This is the time that you add to your physical holdings of gold and Silver. Watch this Powerful Interview with Ron Paul on Gold: “I’m Buying”
Powerful interview with Andrew Maguire in which he discusses Precious Metals, Manipulation and Failure to Deliver. This interview stresses the importance of buying and holding physical precious metals. StraightSilver.com has a large inventory of physical silver and will deliver to your door.
The coordinated attack by the banking cartel on the price of silver in the futures market has exacerbated the silver shortage at the retail level, causing new signs of the shortage to manifest. This downward manipulation of the price of silver has occurred despite massive money-printing by the Federal Reserve and recent economic indicators showing its failure to bring about an economic recovery.
The Incompetence of the Federal Reserve
Following the collapse of the real estate bubble in 2008, the Federal Reserve, led by Ben Bernanke, initiated massive money-printing to buy toxic assets from the insolvent too-big-to-fail banks and artificially lower interest rates. The Fed believed that lowering interest rates would stimulate the economy, and miraculously bring about job creation and economic growth. Though expanding the monetary base from under $1 trillion to $3 trillion brought some collateral damage by means of inflation, particularly in rising food and fuel prices, the Fed believed that such an outcome would be preferable to a deflationary depression by allowing the economy to correct itself from excessive malinvestment. Notably, the housing bubble that burst and almost consumed the entire financial system with it was enabled by artificially low interest rates encouraged by the Federal Reserve, beginning with Alan Greenspan and continuing since.
Recently, the nonfarm payrolls report from the Bureau of Labor Statistics revealed that labor participation, which is the number of people employed or actively seeking employment, is the lowest it has been since 1979. The median household income of Americans is at the level it was in 1995, and almost 50 million Americans use food stamp debit cards, a digital version of soup kitchens. What all of these facts point to is that the American middle class, which defined America following World War II, is rapidly shrinking and the gulf between the rich and poor is widening.
The Motives for Attacking Silver
With this backdrop of incompetence by the financial engineers at the helm of the economy and a rapidly shrinking middle class, there is panic at the thought that the American people will lose confidence in the dollar and begin using alternative money that maintains its value. Though inflation has been eating away at the value of the dollar since the creation of the Fed in 1913, precious metals, such as gold and silver, have maintained their value by rising in price relative to the dollar. The rise in price of gold and silver, both of which have been regarded historically as monetary metals, has been a source of embarrassment and concern to Fed officials, who know that their power rests solely on public confidence in the dollar, which cannot be seen to have a suitable alternative. In particular, silver, historically having been used even more than gold by the common people as a form of money due to its lower relative value, has been viewed as a threat to the dollar, and, therefore, the power and livelihood of the banking cartel that controls the Fed.
The Paper Manipulation and Evolving Silver Shortage
As a result of the significant general rise in the price of silver in recent years, serving as a reminder of the dollar’s debasement, its price has been actively suppressed by the banking cartel to deter the common people from viewing it as a viable alternative to the dollar. This has been done by massive naked shorting by large financial firms, such as JP Morgan Chase, which has been revealed to have the largest short position on silver of all financial firms. On especially active days in the COMEX futures market, up to two and a half times the annual global silver production is traded in the paper silver market, indicating that manipulation is taking place that is distorting the true value of silver based on actual physical supply and demand.
The paper manipulation of the price of silver has caused the amount of silver available for sale to plummet, creating increasingly obvious shortages in the physical market. This shortage has been especially evident with delays in the delivery of large orders of silver from suppliers; the inability of national mints, including the United States Mint, to obtain an adequate amount of silver to satisfy demand for their products; the increasing divergence between the price of paper and physical silver; as well as the rising premiums of junk silver, which is normally sold for about the spot price of silver.
The Divergence of Paper and Physical Silver
Because the price of silver is artificially suppressed while the demand for silver remains strong, many vendors are now offering to buy silver for an amount greater than the paper price. Currently, due to the worsening silver shortage, the premium for junk silver is approximately 10 percent of the spot price of the metal. If the price of silver continues to be manipulated downward to boost the appearance of the dollar, the divergence between the paper price and the price to acquire the physical metal will be so great as to force the paper market to adjust its price substantially upwards to appear credible. If the physical metal dries up almost completely among suppliers and the paper market continues to be manipulated downward, those holding futures contracts increasingly will demand delivery of the metal due to concerns about its actual supply as well as the potential for arbitrage. A rising number of futures contract holders demanding physical delivery of the metal will cause a massive default in the futures market, due to the inability of the sellers to provide the metal, which ultimately would drive up the price of silver to much higher levels, perhaps multiples higher than its price today.
While investors of silver may be dispirited by the paper manipulation of the silver price, they must realize that the more the price of silver is artificially suppressed, the higher it will go in price once the suppression ends. Despite the apparent confidence of the Fed and government officials in their continuous mismanagement of the economy, the rising shortage of silver increasingly will become so obvious as to cause their efforts at suppression to backfire, since no action of theirs, other than relinquishing to the free market, will cause silver supplies to magically reappear.
A special end of the year silver update with ‘Silver Shield’ Chris Duane
Ron Paul lays it out: “We know what to do – we did it once after the Civil War period, we went from a paper standard back to the gold standard, and the event wasn’t that dramatic. But today the big problem is that both the conservatives and liberals have an big apetite for big government for different reasons, therefore they need the Fed to tie them over and monetize the debt. So if you don’t get rid of that appetite it’s going to be more difficult, but the transition isn’t that difficult.
You have to get your house in order; you have to balance the budget, you have to not run up debt, and you have to promise not to print any more money… I would like to have a transition period and just legalize gold money, gold and silver as legal tender, and work our way back… We want to legalize the use of gold and silver as the constitution dictates, rather than punishing the people who try to do that… I am quite convinced that the system we have will not be maintained – that’s what these last 4 years was all about, and that’s what the turmoil in Europe is all about. The question is are they going to move toward a constitutional form of money. or are we going to go another step further into international money – instead of having an international gold standard based on the market, are we going to go toward a UN, IMF standard where they are going to control with the use of force another fiat standard.
I consider that a very, very dangerous move.” And precisely due to that piece of phenomenal insight which nobody else in the GOP or Democratic roster is even parsecs away from grasping, is why Paul can never be allowed to be elected, why he must be mocked and ridiculed by a co-opted ADHD media which focuses on how many mistresses some other idiotic presidential candidates has, instead of focusing on the one person who grasps the big picture: the status quo can not be held accountable to a political leader who understand not only how the system is rigged, but why it is broken to begin with and that there actually is a way out. However, to the “status quo’s” chagrin, one that involves the wiping out of generations of plundered middle class wealth to keep the richest denizens of ‘extremistan’ ever richer.
Here’s a very informative video showing exactly how coins are minted. Don’t forget to visit the Bullion Store to add to your portfolio.
Great interview with Bob Chapman explaining the case for $8,000 Gold & $500 Silver, MINIMUM.
Protect yourself and family Buy while the metal is still cheap and available – Bullion Store
Excellent Interview with Doug Casey. This only reinforces why Silver and Gold are the only “Honest Money” available in today’s world.
They talk about how the price of gold will react in another market meltdown, similar to 2008, and whether there will be a sell-off. They conclude that this time the flight to safety will be more important than the rush for liquidity and that gold is uniquely placed to act as a safe haven, especially with T-bills and other traditional safe assets discredited by US debt issues.
John and James explain how important it is to own tangible asset that are free of counterparty risk. They also talk about some relatively safer currencies like the CAD, AUD and CHF, and conclude that, although better than the US dollar, they also have their flaws.
Well respected Eric Sprott and James Turk, talk about precious metals and the flaws of fiat currencies.
Jim Sinclair is interviewed about his successful gold price predictions, US debt problems, how to ride the trend and the second phase of the gold bull. It’s a gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. The debt ceiling debate is a wake up call for people all over the world. The video was recorded on August 5 2011 at the GATA conference in London.
Those of you that remember “The Money Masters” – we were able to get the updated Full Version called “The Secret of OZ.” Once you view this documentary you’ll know more than 99% of the public when it comes to money. Please make sure to share this with family and friends and as always protect yourself through “Honest Money” – Silver
Excellent reminder why you should hold “Honesty Money” – Silver.
Be sure to visit our Bullion Store
Eric Sprott – Paper Markets Are A Joke: Prepare for Bullion Prices to Go Supernova
SILVER GURUS: Paper to Physical Ratio of 25, 100, 500 to 1? Sprott, Martenson & Bix Weir