An old friend today asked me if he should sell his silver. He had heard that it was in a bubble. Here is my reply:
You might remember when I told you to buy silver when you were out in Seattle many years ago. It had just risen to $11 and then pulled back a few dollars. Silver prices are volatile because it’s a thinly-traded market and easily manipulated. I have told you before that the elite bankers want silver prices low. Why? Because by suppressing silver, they can better keep gold low too, and therefore prop up the value of the dollar. Printing the dollar is the source of their power, but they want it both ways. They want the dollar to be strong even as they weaken it simultaneously by waves of quantitative easing. Silver and gold have been and remain REAL, Constitutional money and they can’t stand that because they can’t print gold and silver.
As you now know, I was right about silver and even though silver is being attacked right now, I will not sell it here. It is the same old pattern. JP Morgan and their cronies buy out the CFTC, the CME and the COMEX who change the rules to aid the short sellers who then collusively flood the market with paper silver contracts. For every real ounce of silver there are 100 paper ounces. It’s crazy and while there have been many complaints to the CFTC for years, it did no good. They just ruled that JP Morgan can basically do whatever they want. Not only do they suppress silver by raising margins on buyers, they also lease silver from sources–possibly from China and JP Morgan’s SLV (silver exchange traded fund) and sell that too. They’re throwing the kitchen sink at silver right now to suppress the price while rumor has it that the COMEX is nearly empty of silver.
The latest margin increase for longs was implemented because they claimed silver was getting ‘overheated’–even though silver has pulled back four dollars from the high! They send out disinfo agents to the media to proclaim silver is in a bubble. It’s ridiculous. Very few Americans own any silver at all. Those that did own some probably sold it long ago. When every American owns silver, then yes…maybe then their bubble talk would have some validity. Ask your friends and coworkers if they own any physical silver. My guess is they own none (and they might think you’re a crackpot for asking). People have become conditioned to think ink-blotched paper is a real store of value. They will discover that is a big mistake.
There is less silver above the ground than gold–and silver is being used up by industry while gold is not. I predict silver will go to $50 this year. And even higher than that in the years to come. The dollar is doomed because the only way to pay for the enormous and growing debt ($14 trillion) as well as astronomical entitlements is to print more paper money. The US will not give up their ridiculous empire and cut war spending. That accounts for nearly half the budget. They will not cut entitlement spending. They will not cut spending in any meaningful way. That means things will only get worse from here. Can we stop that inevitability? Yes, if we elect more people such as Ron Paul to Congress. We need to end the Fed and the corruption and get back to sound, Constitutional money.