I'm A Crazy Silver Bug...Why Aren't You?!!
By Bix Weir http://www.roadtoroota.com/public/597.cfm
What do you think of the term "Crazy Silver Bug"? Sound familiar?
Let's face it...it's hard to be an investor in silver. Every day the financial
media tells you that "It's In A Bubble" and every day the price swings
wildly in the wind as if someone were deliberately shaking the foundation upon
which you built your investment decision (wink, wink). Rarely do they ever talk
about the fundamentals of supply and demand influencing price. Nor do they talk
about silver's relationship to the mass printing of un-backed fiat currencies.
And don't even TRY to talk to your friends and family about silver because
there is no quicker way to alienate your loved ones. From Uncle Joe who lost
his shirt in the real estate market to Aunt Martha who sunk everything she had
into "Pets.Com" at the height of the internet bubble...they all claimed
that they've learned the hard way that bubbles pop hard and you should run for
the hills and get out of your silver investment.
What is it about this investment that automatically turns the world against
you for even bringing up the subject?
I think it has something to do with the person delivering the message...YOU!
That's right, it's all your fault! These people KNOW YOU. They've known you
from when you were just a child. They've ridden your ups and downs and your
failures validate and reinforce their ingrained belief that YOU are no different
than THEM. If you were to be RIGHT in your assessment of silver from the very
beginning it means that THEY were not able to see the same signs that were available
to YOU. Many of them have even made investments in Gold but won't buy ANY silver.
So of course when silver went up near $50 you were VERY LUCKY to have gotten
in early and when it fell back to $35 you were VERY DUMB to invest in that silver
THE TRUTH IS THAT YOU DID YOUR HOMEWORK AND ACTED UPON YOUR BELIEFS WHEREAS
THEY HAVEN'T YET!
Understanding silver is not difficult but ACTING upon your understanding and
purchasing the physical metal is PSYCHOLOGICALLY a VERY difficult thing to do.
You will always second guess the timing, always be told you are crazy for paying
REAL MONEY for a piece of metal and ALWAYS be having to justify your ACTIONS
to those who have taken NO ACTION.
It's tough to be an investor in precious metals!
But it even goes further these days as it is EVEN MORE DIFFICULT to be an investor
in SILVER rather than GOLD! All those "refined and established investors"
in Gold have come out of the woodwork during the latest silver plunge and have
said "I TOLD YOU SILVER WAS NOT A MONETARY METAL...JUST LOOK HOW FAR IT
FELL COMPARED TO GOLD!" The Wall Street Journal even jumped on the band
wagon and published this article about the Gold vs. Silver debate:
Why Gold Will Outshine Silverhttp://online.wsj.com/article/SB10001424052748704681904576317364107515614.html
I find it very telling that in this article the author lays out his case that
the REASON gold will outperform silver is, essentially, that silver went up
too high in price and then came down like a crashing tulip bubble. That's pretty
much his whole analysis and argument in the vast gold-silver debate. "Silver
sucks because it's too volatile and looked like a crashing bubble so STAY AWAY!!!"
No wonder our friends and family act the way they do...THERE IS NO HONEST REPORTING
ON WHAT IS REALLY HAPPENING TO SILVER!
So now I'm going to lay out my reasons for owning silver over owning gold just
for those of you thinking that silver is the wrong place to be. It seems the
more the manipulation of silver drags on the longer this list gets! For those
of you who have made the jump into silver I'd ask you to send this on to all
those who have not had their SILVER AWAKENING yet. It might help them to "see
33 Reasons To Switch From Gold To Silver!
- Due to the tiny size of the Silver market and the lack of physical Silver
available to the manipulators, the Silver battle is much easier to win than
Gold. Ted Butler's discovery of massive Silver market manipulation should
highlight the size, scope and importance of Silver to the current financial
- Central banks have NO physical Silver to assist in the manipulation of
the Silver market but they still have a lot of physical Gold (although much
less than they claim).
- The majority of Silver mined every year is consumed as an industrial metal
in very small amounts and will never return to the market whereas the amount
of above ground Gold grows year after year.
- Silver has developed, due to its low price and superior physical properties,
into a vital and necessary industrial commodity that makes it mandatory for
modern life. If we woke up tomorrow and gold vanished from the face of the
earth, life would continue pretty much as it was the day before. Without silver,
modern life would change.
- Due to the relative very low price of silver and very high price of gold,
the man in the street, around the world, is in a position to buy silver in
much greater quantities than gold.
- In various forms there is an estimated 5B oz of above ground Gold and 5B
oz of above ground Silver but Gold trades at $1400/oz and Silver trades for
about $35/oz. Both metal prices are obviously manipulated but Silver appears
to be manipulated more. As for Silver bullion that is "in play"
for the manipulators, I estimate that less than 200M oz remain with a current
market value less than $7B.
- Silver has been in a supply deficit for over 50 years! Governments held
approximately 10B oz of silver in 1950 and have been supplying that physical
stock steadily into the market. Today there is no more of that surplus silver
left to sell.
- At current Silver consumption rates there are only 14 years of known Silver
reserves remaining in the world. AFTER THAT SILVER WILL BE GONE FOREVER! Think
- Demand for Silver is "inelastic" in its industrial applications
because it is used in such small quantities per application. An increase in
price does not translate into a decrease in consumption.
- The COMEX Silver short position is the largest concentrated short position
of any commodity, on any exchange in the history of financial markets.
- Throughout human monetary history the Silver to Gold ratio hovered in the
10-1 range until the invention of futures and options trading in metals. After
the massive manipulation maneuvers by the Banking Cabal the silver-gold ratio
now stands at over 40-1.
- The US Dollar as defined in the Coinage Act of 1792 is Silver, not Gold,
and contains "three hundred and seventy-one grains and four sixteenth
parts of a grain of pure, or four hundred and sixteen grains of standard silver."
- Silver is massively under reported in the media vs. Gold. Even Jim Rogers,
the commodity guru, purposefully ignores Silver entirely in his bestselling
book "Hot Commodities" even though Silver exceeds all other commodities
using his metrics on what makes a strong commodity.
- Very few investors have physical Silver in their possession. Reasoning:
because they claim it is "too hard to store". Does that mean when
Silver trades at over $1,000 oz people will be more willing to buy and store
physical Silver? It is difficult to make up a more bullish argument to take
delivery and store physical Silver TODAY...when the Cabal price rigging scam
finally fails you can always buy your own Fort Knox to store all that pesky
Silver you bought!
- Gold's strong fundamentals are only exceeded by Silver's so when the gold
manipulation stops and the Gold price takes off investors will be looking
for the next under-priced investment with similar characteristics.
- 470M oz of Silver owned by the US Treasury and used in the Manhattan Project
for the construction of the atom bomb have all been melted down and sold into
the physical market to support the "Strong Dollar Policy"
The Great Silver Mystery...REVEALED!
- Silver mineral deposits, as opposed to Gold, are usually very shallow in
the earth's crust due to the nature of the geology so most of the large deposits
of Silver have probably already been found and/or already mined limiting future
- There is a significant problem with counterfeit Gold coins and bars because
of its high price. Silver coins and small bars have not, to date, had as much
of a counterfeiting issue because its price did not justify the effort. (although
there is a problem with counterfeit Silver jewelry which may significantly
suppress Silver scrap recovery in the future...oddly bullish by-product of
- The total dollar value of the Silver market is a fraction of the total
dollar value of the Gold market.
- Most flat screen televisions use Silver in their internal electronics/screens
and the US transfer from analog to digital signals has increased the demand
for flat screen TV's.
- Retail physical shortages of Silver are already beginning to appear around
the world. The list of announced delays/curtailment by Government owned Mints
now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD!
- Hedge funds are bleeding from the credit crunch and they are looking for
ways to save themselves. A single hedge fund can scoop up the remaining physical
Silver and blow the price sky high.
- In the US, Gold confiscation laws are still on the books but there are
currently no silver confiscation laws.
- As of early 2011 the Gold price is hovering around $1,400 or 165% of its
historical high. Silver, on the other hand, is hovering around $35 or 70%
of its historical high suggesting that Silver has a long way still to go.
- Un-backed paper Silver programs such as silver certificates and unallocated
pooled accounts are the "industry standard" these days and will
be scrambling for metal when redemptions are called in by the investors. The
most egregious example of fractional reserve silver is the iShares Silver
- In the past few years the massive global money creation by central banks
around the world has created huge reservoirs of cash sloshing around the asset
markets looking for a safe haven. Although most mainstream press have discussed
Gold as being a likely bucket to fill with this monetary firehouse, SILVER
has all the same monetary metal properties as Gold except the Silver market
is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!
- The CFTC still has an open investigation into the manipulation of the SILVER
market that is being conducted not by their investigative division but by
the CFTC "Enforcement Division". Although the final conclusions
have been purposefully delayed by the CFTC, the final outcome may finally
be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!
- During the CFTC hearing on metal position limits, GATA announced that a
whistleblower has come forward with specific proof that JP Morgan was rigging
the silver market. The next day he and his wife were rammed in their car in
an attempted murder. The suspect was caught but the police are not giving
out any information about the suspect or others that were involved.
- The growth of emerging economies in Asia will require more and more industrial
silver to build out their electric infrastructure and provide a higher standard
of living for their middle class. In a global market that has been in a silver
supply deficit for years a silver bidding war will result in order to obtain
the significant amounts of silver needed.
- The truth about gold and silver price manipulation is spreading like wildfire
throughout the world with the help of the internet such that the Banksters
"shabby secret" is no longer a secret.
- There are currently multiple class action lawsuits that have been filed
against JP Morgan for blatantly rigging the silver market. Given that JP Morgan
has previously claimed immunity from legal prosecution because they are an
agent of the US Government I doubt the suits will ever be brought to trial...BUT
the publicity of them "claiming immunity" AGAIN will be the "silver
shot heard around the world".
- The US Dollar has run its course as the world's reserve currency. The entire
global financial markets know this and are positioning themselves accordingly.
The "Dollar End Game" for the United States has never been to transfer
economic power to Eastern countries as the dollar dies but rather crash the
global markets and start fresh with a new domestically centered economic model.
That transition is upon us:
- Inventors around the world are making significant breakthroughs in the
attempt to solve our energy crisis. From fuel cells to solar power to zero
point energies that existed only in our imaginations breakthroughs are quickly
coming down the pike. Since silver is the BEST CONDUCTOR OF ELECTRICITY in
the world it is likely that the most powerful breakthroughs will involve the
special properties of silver.
If all these reasons are not enough for you to run out and buy all the physical
silver you can get your hands on then I'm sure there will be new reasons not
far off on the horizon. Because for the last 10 years this list has continued
It's true that there are "NO SURE THINGS" in life...but an investment
in SILVER comes DARN CLOSE! Yes, you'll have to ride the tidal wave of price
manipulation but when the waves die down you will fully appreciate the power
and value of SILVER.
Don't believe the silver haters...load up on physical silver and keep it out
of the hands of those who want to control it. Take it home and stick it in your
safe. It may be your last chance!
May the Road you choose be the Right Road.
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