In Jim Cook's Archive


For thirty-three years my company has sold and promoted gold and silver as an economic insurance policy. We claimed it would protect you from inflation, a collapsing dollar or even a depression. To us, those arguments are still valid. Precious metals are offsetting the current decline in the dollar. They are historically proven hedges against inflation. It’s harder to make a good case for metals in a depression where all assets are falling. However, it’s likely they would go down the least.

It’s far more likely we will resort to massive inflating than let an economic contraction run its course. Eventually that must lead to hyperinflation and dollar debasement on a grand scale. Sooner or later such an outcome is inevitable, only to be followed by the dreaded depression. Yes, we can lower rates, raise rates, push the monetary pedal to the floor, step on the brakes, ease or tighten. Eventually, however, that won’t work anymore and inflation either runs away or the economy tanks. If that turns out to be an accurate scenario, then gold and silver could be your best friend. Trouble is, nobody knows if and when.

That’s our story and we’re sticking to it. That is, until we met Theodore Butler a few years ago. He was tone deaf to our economic arguments. “I don’t pay any attention to that,” he advised. He was analyzing and investing in silver solely to make a lot of money. He claimed that silver was perhaps the greatest opportunity in history. He suggested it could make a person wealthy because it was going to appreciate enormously in value. None of this had anything to do with the dollar. It was solely because we were running out of silver. Industrial demand had eaten away the above-ground supply and the price of silver did not reflect this powerful fact.

Ted Butler claimed that various forces were at work to suppress silver. Not the least of these were the major brokerage firms and banks who were such big players in the silver futures market they could have their way with prices. Mr. Butler claimed that a physical silver shortage would overcome the paper futures market and launch the price of silver skyward. He has worked diligently to spread the word about the opportunity in silver and to combat those interests who have worked to keep silver depressed.

Nobody knows as much about silver and the silver markets. Ted Butler has expanded our horizons far beyond seeing silver solely as a monetary hedge. We think he’s right. Silver is disappearing from the earth. Its manyfold uses for industry ensure its continued relentless demand. Ted Butler’s awesome predictions for silver appear to be on the mark. Those who have listened to him have, for the most part, profited. We urge you to climb on the silver bandwagon. More people are doing so and, as the facts about silver become more widely appreciated, a runaway bull market could evolve.

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