In Jim Cook's Archive


I don’t believe you can have a more bullish argument for gold and silver than the one Ted Butler makes now. The facts about JPMorgan are beyond bullish. Their large gold position makes a major price rise probable. Being privy to this information is like having inside information. It’s really not inside information because Ted Butler relies on public data. However, it’s very much like inside information because so few people are aware of it. Only a small handful of people get Ted’s newsletter, along with the readership of our letter. Although we send our newsletter to 40,000 people only a few thousand act on our advice and buy silver. Apparently the powerful nature of Butler’s research fails to register with many.

If I called each of our readers with a stock tip that said JPMorgan just bought 25 percent of the outstanding shares of a particular stock people would beg, borrow and steal to buy the stock. JPMorgan is buying up silver and gold hand over fist and the mainstream media doesn’t have a clue. Investors are in the dark. It’s the ultimate contrary opinion opportunity with inside information to boot.

Ted also opines that silver has fallen below the cost of mining. It’s cheaper to buy the finished product than it is for a mining company to extract it from the earth. Mines can’t operate at a loss so going forward there could be a lot less silver for investors and for industrial users who must have the metal at any cost. The bullish case for silver just keeps piling up. Ted Butler once described it as an atomic bomb on top of a hydrogen bomb on top of a neutron bomb.
Finally I believe that a financial crisis has become inevitable. This is not exactly inside information. It’s a minority view that has its roots in the classical school of economics. This school reigned supreme in economics until John Maynard Keynes came along. He told the government what they wanted to hear; spend and don’t save, spend more then you have, pay your bills with money you create out of thin air, let the government set interest rates instead of the market and bail out the big failures with newly created money. Today there are so few people who believe that evil consequences will result from this philosophy that fear of a financial crisis qualifies as a contrary opinion. Doubtful as it is in the minds of most people someday it will prove to have been another type of inside information.

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