounds.
Caveat Emptor-Let the Buyer Beware
There are some gold investments that your financial advisor may try to push on you, but remember this one thing when it comes to buying physical bullion. If you can’t touch it, you don’t own it. Period.
COMEX
The Comex is part of the NYSE and is set up to trade commodities futures contracts. That is, you buy a futures contract for 100 oz. of gold, and if you are long on the contract and the price of gold moves higher, then you can sell your contract for a profit. The same goes for being short on the contract. If the price moves down and you are short, then you make a profit.
The Comex keeps all of the gold that they use for the contracts in a storage vault. So, if you have a gold contract and you want to take physical delivery, then all you need to do is put in the request. The problem is that the Comex has many more contracts outstanding than they have gold in the vault. So, recently they have been delivering ETF contracts instead of physical delivery of the gold. DO NOT put your money here!
ETF’s
These are known as exchange traded funds. An ETF is a derivative and is similar to a mutual fund, but it’s traded on the stock exchange. GLD is one of the gold ETF’s. With this ETF you do not own the gold, you simply have exposure to the price of gold. The ETF also has a storage vault for all the gold they own, but several problems exist with the ETF. The main problem is that they refuse to prove the gold is there via third party audit. That is a red flag and many experts say to stay away from the GLD.
Jewelry as an Investment
Most people would not invest in jewelry due to many factors.
It’s too expensive for the amount of gold you get.
It’s not easily divisible into units.
The jewelry is not pure gold. Most of the time it is 14K gold.
In India, jewelry is the main avenue for which people invest in gold. It is just not the most economical way to go about investing.
What is a Premium?
The premiums on gold is the additional costs of producing it and getting it to market. It is the cost per ounce over the spot price. For example, if a gold coin has a spot price of $1,000/ounce, then you can expect that gold coin to sell for around $1,040/ounce.
What is Spot Price?
The current price at which a particular commodity can be bought or sold at a specified time and place.
Storing Your Gold
If you are going to put your hard earned money into gold, then I would suggest getting a good safe for your home. Buy something heavy enough to deter someone from trying to carry it out. Also, it needs to be bolted to the floor. Another option is private storage companies.
There are companies here and overseas who will store your gold for a small fee. I would avoid keeping your gold in a bank lock box. During the 1930’s when the government confiscated gold, the first place they went were the bank lock boxes. Not that gold confiscation would happen again, mainly because we are off the gold standard, but it is just better not to keep it at any bank. Check out this information about how to store your gold offshore.
Before I invested in gold and silver, I did a lot of research. The best advice I can give you is in this gold investing guide. If you read this report, I promise it will save you many hours of wasted time and lots of potentially wasted money.
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A big “yeah right” to this story. China is screwed…yeah the gold market is too small, that’s because you can’t just print more and guess what they have $1.4 trillion in foreign currency reserves…you know fiat money…and only 1.8% of that in gold versus 10% that the rest of the world has…they can buy it here at these prices or later at possibly much higher pri […]
By Adrian Douglas Monday, January 18, 2010 Here are some Trivial Pursuit questions for you: 1) What is the biggest market in the world for a physical commodity? 2) Is the gold market one of the smallest markets in the world for a physical commodity? I would guess that you answered: 1) Crude oil. 2) Yes. Gold is one of the smallest commodity markets in the wo […]
