In Jim Cook's Archive

SILVER SUPERLATIVES

Industrial users of silver have been getting by on the cheap for years.  The low price has meant they’ve cranked up the usage of silver and expanded the number of applications.  Most of the silver ever mined has disappeared forever through industrial uses. You can’t make a better case for an asset than it is crucially important to industry.  Without silver much of the world’s economy grinds to a halt.  The world’s industrial users will be willing to pay much higher prices for the silver you hold.    Can you think of a more powerful reason to hold an asset?  The biggest companies in the world in diverse industries absolutely must have it.

Superimposed on this powerful backstop to price is the demand for silver by investors.  This factor waxes and wanes on price movement and economic news.  In a world where most investors and institutions hold paper assets that increase in number exponentially, a rare metal that can’t be cranked out by governments and central banks has a lot going for it.

Although there isn’t enough silver for it to be circulating money again it still has monetary significance.  Numerous national and private mints produce silver coins that are acquired by investors.  This fits with its three thousand year history as money.  Silver evolved as money because early civilizations found it to be beautiful and useful.  Nobody declared silver to be money as governments do with their failing paper money.  Silver acquired an intrinsic value that is bigger now than ever before.  Silver didn’t corrode, rot or rust.  Silver could be worked by artisans because it was malleable. Its ownership signified wealth, power and status.  The historical value of silver combined with the current demand factors proves that it is the single greatest investment asset on earth today.  Add in the fact that its price has probably been artificially suppressed and in my opinion you have the world’s greatest asset with the world’s greatest potential for gain.

We strongly urge you to put 10% of your net worth into physical silver.  If you are worth a million dollars put $100,000 into silver.  Do not count silver stocks, silver options or silver futures.  Your bedrock holding should be the real thing.  Buy a gun safe, build a secret room or rent a bank box.  Hold your silver for the long term.  Silver should be one of the most important assets for your lifetime.  Remember that paper money can be increased by billions with a computer entry but silver must be dug out of the ground.  Silver can offset the damage to your paper investments.  It has outperformed the stock market for 10 years and that includes Warren Buffet and Berkshire Hathaway who sold their silver way too soon.  We expect future gains to follow the pattern of the last decade.

Our crystal ball tells us that economic turmoil lies ahead.  The amount the U.S. government spends each year cannot be sustained.  The tax increases we hear so much about won’t even cover government waste and cost overruns.  You see how Europe’s social welfare schemes are collapsing.  You know that we have the same monetary sins and anti-capitalist bias that is ruining them.  You must protect yourself against the ugly events we all suspect may be coming.  It’s more important to have silver to protect you than to have silver because of its profit potential.

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