The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!
May Health Wealth And Success Be Yours!
On to the business of protecting your wealth…
MUST SEE TRAILER: Looking for something to do this weekend? Take the whole family to the movies and educate them on what is happening. This 3.5 minute trailer, ‘Money For Nothing’: The New Fed Documentary Is Absolutely Fascinating!
Also, if you have time, you will want to view this brief video with Michael Maloney about silver manipulation. He says that most people shy away from silver and gold due to it being manipulated, but he says this is the very reason he invests in silver and gold! Very interesting to hear…
Sometime last week, I brought you the first part of a muti-part series called “The History of Platinum” today, the second segment in the series is available to view, it’s called “Platinum, Supply & Demand”
If I’m such a silver bug, hence “The Silver News Surfer”, why bring you info on other metals?
One: I am a hard asset bug, not silver specific, but all hard assets in general.
Two: I think people follow me because they too want hard asset protection and good, meaningful advise that I provide to the best of my ability. I say the best of my ability, because I think you can see how much effort goes into these reports every single day – when was the last time you got even one report such as this from your stock broker or money manager? I don’t do this to hurt you, I do this to try and help you!
Three: I think people are worn down about the “silver” story and they haven’t seen much action lately. I must beg to differ; From June 28th silver went from $18 low to $25 high for a full $7 run in a very short period of time. However, I wanted to show you that there are other alternatives to silver and gold.
Platinum and Palladium are also precious metals that don’t get much attention.
This gives me a segway into today’s main point. I received an email from a reader yesterday and I promised I would address it in today’s report. Here is his email…
“Hi I am a follower of silver. I have been watching silver for many years. Every other metal has done as well or better than silver since I can remember. All the pundits all the pros are pushing silver to no avail. Yet every time when silver makes a good move the suckers keep going back into it. So lets see if you know the answer why silver is not going anywhere except for its annual volatile move both up and down.”
I am in full agreement that silver is an extremely volatile metal. However, as you can see by the chart below (sorry about the poor quality) over the last 13 years, silver has been an amazing vehicle to preserve wealth and protect purchasing power of a weak dollar.
This is why I always encourage people to tune out the daily noise and focus on time stints. Silver and gold are LONG TERM investments and should not be viewed any other way. They should be viewd as a saving account or even a retirement account.
If you had the good fortune to buy silver in the year 2000 and still had your pile today, these daily gyrations do not concern you – Silver was at $9 and is now $22.50 and will only go higher – Sure it could go lower for short periods of time, but I can assure you that those folks who bought in 2000 are certainly buying more today. These folks are in it for the long term wealth preservation that only hard assets like silver and gold can provide, they very rarely trade it.
I believe the reason why the “pundants” push silver is because of its multi-faceted place not only in the financial system, but also its industrial uses and the reports that show diminishing supply and in-ground availability, make it an attractive investment vehicle for many years to come…
When it comes to silver, you can make money in the short term, but when demand overwhelms supply, would you sell your silver? And if so, for what – another currency?
In closing, the reason silver is not going anywhere (significant) right now is because and due to manipulation, and as Mike Maloney pointed out in the video above, the manipulation can sometimes be a good thing… If silver and gold were at $2,500 and $100 respectively, what would mean for our US Dollar? Where would that be and what would it buy us?
When the FED has paper and ink and they can print over the problem, (in their view) why not keep doing what they’ve been doing until it can’t be done anymore? And I feel that this is what’s happening today, so up or down, gold and silver are the hard asset choice for all the “suckers” out there who “get it”.
Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….
Now, onto the breaking news that matters…
Silver: Gold’s Not-So-Ugly Stepsister – Bullion investment is a key component of silver demand representing approximately 25% of total world demand. Demand for both silver bullion bars and coins is rising. As a proxy for silver bar demand the iShares Silver Trust provides accurate, timely insight into silver flows. Flows into ETFs turned positive for 2012 and continue to rise. Investment demand for bullion coins is also elevated and has returned to 2011 levels. Record bullion coin demand is evidenced by record year-to-date American Silver Eagle sales.
Increasingly silver is looked upon as precious metal investment in addition to an industrial commodity. Because of this duality it offers an interesting alternative to gold bugs. Interestingly silver has significantly outperformed gold and current trends in investment demand point to a continuation of this performance pattern.
Amazing – GLD ETF Tells Customers You Can’t Have The Gold – Today one of the most highly respected fund managers in Singapore shocked King World News when he said that custodians of the ETF GLD have refused to give people physical gold in exchange for the shares. Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also warned that the massive and escalating paper claims on physical gold at the COMEX warehouse are going to create an explosion in the price of gold.
a lot of the reason people want to own gold is because they want physical custody of something that can’t be debased, can’t be devalued, and doesn’t have any other claims on it. Of course trading through futures or ETFs is a very dangerous game to play at certain moments in time, and it really feels like we are approaching one of those moments. The ETF is the preferred vehicle for most casual investors in gold. They like to buy the ETF believing it’s as good as owning gold, but unfortunately, when push comes to shove, it really isn’t.
Also confirmed by John Hathaway:
People Can’t Get Their Gold Out Of GLD As Inventories Plunge – I have been warning about this for a long time and so have a number of other people on KWN — that the pyramid of paper, relative to the underlying gold, is large and it’s growing. And people who hold paper claims like futures contracts, and notes from banks that have a derivative aspect to them, are simply kidding themselves if they think they have the protection that owning physical gold offers.
I think this is going to be one of the biggest stories over the next couple of years, and I do agree with Grant in that this is the sort of thing, in the right context, that could drive the price of gold much, much higher than anyone thinks, and by that I mean well north of $2,000.”
Stephen Leeb: GLD, Gold’s Coming Super-Surge & The Next Bretton Woods – We are in about the 3rd inning of a 9 inning game. Gold has made a bottom, silver has made a bottom, and commodity prices are heading higher once again. It is right at that moment that there will be a point of inflection, and that is when gold will be surging through $2,000, $3,000, $4,000, etc.
So when investors ask, ‘How high is gold going to go?’ I wouldn’t even be excited at $2,000. That’s just when the next bull market really starts. We are still consolidating the first run from $250 to just above $1,900. That was the first run. The next run starts as gold breaks $2,000. The spike above $2,000 will represent a massive breakout for gold.
So, for investors, owning physical gold is something you must do for the sake of yourself and your family in order to preserve your wealth.”
Banks Warning if they do not Trade with Other People’s Money Liquidity will Decline When Needed – The Bankers have the Fed investigating the regulations in a very clever bid to trade wildly once again your and other people’s money. They are claiming that in the bond markets “Regulations have created multiple constraints likely to curtail liquidity when it is really needed.” This is the statement made by the ill-fated Treasury Borrowing Advisory Committee, which is a group of bankers and investors.
The implication is government will be screwed unless they can trade as we like because when it comes time to sell your debt, you will have great difficulty unless they can trade whatever, whenever, and without prosecution.