Currently, everything looks awfully BAD to me. Everything is going wrong in the world, and there don’t seem to be any solutions. I have none either, other than to protect yourself. Look at politics as an example. Mitt Romney will be the Republican nominee, and I hope he wins, but nothing will change. I won’t send him a dime. I’ll send money to Tea Party candidates, who can shut out Obama or Romney, and maybe do some real reforms if they can get control of the Senate and keep the House.
The Euro Nations have an unemployment rate of over 10%, and Spain my declare bankruptcy. Yesterday, Bolivia and Argentina nationalized (seized) Spain’s electric and oil companies. Don’t ever invest in another nation! Greece is a shambles, and Italy and Portugal aren’t much better. I’m just glad I live in a small town in Colorado, and am far from any big city, because as an example on Monday, Seattle had problems, and ’problems’ will happen in most big cities as the months and years wear on, because the big cities are loaded with the underclass and welfare recipients. Can the welfare bandwagon keep on forever? I think not, because like all paper money schemes throughout history, un-backed currencies like the buck, euro, yen, pound, or whatever, always arrive at their starting point, and that is zero. Then the riots and mass destruction in the big cities will begin. Stott’s law says, “The more of anything there is, the less they will be worth,” and this applies to paper money.
If there were a million Model A Fords around, or they were being manufactured again, their price would plummet. There’d be too many of them. Water in the desert is expensive because there is little of it. Water in the east, where there is 40 inches of rain a year, is cheap. There are lots of trees to be cut to make paper money out of, but there’s little gold or silver on or under the earth, and that’s why it is expensive. Gold and silver are also beautiful, won’t rust or decay, are compact, easily bought and sold, and have been real money for thousands of years also. As I am writing this, a client I haven’t heard from in nearly eight years called me. Elaine S. lives in Ashville, North Carolina, and has this charming southern accent. She bought gold from me in 2004. Several purchases totaling 82 ounces. She bought Krugerrands at anywhere from $391 to $405 each. When she bought and traded her dollars in for gold, she was really worried. She’s not now!
Is gold at a peak? When Elaine bought her gold at close to a third the price it is now, gas was close to a third the price it is now, and so was everything else. Is there a limit as to how ’high’ in dollars, anything can go? Nope, because they won’t stop the presses and balance the budget. Even if the Tea Party gets control and stops or slows the mess that has been created by the D.C. politicos, the debt is unpayable other than with printing press money. Remember as I pointed out a couple of columns ago, a good man’s suit has always been sold for about the price of an ounce of gold, be it $20 or $1650. Will gold go higher? Will suits go higher? As I also pointed out, two silver dimes, when I was a kid, bought a gallon of gas, and two silver dimes today, will still buy a gallon of gas. Why keep surplus assets in dollars?
Is silver a better buy than gold? Yes, long term. Short term? Short term, I think they may stay at about the same ratio of 50ish to 1, and that’s because people all around the world are scared of their paper money, and are buying gold, which they consider to be ’safety.’ Newbys in the metals field, don’t realize anything about gold-silver ratios, and just want gold to be safe, so they buy gold. I believe the silver to gold ratio will eventually go to 16 to 1 again, but maybe not in the near future, because of the world’s demand for gold, which requires a lot less storage space. Just get the hell out of dollars!
Between now and election day in November, a lot of things may happen which could make the prices of metals go through the roof. Rotten, crooked, slimy things, like a false flag operation, like 9/11, which the Democrats may pull off to re-elect Obama. Those bastards are capable of anything, and the liberals wan Obama to stay there. I do indeed hate that man. I think he’s lost the college kids who loved him four years ago. It doesn’t matter as long as Tea Party candidates control the Senate and House. That’s our political hope, but that won’t change the world. We just have to protect ourselves with gold and silver, get out of big cities, be debt free, and shudder as things progress from bad to worse.
P.S. A guy called me yesterday, and introduced me to his web site, called ’theprospectorsite.com’, and it’s real good one. He lives in Wyoming, has enough gold, silver, and dollars to last him, and he just has developed this great web site, and doesn’t make much on it. He changes it three times a week. Check it out. Place it on your ’favorites’ list.