In Jim Cook's Archive


The first thing we say is have patience.  We’ve had people stranded at higher prices before and silver came back to make new highs.  The world’s foremost silver analyst, Ted Butler, thinks we will go much higher.  Normally, telling people to average down is bad financial advice.  However, silver could prove to be the exception.

Nobody knows for sure what to do with their money these days.  Safety has become more important than yields.  Risk is out, liquidity in.  However, meager returns mean that inflation is sapping the purchasing power of these dollars.  Inflation is a hidden tax and the government and central bank have an overt policy of debasing the currency.  Furthermore, there’s always the risk of runaway inflation.

One reason stands out as to why we see silver as the very best asset you can put some money into.  Silver has had its price artificially suppressed.  No other asset you can own has had this circumstance.  That means the free market price of silver should go higher once the price suppression ends.  Mr. Butler claims that the price suppression has interfered with the law of supply and demand.  A lower price for silver meant that more was consumed and less was produced.  The logical and inevitable end of an artificial price suppression is a shortage.  Mr. Butler claims we are at that point now.

An artificial price suppression seems to offer an opportunity like nothing else.  It’s an extra-special quality that’s extremely bullish.  It goes on top of huge industrial and investment demand for silver.  It’s superimposed on pending regulatory measures that would end the price suppression and set silver free.  It’s set against a backdrop of currency instability and potential collapse and panic overseas.  Furthermore, it appears set to attract a growing following as more people come to understand its bullish nuances.

We advocate you put 20% of your net worth into physical silver.  Keep it in a home safe, bank box or secure hiding place.  Remember that the reasons it has been going up for ten years are still intact.  The big short seller has yet to cover.  The industrial users have yet to panic over the shortage.  The investment buyers of silver have yet to feel the impact of flagrant inflationary policies.  All this and more is yet to come and Mr. Butler assures us it makes silver first among assets you should own.

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