Ted’s essays

Hi Ho Silver

dunceThere are two fundamental schools of economic thought. The Keynesian mythology says that the bankers and government can manipulate the money supply to your benefit, but historically have never done that. Just keep allowing them to suck the lifeblood of the economy and someday A) they will finally deliver on their promises – or B) they will be the ruling elite with none but peasants underneath them.

the-thinkerWith extensive data and historical record behind it, the Austrian Economic community is absolutely certain of imminent collapse of the fiat (unbacked paper) economy. You do not have time for extensive study to conclude this. You must act while you have the opportunity. You must act on faith.

In fact, you will most certainly act on faith as you will trust either those who built the economic system that is at the precipice OR you will trust those who have worked to popularize a healthy alternative.

wiley-t-coyoteEven from mainstream sources, you have probably heard of “the fiscal cliff” and some folks securing their capital by retreating to gold. This is a good idea, but silver is much better. I will not spend pages explaining this, but in brief, the silver/gold ratio has a several thousand year history at 16:1, but is currently 53:1. This temporary, manipulated rate will return to the norm for a 235% increase in silver relative to gold.

Governments in collapse have a bad habit of confiscating gold. Silver is almost never confiscated.

Industry consumes a lot of silver and almost no gold. The current rate of consumption exceeds the rate silver is mined and refined. There is more refined gold above ground than silver. Industries who consume silver will pay whatever they must in order to have that small, but crucial component in their manufacturing process. For example, if a fraction of an ounce enables them to produce a catalytic converter, keyboard, computer, battery or drug, they will pay ANY market price for silver in order to create their product, or will go out of business trying.

The major factor in today’s silver market is manipulation: 95%+ of the silver exchanges determining today’s market price are paper only. Major financial institutions trade paper promises specifically to keep the price of silver artificially low, propping up their fiat currencies.. As the supply of physical silver gets precariously low, the pressure to deliver physical silver goes up. This is about to break the paper market down completely. Very soon, the silver price will rise parabolically.

Have some silver. It is secure savings. No modern currency is.

Contact Northwest Territorial Mint, Auburn, Washington (800) 344-6468. Tell them I sent you.

I highly recommend bags of pre-’85 – 90% silver (dimes, quarters, halves, dollars) and 1-oz newly minted 99%-pure silver rounds for AT LEAST half your savings. Get a large amount of whatever they will deliver soonest. Physical delivery is most important. If you don’t have it, you don’t own it.

As I write, silver is trading at $33 per ounce. The entire essay above will remain true when silver is at $200 per ounce and well beyond that.