Quixote2
29th June 2010, 10:01 AM
http://www.roadtoroota.com/public/136.cfm
Attention GOLD Investors:
What would you do to take down the Gold market riggers? What would you sacrifice? How hard would you work if you KNEW that the culmination of your effort would end the long term manipulation of gold? As for me, I am very tired of fighting the Gold Cabal, but I am also tired of watching all that I love about my country get washed out to sea by the Manmade Monsoon of Market Manipulation that is currently sloshing over the United States of America.
Let's Finish This Thing!
I'm going to say it flat out...SELL ALL YOUR GOLD INVESTMENTS NOW AND BUY PHYSICAL SILVER! This is not a joke and don't get me wrong, I am the biggest "gold bug" you've ever meet, but it is time we ended their evil game. The Cabal has shown their Achilles Heel over the past few years and it is not gold but the depletion of physical Silver available for delivery that will ultimately lead to their demise. Many of us figured out long ago that physical Silver will likely run out before physical gold simply due to the tiny size of the Silver market compared to Gold, but most of us have not ACTED on this knowledge to accelerate the demise of the Gold Cabal due to our affinity for Gold and all that Gold represents... sound/honest money, freedom, liberty and justice for all!
Recently, I have been thinking a lot about Gold as money and why I personally believe that Gold is the best form of hard money. Why not Silver or platinum or copper or zinc? I must admit that most of my knowledge on this subject comes from the writings of other people. I have read hundreds of books and articles by brilliant economists, sound money advocates and other monetary philosophers who have dedicated their lives to the study of monetary theory. I am truly amazed at the vast amount of intellectual capital that has gone into the analysis of Gold as money with each monetary thinker building upon the knowledge passed down by others through the ages.
But What do I Think?
If I had no idea about monetary theory and history, what would my conclusions be? How have these writings influenced my affinity towards gold as opposed to other hard metals? Is it possible to NOT be influenced by information passed down over the years and clear my mind enough to use my own cognitive reasoning on this subject?
This is what I have been pondering over the past few years and my conclusions have shaken me to my Gold Bug foundations! Although the facts and fundamentals of gold as the best form of hard money may have been true 50 years ago, the world of Gold and Silver has changed dramatically since then such that now SILVER is hands down the best hard money investment compared to all other metals....even GOLD!
--------------------------------------------------------------------------------
The Facts
The following is a list of facts and reasons to switch all your Gold investments into Physical Silver:
1) Due to the tiny size of the Silver market and the lack of physical Silver available to the manipulators, the Silver battle is much easier to win than Gold. Ted Butler's discovery of massive Silver market manipulation should highlight the size, scope and importance of Silver to the current financial crisis.
http://www.investmentrarities.com/ted_butler_comentary/08-22-08.html
2) Central banks have NO physical Silver to assist in the manipulation of the Silver market but they still have a lot of physical Gold (although much less than they claim).
3) The majority of Silver mined every year is consumed as an industrial metal in very small amounts and will never return to the market whereas the amount of above ground Gold grows year after year.
4) Silver has developed, due to its low price and superior physical properties, into a vital and necessary industrial commodity that makes it mandatory for modern life. If we woke up tomorrow and gold vanished from the face of the earth, life would continue pretty much as it was the day before. Without silver, modern life would change.
5) Due to the relative very low price of silver and very high price of gold, the man in the street, around the world, is in a position to buy silver in much greater quantities than gold.
6) In various forms there is an estimated 5B oz of above ground Gold and 5B oz of above ground Silver but Gold trades at $1200/oz and Silver trades for only $18/oz. Both metal prices are obviously manipulated but Silver appears to be manipulated more. As for Silver bullion that is "in play" for the manipulators, I estimate that less than 500M oz remain (COMEX Inventories + SLV Inventories) with a current market value less than $9B.
7) Silver has been in a supply deficit for over 50 years! Governments held approximately 10B oz of silver in 1950 and have been supplying that physical stock steadily into the market. Today there is no more of that surplus silver left to sell.
8) At current Silver consumption rates there are only 16 years of known Silver reserves remaining in the world. AFTER THAT SILVER WILL BE GONE FOREVER! Think about it.
http://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2010-silve.pdf
9) Demand for Silver is "inelastic" in its industrial applications because it is used in such small quantities per application. An increase in price does not translate into a decrease in consumption.
10) The COMEX Silver short position is the largest concentrated short position of any commodity, on any exchange in the history of financial markets.
11) Throughout human monetary history the Silver to Gold ratio hovered in the 10-1 range until the invention of futures and options trading in metals. When I originally wrote this article that ratio stood at 50-1 but in the last 2 years after the massive manipulation maneuvers by JP Morgan the silver-gold ratio now stands at over 65-1.
12) The US Dollar as defined in the Coinage Act of 1792 is Silver, not Gold, and contains "three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver."
http://en.wikipedia.org/wiki/United_States_dollar
13) Silver is massively under reported in the media vs. Gold. Even Jim Rogers, the commodity guru, purposefully ignores Silver entirely in his best selling book "Hot Commodities" even though Silver exceeds all other commodities using his metrics on what makes a strong commodity.
14) Very few investors have physical Silver in their possession. Reasoning: because they claim it is "too hard to store". Does that mean when Silver trades at over $1,000 oz people will be more willing to buy and store physical Silver? It is difficult to make up a more bullish argument to take delivery and store physical Silver TODAY...when the Cabal price rigging scam finally fails you can always buy your own Fort Knox to store all that pesky Silver you bought!
15) Gold's strong fundamentals are only exceeded by Silver's so when the gold manipulation stops and the Gold price takes off investors will be looking for the next under-priced investment with similar characteristics.
16) 470M oz of Silver owned by the US Treasury and used in the Manhattan Project for the construction of the atom bomb have all been melted down and sold into the physical market to support the "Strong Dollar Policy"
The Great Silver Mystery...REVEALED!
http://www.roadtoroota.com/public/135.cfm
17) Silver mineral deposits, as opposed to Gold, are usually very shallow in the earth's crust due to the nature of the geology so most of the large deposits of Silver have probably already been found and/or already mined limiting future discoveries.
18) There is a significant problem with counterfeit Gold bullion because of its high price. Silver bullion has not, to date, had as much of a counterfeiting issue because its price did not justify the effort. (although there is a problem with counterfeit Silver jewelry which may significantly suppress Silver scrap recovery in the future...oddly bullish by-product of counterfeiting Silver!)
19) The total dollar value of the Silver market is a fraction of the total dollar value of the Gold market.
20) Most flat screen televisions use Silver in their internal electronics/screens and the US transfer from analog to digital signals should increase the demand for flat screen TV's.
21) Retail physical shortages of Silver are already beginning to appear around the world. The list of announced delays/curtailment by Government owned Mints now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD!
22) Hedge funds are bleeding from the credit crunch and they are looking for ways to save themselves. A single hedge fund can scoop up the remaining physical Silver and blow the price sky high.
23) In the US, Gold confiscation laws are still on the books but there are currently no silver confiscation laws.
24) As of June 2010 the Gold price gold is hovering around $1,200 or 140% of its historical high. Silver, on the other hand, is hovering around $19 or 38% of it's historical high suggesting that Silver has a long way still to go.
25) Un-backed paper Silver programs such as silver certificates and unallocated pooled accounts are the "industry standard" these days and will be scrambling for metal when redemptions are called in by the investors. The most egregious example of fractional reserve silver is the iShares Silver ETF (SLV).
26) In the past 2 years the massive global money creation by central banks around the world has created huge reservoirs of cash sloshing around the asset markets looking for a safe haven. Although most mainstream press have discussed Gold as being a likely bucket to fill with this monetary firehouse, SILVER has all the same monetary metal properties as Gold except the Silver market is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!
27) The CFTC still has an open investigation into the manipulation of the SILVER market that is being conducted not by their investigative division but by the CFTC "Enforcement Division". Although the final conclusions have been purposefully delayed by the CFTC, the final outcome may finally be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!
28) During the CFTC hearing on metal position limits, GATA announced that a whistleblower has come forward with specific proof that JP Morgan was rigging the silver market. The next day he and his wife were rammed in their car in an attempted murder. The suspect was caught but the police are not giving out any information about the suspect or others that were involved.
http://www.youtube.com/watch?v=e9bU0r6JP4s
--------------------------------------------------------------------------------
Well, now do you think SILVER is both more important and a better investment than your gold?
Hopefully, that's enough pro-Silver data to convince you to make the switch.
What About Gold?
There are some pro-Gold items which, in fairness, should be weighed against all the pro-Silver arguments:
1) Gold does not tarnish. (That's nice but hardly a reason not to make the switch)
2) Gold is promoted and perceived by the world as the "Greatest Monetary Metal"....at least for now!
Not to be "anti-gold" but from my calculations there is 10x the amount of physical gold in the world according to the "mainstream propaganda"...meaning there is OVER 1 MILLION TONS OF PHYSICAL GOLD!
Golden Secrets
http://www.roadtoroota.com/public/181.cfm
Also, my calculations on silver show that there is 10x LESS silver in the world based on all the phony physical silver out there!
Silver "Moly-Bars"
http://www.roadtoroota.com/public/212.cfm
Don't worry about Gold....really. Gold, like Silver, will find its rightful place in a freely traded market. It should take less than a few $Billion of physical Silver purchases to buy up all of the available Silver bullion, and that would only mean switching out of about 200 tons of Gold on a physical basis. 200 tons would not significantly damage the price of gold. Now $7B removed from GLD/SLV, Gold/Silver Pooled Accounts, Gold/Silver mining stocks, etc. would be much better for the price of Gold and should not cause any permanent damage to the gold investment community. As a matter of fact, can you think of anything more positive for the price of gold and gold investments than the destruction of the Cabal?!
So What is the True Price of Silver Today?
I don't know but I do know that the price quoted on the COMEX today is not even close to its Fair Market Value. It makes more sense to me to estimate the true price of Silver in relation to another "Monetary Commodity" such as Gold since gold is currently "perceived" as the best monetary metal.
* Based on my estimates of total above and below ground Silver (17Boz) and Gold (8Boz) the Silver/Gold Ratio should be 2.1-1. With Gold trading at $1,200/oz Silver should be trading at $571/oz or is 32X UNDERVALUED!
* Based on my estimates of total above ground Silver (5Boz) and Gold (5Boz) the Silver/Gold Ratio should be 1-1. With Gold trading at $1,200/oz Silver should be trading at $1,200/oz or is 67X UNDERVALUED!
* Based on my estimates of total monetary bullion above ground Silver (1Boz) and Gold (3Boz) the Silver/Gold Ratio should be 1-3. With Gold trading at $1,200/oz Silver should be trading at $3,600/oz or is 200X UNDERVALUED!
Of course all this is predicated on the assumption that gold is fairly valued at $1,200oz today which almost everyone agrees is a joke. Since the USA holds a little over 8,100 tons of gold in reserve it is logical to assume that Gold will back the US dollar when the fiat money system fails (not hard to imagine the failure of the US dollar). With the US M3 money supply currently estimated to be in the $20+ Trillion dollar range, the price of a redeemable gold backed US dollar would be about $77,000/oz IF the US stopped printing dollars today.
The $77,000/oz Monetary Gold price would put the value of monetary above ground Silver bullion, as analyzed in the last bullet point above, at....
.... $231,000 per oz!
Crazy, I know, but it really doesn't end there!
Based on the FACT that Silver is being consumed 120% faster than it is currently being mined/produced and the Gold above ground supplies are growing at 2% per annum the Silver/Gold Ratio Formula should be [(Above Ground Silver)(80%) to (Above Ground Gold)(102%)]. With Gold trading at a massively manipulated low price of $1,200oz, Silver should be approaching INFINITY AND IS INFINITY(X) UNDERVALUED!
Wow....chilling conclusions...have you traded your Gold for Silver yet?
May the Road you choose be the Right Road.
Bix Weir
Attention GOLD Investors:
What would you do to take down the Gold market riggers? What would you sacrifice? How hard would you work if you KNEW that the culmination of your effort would end the long term manipulation of gold? As for me, I am very tired of fighting the Gold Cabal, but I am also tired of watching all that I love about my country get washed out to sea by the Manmade Monsoon of Market Manipulation that is currently sloshing over the United States of America.
Let's Finish This Thing!
I'm going to say it flat out...SELL ALL YOUR GOLD INVESTMENTS NOW AND BUY PHYSICAL SILVER! This is not a joke and don't get me wrong, I am the biggest "gold bug" you've ever meet, but it is time we ended their evil game. The Cabal has shown their Achilles Heel over the past few years and it is not gold but the depletion of physical Silver available for delivery that will ultimately lead to their demise. Many of us figured out long ago that physical Silver will likely run out before physical gold simply due to the tiny size of the Silver market compared to Gold, but most of us have not ACTED on this knowledge to accelerate the demise of the Gold Cabal due to our affinity for Gold and all that Gold represents... sound/honest money, freedom, liberty and justice for all!
Recently, I have been thinking a lot about Gold as money and why I personally believe that Gold is the best form of hard money. Why not Silver or platinum or copper or zinc? I must admit that most of my knowledge on this subject comes from the writings of other people. I have read hundreds of books and articles by brilliant economists, sound money advocates and other monetary philosophers who have dedicated their lives to the study of monetary theory. I am truly amazed at the vast amount of intellectual capital that has gone into the analysis of Gold as money with each monetary thinker building upon the knowledge passed down by others through the ages.
But What do I Think?
If I had no idea about monetary theory and history, what would my conclusions be? How have these writings influenced my affinity towards gold as opposed to other hard metals? Is it possible to NOT be influenced by information passed down over the years and clear my mind enough to use my own cognitive reasoning on this subject?
This is what I have been pondering over the past few years and my conclusions have shaken me to my Gold Bug foundations! Although the facts and fundamentals of gold as the best form of hard money may have been true 50 years ago, the world of Gold and Silver has changed dramatically since then such that now SILVER is hands down the best hard money investment compared to all other metals....even GOLD!
--------------------------------------------------------------------------------
The Facts
The following is a list of facts and reasons to switch all your Gold investments into Physical Silver:
1) Due to the tiny size of the Silver market and the lack of physical Silver available to the manipulators, the Silver battle is much easier to win than Gold. Ted Butler's discovery of massive Silver market manipulation should highlight the size, scope and importance of Silver to the current financial crisis.
http://www.investmentrarities.com/ted_butler_comentary/08-22-08.html
2) Central banks have NO physical Silver to assist in the manipulation of the Silver market but they still have a lot of physical Gold (although much less than they claim).
3) The majority of Silver mined every year is consumed as an industrial metal in very small amounts and will never return to the market whereas the amount of above ground Gold grows year after year.
4) Silver has developed, due to its low price and superior physical properties, into a vital and necessary industrial commodity that makes it mandatory for modern life. If we woke up tomorrow and gold vanished from the face of the earth, life would continue pretty much as it was the day before. Without silver, modern life would change.
5) Due to the relative very low price of silver and very high price of gold, the man in the street, around the world, is in a position to buy silver in much greater quantities than gold.
6) In various forms there is an estimated 5B oz of above ground Gold and 5B oz of above ground Silver but Gold trades at $1200/oz and Silver trades for only $18/oz. Both metal prices are obviously manipulated but Silver appears to be manipulated more. As for Silver bullion that is "in play" for the manipulators, I estimate that less than 500M oz remain (COMEX Inventories + SLV Inventories) with a current market value less than $9B.
7) Silver has been in a supply deficit for over 50 years! Governments held approximately 10B oz of silver in 1950 and have been supplying that physical stock steadily into the market. Today there is no more of that surplus silver left to sell.
8) At current Silver consumption rates there are only 16 years of known Silver reserves remaining in the world. AFTER THAT SILVER WILL BE GONE FOREVER! Think about it.
http://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2010-silve.pdf
9) Demand for Silver is "inelastic" in its industrial applications because it is used in such small quantities per application. An increase in price does not translate into a decrease in consumption.
10) The COMEX Silver short position is the largest concentrated short position of any commodity, on any exchange in the history of financial markets.
11) Throughout human monetary history the Silver to Gold ratio hovered in the 10-1 range until the invention of futures and options trading in metals. When I originally wrote this article that ratio stood at 50-1 but in the last 2 years after the massive manipulation maneuvers by JP Morgan the silver-gold ratio now stands at over 65-1.
12) The US Dollar as defined in the Coinage Act of 1792 is Silver, not Gold, and contains "three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver."
http://en.wikipedia.org/wiki/United_States_dollar
13) Silver is massively under reported in the media vs. Gold. Even Jim Rogers, the commodity guru, purposefully ignores Silver entirely in his best selling book "Hot Commodities" even though Silver exceeds all other commodities using his metrics on what makes a strong commodity.
14) Very few investors have physical Silver in their possession. Reasoning: because they claim it is "too hard to store". Does that mean when Silver trades at over $1,000 oz people will be more willing to buy and store physical Silver? It is difficult to make up a more bullish argument to take delivery and store physical Silver TODAY...when the Cabal price rigging scam finally fails you can always buy your own Fort Knox to store all that pesky Silver you bought!
15) Gold's strong fundamentals are only exceeded by Silver's so when the gold manipulation stops and the Gold price takes off investors will be looking for the next under-priced investment with similar characteristics.
16) 470M oz of Silver owned by the US Treasury and used in the Manhattan Project for the construction of the atom bomb have all been melted down and sold into the physical market to support the "Strong Dollar Policy"
The Great Silver Mystery...REVEALED!
http://www.roadtoroota.com/public/135.cfm
17) Silver mineral deposits, as opposed to Gold, are usually very shallow in the earth's crust due to the nature of the geology so most of the large deposits of Silver have probably already been found and/or already mined limiting future discoveries.
18) There is a significant problem with counterfeit Gold bullion because of its high price. Silver bullion has not, to date, had as much of a counterfeiting issue because its price did not justify the effort. (although there is a problem with counterfeit Silver jewelry which may significantly suppress Silver scrap recovery in the future...oddly bullish by-product of counterfeiting Silver!)
19) The total dollar value of the Silver market is a fraction of the total dollar value of the Gold market.
20) Most flat screen televisions use Silver in their internal electronics/screens and the US transfer from analog to digital signals should increase the demand for flat screen TV's.
21) Retail physical shortages of Silver are already beginning to appear around the world. The list of announced delays/curtailment by Government owned Mints now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD!
22) Hedge funds are bleeding from the credit crunch and they are looking for ways to save themselves. A single hedge fund can scoop up the remaining physical Silver and blow the price sky high.
23) In the US, Gold confiscation laws are still on the books but there are currently no silver confiscation laws.
24) As of June 2010 the Gold price gold is hovering around $1,200 or 140% of its historical high. Silver, on the other hand, is hovering around $19 or 38% of it's historical high suggesting that Silver has a long way still to go.
25) Un-backed paper Silver programs such as silver certificates and unallocated pooled accounts are the "industry standard" these days and will be scrambling for metal when redemptions are called in by the investors. The most egregious example of fractional reserve silver is the iShares Silver ETF (SLV).
26) In the past 2 years the massive global money creation by central banks around the world has created huge reservoirs of cash sloshing around the asset markets looking for a safe haven. Although most mainstream press have discussed Gold as being a likely bucket to fill with this monetary firehouse, SILVER has all the same monetary metal properties as Gold except the Silver market is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!
27) The CFTC still has an open investigation into the manipulation of the SILVER market that is being conducted not by their investigative division but by the CFTC "Enforcement Division". Although the final conclusions have been purposefully delayed by the CFTC, the final outcome may finally be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!
28) During the CFTC hearing on metal position limits, GATA announced that a whistleblower has come forward with specific proof that JP Morgan was rigging the silver market. The next day he and his wife were rammed in their car in an attempted murder. The suspect was caught but the police are not giving out any information about the suspect or others that were involved.
http://www.youtube.com/watch?v=e9bU0r6JP4s
--------------------------------------------------------------------------------
Well, now do you think SILVER is both more important and a better investment than your gold?
Hopefully, that's enough pro-Silver data to convince you to make the switch.
What About Gold?
There are some pro-Gold items which, in fairness, should be weighed against all the pro-Silver arguments:
1) Gold does not tarnish. (That's nice but hardly a reason not to make the switch)
2) Gold is promoted and perceived by the world as the "Greatest Monetary Metal"....at least for now!
Not to be "anti-gold" but from my calculations there is 10x the amount of physical gold in the world according to the "mainstream propaganda"...meaning there is OVER 1 MILLION TONS OF PHYSICAL GOLD!
Golden Secrets
http://www.roadtoroota.com/public/181.cfm
Also, my calculations on silver show that there is 10x LESS silver in the world based on all the phony physical silver out there!
Silver "Moly-Bars"
http://www.roadtoroota.com/public/212.cfm
Don't worry about Gold....really. Gold, like Silver, will find its rightful place in a freely traded market. It should take less than a few $Billion of physical Silver purchases to buy up all of the available Silver bullion, and that would only mean switching out of about 200 tons of Gold on a physical basis. 200 tons would not significantly damage the price of gold. Now $7B removed from GLD/SLV, Gold/Silver Pooled Accounts, Gold/Silver mining stocks, etc. would be much better for the price of Gold and should not cause any permanent damage to the gold investment community. As a matter of fact, can you think of anything more positive for the price of gold and gold investments than the destruction of the Cabal?!
So What is the True Price of Silver Today?
I don't know but I do know that the price quoted on the COMEX today is not even close to its Fair Market Value. It makes more sense to me to estimate the true price of Silver in relation to another "Monetary Commodity" such as Gold since gold is currently "perceived" as the best monetary metal.
* Based on my estimates of total above and below ground Silver (17Boz) and Gold (8Boz) the Silver/Gold Ratio should be 2.1-1. With Gold trading at $1,200/oz Silver should be trading at $571/oz or is 32X UNDERVALUED!
* Based on my estimates of total above ground Silver (5Boz) and Gold (5Boz) the Silver/Gold Ratio should be 1-1. With Gold trading at $1,200/oz Silver should be trading at $1,200/oz or is 67X UNDERVALUED!
* Based on my estimates of total monetary bullion above ground Silver (1Boz) and Gold (3Boz) the Silver/Gold Ratio should be 1-3. With Gold trading at $1,200/oz Silver should be trading at $3,600/oz or is 200X UNDERVALUED!
Of course all this is predicated on the assumption that gold is fairly valued at $1,200oz today which almost everyone agrees is a joke. Since the USA holds a little over 8,100 tons of gold in reserve it is logical to assume that Gold will back the US dollar when the fiat money system fails (not hard to imagine the failure of the US dollar). With the US M3 money supply currently estimated to be in the $20+ Trillion dollar range, the price of a redeemable gold backed US dollar would be about $77,000/oz IF the US stopped printing dollars today.
The $77,000/oz Monetary Gold price would put the value of monetary above ground Silver bullion, as analyzed in the last bullet point above, at....
.... $231,000 per oz!
Crazy, I know, but it really doesn't end there!
Based on the FACT that Silver is being consumed 120% faster than it is currently being mined/produced and the Gold above ground supplies are growing at 2% per annum the Silver/Gold Ratio Formula should be [(Above Ground Silver)(80%) to (Above Ground Gold)(102%)]. With Gold trading at a massively manipulated low price of $1,200oz, Silver should be approaching INFINITY AND IS INFINITY(X) UNDERVALUED!
Wow....chilling conclusions...have you traded your Gold for Silver yet?
May the Road you choose be the Right Road.
Bix Weir