We buy and sell real silver and gold. E-Mail 1 troy ounce =~31.1 grams
Silver is more rare than gold!
For thousands of years, an ounce of silver was wages for a week, and that was when silver was plentiful - the gold-silver ratio was 1:15, reflecting reality. Now that almost all the world's silver has been consumed, there is actually several times as much gold as silver, yet the Comex presents a ratio not of 4:1 but of 1:60! With all the paper dollars created - mostly in the last year - the price of gold needs to go to ~$15,000/oz. Even if silver were to merely return to it's historical 1:15 ratio, that's $1,000/oz silver. Ted Butler's keynote address at the Phoenix Silver Summit last February Silver; Past, Present, Future is an excellent overview of silver. (His Presidential Bombshell post May 11/09 is a great follow-up.) "99.9% of the people on the planet" don't know silver is more rare than gold. The more who learn the truth the better - for everyone. The price manipulation done via massive naked short selling of gold and - to an even larger degree - silver, means that at some point the price is going to explode!
|Year||Gold Price||Ounces||Investment||$ Loss||40 oz|
Do you know about the SLV & GLD paper substitutes? Here's a detailed special report.
If you only read one thing here, read Imaginary Gold by Adrian Douglas.
======= ======= Above this line updated 10/May/10 ======= =======
" The shorts in gold � and particularly the shorts in silver � felt some pain today. Gold climbed $11.80 to close on the Comex at $1125.10, a 1.1% gain for the day. Silver did nearly twice as well, up 2.1% for the day and ending at $17.876, the highest in ten weeks. The gold/silver ratio fell to 62.9 from 63.6 the day before. Now that the downward pressure put on gold and silver prices by the gold cartel for option expiry and quarter-end window dressing is behind us, it is no surprise that the precious metals have jumped higher. Physical demand � which is always the major driver of the gold price in the long-run � remains strong, as evidenced by high premiums pretty much everywhere. The big news that has now begun influencing the market is the stunning revelation by GATA at a Commodity Futures Trading Commission (CFTC) hearing last week about the London whistle-blower who had explained to the CFTC how JP Morgan Chase has been manipulating/capping precious metal prices. In a shocking parallel to the inaction by the SEC after receiving warnings from Harry Markopolos about the Madoff ponzi, the CFTC has apparently been sitting on this information. The whistle-blower, Andrew Maguire, is an experienced precious metal trader in London. In this riveting interview on King World News with GATA director, Adrian Douglas, Maguire describes a “new dynamic� impacting gold. Specifically, there is a huge short position in the market. But there is even more. The CFTC hearing confirmed what GATA has been saying all along, that the gold market is being manipulated. To achieve this manipulation, the gold cartel has accumulated a huge short position. Importantly, the hearing confirmed that the gold cartel’s huge short positions are ‘naked�, meaning that these positions are not hedged. More to the point, the CFTC hearing revealed that there is 100-times more paper-gold outstanding than physical gold. The market is now starting to absorb the significance of what GATA has uncovered over the years and summarized succinctly in its prophetic announcement in The Wall Street Journal more than two years ago, seven weeks before the collapse of Bear Stearns and the start of the present financial crisis: “The objective of this manipulation is to conceal the mismanagement of the U.S. dollar so that it might retain its function as the world’s reserve currency. But to suppress the price of gold is to disable the barometer of the international financial system so that all markets may be more easily manipulated. This manipulation has been a primary cause of the catastrophic excesses in the markets that now threaten the whole world.� The revelations from the CFTC hearing are earth-shaking, and indeed a “new dynamic� has emerged. The gold cartel now has a big target painted on its forehead. One can never predict the future, but it seems to me that as this news about the gold cartel’s huge naked short position spreads, two things will happen. It is inevitable that the big traders and hedge funds will push the naked shorts to the wall by asking for physical metal. We could therefore see more hedge funds switching out of GLD like Greenlight Capital did last summer, which leads to the second likely outcome. If we get a squeeze on the naked shorts, the sky is the limit for precious metal prices. The gold cartel may not yet be finished, and won’t be until the unholy Wall Street-D.C. axis is dismantled. But the gold cartel is on its way out. Over the past ten years, the gold cartel has staged a controlled retreat. It has been fighting the advancing gold price with propaganda, paper short sales and the occasional dishoarding of physical metal from central bank vaults and more recently, the IMF. This retreat is I suspect about to turn into a rout, which means the upside potential for the precious metals is huge. " -- James Turk
======= ======= Above this line updated 20100402 ======= =======
Two excellent world finance articles - Greece Is The Word and Farewell To All The Emperors
Two more great articles - The root problem - fiat currencies - It's Time to End World War II
Warning: Silver certificates and ETFs are just another piece of paper, a crucial part of the manipulation, and should be exchanged for physical - note that 82% of SLV bars and 50% of ETFS bars may be fraudulent and the silver is for sale anyway, while what bars GLD has are probably tungsten! It is crucial that you get real silver and not paper silver as each ton of physical silver in the world has been sold about a hundred times on paper!
Last week Venezuela devalued it's fiat currency by 50% - overnight!
======= ======= Above this line updated 20100111 ======= =======
"Gold still represents the ultimate form of payment in the world; Fiat money in extreme is accepted by nobody.
Gold is always accepted." -- Alan Greenspan (Former Head Of The US Federal Reserve) - May 20th, 1999
Last week North Korea devalued it's fiat currency by 99% - overnight!
======= ======= Above this line updated December 7, 2009 ======= =======
"A report that Chinese state-owned companies will be allowed to walk away from loss-making commodity derivative trades... " The quote from this August 31st article shows how a major aspect of this criminal manipulation may be about to occur. Back in 2007 Ted Butler warned the CFTC this could happen.
" The ultimate result of shielding men from the effects of folly, is to fill the world with fools. "
Above is perhaps the perfect quote to describe the flaw with the current approach - Liam Halligan uses it to open a good article on last week's G-20 meeting. The devaluation I was on alert for didn't occur, but in a remarkable interview on CNBC, Jim Rickards explains the significance of the essay Fed Governor Kevin M. Warsh published in Friday's Wall Street Journal - after he recently acknowledged to GATA that the Fed is concealing records of its gold swap arrangements.
======= ======= Above this line updated October 1, 2009 ======= =======
Less than a decade ago - early 2001 (see bottom of page) - I predicted that we were going to see 'four figure gold'. Now that gold is indeed at $1000/oz I expect to see the same for silver. In less than a decade I think we will have 'four figure silver' - that is, the price of silver will be $1000 per troy ounce. (Currently the manipulated Comex price is ~$17/oz - an increase of 50% for 2009).
======= ======= Above this line updated090909 ======= =======
Have a look at this chart and consider the implications. From where will $5.3 Trillion be borrowed?
" The percentage increase in the monetary base is the largest increase in the past 50 years by a factor of 10. It is so far outside the realm of our prior experiential base that historical comparisons are rendered difficult if not meaningless... It's difficult to estimate the magnitude of the inflationary and interest-rate consequences of the Fed's actions because, frankly, we haven't ever seen anything like this in the U.S. To date what's happened is potentially far more inflationary than were the monetary policies of the 1970s, when the prime interest rate peaked at 21.5%... "
Above quote is from this article about the unprecedented inflation of the US$ - includes a great chart clearly illustrating the problem.
"The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money." Be sure to read Matt Taibbi's sensational expos� in Rolling Stone and this excellent article by Michael Hudson in yesterday's Financial Times of London.
======= ======= Above this line updated June 16, 2009 ======= =======
"With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people." � Friedrich von Hayek
The U.S. dollar is an abstraction representing a debt owed by a bankrupt government. As such, it has an intrinsic value of zero. Throughout mankind's history over 3,000 fiat currencies have appeared.
ALL have returned to their inherent value - ZERO!
What does one Trillion dollars look like? Click here to see...
======= ======= Above this line updated April 2009 ======= =======
With the end of the gold standard in 1971 deflation became an impossibility. Ben 'helicopter' Bernanke can (as he himself said) create as much currency as desired at the push of a button. Likewise his predecessor Alan Greenspan confessed: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation."
Here is a great page showing the absurdity of the massive credit expansion and a chart on the very significant silver backwardation. Likewise, this page has an explanation and a great chart showing how this mess was caused by " the U.S. and the rest of the world going off gold. "
This is a 650 year graph showing the real price of silver from 1344 to 1998.
The government doesn't want people to see how much they are losing through inflation, so the price of gold and silver have been suppressed for years. In recent months the manipulation has become dramatically evident - the government is even in violation of the law! To quote Chris Powell of the Gold Anti-Trust Action Committee;
" There are at least four lawsuits that, with sufficient funding, GATA could bring to hasten the end of gold and silver price suppression:
1) Against the CFTC for failing to enforce its anti-concentration rules in the gold and silver markets.
2) Against the Fed for refusing to disclose documents on the U.S. gold reserve.
3) Against the Treasury for refusing to disclose documents on the U.S. gold reserve.
4) Against the U.S. Mint for disregarding the law requiring it to mint as many gold and silver coins as are necessary to meet demand. "
Many people don't know that the constitution of the United States specifies that only gold and silver are money. The founding fathers knew that fiat paper currency ALWAYS fails - that's why they specified the dollar in terms of precious metals (that can not be created out of thin air). The grains of gold/silver equating to - and exchangeable for - a dollar were fixed as a unit of measurement the same as a foot or a pound or a mile.
Here is a great article on the economic mess the USA is in, and it extends to the rest of us.
With the highest purity (.9999) and the highest face value ($5), Royal Canadian Mint "Maples" are the best silver bullion in the world. ("Eagles" and "Kooks" are .999 and $1 by comparison.) I also have sterling (.925) and first century (.800) silver coins. Let me know what you would like and I can probably provide it. [ I've sold over $25,000 worth of items on eBay - my last sale was a 100oz Silver bar almost three years ago - but people don't always leave feedback. However if you visit The Guild of Bricksmiths(tm) and/or StRuCtures(tm), you'll see that I'm well known within the LEGO® community with hundreds of satisfied customers. ]
"Gold in the hands of the public is an enemy of the state."- Adolf Hitler
" The world's major governments long have sought to eradicate gold as a monetary measure in order to remove the last vestiges of monetary discipline and to clear the field for massive government over-spending and inflation. In 1968, the London Gold Poll was abolished. In 1978, America forced a further move, via the IMF, to write gold out of the international money supply. In August 1971, President Nixon broke the U.S. dollar-gold exchange link. In September 1999, the United States, while being careful to keep its own gold stocks intact, led other major nations, in the first of two so-called 'Central Bank Gold Agreements' to flood the gold market with sales of gold. In 1999, the central banks held some 33,000 tonnes, or one quarter of all mined gold. The effect of government gold sales was potentially very bearish for gold. Gold market observers, who have studied the pattern of IMF gold sales, allege that the sales are timed to cause the maximum volatility in the price of gold, to discourage investment. More recently, there are allegations that the Government has allowed certain institutions to engage in massive naked short selling of gold and silver. This has caused distortions in the gold price that do not reflect genuine market pressures. In short, they amount to market manipulation. A fair conclusion is that gold is cheap and that its present price does not truly reflect market conditions. On December 16th, the Fed announced, as we have long forecast, a further cut in interest rates to between zero and 0.25 percent. It also announced 'unlimited' support to buy assets from beleaguered institutions. The amount of debt and new money injected into the economy should progressively raise inflation alarm bells. The fire of future inflation is being stoked alarmingly, but the recessive forces of deleveraging are concealing it temporarily. The Fed looks desperate. This could lead to feelings of panic and upward pressure on the gold price. Investors should also especially be concerned as to who will repay these massive debts. The conventional answer of politicians is "taxpayers". But this is a serious understatement. Any depreciation of the U.S. dollar means that every American citizen and every single holder of U.S. dollars throughout the world will suffer from monetary loss and a severely reduced standard of living. In 1934, facing a depression President Roosevelt first confiscated gold from every American. Then, he unilaterally devalued the U.S. dollar by 75 percent against gold. At a stroke, FDR wiped out 75 percent of the dollar denominated debt of the U.S. Treasury. As both President-Elect Obama and Fed chairman Bernanke are students of FDR, we face the real possibility of a massive devaluation of the U.S. dollar against gold in 2009. " -- John Browne
======= ======= Above this line updated December 2008 ======= =======
"He points out that by standing behind those banks, but giving no general guarantees, the Government is encouraging savers to pull all their money out of well-run smaller institutions and switch it into badly run bigger banks." Excerpt from a good article on the root cause of the current turmoil/fiasco It all went wrong when we left the gold standard.
======= ======= Above this line updated October 2008 ======= =======
I removed the COMEX price quote, since it's only quoting the theoretical paper price of Gold & Silver, not real precious metal. The manipulation and price suppression GATA has been pointing out for years has become fairly obvious in recent weeks. When there is almost no supply and sharply increasing demand, how can the price go down?!?!? When the government short sells well over thirty (30) times as much silver as all investor demand put together. (Never mind that it's just paper - that they don't actually have the 140 million ounces of silver they sold short.) When every dealer and mint around the world is "sold out", when there's almost no Silver (or Gold) physically available to buy, what is the relevance of the COMEX paper price? Where is there any Silver physically available for sale today at $10/oz? The real physical price has decoupled from the paper futures price.
Randy Strauss of Centennial Precious Metals describes the peril of out current situation very well:
All evidence I've been getting from the banking
sector is that the seize-up of the financial system is on a par with that of the
Great Depression, and so we should not dismiss lightly the efforts being made by
monetary officials (both great and small) to keep the wheels from falling off...
It nearly conjures up memories of the famous line of Spock in "Star
Trek": "The needs of the many outweigh the needs of the few."
Unfortunately, the story can't so easily or happily end with a seemingly
isolated sacrifice of commodity holders here and there for the benefit of
price-conscious shoppers everywhere -- even if it is faced bravely and maturely
by the aforementioned few.
A basic review of economics and market principles reminds us that free price movements are the necessary swing points upon which physical supply and demand can be balanced. And the ugly truth of the matter at hand is that a mere discounting of the price/value of commodity derivatives amounts to little more than a cheap parlor trick -- a trick that, though creating a nice illusion of lower prices, disregards the physical supply/demand pricing balance and thus sets the stage for shortages and other dire dislocations.
And to be sure, it is the reliable flow of actual commodities that makes possible a well-fed, well-clothed, well-housed, well-fueled population. While this seemingly innocent maneuver of derivative-based pricing (especially the pro-cyclical discounting of these derivatives amid this financial crisis) is being used ostensibly to "shore up the global financial system," the necessary value and workings of the real (physical) economy are being sacrificed for the mere shaping of temporary perceptions and mathematical adjustments within a paper (mental) economy.
Simply put, derivatives-based pricing of tangibles is very much akin to a child playing with fire and gunpowder. It doesn't end well. I would rather have high-priced food on my plate and expensive gasoline in my car's fuel tank and a valuable pile of gold coins in my vault, all appropriately priced (physically) at their inflation-ridden prices, than to live in a world where they are all derivatively priced at attractively lower levels and yet are physically unavailable.
Before a derivative sell-off can cut too deeply into reality, there will have to come a point of price separation of the physical markets from their paper posers, or else we will be in for a real crisis, not merely a paper/digital one. In other words, knocking us all the way back into the Stone Age of barter would certainly not be appropriate policy response. Then the needs of the many also would be crushed after the needs of the few. In the end, after putting on a brave face to no avail, no amount of wisdom or maturity can tolerate such a disastrous outcome from the small-minded bureaucratic meddling that the structure of the current game implies.
======= ======= Above this line updated 9-11 2008. Below this line updated a year earlier. ======= =======
Truth and freedom have begun to be restored, but we've still got a long way to go considering Silver is now more rare than Gold!!
It's been three and a half years since writing my "for the record" paragraph at the bottom of this page, echoing my Gold&Silver recommendation over half a decade ago. In the past five years Gold&Silver have doubled, but mostly it's just been that the US$ has been declining - the measuring stick, as it were, is getting shorter. With the USA printing paper at the rate of about a Billion$/day! the competing currency devaluations Mr. Dines has talked about for years are becoming increasingly evident. The financial picture would be much clearer if the price of Gold (and especially Silver) were not being manipulated as GATA asserts. (You'll find very interesting information on GATA's website.) If you haven't visited GATA's website, you should. Get their GoldRush21 DVD and at least watch the 24min. summary. In the nine months since GoldRush21, Gold went from $435 to $725 (225%/annum) and Silver doubled from $7 to $15 (275%/annum), but I think "you ain't seen nothin' yet." On a percentage basis, I expect Silver to be even more profitable than Gold. This chart gives a great overview of what I'm talking about, while this page provides an excellent summary of why I recommend Silver.
To see Gold (7yrs ago to 2yrs ago) from a Canadian perspective, click here or on the thumbnail above. Note the 2001-9-11 gap up and that the Cdn$ price tracked the US$ price until the end of 2002. It's that uncoupling, along with $60 oil, that "let" me buy my condo (in oil-rich Alberta) while remaining bearish on real estate in the USA. For the last several years, Gold&Silver have been moving up in currencies other than the US$ - today's Canadian Gold chart from Kitco is above. For a better look at the breakout in the price of Gold worldwide, check out this end of 2005 article by Adam Hamilton.
The USA needs about $500 billion a year to finance its current account deficit, and another half trillion beyond what it collects in taxes for government spending. To date, the arrangement has been straightforward, foreign investors - primarily the Chinese and Japanese - sell their goods to the U.S., and then use the dollars to buy U.S. T-bills. This has helped keep bond prices high and long-term interest rates low. Unfortunately, all foreign holders of U.S. treasuries have endured massive losses because the American dollar has dropped so dramatically against their home currencies. What happens when it's no longer advantageous for China and Japan to prop up the US$ and they stop buying - or even worse, selling? Bond prices would drop and long-term interest rates would rise dramatically as investors look to be compensated for the currency risk.
The USA - and to a large degree the rest of the world - is in the early stages of an economic calamity far beyond anything this world has ever seen. I just read an article where Robert Kiyosaki made a good analogy, referring to the United States as the Titanic. Those of us who insist - like the constitution of the United States - that only Gold&Silver are money, and that printing more and more worthless paper, going further and further into debt, will lead to disaster, are dismissed as "gold bugs" like those who warned of icebergs. Back in 1971 Captain Nixon ordered full speed ahead and we hit the iceberg at the turn of the century when the stock market crashed. The Canadian dollar - itself evaporating at a rate double or triple the supposed inflation rate - is now at par with the United States dollar. The US$ has fallen 17% just in the last six months - the "SS USA" is taking on water. It's too late to turn the ship - all that we can do now is get to the Gold&Silver lifeboat.
About three years ago I advised my family and friends to get out of the stock market (especially mutual funds) and into Gold (and Silver) - mining stocks if they wanted to be more aggressive. In a couple of months the S&P had recovered from about where it is now to 1300 or so, and I figured the timing was good to get out if you hadn't gotten out already. Gold was about $300 then - as I write this, at the end of April 2004, it's $385, but a mere three weeks ago it was over $425. Silver's correction was even more dramatic - from $5.00 late last year to near $8.50 to below $6.00. Meanwhile the S&P has been in a bear market rally from below 800 a year ago. Many analysts say that was the start of a new bull market and we're going higher from here - I disagree. In my opinion this is your last best chance to get out of stocks and into Gold. Wednesday provided a prime example as Nortel dropped 1/3 - a loss of $9 Billion! It's easy in hind-sight to say you predicted something, so I'm putting this paragraph here for anyone to see until 2010 (my favorite movie). I'm also restating my two main predictions from over three years ago; that we're going to see "four figure Gold" (ie. over $1000) and the Dow and Gold will be "equal" (both at 3000 for example). I've also said for years that real estate is a bubble that's going to do what all bubbles do. I stand by that and add that interest rates are going up. Don't buy bonds!
(Above is my decades long Gold chart and personal portfolio pie chart at time of writing - April 2004 )
The first thing on this "non-LEGO" page was my sgi flat panel display, hence the file name...