A win-win
situation, as we all know, occurs when opposing parties both gain from a certain
outcome. Perhaps both don't always get all that they want but both 'win'
something in the bargain. It's the best outcome that can be expected for both
parties. With silver there is a lose-lose and a
win-win scenario.
The Lose-Lose
Scenario
While owning
silver outright is a win-win situation, it will be a lose-lose situation for
all those large banks around the world such as JPMorgan and HSBC who are
reported to be short silver to the tune of 3.3 BILLION ounces! That
figure is a multiple of all known above-ground silver in tradable bullion
form – and a multiple of annual world silver production. The saying 'He
who sells what isn't “hisin” gives it
back or goes to prison' comes to mind. These shorts may need to deliver
more silver than can possibly be delivered in any reasonable timeframe and
once they begin (and there are reports that some have already begun) to cover
their positions it will have major bullish implications for the price of
silver.
The Win-Win
Scenario
How do you
orchestrate a win-win in silver for yourself? It's really very simple.
Because there is not enough physical silver to go around at today's price (or
the price would not be on the rise), all you need to do is to purchase
physical silver. This has the dual effect of 1) taking available silver off
the market, meaning silver then becomes all the more scarce, and 2) it bids
up the price. Any time a commodity is bought, it puts upward pressure on the
price. Any time it is sold, it puts downward pressure. See how simple this
stuff is? It's a perpetual motion machine.
The more
physical silver people buy and take off the market, the higher the price
goes. The higher the price goes, the more investors buy in. It has a
self fulfilling effect. Silver and gold are unique in that trait. With most
commodities, buyers try to get the lowest price possible because they intend
to use that commodity. With the money metals, the reason most investors are
buying is to protect themselves from the loss of purchasing power of the
currency through inflation of the money supply. They intend to store the
metal for sale at a much higher price at a time when the currency
stabilizes.
You must
remember that silver and gold are the anti-dollar. Theoretically, you are
simply retaining your wealth by holding them even though the dollar value is
increasing. The more the dollar value is increasing, the greater the
debasement, and the more the need to protect oneself. At some point this will
turn into a panic and today's dollar price will seem ridiculously low.
Owning Silver
Is a Win-Win in Numerous Ways
- You win by holding
an asset that is no one else's liability. You do not have to
depend on a counter party.
- You win by taking
physical metal off the market which helps increase its price.
- You win by having a
valuable commodity that is money itself and outside of the faltering
banking system.
- You win because you
are protecting your wealth from the ravages of inflation.
- You win because you
are showing others, by your actions, that you believe in the worth and
value of holding real money.
- You win again if
they follow your lead. The further we go in time and price in the
silver bull market, the more people will realize what they are missing
out on, and the quicker and higher the dollar price will rise.
Conclusion
Owning silver
is a win-win all around. The only way you can lose by holding physical silver
at this point is via theft, or confiscation, which is the same as
theft. I'll take my chances. I'd rather have someone try to take
what I already have in my possession than have someone fail to deliver to me
what is rightfully mine. In the former, I'm in control. In the latter,
someone else is calling the shots.
Got physical
silver yet? Panic first before the herd and win-win!
Lorimer Wilson
MunKnee.com
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