It is Time to Buy Silver.
Posted on June 15, 2009
Filed Under General Insanity |
It is time to buy silver. I promised more updates on the economy as time progressed and it is now time for one. In the last economic analysis I published I recommended you buy food. This is still very true, but now is the time to also buy silver. Try to get as much as you can before mid-July and then if you are still able, keep buying into September.
Here is why. Adjusted for inflation, gross Federal tax receipts have only risen 40% in the last 39 years. However, over the same time period, total government spending increased 2,600%. If the US government today collected 100% of the entire nation’s wages as taxes, it would still not be enough to cover the current federal budget. We would still have a deficit.
In other words, it is now impossible for the US government to ever pay off the national debt or even service it for that matter. Soon, foreign countries will no longer trade in US dollars as a result. That is when the proverbial crap will hit the proverbial fan. The US government knows this and believes there is only one option to fix the problem and that is to inflate their way out. Inflation is coming big time and the only protection you will have is to own precious metals.
I recommend silver as it is more available than gold and comes in smaller denominations. Also, it is less likely to be confiscated by the US government when the time comes. If you don’t think the government will not come after you to take your gold, think again. President Roosevelt did just that in the last great depression and since President Obama has pulled out and is running the game to the “Roosevelt Playbook” I think it could happen again.
Do not buy paper saying you own silver from a bank. Many banks are actually selling “silver certificates” that are not backed by silver. They don’t have the silver they are selling. Buy silver and keep it physically near you. It looks like there are some major disruptions coming very soon to the Comex and LME that control commodities prices and you want to buy your silver before this occurs. Silver prices right now are running around $18 a troy ounce. Just two years ago it was at $9 per troy ounce. I personally am buying 2009 American Eagle one ounce coins. They are readily available and are quite attractive with a Walking Liberty on the front face.
During the Great Depression of the 1930’s, bellhops and elevator operators were routinely tipped by “high rollers” at the hotels in small gold coins. Several of these bellhops and elevator operators saved these tips in jars over the years of the Depression. By the end of the Depression, these same bellhops and elevator operators took those coins and bought the hotels they worked for during all those years. This type of opportunity will happen again. A few hundred dollars of silver or gold today, could pay off your entire house mortgage three or four years from now if we get the hyper-inflation that the US government is setting us up for with these incredible deficits.
Make sure you stock food too. You are going to need it.
Clayton
I have read about this as well…..what I found out was on the east coast silver eagles are used and accepted very readily. However…on the west cost they don’t take them…they use the what is called a silver round.
The silver round is about one dollar cheaper and is stamped with a buffalo and is still 99.9% silver and they don’t add the copper for stiffness.
Matt
That is the Buffalo Silver coin and it is cheaper than the American Eagle as it is not a collector’s item. The Silver eagle is more of a collector’s item because it is official US currency where the Buffalo is not (though the US Mint does make a gold Buffalo). The US Silver Eagle is produced at the US Mint in West Point and has a W stamped on the coin. Currently, the West Point Mint is not producing because silver is unavailable (it is so posted on their website). US Mint - Silver
This is a key development and is another indicator that Comex is artificially holding down silver and gold prices. Previously, Comex could deliver silver to large buyers in a day or so from their inventory. They are now out to 3-4 weeks on deliveries as their inventory stocks are nearly gone. They are artificially holding down gold and silver because of JP Morgan Bank. JP Morgan has about 30% of their total assets in silver and they are sitting on huge silver and gold derivatives for selling precious metals short. If the price of silver goes up, JP Morgan could collapse as they do not have the silver or cash to cover the shortfall.
Artificially holding down a commodity price can only last a short while. Several bank and precious metal speculators are saying around July, 7th the Comex will start to unravel on this price fixing scheme. That is when silver will start its climb I think. So buy your silver right now while you can. Ebay looks to have the best prices on silver coins at the moment. Here is a good site to track ebay silver pricing: Silver Street Prices.
Clayton
Here is the best description of the economy I have heard this week. I comes from PoliticalLore.com.
“…most of the world’s leading economists, such as Ben Fulford, a former Asian Bureau Chief for Forbes, who calls the recent dollar movement a “dead cat’s bounce” believe that while the Federal Reserves move to flood the economy with cash may have a short-term effect of essentially buying some time, the writing is on the wall for the U.S. economy.”
Clayton