Predictions and addictions only rhyme, but are miles apart.
99.9% of the world are addicted to their respective paper monies, even though not a damned one of them is any more than a fancy print job. Or is it a con job? With prices zooming upwards, I guess I am getting a bit terse. I spend far too much time begging people NOT TO SELL, BECAUSE THIS IS ONLY THE BEGINNIONG OF AN INCREDIBLE BULL MARKET. I literally spend many minutes a day, begging people not to turn their valuable gold and silver into worthless paper money, just because they have shown a profit. Like a druggie, they feel they MUST get back into those worthless dollars, just because they have shown a small profit. “Hey Mom, I’m going to call Stott and sell our silver and gold, because we have made a nice profit.” I then beg, cajole, and reason, telling them this is only a beginning of the great bull market we have all been predicting. It’s finally happening, and these boobs want to get back into their dollars, to which they are addicted, just like an alcoholic needs a drink.
Hey goofs, IT ISN’T TIME TO SELL. It’s TIME TO BUY! I also spend a lot of time telling people, as I have written before, that “I dunno,” if it will correct or not. It did Thursday, but for how long?. So, you might have missed silver at $4.50, 0r $5.00. You might have missed it at $10, even though I told you what was going to happen. Didn’t listen did you? So now you’re waiting for a further ’correction?’ Well, I have a client who sold some property for $2 million, and after paying his taxes, has $1.6 million left. He loves silver, as he should, and has bought a lot so far. When silver was $10.21, he said, “I’ll wait for a correction.” That was almost $2 ago. As I write this, a guy called me and said he stopped buying at $9, ’waiting for a correction.’ In my opinion, this correction will be brief, so keep your eyes on the screen.
If you addicts get back into the dollars that you love so much, what are you going to do with them? The buck is dropping like a stone, and you want to get back into them, like a smoker needs a smoke? What a pity. How stupid. Yes you, dummie. You read my stuff week after week, and then call me after reading this vitrol for a few years and then buy gold or silver for the first time? I’m glad you finally did, but it’s only the beginning of a bull market, believe me. Will it correct much? If this is anything like 1980, it may for a bit and then resume its upward climb. Only my opinion, and I can be wrong. Was I wrong when I scolded the riffraff out there to get the hell out of stocks when the NASDAQ was heading towards 5000? No. Did I hit the top? No, but had everyone gotten out that read my stuff, a lot of dollars wouldn’t have been lost. I think the stock market is on borrowed time right now, and I would sell every share now, except maybe mine stocks.
Sell your silver and buy what with your dollars? General Motors? Ford? A treasury bill? Look people, we have had 400% inflation since 1980, or maybe even more. In 1980, gold hit $850 and silver $54. Just to get back to 1980 prices, gold would have to be $3400, and silver $216. You say we don’t have Bunker Hunt now, trying to corner the market? So what. We have the silver ETF that might go into gear soon, and they’re supposed to buy 129 million ounces to get that going. Can you imagine what that would do to the price of silver, if 129 million ounces were bought at once?
Now everyone wants precious metals. The Japs, Chinese and Indians are buying gold and silver. Word is that the central banks are buying it after they lost theirs ’leasing it.’ I don’t know if any of the above is true, but I hear from reliable sources that it is. I have a very few people buying huge quantities of gold and silver, which makes me think that they’re closing their savings accounts and CDs. Most of my business is from small time people, who are smart, and every time they get enough dollars to buy a hundred ounces of silver, they call me. I can’t make a living on those deals, but I am delighted to do it, because it shows the intelligence of those who know what’s happening. Why aren’t the big money people getting out of failing dollars? Because they are addicted to them. It’s a lot easier to become addicted to something if you have plenty, and are used to having a lot of it, no matter what it is. Lots of dollars give lots of pleasure, and the rich nabobs love pleasure and big bank accounts. Gives them a swell head, and they never even consider that their bucks are literally falling out of bed.
“The dollar’s strong,” they love to say. All the licensed ’financial planners’ never even give metals a thought. All they know is paper money. Licensing, really gives one a lot of smarts doesn’t it? When the buck crashes, and gold and silver are at stratospheric prices, in dollars of course, they won’t look so smart. Licensed doctors and hospitals kill hundreds of thousands every year, and licensed lawyers are the absolute pits. Licensed ’financial planners’ are destroying their clients. Addictions are strange things. Being addicted to a car, makes one never even give a thought to a possibility of not having one due to some sort of happening or other. We’ve got bikes and motorcycles, in case something like that happens. Being addicted to electricity, most never give a thought to being without it. We’ve got a generator and are getting a solar source just in case. Being addicted to eating; most never give a thought to not being able to get food. We have a lot in storage, just in case. Those addicted to dollars, ought to take their surplus ones and buy true security in the form of gold and silver, but 99% won’t. I talk to my kind of people all day long, and it gives me a lot of pleasure. Get off your addiction to dollars and other things, and think of a future when all is not as rosy as it seems to be now.
All predictions can be wrong, and I know it. There has been a correction in metals prices, but since I am old, but not decrepit, I can still easily remember 1980, when this happened once before. This is a lot like late 1979, but with less volatility. Prices then, went virtually straight up, with an occasional retreat to catch its breath, like now. Silver went from a couple of bucks to $54, and gold from a few bucks to $850, almost like it seems to be doing now. Waiting for a correction didn’t work very well then, and it doesn’t seem to be working now. I just buy continually, as often as I get a few extra bucks. I have to pay the same prices as you, because I mark up nothing. What I pay, you have to pay. The gold-silver ratio has gone from 77 to 1 to about 43 to 1. This means that silver has gone up 34% further than gold as I predicted. I also predict that the ratio of 16 to 1 will once again be the norm as it was for America’s previous history, and was even in 1980. There’s a lot less silver around than gold.
I also get asked about shortages. There will never be a shortage of anything, unless there are price controls. Shortage of Model A Fords? Nope, if you want to pay for one. Shortage of water in the desert? Not if you have enough dollars to pay for it. The price of anything determines its supply. If silver goes to $200 per ounce, and you can still get gas for $3 a gallon, it might be an indication of a bubble, but not at $12 an ounce. Silver and gold are to me at bargain prices. And since I am a one-man show, with but two phone lines, if you get a busy signal, I am doing the best I can do. No, I am not going to hire anyone, not put in any more phone lines. Two is all I can handle, and that’s the way it is. Protect yourself.