Where's the Silver?

October 12, 2002

So far, I can get it for my clients. The Mint is supposedly out, as are the US reserves. China supposedly inserted 61 million ounces into the market last year, but that is hardly enough to satisfy the demand. If one looks at the ratio between gold and silver, it is now over 72 to 1. In 1980, when Bunker Hunt attempted to corner the world's silver supply, it was 16 to 1. Historically, for over a century, it was 16 to 1, with the US government buying 16 ounces of silver for every ounce of gold, for coinage and reserves. The "Crime of '93" stopped that. In my 25 years experience, I consider the normal ratio to be 35 to 1. If the ratio is below 35 to 1, it is a buy gold signal, and above, a buy silver signal. I can't remember the ratio ever being as high as it is now.

The COMEX trades millions of ounces of silver every trading day. Where is the silver it trades? It doesn't exist. It is "paper silver." Traders of paper silver, can manipulate at will, by shorting, going long, or betting in any way they may choose. They make profits by doing so. As long as no one asks for delivery, everything is fine. Silver and gold are physical, tangible, historic MONEY, and not pieces of paper with ink on them. Silver and gold are a distinct threat to the entire economic structure of the world, because the entire economic structure of the world…is based on …nothing. Nothing but worthless pieces of paper which are backed by nothing. Think of it! The entire economic structure of the world is based on literally NOTHING that is a firm, useable, historic, dependable, valuable, tangible, store of value, measurement.

Suppose weights and measures, such as inches, feet, liters, acres, pounds, volts, amperes, torque, horsepower, lumens, or whatever measurement we all depend on for the making of machinery, buildings, weighing things, selling, buying, or growing things…were constantly going down in value? Can you imagine the horror of it all? Yet, the world is using un-backed pieces of paper, with no value of any kind, other than "legal tender" laws, with which to conduct its business. It is so absurd, that words absolutely cannot express it.

Obviously, it makes sense for the entire world's supercilious economic system to want to hold on, regardless of the fact that it is based on nothing. Dollars, pesos, pounds, francs, or what have you, are merely pieces of paper with ink on them, and have no value of any kind, other than legal tender laws. Legal tender laws state that these worthless pieces of paper must be used for transactions.

So where is the silver? It doesn't exist, as far as probably 90% of the trades are concerned. When one plays Monopoly, one uses Monopoly money to buy the properties in Atlantic City. Except no one literally owns the real Boardwalk, Park Place, or Pacific Ave. It's all a game! It's fun, but one's life doesn't depend on it. The world's economic system is a gigantic game of Monopoly…literally. The entire world's economic system depends on keeping the illusion alive, that pieces of paper with ink on them have value, which they don't. This is why, for 13 years now, the consumption of silver has supposedly exceeded its supply. Silver is a by-product of gold and copper mining, and there are some silver mines, it is said, that can produce silver for less than the current $4.35 price, but not many. Perhaps a bit of scrap, dental and photographic recovery happens also, but no one seems to know where the rest comes from. I am sure it is a cliff hanger thing that can erupt at any time, if masses of people want it.

The ratio suggests that silver is an exceedingly good buy. Logic says the same, as does history. Yet day after day, it stays lower than it can be produced for in most places of the world. Why? It, and gold's threat to the world's gigantic Monopoly game, cannot be over-stated. It could spell death to it. No kidding. When gold and silver go up to the sky, they haven't gone up. The currencies used to purchase them have collapsed, that's all. How long can a fraud such as the world's "Monopoly money" system of trades, values, and prices continue? No one knows. Those who are in control, are doing their level best to maintain the hoax, and one can't blame them. Their future, and the future of their whole economic stack of cards depends on keeping the illusion alive and working.

If one knew the secrets of a magician, the illusion would be seen to be of the utmost simplicity, probably. The secret of keeping the world's fraudulent economic system alive, is maintaining the illusion that paper currencies have value. The illusion always fails, when the purveyors of it get caught. How will they get caught? Easy. By expanding their paper money supplies so far, and so fast, that the public around the world realizes they are using nothing but legal tender laws for trade, and that nothing of value is being used to buy valuable things. They then will begin to barter. Barter exchanges tangibles for tangibles, as well as escaping the tax collector.

The theory of "money," is that it is a store of value, and it has value, which requirements paper, un-backed "money" doesn't satisfy. If enough people realize that they are trading a good car for worthless paper, they may want to think about it twice. It's the "thinking about it," that gives the vapors to the world's economists, treasurers, presidents, legislators, and other officials. When inflating their paper gets out of hand, and it always has, people begin to "think about it," and the end is in sight. When people begin to "think about it," and stop saving in currency denominated devices and instruments, and begin buying gold and silver, that the end is in sight. When people realize that a 30 year mortgage is denominated in these non-value dollars, and the payments are set for 30 years, in spite of the certain devaluation, they love it. Fortunately, the mortgages only last an average of less than 5 years, and the property is sold, which saves lenders, but a disaster could happen, and will. No one knows when people will begin to "think about it," any more than anyone could predict when people would begin to "think about it," with the NASDQ, but they did! They'll begin to "think about it" on a continually increasing rate, driving gold and silver up, in spite of the manipulators, because such manipulation can exist only so long. You'll still have the same gold and silver. It won't have changed a bit. But the legal tenders will have become a joke, we hope gradually.

Where is the silver? What there is of it, is rapidly being transferred to private hands, such as my clients', and other's clients', who have the ability to "think about it" before the masses do, which places them in a very good position to survive. If you think all is hunky dory, then call Merrill Lynch and ask them if the dollar is stable, or if the bottom has been reached. If they say yes, you have wasted your time reading this. Protect yourself either with gold and silver, or Merrill Lynch's advice. If you think that JP Morgan-Chase's $25 trillion overhang in derivatives is OK, or no threat, you will not be worried about anything, and don't need to protect yourself. The government, and all its faithful employees will look after you. After all, there has never been an economic collapse before, right? How could there possibly be one here? Is Santa going to come down your chimney on Christmas Eve? Probably, if you feel safe with the status quo.

The Fourth Coinage Act of 1873 embraced the gold standard and demonetized silver, known as the “Crime of 73”