In Jim Cook's Archive


How do we come to believe that silver is the fabulous opportunity the great silver analyst Ted Butler says that it is?  Really believing in something is difficult.  That’s especially true because most of us have believed in things along the way that weren’t true or didn’t work out.  I once believed in a douser that promised he could find oil with a forked stick in his hands.  It was a costly lesson.

A lot of people bought gold in 1999 because they believed in the Y2K story.  Many folks were adamant about the danger.  They bought gold to protect themselves.  Alan Greenspan pumped out billions at the Fed just in case.  Fortunately for those who had the patience to hold their gold it worked out for them.  The price quadrupled but their belief in Y2K proved wrong.

I believe Ted Butler’s argument for a silver price spike.  However, at times, I lapse into doubt and my enthusiasm wanes.  Fortunately, I have the advantage of talking personally with Ted on a daily basis.  This has made me a true believer.  I have made a large financial commitment to the metal.

What does Ted say that so strongly renews my belief?  He knows commodity and futures markets so well that I believe him when he talks about the big short position.   When I think about it I conclude he has to be right.  Certain big financial entities are going to have to buy a whopping amount of silver to get out from under that big short position.  It’s unique to silver and when Ted recites how powerfully bullish it is I visualize the profits my investment could make.

Yes there are plenty of other factors that aid my belief in silver.  The fact that it’s been suppressed so long means it must make up for years of lost ground.  The fact that it performs miraculous industrial feats doesn’t hurt either.  Then there’s the growing investment demand and the economic concerns that make people buy silver and gold.

I also have learned in my life that when a lot of people pour into an investment it’s time to get out and vice versa.  A very small percentage of  investors even know about silver.  Most couldn’t care less.  What’s really bizarre is that many brokerage firms, commodity trading companies and investment advisors who write about silver know so little about it.  They fail to mention the short position and often denigrate the bullish case for silver.  When a so-called silver expert recently predicted that silver would be under $19.00 for the next twelve months I just shook my head.

Furthermore, a fair amount of so called silver experts have heard of the short position but it failed to register.  They didn’t catch on to what the ramifications could be.  Silver can go to a $100 an ounce and most of the world’s silver experts wouldn’t have a clue as to why.  That means only a tiny handful have caught on to Ted Butler’s twenty year crusade.  They have become believers.  The early converts are up almost 400%.  Ted Butler promises much more.  I say to you: study Butler’s arguments.  Read what he’s written.  Get the facts.  If you become a believer you will know what to do.

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