CLARIFICATION OF THE PRECIOUS METALS SITUATION

George Offerman

I’ve been spending nearly all of my free time addressing many folks’ concerns over the silver market and what is happening in the overall picture.  Yes, the precious metals are experiencing significant drops (I will not call this a ‘correction’ as silver ought to be at least 20 times what it is now).  What I am telling these folks privately and what I am writing here and now is, we are entering the endgame of this struggle between God’s money and fraudulent paper money and the economic system as it exists today.

Most don’t comprehend this, yet even want to accept it.  I can only tell people to research and read historical accounts of paper money, and its 100% failure rate, and how countries that stay on a bimetal money system have a history of thriving and remaining stable.  That is one of the primary reasons our Founding Fathers put in the Constitution that only gold and silver coinage is to be legal tender for all debts.  If one does not know, we, even in the good ole U.S. have had three instances in which paper currency has failed: the “continental” during the revolutionary war, the confederate currency and Lincoln’s “Greenback’ or the better known “shin plasters” during the civil war.  (Notice, it is in times of war, that currency is debauched, similar to today).

Now, we are on the verge of the fourth failure of paper currency in our history, but this one is going to be the ‘big daddy’ of failures.  For starters, we are going into debt faster than at any time in this nation’s history, and doing it with the largest numbers as well.  There is no end to the debt and the need to borrow to service this debt.  Secondly, we have the largest welfare state in our history, and have more people receiving ‘benefits’ than are working, an unsustainable process in and of itself.  But most importantly, our currency is the reserve currency of the world, and as such, allows the private corporation Federal Reserve, to print as much as is needed.  Once the rest of the world gets tired of this behavior (which is occurring now) this money will make it back to our shores, and hyperinflation is the only possible outcome of this.

Gold and silver, by their nature, cannot be made out of ‘thin air’.  Gold and silver will NEVER lose its value, and can only increase due to its relative scarcity.  Once the common man understands the true VALUE of gold and silver, there will never be enough ‘paper money’ to exchange for even 1 ounce of either of these metals.  If this were not known by nearly everyone, and especially demonstrated by most central banks, they would not be scrambling to buy as much as they can before their currency becomes worthless.  By virtue that most, if not all of the central banks around the world are buying is perfect clarification of the intrinsic value of the precious metals.

It seems why most people who have purchased silver in recent months are panicking and having second thoughts is they are confusing volatility with risk.  Although the prices of the metals are currently volatile, they pose no risk in ever losing any of their value.  Although the dollar, and treasury bonds have demonstrated little volatility over the past several years (although trending down), they carry great risk in losing some, if not all of their initial principle.  People buy bonds and hold cash in order to ‘preserve’ capital.  With interest rates near 0% on bonds, and cash paying no interest, there is no return or growth on this investment.  Given the ever increasing debt we are incurring, it is becoming a near certainty that our government will default on its bond obligations, and those placing their life’s fruits of their labor into treasury bonds are likely to be nearly or totally wiped out when the music stops.  Those holding precious metals are going to see multiples of increases in their net worth, but will have to be willing to ride out volatile times.

I have been most frantic in urging everyone I’ve talked to, to buy more silver while these lower prices occur, a gift from the money powers.  Since the precious metals are diametrically opposed to paper money, it is in the evil people’s best interest to ‘demonize’ the metals, and use their puppet MSM to convince most people to stay away from them (as they buy up the metals themselves).  Remember, the saying goes this way: “Those who have the gold make the rules”, not “Those who have the dollars make the rules”.

The dollar will soon go the way of the dodo.  It is nearly a fait accompli.  Ben “helicopter” Bernanke said it as much years ago when asked about deflation versus inflation, and his response went something like this: “If need be, I will drop dollars from a helicopter to keep the economy going”.   We see the government has no intention of shrinking itself, and is increasing its spending despite declining revenues (read: taxes).  The government has only two ways of increasing their dollar reserves: 1) higher taxes and tax revenue, or 2) increasing the number of dollars, via borrowing and printing.  We already know tax revenue will not recover to any sustainable level, as in EVER in the current system, so the only other option is borrowing and printing money.  They will print money until it is worthless, but at least the debt, in theory will be gone.  But carnage will result and it will devastate those not prepared.  The writing is on the wall; the dollar is “toast”.  And once again, gold and silver will be the king of money as it is meant to be.

BE PATIENT!!!!!

George Offerman

I’ve had several people comment on or more apt “freak out” over the steep decline in the price of silver in the past few trading days.  Despite the fact I have warned the readers of this blog that the precious metals are a most volatile market (and highly leveraged and manipulated) the precious metals have been in an 11 year bull market that is nowhere near its conclusion.  In fact, it has barely started and will take off with great earnest in one solid direction (up) once the average individual gets the scam that paper money really is, and that the green in one’s wallet is as worthless as expired lottery tickets.  This day of reckoning is most likely much closer than any of us think, and it will be then that many who are now ‘freaking out’ will be extremely grateful they acted when they did.

When markets are volatile, is when people need to use sound judgment and reasoning, and not act on raw emotions.  For instance, those who emailed me yesterday when silver dropped to $27 and change are silent now that silver is above $32.  I know that I was looking for more money over the weekend, hoping to get a purchase order in before the market did what it did, and unfortunately, was unable to get my hands onto enough to get me more.  However, I do know through very reliable sources that many of the dealers are short of metal now, as the buying has been very intense.  The smart money is buying on dips as in the past few trading sessions, and it takes that much more of the metal off the markets, which only hastens the ‘day of reckoning’ that is soon to visit places like the CRIMEX and the bad people as in the money powers.

So for the sake of sanity, I will run through some information for those who are in ‘freak out mode’ and it will give one a framework in which to place days like the past few, in a proper context.  So here are some questions one can ponder in order to assess the current happenings.

Q:  What happens when an individual, corporation, or country chronically spends more than they take in?  A: they go broke and default due to unsustainable spending and debts that cannot be repaid.

Q: What has more value, an item that is limited, and its number reduced on a daily basis, or something that can be created at will and can be increased at will?  A: the item that is limited and decreasing in availability.

Q: Which form of money has been universally used successfully over nearly all of recorded human history? Is it: a) paper money, or b) precious metals?  A: b precious metals have over a 6,000 year history and only in the last 40 years has it been removed from the monetary system of the whole world.

Q: Has any country, in the history of the world ever defaulted when using precious metals as money?  A: no, none recorded in human history.  However, there are numerous incidences in which gold and silver coins were debased using other metals, and this caused economic crashes in these cases.

Q: Has any country in the history of the world ever defaulted when using paper currency as money?  A: yes.  In EVERY RECORDED CASE paper money has failed.

Q: Which is our government making more of: a) paper money, or b) precious metals?  A: a) paper money.  Precious metals can’t be made.

Q: Which is harder to come by, paper money that takes little effort to print, or precious metals that must be discovered, mined, refined, coined and delivered?  A: precious metals.

Q: Can you eat gold and silver if you’re hungry?  A: no, but you can’t eat a $100 bill salad either.

Q: When food is scarce, what will be a medium of exchange that most will accept as payment is it: a) paper money in ever increasing denominations or b) precious metals, which has held its value for time immemorial?  A: b) by far.

Q: Where then, is the safest place to store my wealth or put for the security of me and my family in times of inflation or hyper inflation: a) precious metals or b) paper money and treasury bonds?  A: precious metals because they cannot be printed or counterfeited.


These are some of the questions that ought to help someone who is experiencing doubts about his purchases of precious metals, or is contemplating purchases.    Many commentators are claiming the fall had to do with the technical charts showing an overbought position, and as a result, the price of the precious metals needed to come down.  However, these same people are not commenting on the technical charts that have shown an oversold condition in which the dollar ought to be rising but has been steadily dropping for over five years.

The fundamentals of both precious metals and the dollar have not budged one inch.  The dollar will continue in free fall because we are printing and spending more dollars than what exist, and this is an unsustainable position to be in.  The precious metals will continue going up because they are finite, and have represented money from the dawn of time.  Soon, both gold and silver will take its rightful place in the world's markets, and then it will be seen as what it truly is: precious metals.

Finally, I'm attaching a link to a video that everyone ought to see.  This trader is admitting a crash is coming, but even more incredible is his admission that governments don't run the world, but the money powers, specifically Goldman Sachs.

http://www.silverbearcafe.com/private/09.11/speechless.html