The Idea Of Unattainable Silver Is Catching On

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Published : September 09th, 2011
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( 10 votes, 4.9/5 ) , 6 commentaries
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Category : Market Analysis





Articles promoting $500, $1,000 or $12,000 silver price targets miss the whole point of buying silver. We are investing in silver not to get more fiat currency in the future, we are invest for the mathematically inevitable collapse of fiat currency. I put this crazy little theory out there in my first blog post at the beginning of the year about silver not being available at any price. The ideas was based upon a few factors.

  1. Silver has been used and abused as a industrial metal so much that all of the major stockpiles of silver have been exhausted. (Read the Silver Bullet and the Silver Shield.)
  2. The fraud in the paper markets is so rampant that they could never deliver all of the metal they say they have. (Read the Case for a 1:1 Gold to Silver Ratio.)
  3. The mathematically inevitable collapse of the of the dollar, the world’s currencies, stocks, bonds, pensions, insurance, and Real Estate the mass of humanity would rush into real tangible assets except those that hold the metal will no longer sell for paper that they did not want years earlier. (Read the 11 Mentality Shifts of Silver Investors.)
  4. The Industrial Demand of silver will soon be eclipsed by the Investment and Monetary demand of silver. (Read the 3 Demands of Silver.)

Rob Kirby wrote an excellent piece yesterday called the Silver Siren: Reversion to Reality. In it he lays out the case for silver reverting back to the reality that its is a precious metal first and foremost. This reversion to reality that will coincide with the collapse of the dollar.

“This brings us to another unfortunate but logical conclusion: we are very likely fast approaching the day when REAL gold and silver will not be obtainable with fiat money – period.” -Rob Kirby

Now that the idea is starting to creep into the investor mindset, it makes it all that more inevitable. I wrote my Final Warning and I have personally helped an estimated $4 to $5 million dollars into physical silver with my final Strategy Sessions over the past week. This is small potatoes compared to the trillions of dollars of paper assets out there, but it is going to mean the world to those that did make the jump.

One other point I want to make…

APMEX announced yesterday that it would no longer be doing their affiliate program in two weeks. So no more APMEX ads all over the internet. I wrote in the 11 Mentality Shifts of Silver Investors that smart retailers would at some point not sell their metal for dollars, because they will realize that what they have in inventory is far more valuable than the dollars they could receive.Retailers only make money on the spread, but if they cannot source what they sell, then the market freezes up from the supply side just as the demand side heats up. I believe this move by APMEX is part of that shift, because affiliate programs are a very cost efficient way of advertising. I did not get a very good answer why from my girl at APMEX, but logic would dictate that APMEX either has too many customers or not enough supply, either way it looks bullish to me.

Wake Some People Up!



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"APMEX announced yesterday that it would no longer be doing their affiliate program in two weeks. So no more APMEX ads all over the internet."

Well, it's two weeks, and they evidently misled you.
Still blasting ads all over the net.
Good article, Silver Shield.

I agree with the paper markets not having the physical backing. In Australia it is hard to buy 100oz bars and the Perth Royal Mint usually issues 'unallocated metal' certificates, plus the entire process of registration and waiting for delivery is too much for an investor who just wants a bullion bar for his rainy day:

My concern is that with the silver prices dropping from $40 to $32 in a matter of 3 days the paper holders are much more agile in dumping it. Yes, COMEX has about 30mil oz and rented out many times that, and yes, JPM and HSBC topped up their paper shorts to about 140 million oz - but these guys are now CREAMING the market as they topped up the extra 20 mil oz when it spiked up.....

This means they made money and your clients lost money as you " helped an estimated $4 to $5 million dollars into physical silver last week".

In our business our clients have physical metal and now worry regarding the price direction. My professional view as a CFP is heavy cash, short banking, long large cap and metals, yet I get dirty looks in the past 72 hours when I talk about silver as an escape from the fiat train wreck. Could you see the rebound soon with the long term still intact? I am not talking RSIs, MACDs, Bollinger averages or Fib numbers. My concern is that as 50% of silver is used commercially, a large drop in demand as a result of the coming depression could hurt the price. Or do you feel differently?

Sydney, AU
Where will all this put people with concessions to mine gold and silver?
I agree with you a hundred percent. For those of us who have been following events closely, the inhibiting factors to investment in physical silver(or gold) remain finances and the volatility which spurs us into bottom fishing that leads to procrastination and indecision. For those of us who have invested it is a difficult decision whether to go short or long again given the volatility and the manipulation in the market. Either way there is lots of money that can be picked off the table by a smart investor in comparison to other instruments.
I don't know exactly what is going to happen when fiat currency collapses, but here is something that I have bet my money on -

when fiat currency collapses I will be better off owning silver, than not owning silver.
Latest comment posted for this article
"APMEX announced yesterday that it would no longer be doing their affiliate program in two weeks. So no more APMEX ads all over the internet." Well, it's two weeks, and they evidently misled you. Still blasting ads all over the net. Read more
S. - 9/25/2011 at 3:23 AM GMT
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