In Touch Financial—William Lenderman, III Financial Mentor
79935/ Phone: 915-595-2751
Email: WL3@whc.net/ Website: keepingintouchfinancial.com
” Experiencing Success One Good Idea at a Time”
Discerning the Trends
There are two overarching trends which affect us now, and will affect us strongly in the future. They are parallel and complementary to each other.
The first trend is the purposeful destruction of the currencies in every country of the world. Starting in September 2001, I suggested to many individuals, that saving a certain amount of real money by exchanging fiat currency for silver would be a wise way to protect against future inflation and to eliminate the temptation to gamble in the stock and bond market casinos.
The second trend is the increasing rapidity with which we are approaching the New World Order. Simply stated, this is a concerted effort to subjugate every country in the world under the rule of a single government headed by a single person who will control the entire world. The countries that cannot be subverted through the brainwashing programs of government run schools, and rendered immoral by sophisticated brainwashing by the media, will be attacked and subjugated by force. You can see these trends, not only in the United States of America, but in virtually every country in the world.
This message is meant to list some of the pros and cons of retaining silver, or obtaining more, as a way of saving real money that is not subject to inflation. You will recall that I began making this suggestion in September 2001 when silver cost $4.12 an ounce. Those of you, who have been clients for at least two years, will remember the letter I sent you through the Post Office in August of 2011, explaining that I thought gold and silver could come under great pressure for reasons I explained. That is exactly what has happened. This is still the case. It is very possible that silver could continue down in price, and surprise us by how low it could go. As of this writing, silver is selling for 23.33/oz. One ounce silver eagles now cost between $28.00 and $30.00 each. There are a number of reasons that could possibly explain such an occurrence. There is also the strong likelihood that silver will soar at some point as national currencies are reduced in value to the point where they become virtually worthless.
Potential Downside of Owning Silver as a Means of Saving
We are currently in the thirteenth year of the deflationary phase of the greatest depression the world has ever seen. Ironically, in a period of deflation, fiat currency like the Federal Reserve notes we use in the United States, becomes increasingly more valuable. As a result, I have emphasized the need to hold on to plenty of “cash” for many years. That is one of the reasons why I am a strong advocate for the “Bank on Yourself” concept. Having adequate funds available, as they are needed, also gives great flexibility as circumstances require quick responses in the future. A temporary increase in the value of American currency means silver could continue to cost less as long as this trend continues.
As I have explained, many people may be forced to sell their silver in order to make ends meet, since the real unemployment rate in the United States is approximately 30% at this time. This estimate includes people who are capable of working, but who can’t find jobs. It includes those who have a job that won’t pay the bills, and also those who have given up looking for work and have chosen to sign up for Social Security disability benefits because they see no other way to provide for their families.
Cycles are powerful. I can’t explain why a 30 year cycle for gold and silver exists. Still, this cycle has a very strong influence on the price. I expect that August of 2011 was the very top of the cycle. If there were no other influences, the price of gold and silver would be likely to continue down for the balance of 15 years before they would tend to increase again.
Over the last 13 years, many people have chosen to gamble in the stock and bond markets, because interest rates are so low, and they are desperate for a rate of return. Obviously, silver does not pay interest. That means there is a temptation to sell the silver and gamble the money in the stock and bond casinos with the hope of making a higher return.
Approximately two weeks ago, two investment banks, JP Morgan, and Goldman Sachs, recommended that their clients sell gold and silver. One day during that week these two institutions sold a massive amount of silver within a single hour. The amount of silver sold was the equivalent of 15% of the mining capacity of the entire world for a period of a whole year. Dumping this much of any product onto the market all at once can only be a deliberate attempt to crush the price. This forced a lot of people out of the market, especially if they had been buying on margin and couldn’t produce the money necessary to stay in the game.
Gold and silver have both been marginalized for a long time, as far as their use as money is concerned; silver, since 1964, which was the last year silver coins were produced, and gold, since 1971, when gold certificates were no longer honored against the claims of foreigners. As a result, a great number of Americans have never seen gold and silver used as money, and currently regard them as investments instead of savings.
In the last few years, there have been several attempts by imaginative people to create private money. All governments, including our own, regard private money as competition, tend to act quickly to crush any such movement, and also to jail the offenders who have tried to break the government monopoly. The latest, and the most intriguing, is the advent of Bitcoins. This is an attempt to create electronic money, very much like the Federal Reserve notes, but with a limit to the number produced. This attempt is currently under attack by the United States government and could eventually be destroyed by hacking using sophisticated computers, by the invasion of the privacy of people using Bitcoins, or by criminalizing, or by heavily taxing such activity.
We are rapidly coming to the point where virtually all transactions are conducted electronically. By eliminating paper money altogether, government agents could easily track every single purchase or sale, and have a virtually complete surveillance of all private activities. Eventually, it will be a very simple thing to imbed a sensor in the back of the hand or in the forehead so that people can conduct transactions without even the need for checks or credit cards. You can be sure that this procedure will be aggressively pursued and heavily encouraged over the next few years. At some point, this will probably become the government required method of payment. If so, every other type of payment would eventually be outlawed—including Federal Reserve notes, gold, and silver.
Positive Upside to Accumulate Silver
There is currently an overwhelming demand for physical gold and silver all around the world, it is becoming difficult to find coins or bars of precious metals anywhere, both at the wholesale and retail levels. As a result, once this shortage is widely recognized, many citizens could rush to buy while silver is still available. This could put such upside pressure on the price of silver that the cost could raise dramatically.
Silver is a special case. Besides being used for money, just like gold, since the beginning of time, it is also used heavily in manufacturing. Between its use in manufacturing and its value to protect people from inflation, it is likely that silver, which is already in tight supply, could be increasingly difficult to purchase. Anything both precious and in tight supply tends to command high prices.
Based on the fact that the United States and its allies are invading countries all over the world, there is always the possibility that a country we invade, or its allies, could retaliate. The destruction, and the fear it would create, would make precious metals extremely desirable and could raise prices to great heights.
At some point in time, this deflationary phase of the world’s greatest Depression will turn to the inflationary phase of this same Depression. At that time, interest rates should rise significantly and the value of the money can be expected to drop. Owning silver would provide an opportunity for prudent people to escape the enormous loss of buying power that is certain to occur.
Unless, or until, electronic money is required by law, gold and silver could return to their classic use as money. This would create a great demand for both.
Many people find it useful to hold silver, since there are no taxes if the price increases until the silver is sold. Though it is likely the federal government will impose additional taxes on the sale of silver, a significant number of states have already proposed the passing of laws making the purchase and sale of silver and gold non-taxable. This is an encouraging trend.
In the event of civil unrest and turmoil, including the potential for bank holidays, having savings on hand, either as Federal Reserve notes, or as silver and gold, could be a lifesaver in a monetary crisis.
After the next stock and bond market crash, people could find silver an excellent asset to preserve capital and to buy the things that are needed.
It is hard to imagine something that produces greater peace of mind than to be able to hold valuable money in your hand, knowing that the money cannot be inflated by government printing presses or by a keystroke on a computer keyboard.
At least one state has recently passed a law requiring those who buy or sell silver and gold to be reported to state authorities. This suggests the possibility of future confiscation. That is a powerful incentive to buy precious metals now, when no such requirement exists in the other forty-nine states.
The dictator who will preside over the developing New World Order will have the ability to exercise powers no tyrant ever dreamed of in the past. He will not only require absolute obedience, like the Babylonian, Roman, Greek, Egyptian and British kings, but he will surely require that his subjects worship him as God, again like these powerful predecessors. People who disobey him will be hunted down and killed. Many will be denied the ability to buy and sell. Silver and gold could possibly be used by these individuals to buy food and clothing and the other necessities of life.
It’s Your Call
In conclusion, there are many reasons to avoid silver at this point. There are also many valid reasons why a person might want to accumulate a significant savings in silver, or to increase these savings if the price continues to go down. When the price does eventually go up, the rise is likely to be dramatic. At that time, it could be extremely difficult to find silver available for purchase at any price. The decision you make now will have a significant effect on your financial future.
You will need to decide what is the best decision for yourself and for your family. Retail sales of gold and silver are currently breaking all records. Government mints have run out of coins to sell. The American mint is rationing sales at present. Premiums on all kinds of coins are rising dramatically.
Exciting times, wouldn’t you say?
Hopefully, the information I have provided will be enough to help you decide what course of action you want to take. The time to decide could possibly be short.