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Demand for Silver Can Only Grow

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Our friend and colleague Sean Rakhimov, editor of SilverStrategies.com, is an astute observer of the silver scene, as well as a charter graduate of the Hidden Pivot Course. In the essay below, Sean explores some of the reasons why silver will be increasingly in demand in the years to come, especially by sovereign and institutional buyers.

He writes as follows:

Over the last several months, we have been pondering if governments will come into the silver market. Before we get into that, it is important to note that governments are very different animals and that there are over two hundred of them out there. Therefore, it is a very liberal generalization to lump them all together as if their needs, objectives and agendas were the same.  Expecting them all to act in the same fashion for the same reasons is a big stretch. That said, it’s the stigma, the psychological effect, the sentiment and the message it would send to markets that prompts us to group them together in investors’ minds as a market force.

This same topic has been argued in the gold space for several years and now it has come to pass that central banks worldwide have thrown in the towel and became net buyers of gold. Should it be different for silver? By the way, did you notice, how silver silently became mainstream again, and more and more headlines now read “Gold and Silver…” whereas only a couple of years ago silver was nowhere in sight of anyone except the dreaded silver bugs.

Much has been made about “manipulation” in gold and, particularly of late, in the silver market. Scores of articles have been written on the subject, and things got as far Washington , D.C., where the CFTC held hearings on the subject. We don’t subscribe to the theory — or, more precisely, we don’t share the conspiracy context of it. After all, few seem to care about governments’ involvement in industry, the stock market, the banking system, housing, etc. All of that is being done openly and has been for decades, albeit on a grander scale lately. So why is it a big deal in the silver market?

A ‘Managed’ Market

We prefer the term “managed.” Markets are managed, as are currencies. Silver (as gold) happens to be money, so if all other “monies” are managed, why not silver? It would be naive to expect anything different. If something is important to your livelihood, chances are you’re going to pay attention to it. Well, we are here to tell you that silver is important to governments, has always been, and is about to become very important. Government did not decide that silver is money. People – i.e., you and your ancestors — did. So why is it a revelation that governments would be involved in the silver market? Didn’t you appoint them to manage the monetary system? We’re not saying whether it’s good or bad; it just is.

A Versatile Metal

If you are interested in silver at all, you probably know that it is slighted for being an industrial metal, a “mere” commodity like —you guessed it: pork bellies! Others, more generous in their assessment, will tell you that it’s both an industrial and a monetary metal, usually in that order. We touched on silver’s monetary role. Here is short list of what else it is:

  • Energy metal . One of the series of crises we’ll have to confront in the coming years involves energy. There is plenty of energy out there (in nature), but most of it is in a form that we haven’t yet harnessed. Worldwide energy needs will be growing exponentially, while energy infrastructure has been deteriorating and energy resources we have come to rely on have been largely depleted, especially at prices we’ve become accustomed to. We will have to rebuild our entire energy infrastructure in the next generation or two, and silver will be a big part of it: huge (with application from energy generation, to storage, to consumption).
  • Technology metal . It will be technology that will determine how fast we’re going to tackle the monumental problems we face in the coming years, and silver is as important for technological progress as any other metal you can think of. We mean both the low and especially high tech in commercial and industrial applications. Quickly count how many electronic gadgets you have. We have about a dozen, and we don’t even own an iPod or a Wii system. We replace most of them every three to five years. How about you?
  • Consumer metal. If you are serious about silver, you should read the book Silver Bonanza to truly appreciate how ubiquitous the metal really is, and how many times a day you unknowingly use common household items that have silver in them. For an average Westerner,it would include a dozen items before he or she even gets to work.  This is a silver quality-of-life factor that Michael Berry and Frank Holmes, among others, talk about so eloquently.
  • Water metal. Yes, water. The smart money has been investing in water for years, and silver’s unique value as a purifier is going to become increasingly important. There is a serious shortage of drinkable water in many parts of the world, and the situation is getting worse. For now, it is a regional issue that is slowly evolving into a geopolitical and survival issue in some places. Solving this problem will require many different resources, but silver will be an integral part of whatever solutions come forth. You can find more on water related issues at these links: The Scale of the Water Problem;  World Water Wars; and, Water Issues Around the World.
  • Healthcare metal. In the last century or so, silver’s medicinal role has been displaced by modern remedies, but this is changing.  Our thinking is that there will not be enough clean water, energy, food and so on; on average, living conditions will deteriorate and populations will age in industrialized countries; and, a world that is growing increasingly interconnected will make it much easier for diseases to spread – diseases that will become increasingly resistant to conventional remedies. Silver is credited with saving much of the upper class when plague hit Europe, owing to the fact that the wealthy used silverware, as opposed to utensils made from other materials used by the poor. Silver kills single-cell organisms (i.e., bacteria). Samsung has been selling silver-coated appliances for about five years.
  • War metal. The recently unfolding saga in rare-earth metals, which China has ceased to export, is a prelude to what is coming for all of the so-called strategic metals. We have long maintained that silver is a strategic metal due to its role in high-tech devices used in weapons. As such, it will be sought-after, protected and/or stockpiled for military purposes. Silver is essential for military purposes due to its physical characteristics. Tom Vulcan at HardAssetInvestor.com has done a terrific job highlighting and cataloging strategic metals. We want to emphasize that silver belongs on that list.

Good as Gold

A number of governments around the word mint silver (and gold) coins. That list has been growing in the last decade, both in the number of governments following suit and the number of different types of coins offered. One may view this as a move by governments to jump on the bandwagon in an attempt to cash in on the premiums they charge (although some don’t).  Whatver the case, large stockpiles of government-held silver have been depleted and, for the most part, governments don’t mine silver. If they want to continue their silver coin programs, they’ll have to buy it somewhere. And if you are like the Chinese government, which has been encouraging its people to buy silver coins, you had better have some for sale.

Why have central banks from China to Mauritius been buying gold in recent months and years? Not to help your mining shares. You decided that currencies were not doing their job and the central banks concurred. We predict that the same thing will happen in silver. It may not be the central banks doing the buying: It could be sovereign funds, state-owned or -controlled companies, government-backed agencies/institutions, etcetera. The flavor of the entity and the form such buying may take will differ from country to country; however, the essence will remain the same.

Priced Out of Gold

Much of the recent action in the silver price can be attributed to the action in the gold price. Many would-be gold buyers at current prices are priced out of the gold market. We don’t know where they got this idea, but they turned to silver. Likewise, smaller countries with limited finances will at some point be priced out of the gold market and be forced to turn to silver.

To summarize: Governments have historically been very active in silver, especially when it was used in day-to-day coinage. It’s a monetary metal nevertheless, so one has to assume governments are interested in it. They are minting coins, and the demand is getting greater every year with no signs of decline any time soon, particularly against the backdrop of currency issues. They don’t mine any. There are a whole host of issues bearing down on us that governments will have to contend with.  If you have a lot of oil, securing silver may not be a problem; but if your economy relies on, say, tourism, you’re going to have to scramble to obtain silver. And we haven’t even discussed the wild world of currencies, which seems like to lose credibility sooner rather than later. And while individuals are subject to using currencies, at some point international trade will have to be settled in something tangible.

Last but not least is protectionism, aka trade wars, of which today’s currency wars are the opening round. More protectionim is virtually inevitable, and governments will step up and stand behind their companies and industries to help secure supplies of strategic metals, be it for economic, military or other reasons. We also refer you to an article on resource nationalization which is yet to play out in a domino effect fashion in the latter part of this cycle.

Winston Churchill is credited with saying “America will always do the right thing, but only after exhausting all other options.”  On numerous occasions we heard a paraphrased version stating “Governments will always do the right thing, but only after exhausting all other options.” For all the reasons discussed above, and many that were not, we think the question should not be “Will they?” but “When will governments buy silver?”.

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Please do not ask trading questions!

  • Bradley December 4, 2010, 9:56 pm

    Anyone who wants to buy serious amounts of silver or gold would be well advised to check out Tulving.com.
    Hannes et co. don’t string you along, making you wait for delivery. It’s order, wire, delivery, done.

  • F. Beard December 4, 2010, 8:19 pm

    and you’ll be the next Julian Assange. Alonso

    I think better of fellow Americans:

    For our struggle is not against flesh and blood, but against the rulers, against the powers, against the world forces of this darkness, against the spiritual forces of wickedness in the heavenly places. Ephesians 6:12

    Money is one mind boggling concept; it is no wonder that people are confused about it.

    Go Julian and Wiki-leaks! Here is their IP address:
    213.251.145.96

  • F. Beard December 4, 2010, 8:11 pm

    @mikeck,

    Thanks for those links. Ouch! The stuff is already getting too rich for my blood.

  • Benjamin December 4, 2010, 7:38 am

    A bit late to comment, but for the record…

    I strongly advise against listening to a silver bug when it comes to forecasting industrial/technological demand for silver. It’s not that silver has no such uses, but we have plenty of conductive and anti-microbial properties in copper. The two are virtually identical in those regards. As for relfectivity, that’s too complex a subject to talk about here. Recommend a physics forum or a manufacturer site forum or FAQ. There’s tons of discussion out there. Suffice to say, the many applications that supposedly have an urgent need for silver mirrors is like saying my dog’s house needs a marble countertop. Or that public urinals need gold lining. Know what I mean?

    It’s ridiculous yet rampant in the silver/hard money camp, so I doubt my saying will put the brakes on the runaway train of erroneous assumptions. Still, I just have to say, simply because…

    On another note, it is interesting that the same types that cheered the wasting of REMs in windmills the world over are the same ones who gleefuly inform us that we need silver, silver everywhere in order to save energy, promote environmental health, etc. Not that I’m accusing the author of having such motives, as all the hype around industrial silver is pretty much universal in the PM camp. All I’m saying is that notions are easily planted and propagated when humans see $$$ signs in their eyes.

    But that silver is natural money, our means of keeping the autoratians in the gene pool in check, naturally, certain interests would rather have silver shoved out of reach. Some of those interests have in mind the goal of leftist-type eco-slavery for all.

    Whatever their motives, the never-ending irony is that such aversion-inspiring techniques always fail, being at odds with the laws of nature as they are (so I guess we’ll have decades of entertainment!)

  • Terry S December 4, 2010, 6:30 am

    hummm…let me think, the constitution maybe? It exacts gold and SILVER specie; or perhaps, ‘bimetallism’ of the nineteenth century? Or maybe Dorothy’s silver slippers from Baum’s the Wizard of Oz? hummm..

  • Terry S December 4, 2010, 6:11 am

    A Fiery Horse with the speed of light, a cloud of dust, and a hearty, “Hi-yo, Silver! ” …Return with us now to those thrilling days of yesteryear. (Cue up the ‘William Tell Overture’ finale.)

  • Jeff December 4, 2010, 3:56 am

    This guy is anything but an astute observer. At least a few here called him on his ridiculas “managed metal” assumptions. All a grand theory and all wrong.

    • Rick December 5, 2010, 10:30 pm

      You obviously are unfamiliar with Sean’s newsletter. I provided a link so that you can judge his astuteness for yourself.

  • F. Beard December 3, 2010, 9:40 pm

    You, F.Beard, can do as you wish right now in regard to private contract between A & B. When it comes to taxing. A common “Tally” of the gain for the master must be made equitably in slave notes ie; federal reserve [tally] notes territorially under Article I, sec. 8, cls. 17, Const. Steve

    Taxation is the rub when it comes to a true free market in private money creation which is why I advocate the following three rules:

    1) Government money shall be pure fiat (no commodity backing) but only legal tender for government debts (taxes and fees) not private ones.

    2) Private monies shall only be acceptable for private debts, not government ones.

    3) The free market shall determine at all times the exchange rates between government and private monies and between private monies.

    The above should (hopefully) allow the private sector to escape government money mismanagement and also prevent the power of government from being employed to favor any private money form be it precious metals, private bank money, common stock or any other private money form.

    • Alonso December 4, 2010, 10:48 am

      Yeah, good luck with that. You get that proposal out in the mainstream and you’ll be the next Julian Assange.

    • mikeck December 4, 2010, 1:08 pm

      Hear, Hear, sounds like the free market to me…as for the constitutional argument, there is an amendment process for those who think they need others to control their life.

  • F. Beard December 3, 2010, 8:07 pm

    I’ll be doing my part to crash JPM. mikeck

    I’m not a silver bug but I hate naked short selling. There is not a convenient coin shop near to me. How might I buy a coin or two online (preferably through the lovely Stacy Herbert 🙂 )?

    • mikeck December 4, 2010, 12:56 pm

      I do not know if the lovely Stacy Herbert sells coins. Unless she delivered them, what would be the advantage? 😉

      There are untold number of places to buy online, including eBay. I have my eye on a small bag of junk silver that I want to give my son for his wedding. He does not need the money, but IMHO, everyone needs at least bit of insurance for the day the “dollar” dies. The best deal I’ve been able to find is here:
      http://www.gainesvillecoins.com I have done business with them before and have no complaints.

      If you want to shop around, GATA has a long list of dealers here: http://www.gata.org/node/173

      Mike

  • F. Beard December 3, 2010, 6:08 pm

    My last sentence makes it quite clear why silver, or something else that governments and bankers cannot create at will, should be used as money. mikeck

    The solution to government over-issue is to remove legal tender laws for private debts AND to allow a true free market in private money creation.

    • mikeck December 3, 2010, 7:02 pm

      I totally agree with that…it is behind the reason I did and do support Liberty Dollar. Silver Liberty Marketing is now offering a Ron Paul 1/2 ounce medallion…I’ll be doing my part to crash JPM.

      Mike

    • Steve December 3, 2010, 9:14 pm

      F.Beard, Anyone can Contract Privately for any form of money short of illegal “Things”, all under constitutional protection ‘quid pro quo’. Use the ‘Law of the Contract’. A contracts with B for value as one ‘beef’ for ’30 tons of hay’.

      “No State Shall pass any bill. . .impairing the Obligation of Contracts. . .”, Article I, sec. 10, cls. 1. Const.

      The rest of what is stated appears to be anarchy to benefit shavers, and private mints having no established ‘value”. You, F.Beard, can do as you wish right now in regard to private contract between A & B. When it comes to taxing. A common “Tally” of the gain for the master must be made equitably in slave notes ie; federal reserve [tally] notes territorially under Article I, sec. 8, cls. 17, Const.

      There is a ‘rub’. Silver specie Coin money is only for Free Men. U.S. corporate citizens can only ‘trade’ in precious metals and gain for the Master. So the same “Coin” silver Specie Money is “Tender” for one, and tally for the slave owing a gain tax on the federal reserve note [numerical note marking] at a given point of use. The tally of federal reserve notes changes, not; the “Value” of the Coin. [all federal reserve notes have the same “Value” of zed, zero, they simply tally the debt/gain of the slave, to establish the tenant payment in peonage.]

  • JimK December 3, 2010, 4:10 pm

    In studying the silver market, the question of recovery is still murky to me – reading Morgan and others who claim that there is more above ground gold than silver, the silver mines were shallow, while gold mines are deep, and industrial demand outstrips supply – but that in earlier times there was maybe 20 times as much silver mined, and most of it has been ‘consumed’ – which means that it is still in the city dumps and maybe the graveyards.

    A few years ago, I saw a video on a company which extracted silver from sea water – I think it might have used some kind of electrolysis, not sure, but it produced some very pure silver for the camera. This represents a mammoth amount of silver – at some given production cost – this will limit the bubble, if nothing else. Under sea mining also presents a great wild-card, given the oceans covering 6x the Earth’s surface, as does enhanced recovery from trash, including German style engineering for the recycling of appliances and perhaps electronics.

    The other assumption that is taken for granted is Moore’s law and the unending miniaturization/speeding up of computers – this may have some limitations as more technologies approach single atom component sizes. The ‘expansion’ may peter out quickly and be replaced by some other disruptive technology – as silver based photographic film was replaced by digital photography, for instance.

    The other mystery to me is, after all those millennia of mining silver, just how much of it in the way of decorative objects, etc. is still out there? Maybe the ‘scrap’ supply is much larger than anyone imagines.

    I would like to know just how much above ground silver there is – the total ‘money supply’ as it were – if anyone has an idea, please post it.

    Similarly, I wonder if the remaining mineable copper supply might be more precious than silver, ultimately. While silver is ‘poor man’s gold’ seems like copper may become ‘poor man’s silver’.

    • Steve December 3, 2010, 8:45 pm

      Silver will do everything copper will do for electrical systems, only better. Gold is a better conductor yet. A “Copper” was copper until the embasement treason. Melt down your 90% silver Coin, but; it is illegal to melt a pre-81 penny.

  • DP December 3, 2010, 2:40 pm

    @mario cavolo: how much of that Chinese bank silver/gold did you, or could you, ever see or touch? Is it real? Do they have all 100% of whatever they’ve sold?

    Maybe you’re a scalper, but I would think a lot of those people buying that silver and gold from those banks, they think they are actually buying the metal. Are they?

    Could the platform providers massively widen the spread tomorrow? Could the government put a huge tax on the transactions? Could people abandon that platform if they came to find that there is not really all the silver and gold that the banks are selling? What would the account entries you bought be worth from that day on?

    I bet it’s just the same fractionally reserved Ponzi game as the COMEX and LBMA.

    • mario cavolo December 3, 2010, 6:39 pm

      Evening DP, In fact its quite amazing!!….I should do a screen snip tool capture and send it to Rick to post….right there at your convenient fingertips you have the option to buy the paper or the actual physical metal!!…then go down to the bank and pick it up….as to your other comments/questions, I’m really not sure of your theme…..having a bank account at ICBC or Bank of China with an online platform is no different than having a bank account at any other major national banking institute in the world. Would they massively widen the spread…? Huh? ……abandon if…? Huh? I mean I suppose those possible events could occur at any bank in the world or what? Also relevant, the same account also has a fully integrated international forex currency pairs platform (unleveraged)…to hold your capital in cash or currency pairs…Isn’t that amazingly innovative…? Americans would be thrilled to have such features at their fingertips in the Chase or Wells Fargo online account, perhaps they do have such accounts?

      Otherwise, are you suggesting such disruptive events are more or less apt to happen at a major “China” banking institution as opposed to an American one…? If anything, the opposite is more likely to be true….

      Cheers, Mario

    • DP December 7, 2010, 3:15 pm

      Hello once again, Mario Cavolo.

      Apologies to you for the extended delay in coming back to read your response; I have been otherwise engaged.

      I am not trying to single out those Chinese banks in particular, what I have said I would apply to any entity anywhere in the world, which is offering people paper metal. I am very pleased to hear that you have the option to buy physical metal through the platform, and I hope that you have been availling yourself of the opportunity to do so. It does sound like a most impressive system they have put in place. I hope that every buyer on their platform has been taking the opportunity to take physical delivery, and that nobody is going to become disappointed at any time to find they were not the “lucky bidder” after, the one who actually got something real. I wish all of the bidders of the world the very best of luck for the future.

  • DP December 3, 2010, 2:31 pm

    @F. Beard:

    +1 — Put me in your gang

    Silver is an industrially useful material and that is exactly the reason why Central Banks won’t hoard it. There would be an outcry because it would put a brake on the economy through scarcity.

    Imagine they were to decide wheat is a valuable commodity (and they had come up with a way to stop it degrading over very long periods) and they therefore added it to their permanent wealth reserves. How long before people were scaling the walls, brandishing pitchforks, to get some of that scarce wheat so they could eat. It’s the same thing, albeit a more extreme and obvious example of this process at work — but that is why I picked this scenario to better illustrate my point about silver, which is fundamentally the same.

    Gold is the only “commodity” that when it is kept out of circulation, by hoarding, it does not adversely affect the wider economy. That is why it is perfectly acceptable to all for it to be used as a permanent store of hoarded wealth, unlike silver/platinum/palladium/wheat/water/whatever. Gold’s uselessness is exactly what bestows monetary value on it. Nobody cares if you hide it for eternity in order to preserve tangible wealth, in fact that only makes it more suitable.

    Silver is poor man’s gold for a reason.

    • F. Beard December 3, 2010, 2:45 pm

      As a libertarian, I don’t care what people use for PRIVATE money supplies. As for a store of value, I imagine a properly diversified stock portfolio in a sound economy (which we don’t have because of the government backed counterfeiting cartel) would beat gold since gold is a non-performing asset.

      Now if the gold and silver bugs succeed in getting government privilege for gold and silver such as by persuading the government to accept them for taxes then gold and silver would have an artificially enhanced value as tax monies. I am opposed to that since I desire a true free market in private money creation.

    • DP December 3, 2010, 2:51 pm

      @F. Beard hello again my new friend 🙂

      I have a feeling you would enjoy this blog. I could be wrong of course. (No, it is not my blog!)

      fofoa.blogspot.com

  • F. Beard December 3, 2010, 1:08 pm

    One problem with commodity monies (there are quite a few) is that if used as money then they can’t be used as a commodities and vice versa.

    Common stock is a superior money form to PMs. In fact, with a corporation with 100% of its assets in gold, its common stock would be a form of gold certificate but with the additional advantage that performing assets could be bought too. I imagine this is how fractional reserve banking got started except the bankers did not share the profits with the money holders by issuing common stock as money. Instead, they issued claims to just the gold and not all the assets of the bank. That little detail (plus the ability to vote in the corporation) makes all the difference in terms of ethics and stability.

  • SilverSurfer December 3, 2010, 10:12 am

    Take the same article and put a byline for David Morgan, Ted Butler, et al and it’s just more of the same.

    Gold is the metal of kings, silver for the masses. There were times in history where silver was so plentiful, it was considered worthless:

    From 1 Kings 10:21:
    “All King Solomon’s drinking vessels were of gold, and all the vessels of the house of the forest of Lebanon were of pure gold. None was of silver; it was not considered valuable in the days of Solomon.”

    The gold/silver ratio has varied widely and has trended down recently. In this example, the ratio was a 100 to 1:
    2 Kings 23:33

    Pharaoh Neco imprisoned him at Riblah in the land of Hamath, that he might not reign in Jerusalem; and he imposed on the land a fine of one hundred talents of silver and a talent of gold.

    Don’t buy the mania, watch the ratio and scale or trade out of one metal for the other. When the ratio was 70 to 1, buying silver made more sense. At the current ratio, scale or trade some silver for gold.

    And always remember, never to make a metal an idol, and who owns all of it:
    Haggai 2:8

    ‘The silver is Mine and the gold is Mine,’ declares the LORD of hosts.

    Shalom!

    • mikeck December 3, 2010, 4:05 pm

      SilverSurfer wrote. “Don’t buy the mania, watch the ratio and scale or trade out of one metal for the other. When the ratio was 70 to 1, buying silver made more sense. At the current ratio, scale or trade some silver for gold. ”

      If anyone thinks that is a good deal, I’m sure I can come up with a few gold coins that I just might be willing to trade @ 50 to 1. Sure we may see 60 to 1 again, but we also may not. Long term, I’m thinking much closer to the ration that they occur in the crust of the earth.

      Since billions of ounces have been used up over the past quarter century or so, the stockpile that caused the ration to go so high is mostly no longer available. Also, since more uses are coming on line every year, it seems unlikely the ration will ever get so out of whack again.

      When the ratio reached 100 to 1 in biblical times, the accessible portion of the earths crust was effectively limited to the outer few hundred feet where, I suspect, a higher portion of the silver was deposited or at the very least accessible at low input cost. The first part of that condition no longer exist and the stockpile that had been built up was being rapidly used up when the ratio reached 100 to 1 again a few years ago. Maybe we will see 5 mile deep silver mines when the ratio approaches 1 to 1. 😉

      Unless Ted, David et al have missed a large stockpile somewhere, my bets are towards a lower ratio.

      Mike

  • mikeck December 3, 2010, 4:34 am

    Thanks Sean for praising the mighty metal…something I would never take on because it has so many uses that one can not help but overlook some of them.

    I recently read one such article that did not even mention reflectivity…the author probably used some mirrors with silver backing the day he wrote the article.

    I totally agree, no list of strategic metals is close to complete without silver. In my earlier life, I was a jet engine mechanic and soon learned that there would be no jet air flight without silver.

    All that said, no!!!I did not appoint them to manage the monetary system and when silver and gold were used as money, money did not need managing. Some things are self evident.

    Long ago I could buy 4 gallons of petrol for 1 silver dollar…today I can get about 7 gallons for a silver dollar…that is my kind of deflation.

    Mike

    • F. Beard December 3, 2010, 1:41 pm

      Yes, silver is a fabulous metal so why should we waste it for money tokens? I do grant though that its disinfectant properties would make it a safer currency to handle. 🙂

    • mikeck December 3, 2010, 2:53 pm

      My last sentence makes it quite clear why silver, or something else that governments and bankers cannot create at will, should be used as money. If money is not something everyone, including bankers and governments, has to come by honestly, the people will be slaves.

      As Dr. Parks pointed out, you can no more make a piece of paper a dollar by putting ink on it than you can make a cat a dog by hanging a sign on the dog with the word cat written on it.

      Mike

  • mario cavolo December 3, 2010, 2:33 am

    I’ve mentioned in previous posts that I can easily buy gold online directly through my ICBC China bank account with the click of a mouse. The same is true with Bank of China accounts and probably other main Chinese banks. The buy/sell price spread ticks along 24 hours a day with basic charting features too, and you can buy in and out to your hearts content.

    At some point in the recent few months, they also added silver to the listing.

    Talk over the past year about how China was hyping a a buy gold theme all over the TV were patently untrue. However, the PM’s being available so easily at everyone’s fingertips is certainly meaningful. I certainly can’t do that with my U.S. based Chase bank account.

  • doggis December 3, 2010, 1:44 am

    rick – interesting article but i take exception to the government ‘managed’ part to silver. The government’s proxy (JPM) 3.3 billion ounce naked derivative short in silver is much more than managing the price of silver it is FRAUD pure and simple. Not even governments are allowed to sell something that they don’t own!!

    • mario cavolo December 3, 2010, 2:09 pm

      …whoa, impossible for me to comprehend…JPM is actually holding a 3.3 BILLION ounce worth naked short position against silver…? So we’re talking an 80 BILLION dollar lot of silver futures they are short…? Or they’ve purchased hundreds of millions of put options or…?

      Cheers, Mario