In Jim Cook's Archive


My company had a period twenty-five years ago when it was a struggle to keep going. Business had fallen off and a few of the employees were doubting our ability to survive. One of our major suppliers spent a lot of time at our company. Little did I know he was recruiting certain of my employees to start a company that competed with us. One day several managers, important employees and a dozen salesmen handed in resignations. They stole customer lists which made their betrayal that much worse.

Naturally, this treachery coming on top of a siege of bad business was upsetting. It made me question the future of the company and whether I wanted to continue selling gold and silver. It caused me to reexamine my premises. My core belief back then was that artificially low interest rates and loose money and credit would ultimately be ruinous to the currency. Gold and silver would protect people from the inevitable hyperinflation that I expected. I concluded it would not be wise to go into a different business. Someday gold and silver would be what people needed for profit and protection. We doubled down on our efforts to grow the business. After a few years, Bill Clinton was elected, our sales went up and we were profitable again. Our adversary, the company of turncoats lasted a year and a half and then went out of business. In reality, by leaving they had lowered our overhead and helped us survive.
The runaway inflation I expected back then has yet to happen. The reason it didn’t happen is because we exported our inflationary ways. Luckily for us, the excessive amounts of our currency and credit were accepted and embraced by the rest of the world. Now we have Keynesian money creation in vogue around the world. Hyperinflation will not be limited to the U.S., it will be a worldwide phenomenon. The question is when? You could say I’ve been wrong since 1973 when I first started selling silver. That’s almost 44 years. However, never has the world created as much new money and credit as they are today.

A recession causes countries to try and print their way back to prosperity. Each decline requires more easing and more money creation. The greater the excesses of the boom, the greater the collapse and the greater the degree of inflating. Countries like China, Japan and the European Union have crossed the Rubicon with their monetary expansion. The months and years of scary inflation may soon be upon us. Everyone needs to protect themselves from this possibility.

The big payoff in owning precious metals still lies ahead. Patience will be rewarded. Frankly, I’ve been waiting 44 years for the big one. It helps to believe that the more struggle you have endured, the greater will be the service you provide and the greater will be your reward.

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