Revenge of The Silver Bugs

By: Tom Chatham

It has been a long wait for the silver bugs but the future may indeed see them richly rewarded for all of their patience. Those that have held on are now about to see the end game unfold.

There have been many projections on the highs that silver could hit in the future ranging from a low of $100 to highs of $1,000.

It should be noted that much of the above ground silver has been used in the past few decades for industrial purposes that leave most of that silver not reclaimed due to the small amounts used in individual products. The plans of China to increase solar production will take a great deal of future silver production to power their energy grid.

The current production has silver at about a 10 to 1 ratio of gold. On the surface this means that silver should be valued at least at the 10/1 ratio. The current disproportionate ratio of 78/1 will insure silver rises at a higher percentage than gold during the current bull market.

If current projections of $10,000 gold are anywhere near correct that would put silver in the $1,000 range. Regardless of the ultimate price, gold and silver will rise substantially as chaos enters the markets. It is this chaos that will also require people to store the necessary resources to care for their families until the chaos subsides. Gold and silver holdings do not insure access to resources during chaos but will be valuable afterward to take advantage of good deals due to revaluations in the economy.

In times like this when most people are at risk of losing much of their wealth, the current low price of silver can help the average person not only preserve what little wealth they have but even increase it many fold to offset the failure of incomes to keep up with real inflation over the past few decades.

This is a once in a lifetime opportunity to beat the bankers at their own game. When the economic leverage shifts back from the paper wealth to real money those holding real money will reap the benefits. Even small holdings of silver will help individuals to insure their wealth will remain in tact after this economic cycle comes to an end.

Gold and silver are a form of escape hatch in the banker controlled economic system we are forced to play in. When they pull the plug on the current paper wealth, those that know no better will cling to those worthless paper assets to the very end never dreaming they will someday be totally worthless. The very few that understand what is taking place will use that escape hatch to save what they have so they can continue to prosper in the future.

The bankers know of this escape hatch but they have few ways to close it without alerting the people so they use their position and trust to convince the population this doorway is dangerous. They call it a barbarous relic that has no place in a modern society. They do this because they know the truth. If they can convince the people long enough, by the time people know the truth it will be too late to exit this door.

Those that have already taken this door out of the system are now looking in at the fire that is about to burn the house down. When the rush to the exits happen, many will not make it out. There is still time to get out ahead of the crowd but time is now very short. Any more procrastination on your part will likely be lethal to your economic health. On this Independence day free yourself from the banker controlled system by purchasing some real money and renew your declaration of freedom.

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Posted on July 3, 2016, in Commentary, Economics, Preparedness and tagged , , . Bookmark the permalink. 3 Comments.

  1. According to Ted Butler, noted long time silver analyst, JP Morgan has reversed their long standing short position, and over the last few years, been THE big buyer of silver. He says they are sitting on at least 500 million ounces. IF that is true, they didn’t pile it up for giggles….then intend to run the price much higher, and profit from the shortage/price in a big way.

    Personally, I got out of my IRA mutual funds in 2005/2006, paid the taxes/penalty, and rolled it all into physically held silver. My average price for that was entry was $6.50/oz. Later bought some in the teens and high 20’s during the previous run up to $50.

    I look at silver (and gold) as a private, relatively inflation resistance (long term), sort of savings that let’s me sleep at night knowing somebody off in ‘finance land’ isn’t manipulating paper with the objective of beating me out of my stored labor (which is what real savings is). It will be the savings I spend last, if the need arises, and after all fiat paper is exhausted.

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