Silver is Blowing Up

The price of silver is exploding more than it already has. I remember when silver was less than $5 an ounce. I couldn't convince people to think about it, much less actually buy some of it. I was buying it, but looking back, I should have mortgaged everything I had to buy it. I made at least 6-10 times my money I invested in silver. We will never see prices for silver that low in our lifetimes. NEVER! I guess that made it the investment of a lifetime back then.

Jump to 2011, and now the price of silver is close to $50 an ounce. The really scary part of this is that when you look at the fundamentals, along with the instability in the world economies today, the price of silver may still be low. The fact of the matter is that the banks that have been dealing with silver have been committing fraud. They have been 'selling short' silver that they not only did not own, but have actually been selling silver that did not exist. This enabled them to make money on non-existent silver, and to also suppress the price of silver as well. Selling naked shorts in silver amounts to a de facto flooding the market with 'paper' silver.

The problem now is that the banks are now caught up in a 'short squeeze'. This is when a seller of a commodity doesn't have it, and now much purchase it at the market price, no matter how high it may be. It would depend upon what price they sold it at that would determine the loss. The bigger the difference between the market price and the price they sold it for, the larger the loss. It looks like they may be in for multi-million dollar losses because the silver price is now approaching its historic high that was set back in the 1970's when the Hunt brothers were trying to corner the silver market.

I'm not sure how many people are open minded enough to invest in silver, but it has worked out great for me, and for plenty of other people who had enough guts to think for themselves instead of following the talking heads on MSNBC and other media investment pundits. One thing that they won't tell you is about systemic risk. You may think that your investment portfolio is well diversified because you're investing in a lot of different stocks, bonds, ETF's, indexes, etc., but I have some news for you. You're only diversified in paper assets. What happens if all paper assets take a hit? Is your portfolio equipped to handle that eventuality? That's where investment in non-paper assets comes in. Do your research.

Some Observations Regarding Economics

Everybody knows that we're experiencing some tough times. I read a lot of information on economics and finance. My opinion of the current economic situation is that it was predictable. There appears to be two forces at work here, but first I will talk about the monetary situation.

In previous times, numerous substances were used as money. Tobacco, sea shells, tally sticks, salt, gold, silver, etc., have all been used as money. Historically speaking, the substances that functioned as the best forms of money have been gold and silver. I understand this, and a number of people understand this as well. This is the reason why the price of gold and silver are so high today, and why they do a better job of preserving their value, regardless of what happens in the world's financial markets.

While gold and silver are excellent forms of money, they do have some disadvantages. They are bulky and hard to carry around. It is almost impossible to carry around gold for everyday transactions because it is so valuable. And you can forget about using silver for that because it is extremely heavy. Another problem is that they are very rare. Although the rarity of gold and silver make it valuable, it also makes it virtually impossible for them to be used as money because there just isn't enough of it to support world trade. Some of these facts may be the reason why the world's financiers choose to manipulate and suppress the gold and silver commodity exchanges.

So although I know that gold and silver are great for preserving your wealth from inflation and hyperinflationary destruction of financial (paper) assets, everybody does not have this option. With over six billion people in the world today, there just isn't enough gold and silver to make world commerce work. That's just a cold, hard fact. This is why credit is used as money. There is no limit to how much can be produced.

Unfortunately, the same thing that is good about credit is also a weakness of it. Because there is no limit to how much credit can be produced, this can also cause problems in society, and we are experiencing them now. If credit is to be used, there should have been some sort of limit placed on how much would be emitted. The old saying is that 'absolute power corrupts absolutely', and we're seeing this happen with the big banks. Unfortunately, the average person is being given the bill for the wayward antics and tendencies of these banks. They basically got no penalty, while average people are the ones who will pay the penalty and the bill.

Times will probably get tougher for average people, and especially for people that depend upon a job for their income. But people who can take advantage of world trade (outside of the United States), and people who can participate in technological innovations will probably soar ahead with financial growth opportunities. But those who are left back with the old ways of doing things will be left behind. The economic environment is changing, and the person looking for a job will be left behind if s/he does not develop marketable skills that will be in demand today, and in the future.

Transformation

I've been doing a lot more studying of various principles of finance, law, etc., lately, and I think that my world view is metamorphosing into something different. It appears (to me) that there are people behind some powerful hidden forces working to develop a new structure for society. But at the same time, what other system could actually make modern life possible?

We know that the monetary system does not have any substance, but then again, we also know that there is not enough gold & silver for everyone to have money. From first appearances, the monetary system is based on fraud. But with a closer look, we can see that it is a system of abundance. I've also been studying some concepts and practices on Redemption. I must say that commercial redemption is analogous to spiritual redemption, for commercial redemption is based on religious and spiritual principles. It is amazing to realize that it is all very orderly and structured for us to prosper. Unfortunately, we do not seek out knowledge or try to learn. Most of the pain that is being experienced by people in the system is self-inflicted.

We operate in a commercial system all of our lives, but very few of us ever study commercial principles. This is unacceptable. Most people do not understand the ramifications of their ignorance, nor the critical importance of the foundations of their belief system. It literally determines the conditions and quality of experience for every encounter that you have in your life. Maybe I will talk more about this in the future. But the realization of these truths has somewhat tempered my previous opinions about world news and events. The truth is out there, but most people's minds have been inactivated by mass media mind control techniques. So the audience for this type of message is probably very small. But if you're still reading this, you will probably want to continue your search for truth and facts. The old saying is that "the truth will set you free." It is true.