What if Silver and Gold
Investors are Wrong?
By Dr. Jeffrey Lewis
declines in the gold and silver markets have prompted some soul searching among
even the more dedicated precious metals investors.
investment approach would involve considering the likelihood of various
scenarios that could hurt precious metal prices even further.
metals holders might be wrong about the long term bullish prospects for silver
and gold if just a handful of the following statements were true:
sustainable growth can come from expanding debt in just the right amount,in
combination with just the right amount of currency devaluation.
It is proven once and for all that
currency devaluation, printing paper currency and increasing electronic amounts
of a currency will not create inflation.
will come in the currency war and the revaluation process will begin.
deficits suddenly come under control as austerity is welcomed by the masses,
while politicians are elected for telling the painful truth about the short
big banks will forego profits, turn their backs on shareholders, break up
voluntarily into smaller entities, and encourage the re-imposition of the
CEOs and billionaires — including Warren Buffett – suddenly decide to donate
their net worth, assets, and foundation money toward paying off the national
debt, thereby inspiring troves of others willing to do the same.
markets will finally embrace the precious metals as commodities and trade them
as such, removing uncertainty and the pesky investment demand character.
The legal system, led by a fed-up
judiciary branch, suddenly begins prosecuting corporations that are deemed too
big to fail, and in the process, takes control of systematically breaking up the
big investment banks and re-invoking Glass- Seagull.
The equivalent of the Mother Lode is
discovered, and suddenly the greatest mining project the world has ever seen
begins in earnest, with sudden flows of investment capital entering like a
(1A mad rash of selling of all the jewelry, antiques
and silverware ever manufactured suddenly occurs during a time where inflation
adjusted prices in every currency are far below historic levels.
(11) Graphene— the world’s best candidate for
replacing silver in numerous industrial applications — suddenly experiences a
big ramp up in production, and the companies producing it decide to become
nonprofits, while coming up with an easy way to "coin it" so that Graphene could
also be used as an inflation hedge against the trillions of fiat currency units
created to fund the necessary capital for scaling up production.
(12) GATA's evidence and Ted butler's research were
just made up for profit ventures after all.
(13) All the naked short futures contract holders
are actually safely hedged against customer business and non-manipulative market
(14) A brilliant mathematician figures out a new
formula for managing risk and accounting for counter party ownership in the
(15) A new product is developed, proven and packaged
as a mind control serum that effectively manages human behavior and emotion.
Approach to Precious Metal Ownership
person should question whether long term silver investors are 100% wrong,
especially in light of the recent notable decline in the price of silver.
they ultimately conclude that silver investors are probably not wrong, then
prudence would dictate that at least some allocation of their investment
portfolio to properly held precious metals would be appropriate. Presently, such
metals holdings account for less than one percent of all global pensions.
This seems far too
modest a portfolio allocation, especially since properly held bullion and shares
in precious metal miners would likely act as the most efficient store of
purchasing power over the course of any paper currency devaluation and
Of course, the
‘Get ‘em while they’re cold!’Silver-related investment vehicles — like futures,
ETFs, unallocated bullion holdings and other fractionally reserved claims on
physical silver reserves easily replaced with cash – would probably not
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