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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Howard Ruff
November 12, 2012
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Gold and Silver

There are several reasons you should continue to buy gold and silver: Obamanomics: Socialist states always inflate the paper currency. Obama, Congress, and the Federal Reserve are diluting the dollar like never before by creating more of it.
They have manufactured trillions of dollars out of nothing at the fastest pace in history, and it will continue to accelerate. The government has given trillions to the big banks,
which will loan the dollars into circulation or give them to politicians to spend into circulation. This money expansion currently dwarfs several times over the monetary explosion that led to the Carter-driven metals bull market in the ‘70s.

I can’t overstate what is happening. The uninformed may call this monetary-expansion process “inflation” but it really should be called “dilution” — dilution of the money supply and onsequently its value. Inevitably, consumer prices rise and laymen then
mistakenly call that “inflation.” Calling rising prices inflation is like calling falling trees hurricanes.

When will the public catch on? Price inflation and gold prices are the chief measurements of public awareness. When the public catches on, awareness becomes a critical mass and the metals go through the stratosphere.

Real money: Gold and silver (especially silver) have been real money over and over again, in all ages of time and on all continents. Ever since Gutenberg invented the printing press 400 years ago, the world has been littered with worthless dead paper currencies every 75 to 80 years, due to runaway money printing. Every time the dominant currency has been inflated, gold and silver coins have become hugely profitable investments, and sometimes the only surviving currency.

Throughout history, each time a paper currency finally caved in to inflation, gold and silver (especially silver) became the only universally acceptable coin of the realm. Gold and silver as a means of exchange and a store of value have always survived. They have always been symbols of wealth, far more precious in our consciousness than any mere paper.

During periods of hyperinflation, there always comes a time when people refuse to accept more and more counterfeit, inflated money or base-metal coins in return for their
hard-produced goods and services. At that point, society instinctively turns to gold and silver. It has happened over and over again, and as George Santayana said, “He who refuses to read history is forever condemned to repeat it.”

It’s early in the game: The bull market in gold and silver is not over yet. This is still a low-risk investment with an awesome upside for the long-term investor, especially silver. This gold and silver bull market will dwarf the last great one from 1973-80, when fortunes were made with relatively small amounts of money invested by amateur investors (many of them my readers). All of the factors that created the last bull market
are here again, only amplified several times. Supply and demand: Both metals are far rarer than most people know. All the gold ever mined since the dawn of history, including that in Central banks, gold fillings, and sunken shipwrecks in the Caribbean, etc. would cover a football field about four-feet
deep. It would make a cube about the size of a typical eight-room house. Demand is now leaping past new supplies.

Likewise, most of the easy silver has been mined over the centuries, even with primitive methods. For example, during the Roman millennium, they used silver coins for currency and exhausted the Spanish silver mines.

Now that prices are high enough to make gold and silver mining profitable again, it will take several years to develop new mines, so stagnant supply and rising demand have made higher prices inevitable for the future.