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.
By: Tom Chatham
Gold and silver have suffered a beating this past week. Silver has broken below support levels and at this time the bottom is uncertain. One thing that is certain is that the manipulation taking place behind the scenes is providing a prime buying opportunity. While investors are having another bad day, stackers are enjoying every minute.
It is common belief that the destruction of the currency by unfettered printing should cause a rise in PM’s but the manipulation taking place has made pricing PM’s a guessing game for the past ten years. Only the final destruction of the fiat empire will usher in the unrelenting rise of gold and silver to their natural free market levels. This takedown may be the final gasp of the currency manipulators before the printers lose control and gravity takes over.
John Embry recently stated that silver is one of the few lifeboats that will be available to people when this Ponzi scheme comes apart. He also stated that from the Austrian perspective there remains only two possible outcomes and the most likely one is that they will print as much money as necessary and that will lead to hyperinflation at some point.
Last year the DHS insider told Doug Hagmann that a prelude to the end game would be a massive takedown in the price of metals. With the price of silver breaking below the $18 resistance level, it is possible we are seeing that move now.
Jim Rickards, who has been providing financial threat and asymmetric warfare advice to the nations intelligence services, is now expecting a great depression that will last 25 years. He expects the losses of the next market collapse to be in excess of 100 trillion dollars. He also believes it will begin within the next six months. He has also stated that the government has already implemented what they call the day after plan for this collapse which involves evacuation of government leaders to areas called site A, site B and site R.
John Williams of Shadow Government Statistics is still calling for hyperinflation in the U.S. and he believes it will begin by the end of 2014 or early 2015.
Jonathan Cahn, author of The Harbinger, believes that based on biblical text and dates that another devastating market crash may happen by September 2015, with a high likelihood around Sept. 13, 2015.
In any event, people will have to judge the current world events and warnings of others and make their own decisions as to what will come and prepare accordingly.
The current cost of silver in fiat dollars is well below production cost and cannot last for any significant amount of time because physical shortages will develop at some point. That makes it a very good vehicle to store any excess funds you have for the future.
When you think about how to save for the future you must consider the actual value of assets and commodities and how they will be affected by a major disturbance in the normal state of commerce.
The value of something is relative. It depends on the one who has the item and the one who wants it. To complete a transaction, the two must come to some mutually agreed upon terms. These terms define the current value of the item.
Even if the world wakes up on the wrong side of the bed one morning and money as we know it no longer has any value due to the circumstances, at some point you will still need some way to save for the future.
One of the reasons we need a medium of exchange that will hold its value over time is so that you can save your excess production now so that it can be used later if you cannot produce enough later in life to live day to day. That is the whole point of saving for retirement. To pay for things you need when you can no longer physically produce enough.
There are many that will say it is a waste of time to save or plan for commerce in the future if everything collapses but it is a necessary action of humanity and will be necessary no matter how bad a collapse is. Those that do plan for some type of commerce in the future may decide that skills will be their savings to draw on in the future rather than physical assets such as precious metals. The reasoning behind saving at least some PM’s is the fact that they have a 5,000 year track record that transcends the past mistakes made by humans.
In the future if you are fortunate enough to still be productive after some world changing event and someone needs something you have, you will either have to give it to them for free or take something in exchange for it. If you take something in exchange for it, what would you prefer that something to be?
By: Tom Chatham
Many people have heard of the underground economy and some even use it today to some extent. It encompasses those that work off the books to earn money. It makes it possible for some that earn a little money to keep most of it by not reporting it and having to pay taxes on it. It is not much money that they save in taxes but to those that earn it, it makes a lot of difference in their lives. It is their way to survive in a system that is stacked against them.
With the economy becoming worse every month for the producers in society, a new system will need to take over when the current one becomes untenable. Those that see the writing on the wall need to take the steps now to prepare for this change so they are not forced to utilize the state run system that will follow. As bad as it is now, when the economy fails, the government will move to control all commodities and transactions. This will be the mark of the beast system many now talk about. No one will be able to sell or buy without the government knowing what you are doing.
This is the next stage of the government control grid that will tighten the reigns of power even more in the elites favor. With total control of everything sold, the government will be able to deny resources to selected groups or individuals that do not comply with government rules. This will be the mechanism to subdue the population and force compliance of the masses for the enrichment of the leadership.
You will not be able to buy more than your delegated share of goods. You will not be able to stockpile extra resources. You will not be able to buy restricted products that can be used against the government. You will not be able to save any substantial amount of money for later use. You will not be able to shop around for the best prices as the government will set the prices you will pay for everything. You will be totally controlled by the government according to their desires.
The only way to avoid this outcome is to have the ability to buy and sell outside of government control. This means you will need to be a part of the underground economy or black market as some call it. This ability to buy and sell outside of government scrutiny will enable you to retain some of your freedoms. This is one of the weapons needed to fight a tyrannical government and win.
The ability to buy goods and services outside the normal channels allows you to negotiate the price you are willing to pay and to find the products you want to buy. It allows you to get the things you want, even if it is government controlled or restricted. It is the free market at its most basic level.
To have an underground economy there are four things that are necessary to insure it functions properly.
Producer- This is the person who produces the product or service that the market place requires. This person can sell directly to buyers in the local economy but often requires someone else to sell in distant markets.
Middleman- This is the person who brings products and buyers together. He buys from the producer and transports the products to distant markets to complete the sale of goods.
Buyer- This is the end user of the goods and services. The buyer dictates what the demand is in the market.
Medium of exchange- This is the payment method used in commerce. A robust market requires a payment system that is agreeable to all parties.
The producer is the person that creates goods from raw materials and creates usable items that are in demand. This can be anything from food to tools and furniture to weapons. The producer has the skills needed to make things that others cannot. The middleman is necessary when products must be transported to distant markets that producers do not have the time or means to reach on their own. The buyer dictates what products or services are wanted in the marketplace. They are the end user and establish demand.
The medium of exchange can be anything agreed upon by the market place. It can be paper, rocks or metals. The most used medium over the ages has been gold and silver. They are easy to carry and are easily recognized. These metals are scarce and cannot be produced out of thin air as other things can. This gives them the stable properties that make a good medium of exchange.
It has been said that gold is the money of kings, silver is the money of the rich and barter is the money of the poor. Today you might say that gold is the money of the rich, silver is the money of the producers and barter is the money of the poor. Gold is expensive and difficult to use except in large transactions. Silver is less expensive and more available to most people. It is silver that holds the most promise for future trade in the underground economy.
The utilization of silver to transact business allows the buyers and sellers in society to control commerce and the distribution of wealth rather than the government. The possession of gold, silver, products or skills are the hard currencies that allow society to prosper. These hard currencies prevent the mis-allocation of wealth and resources that occur when a government entity has the power to print a substitute that can be exchanged for real wealth. The ability to print and control this substitute allows government to control commerce and the business system and the population with it.
The ability to leave this substitute system which is fraught with corruption allows society to prosper at a rate set by society and not the government. In the future it will be necessary for anyone that wishes to retain any freedom to utilize the underground economy to maintain a reasonable standard of living not controlled by the government. This must be accomplished by the cooperation of individuals in society that understand the need for this kind of system.
With the steady corrosion of value in the dollar today, it is imperative for groups to form and set the standards for the underground economy of the future that they will depend on to survive outside the confines of government. There are many barter groups around the country and this is a good start but more needs to be done in the short term to coordinate the system.
There is a need to determine what skills and products are available and what the price in silver will be. A standard price/value scale needs to be determined to act as a universal starting point for commerce in the underground economy when full implementation occurs. The pay rate for labor, the cost of farm products, the value of wood and timber products etc…, all need to be discussed now while there is time to coordinate this system nationwide with various groups.
A good starting point is 100 years ago when gold and silver were the primary mediums prior to the FED taking control of the system. Back then a good annual income was about $600 a year. An acre of land sold for about one silver dollar. Eggs could be had for around 20 cents a dozen and butter 25 cents a pound.
This starting point is just that, a starting point. Some products will command a higher price in some areas and labor will be higher in some markets. The free market will adjust these local rates once the system is under way. Those that desire to operate in this type of free market need to know now where the products and skills can be located and everyone that is able needs to begin the process of storing the necessary silver to trade in this system. Those that lack the funds to store silver will need to insure they possess skills to trade or have the means to produce a product to sell.
One benefit of accumulating silver at this time is the fact that it is under priced relative to past value. Six hundred silver dollars is equal to a years pay in 1900 but can be purchased for about ten thousand dollars at this time. Those that see this type of system as necessary in the future have the opportunity to save for future purchases at a discount now.
When the current system fails and the government attempts to gain even more control over the population with a new system, those that wish to continue operating in the free market need to have the mechanism to do so. It is likely the government will outlaw any system that they do not have complete control over. The ability of the bankers to force the population to use their money at the value they set will leave many in a desperate situation they cannot escape and find difficult to survive in. An underground economy utilizing silver as the primary medium of exchange will give many the means to live outside the government system and continue living as free men rather than slaves to the system.
By: Tom Chatham
A number of years ago a friend of mine who did construction work in rural southwestern Va. related a story to me which offers a good lesson in economics for today.
While digging a foundation for a garage addition to a home the men dug up a broken jar containing a small cache of silver coins. From the amount of coinage the jar must have been full. They commented on the odd nature of the find and continued digging. A short time later they uncovered another jar, this time in tact. It was also full of coins. As they began digging again more jars appeared in the dirt.
By this time the men realized what they had discovered. One of the men went to the house and told the lady who was home at the time. She came out and upon seeing the men were not joking she told them to keep digging.
Now some information on where this occurred will be insightful. The home was built near an older home that had belonged to the owners father. His father did not trust banks as many from the depression era. His father had saved his money in coinage and sealed it in mason jars and buried it in the backyard. Apparently the old man died before telling his son about the money.
With the discovery of the jars the garage project was abandoned and the woman had them dig up the whole yard. In the end many dozens of jars filled with silver coinage were uncovered. It was a very fulfilling day for the home owners to say the least.
This story presents many lessons to be learned.
– silver coinage is a good way to save for the future
– keeping physical possession of the money is best
– you can store this type of money almost anywhere
– silver coinage is a good way to pass wealth to heirs
– leave information so if you die your family can find it
– bankers and politicians cannot steal what they cannot find
– real money is eternal
With the breakdown of our currency system coming in the near future, some type of savings program is important if you hope to come through it with your assets in tact. After a currency reset or complete breakdown, having even a small amount of real money to get you back on your feet financially will mean a great deal to you and your family. Getting real money to save is only half of the battle. The other part is being able to keep it safe until you need it.
By: Tom Chatham
There has been much talk in the past few years of how to store your excess wealth to preserve its value. Many people have advised that gold and silver are the best vehicles for doing so but there are many detractors in the mainstream that disagree.
If you look at the price of gold and silver over the years and compare the prices to crude oil you will see a good correlation. As crude oil has moved up and down the price of precious metals has moved in close lockstep with it over the years. That makes very good sense due to the fact that the world runs on energy and gold and silver are real money. No modern economy can have growth without using more energy.
In 1980 the average price of silver was $16.39 and the price of silver spiked to around $50 an ounce, the price of crude that year averaged about $37.42. Adjusted for inflation, in today’s dollars that would make oil about $106 a barrel. Does that number look familiar?
If you take 1980 prices and compare them to 2014 prices you can see that silver is vastly under priced compared to oil. With oil at $106 a barrel silver should be much higher than it is. It is much lower due to price manipulation by the banking cartel that wants to hide the devaluation of the dollar from unsuspecting rubes.
This undervaluation will not last forever. Once the price manipulation fails the price of gold and silver will rise substantially. Now is a good time to lock in some low prices and preserve your wealth for future use. This current undervaluation will even help to increase your purchasing power when the prices adjust.
Primary focus should be spent on supplies and equipment to provide food, shelter, energy security and transportation for your family in the future. Excess funds after that need to be stored in a form that will allow you to continue paying rent or mortgage, taxes, utilities, medical care and other expenses that cannot be prepaid long term. When the petrodollar collapses and the U.S. loses reserve currency status, prices will rise on just about everything people depend on to live. Those that are not prepared to maintain their standard of living will fall into poverty and likely remain there for the foreseeable future.
Jim Willie is predicting an 80% drop in the value of the dollar in the next three years. This will almost insure much higher prices for commodities in the future. Having the supplies you need so you do not have to trade in a system that is breaking down is only part of the solution to preserving your standard of living. The other part is to have a medium of exchange that will maintain its purchasing power throughout the turmoil that occurs. This will allow you to trade in the future for the things you cannot store.
What you do with your wealth is ultimately up to you to decide. In these troubling times it is important for you to do your own research and decide what is best for you. How you fare in the future is your responsibility and you cannot blame someone else for your failure to plan ahead.
By: Tom Chatham
Many people dream of the day when they are wealthy and can leave the workplace behind to enjoy life. But what are they really thinking about when they dream of wealth? What is their definition of wealth? How do they know when wealth has been achieved?
The modern definition that many people would use would be the accumulation of enough money to do what they want without working anymore. To that end, most people build up a savings account, pension account, stock portfolio or other type of retirement account. What do these things have in common? They all represent digits in some computer somewhere. If you had one million dollars in a bank account you might consider yourself moderately wealthy. But what would that mean? If the bank suddenly lost your account information would you still be wealthy? If you had one million dollars in cash and the money suddenly became worthless would you still be wealthy?
Money in the form of cash, computer digits and other types of paper are merely a means to store current excess production for later use. This type of storage carries a considerable amount of counterparty risk and is not necessarily the best means to save for the future.
This type of wealth is potential wealth. That means it does not become actual wealth until you actually use it. A dollar in your pocket or a dollar in the bank is nothing more than a claim on goods. Until you actually cash it in for something it does not matter how many dollars you have in storage. Once you cash it in you become wealthier. This is achieved by getting possession of physical goods. Something you can use for some purpose.
If your neighbor has a million dollars in the bank, a large home with a mortgage and a new Mercedes bought on credit, and he suddenly lost the million dollars for some reason, what would his net worth be? If you lived down the road and owned two acres of land with a clear title, a 35 foot travel trailer and an old pickup truck, and the banks closed or money suddenly became worthless, who would be in the better position?
You can be sure the bank has paperwork showing he does not own the home or the new car so what would they be worth to your neighbor?
True wealth is the possession of real goods. Some people buy more practical things but all physical goods represent your true wealth. Those that are practical will have goods that are not only useful but can actually earn more dollars which can be used to obtain more real wealth. These can be classified as capitol goods. Goods that are worth potentially more than the purchase price. Things that have production capability like an ax, a sewing machine, a set of tools, machining equipment, knowledge, farming equipment or livestock are things that have some capability to generate money.
Land that can be built on or farmed, an old truck, a rifle, a wood stove, quality furniture, art or antiques, gold and silver, a wood lot and even a pile of scrap metal all represent true wealth. They are physical things that you can hold and use and trade for other things at some future date. When the wealth that many people think they have suddenly disappears and the computer digits no longer exist, the only true wealth that will exist will be the things that people physically hold in their hand and own free and clear. If you want to know how wealthy you really are just look around you at the things you really own. In the end that is the only real wealth you may have if all of the potential wealth you entrust to others suddenly disappears into the make believe world from which it came.
By: Tom Chatham
Virus – 1) venom, as of a snake. 2) Any of a group of ultramicroscopic infective agents that cause various diseases, as smallpox; specif., a filterable virus. 3) An evil or harmful influence.
There are many things that a government can be called but a virus is the most accurate. It invades a host. It multiplies uncontrollably and degrades the host as it does so. It weakens the host until eventually the host dies. Then it finds a new host to infect. In the end only one can survive.
If people learn only one thing this year, that should be it. When a virus invades your body you must fight it with everything you have or else succumb to the inevitable. The human race is now in an epic battle with the most destructive virus ever created. A mutation that has occurred and is destructive to the whole. A harmful influence that wants to assume complete control. A destructive force that seeks nothing more than to multiply and destroy. That is the essence of government today.
There is a choice. We have a choice. We can lay down and die a horrible death or destroy the virus that seeks to destroy us. Every virus has a cure. An element that it can not overcome. All we need to do is to identify what that elusive cure is and take a good storng dose and we will be on the road to recovery.
Many have become lethargic and succumbed to the idea that the virus is now a permanent part of their lives. They embrace it and try to adapt to its many mutations and uncomfortable symptoms. They fear the powerful medicine that will destroy it. Some have become so consumed with the virus that they fear destroying it will destroy them as well.
There is some truth to that. Once a virus has surpassed a certain point, there can be no recovery for some people even with the proper medicine. These are the ones that resist the need of the society to apply the medicine and save what can be saved. The infected are content to take the rest of society down with them. As the infection sucks the life out of the host, it becomes less able to defend itself from its’ ultimate demise.
The epidemic we now face is at a tipping point. It will either destroy everyone or some will be strong enough to apply the needed element and destroy the infection. The window for using a cure is rapidly closing. As time goes on, the chance of fewer survivors increases.
Many realize they have been invaded by an invasive and destructive species and seek to correct the problem but are unsure what to do. They want relief from this monster that seeks to destroy them and are willing to take a chance on strong medicine without knowing what effect it will have on them. They are becoming sicker and more desperate as time goes on. The virus is becoming stronger and more destructive.
As of lately, I know of only three things that have any effect on this infection. A good prayer, silver and lead, all applied in appropriate doses at the appropriate times. The only thing people must be careful of is that they do not over medicate and make the situation worse. But at this point, that does not seem possible.
By: Tom Chatham
For those that are preparing for the worst in economic terms there are always the decisions of what to get now and what to get later. Your current economic situation may only allow you the option of buying necessary equipment and supplies at a slow pace. Primary items that you should buy first are food, water, fuel, clothing, household and sanitation supplies and if possible some type of shelter, either a primary structure or an alternative shelter you fully own. Only after taking care of these necessities should you put some of your money into silver or gold for wealth preservation. After these items you will want to acquire any large items you think you will need. If you cannot afford all of the items now that you feel you will ultimately need what are your options?
There is one option that while not perfect or guaranteed may work to your advantage in the near future.
When an economic collapse begins it will likely happen slowly over a matter of weeks or months. As paper assets are destroyed deflation will occur in some areas while inflation will occur in others. The things that are likely to see inflation immediately are those things that people cannot live without like food, water, fuel and clothing. Those things that can preserve wealth such as precious metals are items you should already have in your possession before the bottom drops out of the economy.
Those holding hard assets not considered wealth preserving but more like consumer goods will be liquidating those items to acquire inflating assets they must have like food. For those that have a store of wealth that can be liquidated and used to purchase other hard assets it could be a good time to leverage your limited wealth to acquire those items you could not afford before.
When paper assets begin to fail those that are holding mainly paper will rush to get into hard assets like gold and silver to preserve their wealth. This will rapidly bid up the price of these assets due to their very limited availability. The price of precious metals should appreciate much faster than inflation. Eventually gold and silver will go into a bubble before they drop a significant amount. This grey area between the metals inflated price and the actual inflation rate will give you extra buying power for a short period of time. This is the economic sweet spot. You may elect to liquidate some of your metals at this time to purchase other hard assets you are in need of but were unable to afford earlier.
Any prolonged economic collapse will make many goods hard or impossible to find as time goes on so buying in this grey area will assure you have what you need and at a price you can now afford. As the collapse gathers speed, those that cannot buy metals will shift into other types of hard assets just to be out of paper so you must act before this happens.
What type of hard assets will you likely be looking for? Things like tools, machinery, livestock, land and equipment you will need to care for your family longterm. These are the expensive items you may not be able to afford now but want for longterm viability. While it is best to get them now you may not be able to so a plan such as this may be your only hope. If this situation does not appear for you to take advantage of you will still have some precious metals to barter with at a later date and possibly acquire some of the things you need.
So for those needing to make large capitol purchases but lacking sufficient funds at this time, holding your funds in precious metals may be the best plan. Gold is good but silver may see the most increase over this period and is much easier for individuals with limited funds to accumulate. When trying to gage the market to get the most from your assets, don’t try to liquidate at the top of the market because you are likely to miss it. If you can get within ten percent of the top you have done well so don’t push your luck and try to squeeze out the last little bit. This will allow you to sell some of your PMs and get what you need before the prices begin to decline and panic sets in.
While not perfect this opportunity will allow you the possibility to get things that will be more important to you than precious metals as the crisis unfolds. There are no guarantees for the future so each person must decide for themselves how best to use their limited assets.