Our friends at Dont-Tread-On.Me have compiled an excellent list of 10 reasons why gold is the gut reaction to the panic out of fiat assets, and silver is the smart decision.
Silver the second most versatile commodity, second only to oil. With its growing technological and medical uses, its demand is vital to any recovery we will see. Silver’s unique anti-microbial, reflective and conductive qualities make it a vital element in many high ticket projects. Since it is so vital and used in such small quantities, its price is inelastic. If silver goes to a $1,000 an ounce and Apple Computer needs a 1/10 of an ounce to make their $2,000 computer work at the highest quality, they will simply raise the price $100 to make up the difference.
Silver has the largest and most persistent short position in any commodity, ever. The only reason why the 1:45 ration exists is because the banksters sell paper silver into the paper markets to suppress the price of silver to give strength to the dollar and the quadrillion dollar paper empire they rule. Last May, when they crashed the silver market, they sold something like 8 billion ounces of paper silver into the market in 5 days. There is only about 1 billion ounces of silver mined a year globally. This massive naked short will unwind the day that they cannot deliver on the silver they promised. Crash JP Morgan; Buy Silver.
The banksters are running out of silver and time.
The COMEX registered inventory now stands at 27 million ounces. I knew when the May smack down came that it was all BS. Logic would dictate that if the price of silver dropped that significantly there must be more physical silver in their vaults. When the inventory numbers came out, there was actually less silver. Not only was more silver delivered to buyers, sellers cancelled their warrants and shrunk the inventory from the supply side like OPEC does. (Read the 11 Mentality Shifts of Silver Investors.) When this massive fraud is discovered, there will be panic buying as the sharks smell blood in the water.
The majority of gold owners are the banksters. If you look at the largest stockpiles of gold owners it falls mostly on the central banks of the world. The very guys that are destroying the paper markets, are the largest owners of gold. There is no central bank that I know of that even owns an even an ounce of silver. Since silver has been used more times as money throughout history as money than gold, logic would dictate that at some point banks are going to want to own silver.
Click here for 6 more reasons SILVER is the smart decision: