In Jim Cook's Archive


Newsletter editor John Williams writes that if they measured inflation today the way they did in the Clinton administration the annual Consumer Price Inflation (CPI) would be 6.9% in June.  If they measured it the way they did in 1980 it would be 11.1%.

The all time high price for silver of $49.45 per ounce in 1980 would be $144 if adjusted for the Clinton era inflation measure.  For the earlier period it would be $497 per troy ounce.

While the government declares that inflation remains low prices continue to rise relentlessly.  Unfortunately the full impact of loose monetary policies is yet to be felt.  Severe price inflation will likely be forthcoming.  This inflation represents a real threat to retirees on a fixed income.  It can erode the purchasing power of the funds they need to maintain a decent lifestyle.

I knew a guy who sold his business in Minnesota for a few million dollars twenty-five years ago.  He bought a house on the west coast of Florida for the winters.  I met him 23 years after he sold the business.  His money had shrunk to perilously low levels.  He sold the Florida home and simultaneously his new wife left him. Fortunately, he had some equity in the Florida house.  Now he’s an old guy spending his winters in Minnesota and counting on his Social Security check for necessities.  That’s what inflation does.

You have to be shrewd, clever and nimble to survive government sponsored inflation.  You can’t listen to mainstream opinion or government assurances that all will be well. Nor can you believe the Wall Street optimists who preach on financial TV.  You have to choose the road less traveled.  That’s where we come in.  We have a “pursuit of happiness” plan that may be the perfect solution for offsetting the ravages of inflation.

Put 20% of your net worth into physical silver.  Keep it in a home safe, bank deposit box or a storage facility such as Brinks.  Hold this silver for the rest of your life or until you need it to maintain living standards.  Of course if the price goes insanely high you may wish to sell half of it.

The U.S.A. and the world practice monetary madness.  The results promise to be dire.  Your money cannot and will not preserve value when interest rates are held artificially low and phenomenally large reserves are added to the banks by the Federal Reserve.  Any fool should know that when you create money out of thin air to pay bills from excessive spending you flirt with monetary disaster.

Nobody’s going to be looking out for you but you.  Grasp the enormity of what’s happening.  This is the time for tangible assets.  Superimpose inflation on top of silver’s fundamentals and you have dramatic potential.  That’s 20% of your net worth in silver counting every asset you own.  We’ve been absolutely right for a dozen years and our clients are up billions.  I think we are making another good call with this advice.

Start typing and press Enter to search