Posts Tagged ‘silver stock report’
Why Silver Will Go UP for Years to Come!
(Floods of paper money!)
Silver Stock Report
1. No nation on earth is using silver as a circulating medium of exchange. The State of Utah is leading the way by making it legal tender.
2. All nations on earth are using paper for money, which is about as wise as building houses out of straw. The amount of paper money is uncountable, and is constantly soaring to new highs. The USA stopped reporting the amounts of money in the banks back in 2006, and the banks in 2008 started depositing a lot of their bailout money with the Fed banks, making it even harder to track. All of that marks the beginning of hyperinflation, which appears to be starting now.
3. The Federal annual deficit, which is how much they spent more than they took in, is $1.66 trillion, or $830 billion for the first half of fiscal 2011. Does that count QEII? What was not counted in that? How reliable are the figures? If the figures are wrong, are the real figures likely to be bigger or smaller, and by how much?
http://tinyurl.com/3ozdljx (April 7th news item)
4. The silver market remains tiny. “World investment rose by an impressive 40 percent last year to 279.3 million troy ounces (Moz), resulting in a net flow into silver of $5.6 billion, almost doubling 2009’s figure.” How reliable are the figures?
http://www.silverinstitute.org/pr07apr2011.php (April 7th news item)
Recap: New US Debt: $830 billion in 6 months.
Recap: New Silver buying: $5.6 billion, all year.
Essay assignment, compare and contrast those two numbers.
Which one is bigger? Which one is smaller?
What is likely to change?
What is likely to stay the same?
If the US government spends new paper money that it does not have, is that inflationary? Will that make the new dollars tend to go down in value? If so, by how much?
Are silver prices likely to go up, as new money buys silver to protect itself? In your opinion, much new money will be likely to buy silver next year? How much do you think the silver price will continue to be driven up, in the next year, by such buying?
Is the US government likely to suddenly balance the budget by next year, or will the spending like a drunken sailor be likely to continue?
If you convince your friends to buy silver, are they more likely to thank you, or not, as certain trends and fundamentals continue?
I strongly advise you to take possession of real gold and silver, at anywhere near today’s prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.
Sincerely,
Jason Hommel
www.silverstockreport.com
Silver Stock Report: Frequently Asked Questions from Silver Buyers
(There are no dumb questions!)
Silver Stock Report
by Jason Hommel, November 19th, 2010
Which is better, gold or silver?
I like silver better because it’s being consumed by industry. It’s a much smaller market, by far, and thus, will move up far more than gold.
If the silver to gold ratio returns to the historic value ratio of 15 oz. of silver for every 1 oz. of gold, you’d make far more on silver, since the current ratio is about 53:1.
But I think silver might exceed the historic ratio, since that ratio was last seen nearly 100 years ago, except for briefly in 1980.
Over the last 100 years, two major things have happened to silver. First, silver was demonetized, meaning, no nations on earth are using silver as money, or as a circulating currency today. Second, since the age of electronics began at the end of WWII, developed nations have been consuming about 6/10ths of an oz. of silver per person, per year, which has consumed most of the silver ever mined in history.
In contrast, only 5% of the annual gold market production is consumed by industry.
So if the silver to gold ratio just returns to historic norms, you’d make over 3 times as much in silver than in gold.
But silver should dramatically outperform gold as the bull market in precious metals continues.
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How do I keep my purchases and sales anonymous? After all, I don’t want the government to know what I’m doing.
Well, your bank account will keep a record of you taking out cash, but they won’t know what you spend it on. They also track cash deposits, but won’t know the source.
But if you try to sell precious metals for US money, and end up depositing that cash into the bank, and if you want to borrow money to buy a home, you will likely have to declare the source of that cash, by providing the sales receipt of the bullion you sold. We have had quite a few people run into that problem already.
It may be illegal for me to even tell you what the exact reporting requirements on cash transactions are! However, it might not yet be illegal for me to direct you to the government website itself!
If you would like to look up the reporting limit requirements for cash, you can find it at fincen.gov, specifically, click on “Statutes and Regulations”. Posted clearly, there is a daily transaction limit of $10,000 on physical paper cash, among other regulations.
It’s sad that in the land of the free and the home of the brave that the government expects businesses to work for the government and fill out paperwork for free, and only under threat of punishment for non-compliance. Sounds a bit like slavery to me.
There is no reporting by us if you do a wire transfer, and thus, no limit to what you can buy via wire transfers.
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What is the tax on gold and silver?
There is sales tax in California if you buy less than $1500; over that, there is no tax.
But people are often wondering if they will have to pay taxes when they sell it. And this question is often asked right on the heels of the previous question about reporting requirements.
Well, in the land of the free today, it is also illegal for me to give tax advice since I’m not a licensed tax attorney. It is also illegal for Suze Orman; but it does not seem to stop her.
So let me play it on the safe side, and talk philosophy, instead of taxes. So, I’ll tell you about a debate I learned in college. The question is, “If a tree falls in the forest, and if nobody is around to hear it, does it make a sound?” And more importantly, is that a taxable event, and does the tree have to file a 1040? Well, of course not, trees don’t have filing requirements.
In other nations, they’d just shoot the tree. Here in America, we are still allowed (in some places) to turn the fallen tree into firewood, but then you have to declare the “income” of wood if you want to be insanely and overly compliant with how they apply tax laws. But if you didn’t tell the government that you turned a tree into firewood, how would they know that for income purposes?
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Why can’t I buy gold or silver at spot, instead of over spot?
Almost all of the products that we sell have a manufacturing cost to them. We typically have to buy raw bullion over spot, and then pay an additional cost to manufacture it into coins or bars. We sell 20 times more bullion to the public than we buy, in recent weeks!
So, you can buy bullion under spot if you spend the money to start up a coin shop, and wait for gold and silver to be sold to you. But customers only sell us 1/20th of the metals that we are selling.
All markets have a bid and an ask. The bid is the price a potential buyer is bidding. The ask is the price that a seller is asking.
Those bids and asks are from the large COMEX paper market that trade in lots of 5000 oz. of silver, and rarely result in any real delivery, because most of the buyers are only buying to gamble on short term price changes, and pay only a small deposit.
As a real shop, with real silver, we have real expenses; rent, ads, workers, electricity, phone, internet, insurance. And all of that must be paid monthly, regardless of if we make any sales.
The physical market is also very tiny, with low volume, only about $2.5 billion per year. With 1% average profit after all expenses, that’s barely $25 million for all physical silver sellers, worldwide. With 4000 coin shops nationwide, if that $25 million were divided equally, that’s $6,250 profit per shop, per year, on silver sales. (We do a bit better than average, but still!)
We also have risks; default risk from our suppliers, theft risk from workers, theft risk from the public. Risks must be offset by potential profits.
We also have trading volatility risk; we might sell silver to someone early in the day, and later in the day, if the price moves up, we might end up buying back that silver from our wholesalers at a loss, and thus, losing money.
We also have inventory composition risk and losses: we must keep cash to run the shop, and cash loses value in terms of silver as silver goes up; the cash always buys less and less silver.
We also have replacement delay risk and loss. Cash can’t be used immediately to buy back silver, there is always a delay between when it can be deposited into the bank.
We also have cash deposit charges that range from 1/2 of 1% to 1% on cash, because we deposit high volumes of cash; the bank charges us this just for counting the cash.
We also have a risk that the silver that we re-order gets delayed, and then, we risk running out of inventory sooner. If that happens, we must raise prices to ration product availability. It does no good to have low prices if we are sold out.
I’ve said numerous times that there is only about $1-2 out of every $10,000 that is in the banking system that is going into silver on an annual basis. As that increases, it will cause enormous pressure on everyone in the trade: miners, concentrators, refiners, mints, dealers, and coin shops. My goal is to make sure that bullion is available, at some price, because when no bullion is available, that’s much worse; that’s what happens under communism, and price fixing.
Sometimes, we can negotiate lower prices for larger orders. But not always. It never hurts to ask.
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Where do you think silver prices are going in the next 3-6 months?
Generally, I tend to think silver prices are too volatile, changing, and unpredictable to make any guesses for the short term. Nevertheless, my gut tells me that silver is headed to about $35/oz. within this time frame, by July, 2011. That guess is based on my observation of the Fibonacci number sequence for silver’s peak prices in this bull market. Silver started at around $5/oz. Then, the successive peak prices were right on the Fibonacci sequence, 8, 13, 21, and the next number is 34. Each number is the additive of the prior two, which shows an average increase of about 66% over the prior peak. I would not bet on that kind of prediction though, and I would not buy any options on that either. The reason is that it might also take as long as 2 years to get there, because we have a manipulated market, whereby 99% of silver buyers are content with paper silver and don’t know they are being deceived, primarily by JP Morgan.
Also, with options, price increases are built in. Generally, since silver is expected to go up by about 30% per year, since that’s the trend, silver has to do significantly better than that in order for you to make money on options, so they are generally a waste of money. Just buy physical silver, and earn the 30% or more per year continually over the next few decades. Remember, the world cannot make 30% per year on paper phantom silver that does not exist — so all of that will default during this bull market, and you have to get out of that kind of bad silver before this bull market finishes if you ever hope to have any major gains at all. Also the options market is very illiquid and very small beyond 6 months away, so the entire paper game seems quite ridiculous to me.
Think of it like this. Let’s say there were two silver shops right next door to each other. Mine, and the “paper market” next door. You go into my shop, see all the bullion, and see my prices. Then, you go next door to the paper shop, and they have no bullion available, only a bunch of traders standing around holding paper tickets. You read up on their open interest, and you can instantly see that they are bankrupt, having sold up to 800 million ounces while their published warehouse inventories are a mere 50 million ounces. You see that they only offer silver for delivery “in a month” and the delivery day can be any day in the entire month. And, the only product you can buy, and the minimum order size is 5 large 1000 oz. bars that nearly nobody wants. Where would you shop? Hint, not even our largest wholesaler shops there; instead, they buy directly from refiners, or mints, as do we. Please note, not all refiners are honorable or have good products. Be careful out there.
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Where do you think silver prices are going in the next year then?
On average, over the last ten years of this bull market in precious metals, silver has gone from a low of $4.15/oz in the spring of 2003, to $29 or so last week. Over seven years, that’s an average of 32% per year. But I think silver will tend to go up in greater percentage numbers per year, on average, as the bull market continues. The trouble with averages, is that they can be misleading. In 2008, silver hit $21.50 or so, and bottomed around $9.50 or so in 2009. That’s a loss of 55% in one year, which led many to speculate that silver prices had “crashed” and that the bull market was over. Of course, such “advisors” did not tell anyone to buy silver at $9.50 in 2009 either.
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Greenspan Misapplied Free Market Theory
(My Comments on “Frontline; The Warning”)
Silver Stock Report
by Jason Hommel, October 23rd, 2009
Thanks to my wife, God bless her, I watched “Frontline: The Warning” night before last. It aired on Oct 20th, 2009. You can view it online, here:
http://www.pbs.org/wgbh/pages/frontline/warning/view/
There are 679 comments on it already.
The show is about “the warning” given by Brooksley Born, who, while acting as Chair for the CFTC (the commodities Futures Trading Commission), warned of the dangers of “black box,” “over the counter” derivatives. After she was shut up by Congress and Alan Greenspan, 6 weeks later, LTCM (Long Term Capital Management) blew up in early 2000. http://en.wikipedia.org/wiki/Long-Term_Capital_Management
Frontline shows that Greenspan was one of Ayn Rand’s top students, who believed in a philosophy that government is the problem, and that markets are the solution, and thus, self-regulating.
Frontline shows the absurd conclusion of Greenspan’s philosophy when it showed that Greenspan invited Born to a meeting, where Greenspan said something like, “I suppose you think fraud should be regulated. I don’t.” He thought the market would figure it out.
Shockingly, the film shows Greenspan painfully admitting that his philosophical views that he held for 40 years were wrong. He does not elaborate. Perhaps he’s still not exactly sure where he went wrong.
Perhaps I can help.
Being familiar with Ayn Rand’s free market views, here’s where I believe Greenspan went wrong.
Greenspan tried to apply the views of an atheist, Ayn Rand.
IN MY OPINION, Greenspan tried to let markets be free, but Greenspan did not understand the basic definition of markets, or freedom.
In my opinion, markets are where things are traded, not where people are traded by entering into contracts.
Markets are where multiple sellers compete with multiple buyers, in the open, and trade, and walk away, free to choose another trading firm tomorrow.
Black box, over the counter, derivatives, are not markets, even if they ever do trade in the open.
The spot market is like freedom. Futures contracts, and OTC derivatives, are like slavery.
In my opinion, futures contracts, like debt contracts, lead to compulsory performance, and thus slavery. And slavery is the exact opposite of freedom! That’s Greenspan’s big error, the failure to see that slavery is the opposite of freedom!
Again, as an example, allowing people the freedom to trade slaves does not promote freedom, it promotes slavery!
Allowing banks to enslave people with too much unpayable home loan debt is a fruit of that error.
Allowing banks to enslave one another so that if one topples, they all topple, is another fruit of that error.
Allowing people to enslave banks to perform what they cannot, so that they “need” bailouts, is another fruit of that error.
Silver Stock Report: World Government Lurches Forward
(How to Resist it!)
Silver Stock Report
by Jason Hommel, October 21st, 2009
People continually ask me about the plans for a North American Currency, or Amero. They ask, “Will the Amero devalue the dollar, will it be silver?” I’ve read the news on it for years, but nobody knows, it’s only theoretical and in discussions at this point.
But I do have several solid and well founded opinions.
1. A North American Currency will NOT be planned to be gold or silver. Silver’s price (and gold’s) is way too low still.
2. A North American Currency will probably not be accompanied by a rapid or massive 50-75% devaluation of dollars. That’s not how they introduced the Euro, it was smooth, well planned, and prices were quoted in both Euros and national currency for two years during the transition.
However, The introduction of the Euro, if any guide, also marked the bottom of the gold market, and the start of the bull market in gold, around the year 2000. Thus, a common currency will probably boost gold’s appeal. Why? When multiple nations each have the power to print the same currency, he who prints fastest, benefits the most! Thus, it stimulates inflation, and the devaluation of the currency. Also, with fewer currencies to trade one for another, gold looks like a more viable option, or the only other option (and silver, of course).
If you think the Amero is a fantasy, or a hoax, please be aware of the following news reports calling for a common currency for South America.
News Reports begin to mention the plans of a new Currency for all of, and to unite, South America.
ALBA sanctions Honduras, moves towards new currency
10/18/2009
http://www.ww4report.com/node/7840
Leftist Regimes Agree to New Currency
20 October 2009
http://www.thenewamerican.com/index.php/world-mainmenu-26/south-america-mainmenu-37/2123-leftist-regimes-agree-to-new-currency
South American Union Will Also Have Common Currency
June 21, 2008
http://www.naturalnews.com/023480_America_South_America_North_American_Union.html
But that’s not all this week.
I’ve warned of the fraud and dangers of global warming, saying it will be used as a convenient excuse for a global government.
See some of my warnings:
http://www.google.com/cse?cx=001032847424902327838%3A7dcj3rzkht0&ie=UTF-8&q=global+warming&sa=Search
Other more respected people, are now warning: Obama is set to give up US Sovereignty, by signing a treaty in December, over false fears of “Global Warming”.
http://www.globalclimatescam.com/
http://atlasshrugs2000.typepad.com/atlas_shrugs/2009/10/action-alert-obama-to-cede-us-sovereignty-in-december.html
Now here’s a potential solution that may help to halt this development.
The reason why a foreigner is not supposed to be elected President, is because he may be a traitor to US interests, and favor foreign interests, such as the globalist agenda.
News came out last week that Obama was openly reported to be born in Kenya!
AP declared Obama “Kenyan-Born”
The Post & Email
October 16, 2009
http://www.infowars.com/ap-declared-obama-kenyan-born/
Here’s the web archive of the AP article:
http://web.archive.org/web/20040627142700/eastandard.net/headlines/news26060403.htm
Many AP articles on Obama were scrubbed entirely off of the internet, some claim, as history is being revised before our eyes, Orwellian-style, as in the book, 1984. Looks like they missed a few.
President Obama Admitted He Was “Kenyan-Born”.
http://naturalborncitizen.wordpress.com/2009/10/16/president-Obama-admitted-he-waskenyan-born/
I read that one Federal Judge will hear one case over Obama’s birthplace, sometime in January. I told this news to a friend, who used to be in the military. He replied, “They’ll just kill the judge.” Please pray for his protection, and for Orly Taitz. It tends to frustrate the plans of the enemy, when the ones exposing them are protected by God, and the prayers of righteous people can do a lot!
James 5:16 Therefore confess your sins to each other and pray for each other so that you may be healed. The prayer of a righteous man is powerful and effective.
After you pray, consider following it up with action. I did.
The key person fighting this battle against Obama’s birthplace is a woman named Orly Taitz.
To donate to her cause, see
http://www.orlytaitzesq.com/
Silver investors have a unique sense of integrity. We are perhaps some of the only people around who will make an investment into something like silver, and then work to prevent its rise. After all, I have to give Obama credit, he is the silver salesman of the year now, for two years running. As an investor in silver, it works against my benefit to do what is right, and to fight Obama and his highly inflationary, wild spending policies, and globalist agenda, which will only push people more into silver and gold. But I do what is right anyway, regardless of the personal cost. I suppose that’s why they call it “standing up” for what is right, rather than “lying down” for what is right. Doing what is right always comes at a personal cost.
People tell me to not talk politics. It angers people, polarizes people, and reduces the size of the potential audience.
But it’s not always important to “reach out” to those who are not listening! I think it’s more important to continue to inform those who are listening! If I anger a few readers, that’s part of the “cost” of doing what is right.
Besides, the best way to fight the global socialists is to buy silver! It reduces the power of their printing presses to buy anything in the world that they want, which funds their agenda. It exposes their games of fraud, and helps to bring it to an end.
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I strongly advise you to get real gold and silver, at anywhere near today’s prices, while you still can.
How to Detect Fake Gold!
(Readers reply with more tips on how!)
Silver Stock Report
by Jason Hommel, October 21st, 2009
Paper silver is fake silver at the COMEX, as the sellers of paper silver don’t have the silver they are selling, and are leveraged by a factor of 12, or more, assuming sellers own 100% of the silver available for delivery against paper contracts. (Silver on deposit may also be owned by longs who have not sold futures, and who therefore have no delivery obligations). Less than the 55 million oz. of silver on deposit, supposedly backs 659 million oz. in futures contracts.
http://seekingalpha.com/article/167773-silver-futures-show-markets-are-acting-strangely
October 21, 2009
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Dear J Hommel:
Over the last 3 weeks I have had people try to twice sell to me a fake Maple Leaf gold coin. It had all the proper designs but it was too smooth and the heft (weight/density was wrong) gave it away as made of brass. It did test properly with acid using just a streak test but not when a groove was filed. I make jewelry and would have melted the gold so nothing is lost by cutting a groove.
Last week, in a friend’s coin shop, a Chinese made counterfeit US $20 gold coin was brought in. These are difficult to detect and are usually copies of valuable numismatic coins. The seller is known to us and stated that he believed it was a counterfeit made to fool collectors. Coin World had an article about the counterfeiting of valuable US coins in China this summer. Link to that article:
www.coinworld.com/articles/ChineseCounterfeit/Part1.aspx
(subscription only)
The coin contained a full ounce of gold when refined. (So it was a fake numismatic!)
I have also encountered aluminum gold plated flat wafer type bars marked with various Swiss Bank designations. Only gold plated, of course, but the source is unknown.
With the 400 oz bars I have no personal knowledge of counterfeits. There have been news reports that some bars held in British repositories and by the Bank of England were very old and did not meet standards of today. It was implied in those articles that the gold had to be refined before it would be known how much gold was really in the old bars.
Sincerely,
G. Walter Boucher
http://www.abovetopsecret.com/forum/thread442271/pg1
–Over 100 manufacturers in China are making fake gold and silver coins!
3-3-2009
http://news.bbc.co.uk/2/hi/africa/7294665.stm
Fake fears over Ethiopia’s gold
By Elizabeth Blunt
BBC News, Addis Ababa
March 13th, 2009
http://www.popsci.com/diy/article/2008-03/how-make-convincing-fake-gold-bars
–by Theo Gray, + 18 comments
3-14-2008
http://www.museumofhoaxes.com/hoax/weblog/comments/how_to_make_fake_gold_bars/
–references Theo Gray’s article.
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Jason, I think, even though the specific gravity between gold and tungsten is so close, accurately weighing a bar and measuring its volume (by water displacement) should determine its true nature.
The difference determined this way would surely exceed the permissible volume variance of gold bars. Anyway, that wouldn’t make any difference – as long as the accurate weight and the accurate volume can be determined, the accurate specific gravity will be arrived at.
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Jason, You might also want to advise your readers to use a magnet to test anything that purports to be an ‘old Chinese’ silver coin. With a little experience one can also spot the fakes, as they are light, thin, and usually have very poor workmanship. But the magnet test is quick and simple.
LC
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Hi Jason,
Are you familiar with the hand-held Xray analyzer that can tell you exactly which metal you have.
They are over $30,000, but for an operation with significant volume, I certainly would have one. I have a friend that has one made by Oxford Instruments, and he wouldn’t do business without it. They are also made by Innovex and others.
http://www.directindustry.com/industrial-manufacturer/alloy-analyzer-73647.html
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Jason, there is a simple gauge to detect fake gold coins, it measures the dimensions the coin must fit through:
Fisch Fake Coin Identification Gauge
http://www.fisch.co.za/orderonline.htm
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A simple google search brings up:
4 Home Remedies to detect fake gold
http://reviews.ebay.com/How-to-spot-fake-gold_W0QQugidZ10000000001659647
There are 4 home remedies for spotting fake gold or just plated items that maybe marked 14k. 1st-Place a magnet next to questionable piece. If item is pulled towards magnet-it’s just plated or fools gold. 2nd-Take a jewelry cleaning cloth and rub it on piece in question. This usually will take the plating right off with a couple hard rubs. 3rd-If it’s a chain with lobster clasp in question, real gold will most likely be marked on the part of the clasp that moves open for other end of clasp to attach to-not the part your finger moves-the part that actually opens. 4th-Plated brass can look like solid gold until you put it in sterling silver cleaner solution. At first it looks very shiny but the next day it oxidizes and will be dull again. This doesn’t happen to real gold. There are also more advanced ways to test gold like a gold test kit with a special testing stone and there are some electronic testers as well.
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New Tests to Defeat Gold Fraud
http://reactor-core.org/~djw/myblog/archives/2008/10/24/T12_14_56/
Lists and describes:
Electrical Resistance
Thermal Conductivity
Spectrometer
Magnetic Field Test
X-Ray Density
Acoustic Resonance
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CORRECTION:
I wrote, (Very strong acids, such as cyanide, will dissolve gold.)
I was right and wrong. Very strong acids can dissolve gold. But the form of Cyanide used in gold mining is a base, not an acid, and is also used to “dissolve” gold.
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There is a very strong acid that will dissolve gold, it’s actually a combination of two strong acids. Nitric acid and hydrochloric acid, when mixed together they form was is called, “Aqua Regia”, or “Royal Water”, because they will dissolve gold.
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I am a gold refinier. You stated:
(Very strong acids, such as cyanide, will dissolve gold.)
Please be aware, the form of cyanide used to dissolve gold is usually sodium cyanide or potassium cyanide, which are both SALTS, not acids. They form a solution that is very basic, pH of 11-12 (the other end of the scale from acids, which have a pH in the rangeof 0-6.9).
If sodium or potassium cyanide is accidentally mixed with an acid, it produces hydrogen cyanide, the deadly gas used in the gas chamber. Cyanide and acid are NOT two good words to have in the same sentence, in my opinion.
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Jason, interesting article on gold and tungsten but a slight correction is needed. This sentence is not correct: “(Very strong acids, such as cyanide, will dissolve gold.)” Cyanide is not an acid but an anion; HCN is hydrocyanic acid and it is a very weak acid. Cyanidation occurs cyanide donates electron pairs to the gold to make a very stable, soluble complex. It does not dissolve gold the same way as an ordinary acid, such as hydrochloric acid, dissolves most metals.
You are correct that tungsten has almost the same exact density as gold which is why it would be hard to tell by regular methods such as specific gravity (or density). China produces most of the world’s tungsten, so I suspect there is a connection there somewhere.
Enjoy your articles.
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I strongly advise you to get real gold and silver, at anywhere near today’s prices, while you still can
Silver Stock Report: Risks of Silver in an IRA
(Confiscation, bankruptcy, & theft risks!)
Silver Stock Report
by Jason Hommel, October 22nd, 2009
A summary of the main risks:
1. Custodian theft risk
2. Custodian bankruptcy risk
3. IRA rule change risk
4. Confiscation by government risk
5. Third party common theft risk
6. Lack of IRA benefits risk
7. ETF custodian risk
8. ETF sponsor risk
9. Confiscation by government risk
1. Custodian theft risk – All IRA money must be held by a broker, who is the custodian of the IRA account. If you keep up with the news you occasionally hear of brokers who clean out client accounts, and disappear. The largest of such thefts are in the Billions.
2. Custodian bankruptcy risk – The company that is the IRA custodian may go bankrupt. In theory, IRA accounts are safe from such bankruptcy, but only if the custodian was playing by the rules. Companies go bankrupt also, and drain their own employee 401k accounts, too.
3. IRA rule change confiscation risk – The Federal Government, early last year, was contemplating forcing investors to put IRA money into government bonds, “for the safety of the investor” of course.
4. Confiscation by government risk – At present prices, a government confiscation order of silver or gold seems unlikely, due to the relative size of the markets. IE, the $1-2 billion silver investment market is too small to signify anything to the budget of the USA government.
Furthermore, it’s unlikely given that the government continues to mint and sell Silver Eagles and Gold Eagles, which can be held in an IRA. Gold Eagle sales are also under $1 billion in the USA.
However, defaults, meaning, the failure to deliver metal, and the massive rise in precious metals prices that follow, happen when they run out of metal, not at certain prices. If the past is any indication, they will run out of metal, while metals prices are still relatively low, and then the price will take off.
I think a confiscation order will be made for several reasons, and will have several effects. It will first be used to let JP Morgan off the hook for their massive precious metal delivery requirements, and it will let them “cover and pay out” all such precious metals over the counter contracts in paper cash, while paper cash prices are low.
Second, a confiscatino order can be used to confiscate the precious metals in all private, non-bank, warehouses where there are storage programs that honestly have the metal. The banking establishment hates competition, and may wipe it out by executive order.
Third, after obtaining precious metal by theft of those institutions who honestly held it for third parties, they can continue their price manipulations for a second season.
5. 3rd party theft risk – Pooling money or metal together into one place always increases the risk of theft by regular and common robbers & thieves. When asked why they robbed banks, the famous robbers said, “Because that’s where the money is.”
Which one of the following is more safely held and harder to steal? Is 10 million oz. of gold in one place safer, or 10 million oz. of gold held by 10 million armed individuals safer?
6. Lack of IRA benefits risk – The whole point of putting money into an IRA is to let it increase in value, tax free. There are no capital gains taxes when you sell in an IRA, but there taxes are when you “cash out”, at which point, the IRA money is counted as real income. If income taxes ever increase to 80-90%, as they did during the Great Depression, then nearly all of your “tax free gains” will go right back to the government, and you will not significantly benefit from the capital gains in your IRA accounts. (ROTH IRAs are an exception.)
The whole point of bullion is that it is private. Once it is in your hands, no government has any ability to track it. After all, you could sell your bullion at any time once you buy it, and there are very few reporting requirements on silver or gold sales. There is a cash transaction report (CTR) required if you sell 10 bags of 90% silver, which would be $10,000 in “cash”, and there is a reporting requirement if you sell 25 Gold Eagles at one time. And that’s about it. So, for the majority of people, for the majority of bullion sales, they can sell their precious metals at any time, with no reporting requirement, and thus, it is entirely up to them to volunteer the information about their capital gains that they may have “earned”.
7. ETF custodian risk – Many people put IRA money directly into the ETF’s for convenience, so I will now talk about ETF risks. The ETF custodian is the one who vaults the precious metal. Ok, if you do choose an ETF, please choose CEF, the Central Fund of Canada. They are the only one who I think actually has a good chance that they actually have the metal. But even CEF is not safe, as they are in Canada, and the Canadian government has no gold or silver. Thus, in the event of a Canadian currency crisis, Canada is likely to confiscate the metal in CEF or any other Canadian storage program or bank. Canadian banks, in general, are not more sound than those in the US, they are less sound, in my well researched opinion. Many Canadain banks issue silver certifictes, yet there were many reports of people last year who could not obtain silver at any price from their banks in 2008 during the retail silver shortages.
The SLV and GLD ETF’s in my opinion, are total frauds. The custodian of SLV is JP Morgan, who is the largest silver short at the COMEX, and who has the largest position in over the counter derivatives at over $80 trillion. That’s a tremendous conflict of interest, and a clear warning sign. In my opinion, the silver in the SLV is already “long gone”, or they only have a tiny fraction of the silver on hand. What’s worse is that they can now deliver SLV shares to futures contract holders, and they can deliver futures contracts to back up SLV shares. Ponzi behind Ponzi, fraud backing fraud. The GLD custodian is HSBC, a similar bullion bank with similar positions and problems.
8. ETF sponsor risk – The ETF’s are also at risk if their sponsor goes bankrupt. It could disrupt trading, or the viability of the whole thing. Or, it could be used as an excuse by the custodians to default on delivery of silver, trying to place the blame on the structure or sponsor of the ETF, instead of their own fraud. In fact, the custodians could force the bankruptcy of the sponsor, as an excuse to fail to deliver, or as an excuse to confiscate what little bullion the fund may actually have, and then deliver futures instead.
9. ETF short selling risk – Also, there is the short selling risk, as the EFTs can be sold, naked short, which circumvent the entire point of each share being backed by metal. Shares sold short are not backed by metal deliveries, and can be used to manipulate prices lower. In my opinion, investors who put money into the ETFs are helping to manipulate precious metals prices lower. Demand for physical metals is diverted by these paper alternatives.
9. Confiscation by government risk – Yes, I’m listing this twice, actually, three ways. IRA money is at risk of confiscation by government, simply by being in an IRA. IRA moneies can be forced to be invested in bonds, or they can be taxed at extremely high rates upon withdrawl. But the third government confiscation risk is if the government confiscates the ETFs, as a means to let the custodians who are practicing fraud off the hook, as a method of “bailout”.
Confiscation will never include the government sending thugs to all 100 million USA homes to do room to room, and vault to vault searches. It never has, and never will, not in America, not as long as the people still have guns and working vaults. Government confiscation thugs would get to the 10th house, be blown away, and promptly end the searches. If lazy pot smokers have been able to hide pot from the government for all these years, and the “war on drugs” been a total failure, isn’t that any guide at how much more impossible it would be to take silver or gold from the militant, ready, anxious, wise silver and gold investors, many of whom are veterans? The government would and could only confiscate the silver in known storage locations, such as the ETF’s or other popular precious metals storage programs that actually have the bullion.
If you are comfortable with all these risks, please pay attention to the news on a regular basis so you might be able to take appropriate action at the appropriate time.
I used to have money in an IRA. I no longer do. I did not have to pay the 10% penalty upon withdrawl, because it was in inherited IRA. I cashed out my IRA because I have been paying close attention to the news.
Remember, governments steal. It’s what they do.
That’s the entire point of owning gold and silver. They are the hardest assets to find, and the hardest to steal.
The government is already confiscating money through taxation, and inflation through bank bailouts. The bailouts also indicate that the assets those banks hold have been stolen long ago. To trust them with your IRA accounts, or ETFs, is just begging for trouble.
So, what to do? Take it home. Get a home security vault. Vaults work. It’s why they make them. They make many sizes, ranging from a small cash box, to a large gun vault the size of a refrigerator. Bolt the vault down from the inside to wall studs, or to concrete in your garage floor. Maybe disguise the vault with a cabinet. Have multiple vaults if you can afford it, or need it. Get a security system, burgler alarm, & dogs if necessary. Gates or bars outside your home or driveway are another option. it’s very simple, and reliable, and people have been doing that for hundreds of years with great success.
if you are afraid to put one in your own home, consider moving to a better neighborhood. Consider putting a vault in your parents’ or childrens’ home for diversification. You don’t have to give them the combo, if they are nice about it.
Home theft risk is very very small by comparison. Common home theives getting into a secure vault is very, very rare. It’s so rare, they love to put it on the news if it happens, as a way to condition you to trusting the banks.
Silver Stock Report: Wisely Avoid Paper Silver Fraud
(if you didn’t lift it, you don’t own it.)
Silver Stock Report
by Jason Hommel, October 12th, 2009
Most silver investors are still deceived by “paper silver”. Over 99% of silver investments are paper silver, rather than real silver.
For proof, see
The Tiny Silver Market, IV October 8th, 2009
The Tiny Silver Market, III October 6th, 2009
The Tiny Silver Market, II October 1st, 2009
If the dollar amounts were represented 1 to 1 by people, then, very few silver investors (1%) have the discernment and wisdom to avoid the paper silver frauds. But fortunately, the wise investors are probably a bit more numerous, since many individual people are not “sophisticated” or rich enough to get trapped by the offers of paper silver.
I’ve had quite a few discussions with people about this, so let me see if I can help.
Many people justify paper silver, saying, “it’s cheaper”. Sure it is. That’s the point! How else would they convince you to buy it? They can’t float on your money if they charge you higher than normal premiums! Look, I can sell you all the silver you like at 5% UNDER SPOT or even 10% UNDER SPOT, if you promise to never take delivery, and never sell. (NOT REALLY, because I’m honest!) What will it take for people to realize that such offers are totally fraudulent?
Many people justify paper silver, saying, “I’m only using it to gain more money, to be able to buy more physical silver”. Of course. That’s the plan of many. But to be able to get a mere 100% more silver, you’d have to expect that the paper silver market will double in size, from about $150 billion to $300 billion, (with no new paper silver investments pushing it up), while the $1 billion physical silver market stays the same, too. Is that realistic? I don’t think so.
Many people justify paper silver, saying, “I don’t have anywhere where I can take delivery, also, it’s too heavy, or I’m in another nation, or I rent, etc.” Sure. I fully understand. I have one question, if I may. If you refuse to take responsibility for providing for the security and safety of your own wealth, please tell me how you expect that your wealth will provide you with the safety and security that you expect from it?
Well, here’s the same question another way. If you knowingly give your money to corporations who have declared openly in their annual reports that they are technically bankrupt and could not possibly have the silver that they claim, due to the problem of the relative sizes of the markets, then why in the world would you expect to be paid off by them, when unsecured creditors do not get paid off in a bankruptcy?
You can’t possibly be protected by silver that does not exist, “held” in the hands of institutions who are technically bankrupt.
You would be better protected if you gave your money to a bum on the street, because at least a bum who has nothing typically does not have a negative net worth, or a short position in silver. Besides, if you give to a homeless man, you are at least lending to God.
[Proverbs 19:17] He that hath pity upon the poor lendeth unto the LORD; and that which he hath given will he pay him again.
But if you own paper silver, you are giving to the rich, who oppress the poor through usury, and whose lack of real silver and gold testifies against them.
[Proverbs 22:16] He that oppresseth the poor to increase his riches, and he that giveth to the rich, shall surely come to want.
James 5
Warning to Rich Oppressors
1 Now listen, you rich people, weep and wail because of the misery that is coming upon you. 2 Your wealth has rotted, and moths have eaten your clothes. 3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. 4 Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. 5 You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. 6 You have condemned and murdered innocent men, who were not opposing you.
The wealthy bankers who oppress through usury have “rotted” gold; they issue more claims than gold exists.
Owning real gold and silver is not unwise, gold is a provision from God, and we are commanded to obtain the real stuff.
Rev 3:18 I counsel you to buy from me gold refined in the fire, so you can become rich; and white clothes to wear, so you can cover your shameful nakedness; and salve to put on your eyes, so you can see.
Here are my most important Bible based essays regarding the importance of obtaining real physical gold and silver money, and avoiding paper promises and usury:
- 666: Mark of the Beast 1998
- Gold and Silver in Bible Prophecy December, 2001
- The Great Harlot of Rev 17-18 is Jerusalem, & what that means. October, 2002
- Usury Enslaves Jan 19, 2004
- Freedom from Usury Jan 23, 2004
- Bible Verses on how to Manage Money November, 2005
- The Use of Paper Money Violates All of the Ten Commandments July 2, 2006
- The Stumbling Block of their Iniquity April 9, 2008
- Biblical Political Positions February 7, 2009
- The Pre-Rapture Gold Gathering August 17th, 2009
I strongly advise you to get real gold and silver, at anywhere near today’s prices, while you still can
Jason Hommel
Silver Stock Report: The Tiny Gold Market
Silver Stock Report
by Jason Hommel, October 9th, 2009
There is very little understanding of the relative size of the gold market, let alone the silver market.
In the gold market, the IMF has continued to “threaten” to sell 400 tonnes of gold, about once or twice a year, for the past ten years, to help “relieve the poverty” (yeah, right) of indebted nations who generally produce gold, and would actually be benefited by a higher gold price, not a lower gold price. This always results in a flurry of news stories, and usually panic among gold investors who are on leverage, who know next to nothing.
You never hear about how China actually was buying 500 tonnes over the last 8 years.
http://uk.reuters.com/article/idUKN2441409020090424
You never hear in the popular news how China wants to buy $80 billion more gold.
http://www.youtube.com/watch?v=Sc2Bv-dJDLk
That would use only a tiny fraction of China’s $2131 billion of foreign exchange reserves.
http://tinyurl.com/3dhwvq
$80 billion in gold, at $1000/oz., is 80 million oz., which, divided by 32,151 oz/tonne, is 2488 tonnes, which is almost exactly the same amount as the annual production of all the world’s gold mines.
http://www.goldsheetlinks.com/production.htm
You never hear that China has so many dollars that they want to buy all the world’s annual gold mining production, as a small and tiny diversification, for years to come. But I just provided all the proof for that statement.
You never hear in the mainstream press how Germany swapped about 3000 tonnes of gold with the US, and wants their gold back, which again, is just over the entire world annual gold mining production.
http://tinyurl.com/ylsauwm
You never hear that if the oil producing nations decided to sell oil for gold, what that would mean for the gold price.
Well, actually, we did hear something similar to that this week, a “vicious rumor” that led to the current $50 rally in the gold price.
Recent article:
The demise of the dollar
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
By Robert Fisk
Tuesday, 6 October 2009
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
But this might mean only that “gold should go up” is maybe all you’d hear. And actually, we quickly heard denials of the rumors that the Saudis would sell oil in something other than dollars.
But what are the implications? Anyone run the numbers? Why is it that in today’s world, no journalist knows how to run the numbers to see the implications? Was everyone born after 1950 a failure in basic math classes? I mean, come on, this kind of analysis only requires the application of 7th grade math!
I ran the numbers eariler this year, in March.
http://silverstockreport.com/2009/oil-not-money.html
At $40/barrel, the world spends $1.2 trillion, or $1,200 billion, on oil per year.
Oil is now $71/barrel. So $1.2 x 71/40 = $2.3 trillion spent on oil per year now.
Gold is now $1055/oz., which, at 80 million oz., is $85 billion on gold per year.
Thus, if all the world’s new annual oil production was sold for all the world’s new annual gold production, gold prices would have to rise by a factor of 2,300/85 which equals 27 times, or 27 x $1055 which implies a gold price of $28,500 per oz.
And that would, of course, allow no room for China to buy any of the 2500 tonnes of gold that they want, nor allow the US any room to buy back Germany’s 3000 tonnes of gold that they sold to manipulate the market downward to fool the world into thinking that the dollar was somehow “strong”.
I don’t know why people don’t get this. Math matters. To engineers, it’s life and death when building a bridge. You’d think that the world’s engineers and math teachers would be screaming at the top of their lungs to get people to buy gold, simply because of the implications of the math. Where are they? The thing I don’t understand is why most people refuse to run the numbers. And why don’t they understand the implications of the numbers that I present?
It’s clear to me that gold is going higher than I can imagine or forecast, and that silver will do a lot better.
I strongly advise you to get real gold and silver, at anywhere near today’s prices, while you still can.
Best place to buy gold:
Silver Stock Report: The Tiny $0.001 Trillion Silver Market
(Millions, Trillions and Billions, Oh My!)
Silver Stock Report
by Jason Hommel, September 25th, 2009
The Silver Market is small. Very small. I don’t think people quite understand how small it is, nor understand fully the implications, meaning how much higher silver prices must go as the market grows to accommodate future silver buyers.
Confusing matters is that the terms million, billion, and trillion mean different things, in different nations, and other nations also have different notations for how to write numbers exceeding 1000. Furthermore, most Americans are also unfamiliar with the terms, since most people don’t use these terms in daily life. Who needs a billion french fries? But you do need to understand the numbers, in order to interpret political events, such as the amounts being spent by Congress.
Here are the American conventions, which I use in my writings. A thousand is written as 1000 and is notated with commas as 1,000. In America, we use a comma after every three zeros, starting from the far right, so every comma signifies another multiple of 1000.
A million is a thousand thousand. 1000 x 1000 = 1,000,000, also written as a million.
A billion is a thousand million. 1,000 x 1,000,000 = 1,000,000,000 also written as a billion.
A trillion is a thousand billion. 1,000 x 1,000,000,000 = 1,000,000,000,000 also written as a trillion.
A quadrillion is a thousand trillion 1,000 x 1,000,000,000,000 = 1,000,000,000,000,000 also written as a quadrillion.
Knowing that, we can now interpret the following key figures:
The annual Federal Budget these days is about $3 trillion, which can also be written as $3000 billion, or $3,000,000 million, or $3,000,000,000,000.
http://en.wikipedia.org/wiki/United_States_federal_budget
World annual silver production is about 600 million ounces. World annual silver investment is about 50-100 million ounces. All of mine production, and more, including recycling, is consumed by industry, leaving very little left over for any investment.
At $16/oz., x 75 million oz. = $1,200 million, or $1.2 billion, or $0.0012 Trillion.
Again, let’s compare:
US annual government spending: $3 trillion
World annual silver investment demand: $0.0012 Trillion
Can you say, “The US government is spending way more than exists in the entire world?” I can. It sounds funny to say it, but I understand what I mean when I say it.
But that’s only silver, some will protest. But adding gold to the mix does not help. Watch.
World annual gold mine production is 2500 tonnes, which is (x 32,151 oz/tonne) is 80.3 million ounces. At $1000/oz., that’s $80 billion dollars, or $0.08 Trillion.
See, not even all the gold in the entire world’s annual production would help the US budget. Gold would have to increase by a factor of 3000 / 80, which is 37.5 times, in order for the entire world’s gold production to equal the US government’s annual budget. See, gold will go way above $37,500/oz. by the time this bull market in gold is finished, because there are other people in the world who want gold in addition to the US government.
China wants gold. China has said they want $80 billion worth of gold. China has $2130 billion to spend on gold, or $2.13 trillion of foreign exchange reserves.
http://en.wikipedia.org/wiki/Foreign_exchange_reserves_of_the_People%27s_Republic_of_China
If China tries to buy a mere $80 billion of gold within one year, the gold price will likely head to $1500 to $2000/oz. this year. But China does not want to push up the price of gold to make it double in price. If they do, the value of the remainder of their $2130 billion will be cut in half.
Too bad for China, they have no choice. The value of their paper money will be cut by 95% or more anyway, even if they do nothing, as other nations, besides the US and China, also want gold. So it will come down to the reality, for everyone, that some gold is better than no gold! And silver, of course, is always better than gold, because silver will increase in value much faster!
China also wants their own people to buy silver!!! !!!
http://www.youtube.com/watch?v=PqFpl31UwPI
How will $2,130 billion of China’s foreign exchange reserves fit into the annual silver market of $1 billion? Think about it. Think carefully. Think hard. Think!
Here’s what I think. If China’s people started buying $1 billion of silver per year, the silver price would head to $25/oz.
If China’s people started buying $10 billion of silver per year, the silver price would head to $75/oz.
If China’s people started buying $100 billion of silver per year, the silver price would head to about $750 per oz.
Can you say “Not enough silver!”? I can. There is a world silver shortage, and there will be a world silver shortage for the next few decades to come, probably until silver exceeds thousands of dollars per ounce in price!
There is no possible way that the silver price can be contained for very long, unless they discover a way to divert investment demand away from the limited physical silver, and convince people to hold things like ETFs, or futures contracts, or ‘bullion accounts’ instead. Oh yes, they have. But not for long, as the truth is getting out.
Sprott’s Embry warns investors to make sure ETFs backed by precious metals
http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=89796&sn=Detail
The Bank of International Settlements reports there are $111 billion in “Other Precious Metals (IE, Silver) over the counter derivatives, as of Dec. 2008. (We await June 2009 stats.)
http://www.bis.org/statistics/otcder/dt21c22a.pdf
from
http://www.bis.org/statistics/derstats.htm
A man asked me this week at the JH MINT, “How’d you get into this?” I laughed and said, “The obvious!” He laughed too. What’s not obvious to me is why everyone else is so deceived by paper money. It’s really not all that special at all. it’s just numbers on paper, signifying nothing!
One of my major wholesalers has a bullion precious metals inventory of $1/2 billion including both silver and gold. Another major wholesaler is a major warehouse for the COMEX. I don’t think either one would let me order more than a few million dollars at once at a fixed price, because that would probably move the price up.
Sincerely,
Jason Hommel
In case you miss an email, check the archives:
http://silverstockreport.com/
The Stealth Gold Bull Market is Back But Americans Love Silver
Silver Stock Report
by Jason Hommel, September 17th, 2009
One trouble with Americans is that we think we are the center of the world. We do have about 5% of the world’s population, and use up about 25% of the resources. That’s mostly a function of being significantly “wealthier” than the rest of the world. But that’s mostly paper wealth. Will it last? Only if we buy at least 25% of the world’s silver and gold. Do we? Not in gold, but we do in silver! Let’s get to the facts.
Worldwide, the world buys about 80 times as much gold as silver, for investment. The world annually purchases gold worth $80 billion (about 80 million oz., or 3500 tonnes). If American-led Central bank selling did not help meet demand and add to mine supply, then the gold price would go up faster than it already has. Remember, central bank selling is a manipulative and unsustainable supply source.
The annual silver investment market is only $1 billion. Annual production is about 600 million oz., but only about 50-100 million oz. is purchased for investment.
These figures show that the world is buying 80 times as much gold as silver, for investment.
American investors seem to buy more silver than the rest of the world. Why? I would guess that we seem to know more about the supply/demand statistics, and know that the silver market is much smaller, and know that the silver/gold ratio shows that silver is cheaper. Maybe it’s because we recently used silver in our currency as late as 1964, and many other nations don’t have such a recent history of using silver as money?
Sales of American Gold and Silver Eagles show that Americans are purchasing about only 3 times as much dollar volume of gold Eagles as Silver Eagles per year.
Production figures:
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2009
Show that for 2009, from January to September, the US Mint has produced:
903,000 Gold eagles, and
19,364,500 Silver Eagles.
At an average price ratio of 60 to 1, at about $15 for silver and $900 for gold, we have dollar volumes of:
Silver Eagles: $290,467,500
Gold Eagles: $812,700,000
The last figure, the ratio of 812/290 shows that Americans buy about 2.8 times as much dollar volume of gold Eagles, than Silver Eagles. That’s dramatically different than the world ratio of 80 to 1, and thus, heavily skewed towards silver!
But do Americans buy 25% of the world’s gold and silver? Not in gold. Gold Eagles are about 1/100th of the overall world gold market. Silver Eagles are just over 1/5th of the world silver investment market (20/100 million oz.!)!
Wow, I never realized that American investors favored silver that heavily. Congratulations, America!
And many silver buyers buy silver other than in Silver Eagles! So, perhaps Americans are buying up to 1/2 of all silver investment demand. Fantastic job America! That implies great news for the future wealth for America.
Unfortunately, the $300 to $600 million that Americans spend on silver is only a tiny, tiny, tiny fraction of the overall investable wealth of Americans. If the word gets out about silver to the majority of Americans, silver prices have no choice but to explode. Imagine if Americans spent ten to one hundred times as much money on silver each year! It’s possible, and perhaps even likely, as the truth about every thing tends to be exposed and get out at some point.
Nevertheless, given current national actions, I tend to think that the average coin shop would carry 3 times as much gold as silver, to match overall market demand.
But knowing what we know about silver, we do the opposite, fortunately, for our own future capital gains, and for our customers.
We carry about 3 times as much silver, as gold! And fortunately, our customers buy about the same dollar volume of silver and gold.
Americans are not driving this bull market in gold. In a sense.
What I mean is that Americans are not buying enough gold in significant quantities, as Gold Eagles are 1/100th of the gold market. But rather, American politics, which requires massive printing of US Dollars (Sorry, Federal Reserve Notes), is, indeed, driving gold prices higher.
Americans are not buying enough gold to drive gold prices up.
Americans, over the past decades, have elected politicans whose policy decisions require printing more paper money, and that’s driving gold prices up, as other nations see our foolish action of priting up too much money, and other nations are wisely buying gold.
Since I have started dealing silver and gold, maybe I have better observations about the silver and gold markets, and perhaps less time to write about them.
Over the last 6 weeks, we have bought and sold about the same amounts of precious metals to and from our customers, and we have accumulated a bit more gold from the public selling gold for silver. We have not had to order very much from our wholesalers, or other mints. Enough people been cashing out their silver and gold, enough to balance out our trade.
Americans buy less gold than other nations (1/100th of the world market?), and much more silver (40% of the world market?), but could still buy much, much, much, much, much, much, much, much, much, much more of both. This bull market in precious metals is barely getting started.
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