Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home


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.

..Read More »

The Best of Jim Cook Archive

Commentary Of The Month
January 7, 2016
archive print


By Jeff Nelson

Back in the early 1980s, after the explosive rise in the price of silver, the banking syndicate crashed this market, taking the price of silver down to a 600-year low. We know this was the result of intentional manipulation. We know this because after the price of silver hit this extreme low, the banking syndicate held the price at that level for a full decade. It was only after their chokehold eased that the price of silver began inching higher. What happens when you push the price of any product to a 600-year low? You bankrupt most of the producers of that product. This is what happened in the silver sector. Well over 90% of all silver miners were driven into bankruptcy. For over 4,000 years, most of the world’s silver was produced by “primary” silver mining in silver mines. But since the banks crashed the silver market to a 600-year low, we have received 70–80% of our annual supply of silver as the byproduct of mining copper, lead/zinc, and gold.
We are dealing not only with “a precious metal” that has high allure/demand, but also the world’s most-versatile “industrial metal.” A high-demand market, plus anemic supply (due to perpetually suppressed prices) is an equation that yields only one possible result: supply deficits, year after year for thirty consecutive years. The world must have silver. A dizzying array of consumer and industrial products would see their supply dry up with any default in the silver market.

How do you reverse a “supply deficit”? Economics yields only one answer to that question: higher prices. Raise the price of silver high enough and more companies will begin mining it. Raise the price high enough and (eventually) demand for silver will decline. The only “cure” for the over thirty years of extreme price suppression is prices that are much higher than the absurd current price of $15/ounce. A recent commentary pegged a fair price for silver, today, at $1,000/ounce. That estimate was based upon an objective, historic metric: the average wage. At $1000/ounce for silver we would return to normalcy, where the world gets most of its silver from silver mines. With silver being used in only tiny quantities in many of its industrial and consumer applications, even a price increase of this magnitude would only mute demand.