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Why I'm Buying Silver at $30 ~ Jeff Clark
February 24, 2011
Issue 92
Today's Gold/Silver Ratio: 42/1

Issue 97

Gold: $1409.60 / Silver: $33.38

Why  I'm Buying Silver at $30
Jeff Clark, BIG GOLD

The silver price has bounced 27% since January 28, a huge advance for a measly 16 trading days. It's already soared past its 2010 high and was selling for less than $16 this time last year, a double in 12 months. So, is it pricy? Or should we ignore the run-up and keep buying?

I've read a few articles that say we should expect silver to drop to the $25 level, and one pinpointed $22. Others, of course, see bullish tea leaves for the near term and believe it's headed higher. Of those that assert silver will decline, most believe it will be temporary, though one writer claims the bull market in precious metals is over (I think he's a holdout from the gold-is-a-bubble camp).

These authors could be right about a near-term decline, but I'm less concerned with what the price does this month or even the next few months, and more focused on where it's likely headed over the next few years. Caution: the chart ahead may cause excitement.
While there are lots of reasons to be bullish on silver, what everyone really wants to know is how high the price can go. Here's one hint, based strictly on historical price performance.

Silver rose an incredible 3,646% from the November 1971 low of $1.32 to its January 21, 1980 high of $49.45 (London PM fix prices). Our current advance, through February 4, is 596%. At $30, silver would have to climb over five times to match the last great bull market. If it did, the price would hit $160.89 per ounce (from its bottom of $4.295 on March 30, 2001).

You'll also notice silver has a record of outperforming gold in these two bull markets. In spite of the price dropping 26.9% in 2008 (while gold gained 5%), the metal has outrun its yellow cousin by 38.6% since their respective lows in 2001.

Gold advanced 2,333% in the 1970s; it's currently up 430%. If it matched the last run, the price would hit $6,227.26 per ounce, a return of four-and-a-half times the gold you buy today.

From solely a historical price perspective, the chart certainly suggests we've got a long way to go with both metals. The question is if the fundamentals support such price advances (show me a healthy dollar and no threat of inflation, and we'll talk), but my point for the moment is that there is an established precedence for the price of these metals to climb much higher. And just as important, to keep one's eye on the big picture.

So, yes, I'm buying silver at $30, in part because I think the potential for enormous gains is high.

However, I'll add that I'm not draining my cash account to do so. I think it's important for the precious metals investor to always be in the game, but given silver's volatility and the precarious nature of most markets right now, prudence suggests we keep some powder dry as well.
Let's say one of the soothsayers noted above is correct and silver temporarily falls to $25. If you snag it at that level, your endgame return would be 543%, vs. the 436% gain from $30 (excluding premiums and storage costs). That's more than another 100% gain on your original investment.

But how does one buy silver not knowing if the price will plummet or soar? For example, silver could take off from these levels, never to see $30 again, leaving those of you waiting for a sell-off out of the market. Or it could sink to $25, making investors who went all in now regret they didn't wait for a better price. Or it could trade sideways until, say, next fall, leaving both parties uncertain and on the sidelines.

In my opinion, there's a one-word answer to the question. It solves all dilemmas - it keeps you in the market, while simultaneously letting you buy at lower prices if that occurs. It lets you build your position bigger and bigger without the worry of whether you're getting a good price.
That one-word verb is, accumulate. Or in the vernacular made popular in the '80s by the financial planning community, dollar cost average. In other words, buy a little now, buy a little next month, etc., until you have a position sufficient in size to fight off inflation and any other economic woe we're likely to encounter over the next few years.

So my advice is, buy, hold, repeat. Because if our silver market ends up looking anything like that left bar in the chart, you may regret not having bought at $30, too.

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Quote of the Week                               

"The expense of our civil government we have always borne, and can easily bear, because it is small. A virtuous and laborious people may be cheaply governed. Determining, as we do, to have no offices of profit, nor any sinecures or useless appointments, so common in ancient or corrupted states, we can govern ourselves a year for the sum you [Englishmen] pay in a single department, or for what one jobbing contractor, by the favor of a minister, can cheat you out of in a single article."

Benjamin Franklin, 1778 

Other Articles      

China Embraces The Gold Standard
The New American
 

$400 Silver, Backwardation…
James Turk

Professor Antal E. Fekete
Silver Summit 2011

Kirsty Hogg

Silver Default Looms
Jason Hommel

Silver Can Double In A Week
Bill Murphy - GATA

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Eric Sprott
The Government Lied...
There is No More Silver!

Manipulation Fails
Metals Spike over $34

Divisible Morgan Rounds

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Why Increased Demand for Silver Will Have a Leveraged Effect on Its Price ~ Jeff Clark, BIG GOLD
February 18, 2011
Issue 92
Today's Gold/Silver Ratio: 42.5/1

Issue 96

Gold: 1389.10 / Silver: $32.66

Why Increased Demand for Silver Will Have a Leveraged Effect on Its Price
Jeff Clark, BIG GOLD

How Much More Demand Can Silver Handle?

The numbers for silver demand are starting to make some market-watchers nervous. The U.S. Mint sold over 6.4 million silver Eagles in January, more than any other month since the coin's introduction in 1986. China's net imports of silver quadrupled in 2010, to 122.6 million ounces, roughly 13.7% of global production. Meanwhile, mine production can't meet worldwide demand; the only way demand gets fulfilled is from scrap supply.

That is some very hungry demand. Which raises the question, how long can this pace continue?

This is important for various reasons, starting with how demand contributes to price. If demand falls off, our investments could, too.

While I've discussed the concern regarding the lack of supply before, which has its own implications for the silver market, let's focus on investment demand. Frankly, is there room for it to continue to grow? After all, how long can investors continue to set records?

There are a number of ways to measure this - the amount of money available to invest, its percent of total financial assets, its contrast to demand in the last bull market, etc. - but I think the bottom line to answering the question is to compare the biggest silver investments to some popular equities. If they rival that of the stocks we always see on the news and analysts constantly talk about and every fund manager wants to own, then it might be reasonable to assume demand could be nearing its pinnacle.

So how do the world's largest silver ETF and one of the biggest silver producers compare to the more fashionable equities?

The largest silver ETF, iShares Silver Trust, has net assets of $9.6 billion (as of February 4). This pales in comparison to the more popular stocks trading in the U.S. In fact, SLV has roughly 3% the market cap of Apple. It would have to grow over 43 times to match Exxon Mobil.

Pan American Silver, the largest pure silver producer trading on a major U.S. exchange, has a market cap of $3.72 billion. This is 4.7% the size of McDonald's. The market cap would have to increase more than 53 times to match Walmart. It is over 62 times smaller than Microsoft.

This isn't to suggest SLV and PAAS will match the market cap of these other companies, but clearly the masses are still demanding much more of them than the biggest of silver's investment vehicles.

So how much more demand can silver handle? As much as it takes to make it the household name I'm convinced it will be before this is all over. When SLV is a favorite of fund managers. When Silver Wheaton is a market darling of the masses. When Pan American is Wall Street's top pick for the year.

Imagine what those bars on the right will look like when most everyone you know is talking about poor man's gold. The rise could be breathtaking.

Remember that silver rose over 3,646% from trough to peak in the last precious metals bull market; it's up about 630% in our current run. A return matching the 1970s advance would push the price to $152. This price level is further supported by the fact that this is about where it would be when inflation-adjusted for its 1980 peak.

When you look at the potential growth in market cap of the world's biggest silver investments, it becomes easy to view any downdraft in price as nothing but a buying opportunity. I know I do.

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Quote of the Week                               

"If workers struggle for higher wages, this is hailed as 'social gains,' if businessmen struggle for higher profits, this is damned as 'selfish greed.'"

-Ayn Rand  

Other Articles      

Gold Climbs, Silver Touches 30-Year High Amid Inflation Concern
Bloomberg

Silver Prices Hit 31-year High As Coin Sales Rocket
Los Angeles Times

The Rally in Gold and Silver is Not Over Yet
SafeHaven

Egypt: Placebos, Protests and Precious Metal Breakouts
SafeHaven

Silver Still Looking Good!
MarketWatch

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How To Sound/Tone
Test for Pure Silver

Other Tests for Silver

1. Weight - 1 oz of pure .999 silver should weigh 31.1 grams

2. Sound - Pure silver has a 'ring' to it when you strike it with another metal object, or drop a handful of coins together

3. Dimensions: a Silver American Eagle should be 40.6 mm in diameter and be 2.9mm thick.

4. Magnet: If there's iron in the item, a magnet will be drawn to it. A magnet will not be drawn to silver.

5. Tarnish: Pure silver will tarnish over time, especially if you handle it. Sometimes it will get 'milky' spots on it.

6. Use an acid test kit - 'Google'
'precious metals test kit' to find a vendor.

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The Rarest Earth ~ Ted Butler
February 11, 2011
Issue 92
Today's Gold/Silver Ratio: 45/1
Issue 95

The Rarest Earth
Ted Butler

Those who keep up with business news will have no doubt read about the recent developments in the category of minerals known as rare earth elements (REE's). These are minerals that are vital to modern industrial applications, ranging from lasers, batteries, alternative energy, and superconductors to all sorts of important high-tech applications. There are 17 minerals classified as REE's with exotic names like scandium, yttrium, lanthanum, cerium, and praseodymium. Don't worry, this is not a technical discussion and this will probably be the only time I write about rare earth elements.

Actually, these minerals are not all that rare, in the strictest sense of the word. Many are quite abundant in the earth's crust. What makes them rare is that they are generally not concentrated in ore bodies offering economically feasible extraction. The first rare earth mineral was discovered around 1800, in a village in Sweden named Ytterby, and several REE's are named after that village. Up until about 1950, most rare earth production came from India and Brazil. In the 50's, South Africa was a big producer, then California took the lead from 1960 through the 1980's. Then, China came to be the dominant producer by far, and currently produces 97% of world production.

Due to booming world demand, production has strained to keep pace. This was recently exacerbated by China's new export restrictions, due to falling ore reserves and environmental concerns. This sent the price of rare earth elements soaring by hundreds of percent, prompting a world-wide effort to ramp up production. However, you just don't flip a light switch and begin new mine production. It can take years to develop a mine and begin production. In the meantime, industrial consumers must compete for available supplies by bidding up the price. This is the essence of the law of supply and demand.

Since I'm not a REE expert why am I writing about them? The answer has to do with silver. Silver shares many characteristics with the rare earth elements and there is a lot to learn from them in our analysis of silver. In fact, the purpose of this article is to make the case that silver is the rarest of all the rare earth elements.

One of the common characteristics between silver and the rare earth elements is that many REE's are mined in conjunction with other minerals, the same as silver with its by-product mining profile. Mining for both tends to concentrate on the easiest to exploit properties first. Consequently, the remaining properties tend to be lower-grade and more expensive and difficult to develop. Both silver and REE's have seen the emergence of China as the chief producer of each. (In the case of silver, the production reliance includes the processing of scrap material not mined in that country.) Silver production from China is nowhere near 97% of world production, as it is in the rare earth elements, but it still is significant. Environmental issues and restrictions inhibit the production of both silver and the REE's. And with both, higher prices don't automatically guarantee immediate new production. For instance, last year on an 80% increase in silver price, the mine production of Peru (the world's largest miner) declined 7% or 12 million ounces. That's a million silver ounces less per month than from a year earlier. Recently, the price of REE's skyrocketed, due to China's sharply curtailed exports. Should any major silver producing country sharply restrict the export of silver, the price would soar.

Read The Rest of the Article ...

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Quote of the Week                               

"The scarce and valuable commodities such as copper, lead, zinc, uranium, gold, silver, platinum, and palladium just to name a few are limited. These are the basic building blocks for all the goods and services we desire in modern society. You can't have a car, a house,
a cell phone, a refrigerator, a simple bar of soap, etc. etc., without them.
"

-Greg McCoach    

Other Articles      

Why Every Hard-Working
American Should Be Loading Up On Silver

Jeff Clark, BIG GOLD

7 Reasons Why Silver Will Make You Rich
J. Edwards

Are Precious Metals Still a Good Buy?
Lakshimi Capital

1-oz Silver Coin Sales Shatter U.S. Mint Records
Mineweb

Why Governments Will Buy Silver
SilverStrategies

About Coin Cleaning

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Silver Shortage This Decade, Silver Will Be Worth More Than Gold
Future Money Trends

 

 

 
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Sound Money ~ Pending Legislation - 6 States to date
February 4, 2011
Issue 92
 
Issue 94

SGS Notes: We've been seeing a lot more on this issue lately across the news articles…and we get asked about this a lot… so this week we're focusing in on the various pieces about Sound Money.

Sound Money Pending Legislation - 6 States to date

Here is a list of 6 states (4 in the last month) and (2 states today) that have pending legislation to authorize the use of gold and silver to settle debts with its citizens and to provide them the legal means to avoid the devaluing of the dollar by having a parallel currency in light of massive bailouts and to protect them in the event of the dollars failure.
New Hampshire (they started this in 2003)

Bill currently mired in their State Legislator's Commerce Committee:

http://www.goldmoneybill.org/goldbill.pdf

Indiana Senate Bill 0453 Authors: Walker, Kruse
Date Chamber Action
01/14/2009 S Authored by Senator Walker
01/14/2009 S First reading: referred to Committee on Tax and Fiscal Policy
01/27/2009 S Senator Kruse added as coauthor

Current version: http://www.in.gov/legislative/bills/2009/PDF/IN/IN0453.1.pdf

Read The Rest of the Article ...

ACH Debit Now Available             

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Special Orders____                              

For those wishing to purchase quantities of 100 rounds or more, we have the ability to do custom divisible coins with the following Obverse designs: Morgan, Buffalo, Walking Liberty, Honest Value & Constitution.

Custom Special Orders require payment via wire or ACH transfer, and are priced at discount. We suggest that you collaborate with friends and relatives to do a group order so you can take advantage of the special pricing and custom minting. Please call or email us if you want to take advantage of this opportunity.

New Shipping Policy                               

Since the 2010 holidays, we are seeing an increase in delivery incidents with our shipping vendor. For this reason, all FedEx shipping will be requiring ‘Indirect Signature’ upon delivery. Indirect Signature can be obtained from anyone at the delivery address, a neighbor, HOA manager, etc. This is not meant to present an inconvenience, but to ensure that if a loss occurs, it will be covered by the shipping vendor.

Quote of the Week                               

"Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium."

-Murray N. Rothbard   

 

Other Articles      

Utah Could Use Gold Under Sound Money Act
By: Alex Newman

Virginia Eyes Switching Off Dollar
Kelly O'Meara

Money in North American History: From Wampum to Electronic Funds Transfer

Gold Money Bill Site
Many Links, Articles, Resources

Obama Needs Your 401K to Balance His Budget
By Bob Adelmann

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Why Gold & Silver
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Hans Bocker,
German professor and author of
"Liberty through Gold"

Role of Gold In
Next Financial System

Hans Blocker

 
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Physical Gold and Silver Supplies Are Tighter Than Reported ~ Patrick A. Heller
January 28, 2011
Issue 92
 
Issue 93

Physical Gold and Silver Supplies Are Tighter Than Reported
By Patrick A. Heller

There are two main markets for trading gold and silver: the London Bullion Market Exchange and the COMEX in New York. London by far has the higher volume. There are other exchanges elsewhere in the US and around the globe, but large traders tend to buy and sell in these two markets.

The London market is supposed to be for purchasing contracts for delivery of the physical metal at the maturity of the contract. In theory, there is supposed to be enough physical gold and silver in the London vaults to fulfill 100% of the outstanding contracts. This has not been true for some time. At the Commodity Futures Trading Commission March 25, 2010 hearings on gold and silver regulations, both Jeffrey Christian and Adrian Douglas testified that the London vaults only have enough gold and silver to cover 1-3% of open contracts.

The COMEX, in contrast, is more meant for the trading of paper contracts by investors who do not want to take physical delivery (although they can). The COMEX warehouses only have a fraction of the physical gold and silver that would needed if all long positions demanded delivery of physical metal at contract maturity. Realizing this potential problem, the COMEX allows contracts to be settled for cash rather than the commodity. Gold and silver contracts can also now be settled, at the option of the seller of the contract, with shares of exchange traded funds for the same metal.

In normal commodity markets, the price of future contracts trade at higher prices than those maturing this month. The price difference normally reflects the prevailing interest rate minus a bit for the cost of storage. This typical market order is called contango…

Read The Rest of the Article ...

Traditional Tea Party Rounds             

We are now offering the Traditional version of the Tea Party Rounds. These are high quality, highly polished bullion rounds and are available for sale now at Silver & Gold Shop.

Special Orders____                              

For those wishing to purchase quantities of 100 rounds or more, we have the ability to do custom divisible coins with the following Obverse designs: Morgan, Buffalo, Walking Liberty, Honest Value & Constitution. Custom Special Orders require payment via wire transfer, and are priced at discount. We suggest that you collaborate with friends and relatives to do a group order so you can take advantage of the special pricing and custom minting. Please call or email us if you want to take advantage of this opportunity.

New Shipping Policy                               

Since the 2010 holidays, we are seeing an increase in delivery incidents with our shipping vendor. For this reason, all FedEx shipping will be requiring ‘Indirect Signature’ upon delivery. Indirect Signature can be obtained from anyone at the delivery address, a neighbor, HOA manager, etc. This is not meant to present an inconvenience, but to ensure that if a loss occurs, it will be covered by the shipping vendor.

Quote of the Week                               

"If you want to remain slaves of the bankers and pay for the costs of your own slavery, let them continue to create money and control the nation's credit."

- Sir Josiah Stamp [1880-1941]   

Other Articles      

Buy When There Is Blood In The Streets
By: Clive Maund

How gold became politically correct
Michael J. Kosares

Silver: Supply & Demand
Silver Institute

Silver in Backwardation:
Price Set To Explode

James Turk

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Silver Eagle Shortage
David Morgan & Mike Maloney

Too Much Gold Paper
Not Enough Metal

John Hathaway

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Silver Investors: Pick Your Poison ~ Bix Weir
January 21, 2011
Issue 92
 
Issue 92


SGS Notes: The 3rd Friday of each month (approx) is the Options closing date. Traditionally, we've seen downward price manipulations on and around this time because it allows the Big Banks to cover their short positions in time for Options closings… This week was no exception… as we all weather these price drops keep in mind: this is an opportunity to increase your holdings before the projected sharp and major upturn…

Silver Investors: Pick Your Poison
From Road to Roota by Bix Weir

For 10 years I've been hearing from the mainstream media, silver market analysts and even big time silver bugs the various reasons why Silver prices will NEVER skyrocket. There is always some GRAND REASON why my huge price projections of $7,000/oz for silver will never come true. It's gotten to the point that the BEST thing to do when one of these "oh-so-important" discoveries comes to light is to CLOSE YOUR EYES AND JUST KEEP BUYING SILVER!

Now I'm not saying to blindly invest in silver (or anything for that matter) but what I am saying is that as a faithful silver investor you will be confronted with what sounds like VERY good reasons NOT to invest in this precious metal. Biggies. So big that you WILL question your own analysis over and over again and many will choose to leave the silver markets all together. I would even venture to say that SILVER has been denigrated and denounced more than any other investment alternative in the past 40 years.
Many of these SILVER STINK BOMBS seem like VERY sound and reasonable warnings.

So in the spirit of Ebeneezer Scrooge, let's look at these warnings from the PAST, PRESENT and FUTURE.

Read the Rest of the Article Here  

 

 

Quote of the Week                               

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."

- Napoleon Bonaparte     

Other Articles      

Gold & Silver Content of Common Coins

Gold … Major Buy Signals

Yesterday In Gold & Silver

JPM et al Cover More Shorts

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A Silver Shortage

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Silver Rush: Investors Pile Money Into Silver
January 14, 2011 
Issue 91


Silver Rush: Investors Pile Money Into Silver
LONDON (Commodity Online):
January 12, 201
1


Gold has been the hottest commodity that people from India to the United States are piling their money into. Gold's poor cousin silver is emerging as the most luring investment option for traders and common people these days.

What is driving the silver boom? What is it that fascinates investors to silver that used to be the first currency in China centuries back?

Like gold, silver is topping the investment charts these days. In the US, sales of the silver bullion coins have recorded historic high in 2010. A latest commodity report says that silver is the most attractive investment proposition for the people in Australia. In fact, in Australia, people are buying more silver coins than gold coins.

In the last one year-in fact from 2009 onwards-silver price has more than doubled. Silver has boomed to the current $30 level from the $13 level in 2009.

Why is silver booming? Why are investors piling their money into silver?

In this following lucid write up, precious metals analyst Dr. David Eifrig provides some fascinating inputs on silver:

Surging Silver Investment is changing the nature of this market. A couple of years ago, I shared two shocking silver charts with DailyWealth readers.
These charts showed how governments around the globe have abandoned silver as money. They've decided it's easier to expand a nation's credit with fiat paper money than to mine more silver. They've sold off their silver stockpiles to industry and investors.

This trend is decades in the making. At first, much of this silver was used up in industrial manufacturing and processes like photography. That silver is gone forever.

But starting around 1997, silver began flowing into private hands. Folks concerned with wars, investment bubbles, and mismanaged economies were buying it up. They turned to silver as a safe form of savings that can't be debased by a gang of spend-happy politicians.

It was a modern day "rush" into Silver Investment. And Buying Silver back then was a smart move. The metal is up sixfold over the last 14 years...while stocks and real estate have struggled to do anything...and while paper currencies have depreciated in value.

The thing is, the silver rush is still on.

Demand for silver coins is taking off. It's up almost sevenfold from the mid-1990s. The public is catching on to the value of silver, and I expect this trend to continue for years.

Since my first essay back in 2009, the price of Silver Bullion has soared more than 100% - from $13.50 to about $29 today. But over the long term, there's much more to come.

Here's how I explained it in 2009:

"Governments around the world are behaving absolutely stupidly right now. Our vice president just said with a straight face that the government has to spend more money in order to save the nation from bankruptcy. That's crazy...but it passes for conventional wisdom these days.

"In my 30 years of investing, I've never seen so many risks in the financial system. That kind of 'patriarchal thinking' is producing those risks."

The stupid thinking I saw in 2009 hasn't gone anywhere. Governments across the globe are spending with abandon and creating big risks for savers and investors.

That's why it's a good idea to keep a portion of your assets in "chaos hedges" like gold and silver. You should know, I'm not the kind of guy who lives in a concrete bunker. I don't think the world is about to end. I'm not anyone's idea of a "gold bug". I buy this stuff just like I buy car insurance.

You should think of gold and silver as insurance against calamity. You should think of it as a safe store of wealth. And as I've just shown you, many people are catching onto this line of thinking. I expect millions more will over the next few years.


Traditional Tea Party Rounds Coming Back…
 

We will be minting the Traditional version of our
Tea Party Round very soon.
These will be available in quantity
(see discount rates at right) as well as
smaller individual orders.
Please call or eMail us if interested in
placing a quantity order.

 


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2011 Silver American Eagles…


Each year the US Mint's production of new Silver (& Gold) American Eagles is released late in January. We can special pre-order these right now, but will be carrying 2011 Silver Eagles in stock once they are available. Please call or eMail us if you would like to pre-order now.
 


Other Articles of Interest

US Mint Reports Unprecedented Buying Spree Of Physical Silver
Zerohedge

Silver: From $30/oz to
Over $500 by 2020

Jason Hommel

Virginia Offers HR 577 and Alternative Currency to Protect Itself from "Likely" Federal Reserve Meltdown
Before It's News

Ongoing Battle for the
Silver Market

Silver Coin Investor

____________________
 


MTP is a Free Service
Please recommend to friends, family, & acquaintances to help put a network
in place for what may lie ahead.

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SGS Volume Discounts

SGS has received several inquiries of late regarding our volume discount program. Our volume discounts apply only to non-numismatic rounds and begin with quantities of 200 ounces or more as follows:

200 -500 oz - $1.00 / oz discount
501 - 1000 oz - $1.50 / oz discount
1001 or more - $2.00 / oz discount

Volume orders will need to be placed by phone at present. We welcome individuals to enlist acquaintances to join them in a group order to take advantage of these discounts.

With the recent price drop
This is an excellent time to
take advantage of
volume discounts

_____________________
 
 

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additional articles of information
as they come up throughout the week

Quote of the Week

"If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. "

Milton Friedman



 

This Week's Videos
 


The Real Value of the Dollar
Robert Kiyosaki

Gold and Silver: The Price Is High For A Reason
Lind-Waldock Strategist Jim Comiskey talks about the relationship between precious metals and other commodities.

 

Contact us at info@silverandgoldshop.com
Phone: 888-203-2232 x 1
Making Sense of This Week's Takedown
January 7, 2011 
Issue 90


SGS Notes:
If you've been following the SGS Newsletter you will know that we try to bring the latest and most relevant news from the precious metals marketplace and commentaries by experts to our subscribers.

Often, it's a great challenge to select from the volume of material we peruse each week, the item(s) that have the most relevance and are the most understandable by the average person.

If you've been following the price action in silver and gold in the past 2 weeks, you will know that both metals made historic highs at the end of 2010, and have both had significant drops in this past week's action.

When we see this type of volatility in the market, there is a flurry of writing on the subject, making our task to select the one most relevant article for our feature article.

So this week, we've decided to bring you links to our top selection of informative articles for your reading, and allow you to decide which has the most relevance to your situation.

Happy Reading!

Making Sense of This Week's Takedown

Trader Dan's Daily Gold Action

Gold Over $2,000, Silver Above $50 in 2011
John Embry

New Buyers Taking on Silver Shorts is Very Bullish
James Turk

Silver 'Misbehaves' in Recent Rally: Time to Buy
Jeff Nielson

The Precious Metals Manipulation Explained
R. D. Bradshaw

Some Thoughts on the Manipulation
Hugo Salinas Price - Plata.com


Interesting Tidbits

Gold Vending Machine Unveiled In Vegas

Who Said The Dumbest Thing
About Precious Metals in 2010?

Adrian Douglas - GATA

Silver Joins Gold As Currency
Larry W. Reaugh

Silver Acticoat™ Dressing Wins
Lifetime Achievement Award


From the Bulls


Holding Physical Gold Is Absolutely Critical
To Your Financial Survival!

Egon von Greyerz of Gold Switzerland

Silver Is About As Close As You Can Get
To A Sure Bet! Here's Why

J. Edwards of Gold Stock Mania

The U.S. Dollar: Too Big to Fail?
Jerry Western

Win-Win-with-Silver
Jerry Western

 

See what we mean?


2011 Silver American Eagles

Each year the US Mint's production of new Silver
(& Gold) American Eagles is released late in January. We can special pre-order these right now, but will be carrying 2011 Silver Eagles in stock once they are available. Please call or eMail us if you would like to pre-order now while spot pricing is on
a down-cycle.

_____________________


MTP is a Free Service
Please recommend to friends, family, & acquaintances to help put a network
in place for what may lie ahead.

_____________________

SGS Volume Discounts

SGS has received several inquiries of late regarding our volume discount program. Our volume discounts apply only to non-numismatic rounds and begin with quantities of 200 ounces or more as follows:

200 -500 oz - $1.00 / oz discount
501 - 1000 oz - $1.50 / oz discount
1001 or more - $2.00 / oz discount

Volume orders will need to be placed by phone at present. We welcome individuals to enlist acquaintances to join them in a group order to take advantage of these discounts.

With the recent price drop
This is an excellent time to
take advantage of
volume discounts

_____________________
 

Become a Fan on Facebook !
http://badge.facebook.com/badge/378524044568.4264.837032185.png

We frequently post news of interest
as it is breaking on our FB page.

Become A Fan to receive
additional articles of information
as they come up throughout the week

This Week's Video

Gold and Silver Prices Signal the
Destruction of the Dollar

 

Contact us at info@silverandgoldshop.com
Phone: 888-203-2232 x 1
Buying Gold: Why Are The Chinese Gobbling Up Gold Like There Is No Tomorrow? ~ End of the American Dream
December 24, 2010 
Issue 89


SGS Notes: As is frequently the case, there is much being written on the subject of the increasing intensity of the manipulation by JP Morgan, and availability of silver supply, the potential for upward mobility of prices, as well as potential for short-term pullback... It's a challenge to sift through and bring you the most important of the news and analyses... Here are the articles selected for this week. I encourage you to dig further into these resources and others from previous weeks...

Buying Gold: Why Are The Chinese Gobbling Up Gold Like There Is No Tomorrow?
End of The American Dream.com

Why are the Chinese buying so much gold? In 2010 it has been demand out of China that has been one of the primary factors for the dramatic rise in the price of gold. Gold is up approximately 26 percent this year, and most analysts expect it to go even higher in 2011. So is China buying gold at a breathtaking pace because they view it as a good investment, or are there other factors at work here? Do the Chinese view gold as a hedge against inflation? Is China seeking to get out of U.S. Treasuries? Has gold simply become much more attractive than paper currencies such as the euro and the U.S. dollar? Or could China be preparing for the coming financial collapse that so many economists see coming? It is always difficult to tell exactly what China is up to, but one thing is for sure - they are buying gold like there is no tomorrow.

It recently was announced that China imported 209.7 metric tons of gold during the first ten months of 2010. That was five times more gold than China imported during the first ten months of 2009.

So what can account for such a dramatic increase?

Does China need all of that gold for domestic use?

Without a doubt gold is becoming much more popular in China, but it is not as if China does not produce a massive amount of gold on their own. In fact, since 2007 China has been the number one producer of gold in the entire world. They are certainly not suffering from a shortage of gold.

If that is the case, then what else could explain why China is buying gold so rapidly?

Well, there seem to be four primary theories for why China is buying up so much gold right now.

#1 A Hedge Against Inflation

Already we are starting to see some very serious inflation in China. In particular, food inflation threatens to spiral out of control. In an inflationary environment, gold is always a good investment.

#2 An Alternative To U.S. Treasuries

Over the past decade, China has invested very, very heavily in U.S. Treasuries. In fact, the U.S. government owes China nearly a trillion dollars at this point. However, over the last year or two China has dramatically slowed down their purchases of U.S. Treasuries and they have been actively seeking out alternative investments. Gold has always been a very safe investment, and with the world financial system so unstable right now it makes a lot of sense to invest in gold.

#3 A Lack Of Faith In Paper Currencies

Over the past decade, China has accumulated a gigantic pile of foreign exchange reserves, but lately paper currencies such as the euro and the U.S. dollar have become increasingly unstable. The European sovereign debt crisis threatens to collapse the euro at any moment. Quantitative easing 2 and the tax cut deal that Barack Obama and the Republicans are trying to push through Congress are causing the rest of the globe to lose a tremendous amount of faith in the U.S. dollar. In this type of environment, holding paper currencies has become much less attractive.

#4 Preparing For The Coming Financial Collapse

It doesn't take a genius to figure out that we are living in the greatest debt bubble in the history of the world and that at some point the world financial system is going to crash. When that happens, the safest place to be will be in precious metals and other commodities. The Chinese have been busy gobbling up gold, silver and many other commodities, and so whether they mean to or not, they are positioning themselves to weather the coming financial storm better than most other nations.

Once again, it is always hard to tell exactly what China is doing. Perhaps in six months or a year China will change course again. But right now China is gobbling up huge amounts of gold, and if this continues it is going to create a huge imbalance in global financial markets.

In fact, if all of this Chinese gold buying goes on long enough, it could blow out many of those who are holding significant short positions in gold.

But it is not just the Chinese government that has caught "gold fever" these days.

Chinese citizens are buying gold at a rate that has never been seen before.

On the Shanghai Gold Exchange, trading volume soared 43 percent during the first 10 months of 2010.

As the Chinese middle class has grown, gold has become much more popular. Amazingly, Chinese households have purchased almost half as much gold since mid-2007 as all the investors in the West combined.

This is yet another sign of how far China has come. China is not a minor player on the world stage any longer. The truth is that China is now a major economic superpower.

In a previous article entitled "China #1, United States #2? 25 Facts That Prove The Transition Is Really Happening", I detailed some of the statistics that prove that China has become an absolute powerhouse. The following are just a few examples of those statistics....

*The United States had been the leading consumer of energy on the globe for about 100 years, but this past summer China took over the number one spot.

*Over the past 15 years, China has moved from 14th place all the way up to 2nd place in the world in published scientific research articles.

*According to one recent study, China could become the global leader in patent filings by next year.

*China now possesses the fastest supercomputer on the entire globe.

*China now has the world's fastest train and the world's largest high-speed rail network.

*Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China's share had soared to 20 percent.

Other Articles of Interest

Let's Get Physical!

James Turk discusses backwardation, contago and why physical metals are important

The Great Silver Caper
Eric Fry discusses the JP Morgan
naked short position and ongoing impacts
on silver investors.

Gold Or Stocks?
Bill Bonner discusses the rationale
for choosing gold over stocks


News: Backwoods Home
Magazine now accepting
Silver in payment for
subscription.


MTP is a Free Service
Please recommend to friends, family, & acquaintances to help put a network
in place for what may lie ahead.

SGS Volume Discounts

SGS has received several inquiries of late regarding our volume discount program. Our volume discounts apply only to non-numismatic rounds and begin with quantities of 200 ounces or more as follows:

200 -500 oz - $1.00 / oz discount
501 - 1000 oz - $1.50 / oz discount
1001 or more - $2.00 / oz discount

Volume orders will need to be placed by phone at present. We welcome individuals to enlist acquaintances to join them in a group order to take advantage of these discounts.

 



 

Become a Fan on Facebook !
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We frequently post news of interest
as it is breaking on our FB page.

Become A Fan to receive
additional articles of information
as they come up throughout the week

Quotes

"Gold bears the confidence of the world's millions, who value it far above the promises of politicians, far above the unbacked paper issued by governments as money substitutes. It has been that way through all recorded history. There is no reason to believe it will lose the confidence of people in the future."

 

Oakley R. Bramble

 

Available for Limited Time

Combining the popularity of the Morgan design with the divisibility of the Tea Party round, we have a limited supply of Divisible Morgan Rounds available. These are an over-run from a Special Order custom minting.

Available on first-come, first-served basis... shipping after New Year's.

 

888-203-2232 x1
info@silverandgoldshop.com

 

This Week's Video

Silver Primer & Silver Report

 

*Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.

So what about the United States?

Well, the truth is that Americans have become so dumbed-down that only about 70 percent of them can even find China on a map.

How sad is that?

On the global chessboard, China seems to constantly be four or five moves ahead of the United States these days.

So if China is busy buying gold at a feverish pace perhaps it is because they know exactly what they are doing.

Contact us at info@silverandgoldshop.com
Phone: 888-203-2232 x 1
Past Wisdom And a Return To A Reality-based Monetary System ~ Larry Myles
December 10, 2010 
Issue 88


SGS Notes: This week's video is important to listen to. We are seeing increasing delays in obtaining inventory. I had a conversation with one of our suppliers today who informed me that they are starting to see delays in getting the silver to mint...EVERYONE PLEASE UNDERSTAND : it's beginning to 'hit the fan'... there is a very real silver shortage... You may see some dramatic dips that happen in conjunction with the manipulations going on, but the duration is getting shorter and shorter... the prices are quickly returning to free market rates... Gold/Silver ratio is now down to 48:1... still has a long way to go...

Past Wisdom And a Return To A Reality-based Monetary System
Larry Myles

"Precious metals alone are money. Paper notes are money because they are representative of metallic money."

Samuel Jones-Loyd, 1st Baron Overstone. (1852)

We can thank Baron Overstone for his words of wisdom; although it appears many of our modern leaders have forgotten the foundation of true wealth - prosperity through production and fair trade, along with a value-consistent currency based on gold and silver. True wealth… sustainable wealth cannot come about through the printing of air-backed fiat currency, followed by sophisticated multi-layered financial scheming that makes the collection of fiat an end unto itself. Sooner or later the inflationary factor will erode the wealth right out of those air-backed paper notes.

Worth noting: Prior to 1914, each of the above mentioned in-country paper notes were representative of a certain weight of gold. The U.S. Dollar equalled 1/20th of a gold ounce. The British Pound Sterling was representative of ¼ of an ounce of gold. I for one am not interested in debating the alleged absurdity of returning to the gold standard; other than to say the fiat-only model is clearly not working.

Making the case is the frequency of the recent spate of (unsuccessful) G20 meetings. In 1944 the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states. The agreement lasted almost forty years. In 1971 Richard Nixon removed the U.S. from the gold standard and commented on the success reached by world leaders (Smithsonian Agreement): "The greatest single monetary agreement in the entire history of world civilization and will guarantee global prosperity." A little over a year later, the agreement collapsed in total failure.

Both of those agreements came after months of careful planning and were trumpeted as a final solution to monetary stability. Fast forward to the present; we are now enjoying G20 meetings that are becoming almost monthly events, replete with wrangling and finger-pointing. Yet no amount of trickery or shadowy alliance-building is working. Why? Trying to sculpt a coherent policy based on the irrational printing of air-backed fiat currency is a fool's game. Again, the futility of the Glass Bead Game comes to mind; especially when a monetary formula for success and prosperity is readily available - but it would mean wresting control away from the world's bankers!

Basing the worth of any and all currencies on the weight of gold would bring much-needed reality to a world awash in worthless paper money. Believing in a gold-based system too hard to swallow? Okay, what is your solution? That we remain rooted in the world of Reductio ad absurdum? That is no solution and I think you know it.

A personal solution; and one being practiced globally, is the growing number of people who are shunning paper money and turning to gold and silver. China is one nation that is openly encouraging its 1.3 billion citizens to get out there and accumulate the currency metals. It is the same story in India where you can even buy or order gold from neighbourhood postal outlets. You do not have to tell the Europeans twice; they are buying gold like there is no tomorrow. America? Two years ago we did not succumb to the scandalous falsehood that 'buying gold is un-American'. That whisper campaign failed miserably. Last year, the 'phony gold bubble' story enjoyed even less success. In 2010, the current administration in Washington, has proven itself to be pathologically stubborn. I am certainly not expecting an endorsement from our Keynesian enamoured leaders to buy gold. They will go down with their ship; but that does not mean you have to join them.

If Washington attempts to outlaw gold and silver, we will respond with scoffing defiance, followed by anarchy and lawlessness. As I have stated many times, the collapse of currencies is coming.

Hopefully, out of the rubble, a system may emerge based on two radical ideas; we will embrace a monetary system based on gold, and the world governments will adapt a plan that includes a schedule of debt forgiveness. Think about it. This is not a position of destructive radicalism; more a case of remorseless logic and a valid attempt to at least move the dialogue in a different direction.

When it comes to the demise of fiat currency throughout the ages, I am not just talking through my hat. I do have history on my side. Debauching the in-country currency toppled Rome and lead to the French Revolution. The audacity to think our system cannot collapse is almost laughable.

In the interim, fasten your seat belts and prepare for the global carnival of madness to continue! Expect currency swings, sovereign debt defaults, the collapse of national governments, isolationism and trade wars becoming the order of the day. The carnival show is already in progress. For those in the know, some are comparing this to a fiscal Greek Tragedy. Please, do not take yourselves that seriously. Looking back over 2,000 years of currency default, we are merely watching a repeat performance of a not very original, hackneyed misadventure in Black Comedy.

Other Articles of Interest

2012 IRS Rules Change

David Nguyen Activist Post

Silver Supply Crisis Looms
Part I

Part 2

Jef Nielsen Bullion Bulls Canada

Bernanke: 60 Minutes,
2 Big Lies

Michael Pento
Euro Pacific Capital

News: Backwoods Home
Magazine now accepting
Silver in payment for
subscription.


Free Service
Please recommend to friends, family, & acquaintances to help put a network
in place for what may lie ahead.

SGS Volume Discounts

SGS has received several inquiries of late regarding our volume discount program. Our volume discounts apply only to non-numismatic rounds and begin with quantities of 200 ounces or more as follows:

200 -500 oz - $1.00 / oz discount
501 - 1000 oz - $1.50 / oz discount
1001 or more - $2.00 / oz discount

Volume orders will need to be placed by phone at present. We welcome individuals to enlist acquaintances to join them in a group order to take advantage of these discounts.

 



 

Become a Fan on Facebook !
http://badge.facebook.com/badge/378524044568.4264.837032185.png

We frequently post news of interest
as it is breaking on our FB page.

Become A Fan to receive
additional articles of information
as they come up throughout the week

Quotes

"Precious metals alone are money. Paper notes are money because they are representative
of metallic money."

Samuel Jones-Loyd, 1st Baron Overstone. (1852)

Recurring Orders At SGS

We are asked occasionally to set up recurring orders for customers who desire to place monthly orders on a scheduled basis. We have done that on a case-by-case basis with a few customers who have requested it.

 

If you would like to set up a recurring order, please contact us by phone or eMail. There is some paperwork that must be completed for us to do this for you.

888-203-2232 x1
info@silverandgoldshop.com

 

This Week's Video

NIA Interview with Bill Murphy
Note: Bill Murphy & Andrew Maguire testified at the CFTC Hearings in the spring regarding the
Fraud of naked shorting of precious metals. He is the world's top expert on the manipulation and price suppression scheme that has been taking place in the gold/silver markets.

By InflationUs

 

Ideas for Christmas Giving...
 
Silver makes a wonderful lasting and valuable gift!
Call us to arrange for a gift certificate !
 

LEATHERETTE GIFT BOX

Steel case wrapped with Leatherette, white satin interior top and Leatherette base. Available for Bars or Multiple Coins by Special Order

BLUE VELVET GIFT BOX

Sized to hold Airtite containers in sizes 39mm or 40.6 mm. Perfect presentation box for gift-giving. Available for Silver Bars by Special Order. Available in 3-coin size also by Special Order.

 

ALBUM STORAGE BOX

Album Storage Box by AirTite, in black. To be used with AirTite Storage inserts (In black, red, or blue sold separately) & Plastic Holders (sold separately)

And don't forget to get AirTite coin or bar holders to protect your gift...

Contact us at info@silverandgoldshop.com
Phone: 888-203-2232 x 1
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