In Jim Cook's Archive


It’s hard to write about current events because things are changing so fast. So my comments may be out of date by the time you get this. I went to see my doctor the other day. When he came in to the room he extended his hand. Rather than shake it, I extended my elbow. He quickly rubbed his hand on my forehead and then my arm and then on my wife’s arm. It made me laugh. This was his way of ridiculing concerns over the coronavirus. He even suggested it was hyped up to try to make the president look bad.

At the other end of the spectrum is my friend David. He and his wife are not leaving the house. He believes the pandemic will become so severe it will cause a financial panic. He bought a freezer and filled it with food. He bought an elliptical machine so he wouldn’t have to go to the gym. He’s having his groceries delivered. He told the cleaning lady not to come any more. He told his kids and grandkids not to visit and he plans to work from home.

David also believes the stock market will collapse and gold and silver will soar. He thinks the precious metals will soon be impossible to get. The way the price dropped in the last week was disappointing, but the demand was so strong the U.S. Mint ran out of Silver Eagles. Other coins and bars were also sold out. If David’s gloomy scenario for the future pans out, I expect there will be a shortage of both gold and silver.

Our prediction that silver promises great future gains remains intact despite the price drubbing it’s taken. In all fairness to Ted Butler, he has frequently written that the big 7 shorts along with JPMorgan might be able to capsize the price. They used the virus and the stock market crash as a cover to collapse the price of both gold and silver and buy back their short position. It was far worse for the mining stocks. Although Ted believes it could drop further, he also insists it won’t be down for long. He envision s a sharp reversal and a strong rally in the weeks ahead.

Frankly, I don’t know what’s going to happen. I do know that some mornings I have a nervous stomach. I’ve told my kids and grandkids to hunker down. My friend in the medical supply business is still not getting the products he needs from China. He says shipping is a big problem now. Down here in Florida, the beaches are still packed which doesn’t bode well for stopping the spread of the virus. My friend David claims it’s too late to stop it anyway. If that’s the case, we could have a depression and a painful liquidation. Hopefully, it won’t last long. In any case, it makes sense to own silver and gold as insurance, especially when the monetary authorities are creating billions and trillions of dollars out of thin air.

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