You buy a steak, and leave it at the grocers? You buy a car and leave it on the lot? Of course not, because you want to eat the steak and drive the car. Simple! Then, why buy silver or gold, and let some bozo ’store it’ for you? You might want to use that too, mightn’t you? Eventually? How do you know that it even exists? In Ted Butler’s letter of late October, he mentions that Morgan Stanley paid a settlement to a fool, who had his silver stored at that outfit, and to be sure they had physical silver that they had sold him, he requested the serial numbers and weight of each bar. The figures were not forthcoming, so he sued, and won. In other words, Morgan Stanley had ’paper silver’ stored for him in their files, and not a thin silver dime or hundred ounce bar in their vaults…if they have vaults. He bought physical silver from Morgan Stanley, and it didn’t exist.
The same is true with the COMEX. They have maybe a quarter of the physical silver or less on which they issue contracts. You buy a silver contract, and believe you can take delivery? Of say a million ounces? Lots of luck! You have a silver ETF, and you think the physical silver is stored there? I’d bet it isn’t. I’d bet that if all the supposed physical silver in existence was real silver, rather than paper silver, and delivery was called for, silver would be $100 an ounce today. For crying out loud people, if you BUY something, TAKE DELIVERY of it. If you don’t, how do you know it exists? Do you own stocks? Do you have the physical shares? Or are your stocks merely entities on a ledger sheet? I don’t have a billionth ownership in anything, so I don’t even care about stocks, but I do about physical gold and silver. Sure, physical silver takes a lot of storage space, and I don’t deny it. Silver also tarnishes too, and to keep it shiny, you may have to dip it or polish it on occasion, but that’s the way it is, and I can’t change it. The ratio is 55 to 1, and it should and will be 16 to 1 eventually, meaning that silver, will undoubtedly go up three times or more, further than gold. The ratio was 16 to 1 in 1980. You want to play the ratios? Then let some boob store it fictitiously for you, and when the ratio is once again 16 to 1, and you want it back, the demand will be so intense that it may not be in existence. Hypothetically, anyway.
Too big for you? Then buy gold and store it someplace where no one would think of looking. Or buy silver, grit your teeth, and do the same thing. Bags? Yuk. Too big, unwieldy, and difficult to store. Besides, you buy silver in bags at a few cents under spot and sell them at a lot under spot, so nothing has been accomplished, other than having silver take a lot of space and be heavy.
The world is full of crooks and creeps. There are many out there, who will sell you gold and silver, store for you, and it does not exist. Honest people are not all congregated in churches, and dishonest people are not all used car salesmen. There are a lot of crooks in the mortuary business, and how many butchers weighed their finger when weighing your meat? How many used car salesmen put sawdust in defective transmissions, or extra heavy oil in worn out engines? How many precious metals dealers work on your money (OPM) and take months to deliver? How many won’t take orders unless you wire them the dough first? Why? Because they are BROKE, and need your money to continue! Still, I am sure many many hundreds deal with them, and I don’t know why.
There will come a time when you will want physical possession of your gold and silver. Will the government try to confiscate it? I sincerely doubt it, but if by chance they did try, there will be lots of signs. One of them is that they might stop selling it themselves. The government might try to take the U.S. Gold Mines maybe, but the Supremes wouldn’t allow that for sure. We still have the Fourth Amendment. The word is going out now that they have stopped making Gold Eagles, and the idiots are fluttering in their boots, and thinking the end is near. Sure, they have stopped making 2007 Gold Eagles, and are now making 2008 Gold Eagles, which by law, they can’t release till Jan 1st, but THEY HAVE NOT STOPPED MAKING GOLD EAGLES! Ah the rumor mills. So few own gold and silver, that it would be pointless to try to confiscate it. My receipts don’t even have a place for addresses. How’re they going to find out who owns it? No, FDR didn’t confiscate it as coin shops like to broadcast. He ordered people to turn in theirs, but if everyone did, how is it that the same coins shops have it to sell? Ever think of that? No one was fined, and no one went to jail. More coin shop malarkey. All I ask, is for people to THINK. Thinking people won’t let anyone store their gold and silver for them, and it’s just that simple. If you buy it, you take delivery of it, and don’t let the bums out there tell you it’s all safe in England or some other place. The serial numbers can be faked just as easy as any other lie.
You want to play games with the futures market? Fine, but remember, the physical probably isn’t there. You think gold and silver ’aren’t doing anything?’ To the day, three months ago, gold was $704, and silver $12.51. So, in three short months, silver and gold have gone up (in failing dollars) by 14%. 14% in three months, and you say it isn’t doing anything? It has protected those who have bought it, and will continue to do so. But of course, 99% of the ignorant public will continue to save in dollars, watch sit-coms, and buy new cars. How sad!