In Jim Cook's Archive


The major purpose of this newsletter is to convince our readers to buy silver.  We contend that if you own precious metals you will be protected from the financial crisis that we see as inevitable and you will make a lot of money.  However, if you don’t own precious metals you could become impoverished.  America’s deficits, debt and inflationary policies promise ruin.  Tinhorn politicians and misguided central bankers promise job creation and economic growth but only the private sector can deliver that.  The government’s Keynesian policies are not working.  Furthermore, by raising taxes on the successful and giving the money to the unsuccessful they squander capital that would have been invested.

If you analyze the current economic sins you will tend to agree that a bad ending is inevitable.  You may not be nimble enough to get into stocks and bonds at the right time or get out before the inevitable bear market decimates them as it has in the past.  Far better, in our opinion, to load up on tangible assets like silver that has intrinsic value, liquidity and a two thousand year track record of popularity and demand.  Owning this storehouse of value provides a deep-seated psychological satisfaction.  When all about you are losing their money and security, this bedrock asset can bring you peace of mind.  Silver is our antidote for panics.

If silver were like gold and nothing new had altered its historic role as a store of value or as money it would still be a great asset to own.  However it can never be money again.  There’s no longer enough of it for even a small country to monetize.  That’s because a multitude of industrial uses have evolved over the last century.  Most of the silver ever mined has been used up by industry and is gone forever.  The available above ground supply is perilously low.  None of this can be said for gold.

As if that isn’t bullish enough silver analyst Theodore Butler, who understands the futures market like no other has recently provided more ground-breaking analysis on the major banks’ involvement in both silver and gold.  For years he has claimed that a big short position in silver held by JPMorgan was manipulative to the price of the metal.  Now he suggests that this short position may be offset through hedging in other markets.  JPMorgan and others have now taken a huge long position in silver and gold.  He offers the Commitment of Traders report and the Bank Participation Report as inevitable proof.  If the big guys are indeed long this is a game changer.  Mr. Butler assures us that the price will soon explode upward.

In this period of recurring worldwide economic crisis, ginned up stock markets and artificial low interest rates you need assets that offer the historical certainty of value.  Whenever the hubris of mankind has led to the brink of economic disaster those who owned silver and gold survived and prospered.  On today’s roller coaster ride from inflation to deflation and back again the wrong investment choices can bring you grief.  However, we think owning silver and holding it for the longer term offers the best choice for peace of mind.  Mr. Butler calls silver a sure fortune builder.  He insists there has never been a better time to acquire silver.

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