Archive for the ‘Precious Metals’ Category

The REAL Silver High

Posted: February 3, 2012 in Gold, Precious Metals, Silver

This is an older clip from Futuremoneytrends.com that I posted months ago.  I wanted to post it again for new readers.  This clip is very powerful and relevant for any silver investor.  Even if you have seen this before, check it out again.

In this clip David Morgan discusses how silver is a monetary metal.  David expects silver to move much higher however you will need to expect volatility. 

The story of silver has not changed.  This year should be a very good year on a percentage basis.  We will likely see resistance around $35.  If we break through $35 we have little resistance to $40.  I personally would not mind if we saw another short-term sell off down to around $31.50, so I can convert my dollars into more silver.  I would not recommend waiting, if it’s your time to buy this month then buy.

Gerald Celente is considered one of the top trend forecasters in the world.  If he is correct about 2012 is going to be wild.  It’s not the end of the world but things will happen, changing the course of man kind for better or worse.  We are living in historic times. Here are a few predictions.

1. Bigger crack down of the police state.  Who cannot tell we are a living in a police state.  Peaceful protestors are getting beat or sprayed with mace all over the country.

 Cities like Oakland will not respond to over 40 different crimes, yet they use force when breaking up peaceful protestors. Whether you agree or not with Occupy Wallstreet or not, we must protect their right to protest.  It sets the precedent for other future protests.

 The prisons are filled. Prison systems are rackets.  The same banks that fund everything fund prisons, ie. Goldman Sachs, JP Morgan, etc.  Many corporations use prison labor at $.25 an hour, driving down American wages.  

Celente had this to say about military training in civilian areas of Los Angeles.  What do they know? :  “Wasn’t it on New Year’s Eve, when you were trying to celebrate, that Obama signed into law the National Defense Authorization Act?  So when I say fascists, it’s right there in front of you.  It’s the ‘No Bill of Rights.’  

 They could take anybody out there that disagrees with the government, call them a ‘belligerent of the state’ and the military could come and take them away with no charges.  No judge, no jury, no trial and Jack you’re dead.  I’m saying, Eric, I believe they are instituting Battlefield America in this country and others as the system collapses.

 (We’ve been talking about) Economic Martial Law and now you have the military in control, to make sure it doesn’t get out of control.  Think about what would happen with a bank holiday.  The systems are in place to keep the people in place.  So I believe they are putting in Martial Law to support Economic Martial Law.

 With the National Defense Authorization Act they repealed the 1878 the Posse Comitatus Act, which used to prevent the military from taking over police duties.  This is against the Constitution in every manner possible.”

 2. Economic Marshall Law and bank holidays. This means a no access to your money.

3. Corporations will buy gold.  Corporations will begin buying physical to diversify from the dollar. The University of Texas bought $1B about four months ago.  When asked if corporations like GE will buy,  “I believe so.  I believe a lot of people are going to move into gold.  It’s going to go mainstream and it’s going to continue to go mainstream as you see more bank runs and riots….

4. More Civil Unrest – Celente’s quote, “When people lose everything, the lose it.”  We will see civil unrest in the US.  This is a planned depression and all the good jobs are shipped off shore.  We are a serviced based economy, productive manufacturing jobs are shipped off shore.  Our currency is heading towards collapse, just like every other global fiat currency backed by nothing. 

You can thank the Federal Reserve when it happens.

full interview here

There are two specific developments pushing gold higher.

1. Iran is now in discussion with India to accept gold for oil and rumors are swirling that China may follow.

2. The Federal Reserve has announced they will keep not raise the Fed Fund Rate incredibly low until at least 2014

Let’s break down these developments.  The Iran issue proves that gold is money.  With the world going back to recognizing gold as money it will cause countries and eventually corporations to stock up on their gold holdings.  This development will likely guarantee we are going to war with Iran.  If you look at the track record of the United States, this hi jacked country gets very aggressive with countries who use any form of currency other than US dollars. 

Gadaffi for example was in the process of pushing one currency for Africa, specifically the gold dinar which would have all but destroyed the US dollar, over a relatively short period of time.  That was likely the main reason for taking out Gadaffi, keep in mind the first thing that was created after taking out Gadaffi was a Central Bank.

Now let’s look at the Federal Reserve.  What can you say about this corrupt for profit institution.  Obviously their only concern are their banking share holders.  The action on the Federal Reserve shows they will continue to wage war on savers until at least 2014.  This means more people will be forced out of dollars due to inflation and into riskier assets.  This is a game changer and likely the catalyst that will start the second leg of the gold and silver bull market, remember the first leg lasted about 11 years. 

Although gold and silver will still be volatile, the actions of the Federal Reserve is causing  the very thing they are trying to avoid.  The Federal Reserve is creating a new global gold standard by their irresponsible actions.  Holders of US dollars will pay greatly. Dollar holders get ready to assume your position.

Why did silver spike on Friday?  Silver spiked because of Eric Sprott.  For those that do not know Eric Sprott is a billionaire who believes silver will be the investment of the next decade, I agree.  Sprott has a physical gold and silver trust based in Canada.

On Friday Sprott issued a $300 Million follow on offering, Sprott will use the cash to buy physical.  If you are a share holder of the trust you lost abut 10% but silver was up 5%. 

This shows the physical silver market is gaining traction.  A Zerohedge.com article said the following, “So to summarize: speculation that $300 million in physical silver may be taken out of circulation raises the price of the underlying by 5%. Does that mean that a $3 billion follow on would result in a 50% rise in spot; $30 billion in 500%, and so on?”

Physical silver is a tiny market.  A couple of billionaires could take out much of the global supply.  A public who has lost confidence in the currency could wipe out the physical supply.  Industry who realizes a silver shortage is likely and buys physical for their operation could wipe out silver supply.  The military hoarding resources including silver for war could wipe out silver supply.  Every missile that explodes has silver.

This is the year the physical takes control.  Who wants to hold paper silver?  Good luck demanding delivery on your silver.  You will get a cash settlement, in other words dollars. Then those dollars are used for physical, because those investors wanted the silver not dollars.

Article here