(1) NUMBER ONE REASON TO BUY SILVER & GOLD NOW:
Capital controls are coming. I believe capital controls will be imposed within the next 24 months. But it could happen overnight. You will wake up one morning, and find no gold and silver for sale. Dealers will buy, but not sell — bid / no ask.
By Executive Order: It is just a matter of time until another financial catastrophe (or war) triggers the imposition of capital controls. The U. S. imposed capital controls in 1933. The President declared a national emergency, closed banks, and took control of precious metal transactions.
What are capital controls? Capital controls are measures to restrict the flow of capital. These protectionist restrictions can include taxes on financial transactions -and- regulations on the sale/purchase of equities, bonds, and precious metals. Capital controls can require mandatory approval from authorities before money is spent on gold and silver. Capital controls could prevent the sale of Treasuries / bond-related funds, the liquidation of ETFs, and bank withdrawals over $500.
(2) OPEN-ENDED Q E (Quantitative Easing) SPELLS EMERGENCY. The Federal Reserve is directly monetizing the United States deficit by printing more than $1 trillion per year. When a country monetizes its own debt, it eventually produces economic chaos by destroying the value of its currency. There is no mystery here. Creation of money out of thin air –money printing- leads to price inflation of goods, services and commodities. The FED will continue to create mind-boggling amounts of money and credit to stave off a market collapse. The Invisible Tax
The U. S. is no longer able to finance its debt by selling Treasuries to foreigners. There is strong evidence foreign creditors are revolting against the petro-dollar. Countries in the Middle East, Brazil, Russia, India, China, South Africa, Japan, and Korea are forming bilateral trade agreements which exclude the dollar.
(3) GOLD-to-SILVER RATIO OUT OF WHACK.
The historical norm for the relationship of silver to gold is a ratio of 15 to 1. Fifteen ounces of silver should equal the value of one ounce of gold. Today, an ounce of gold sells for 61 times the price of an ounce of silver – a ratio of 61 to 1. Silver is under-priced compared to gold. Silver will catch up to gold when the average American finally realizes he needs silver — real money he’ll be able to afford.
(4) AMERICA’S NATIONAL DEFENSE SILVER STOCKPILE IS GONE!
One hundred years ago, the U. S. silver stockpile equaled 8 billion ounces. In 1942, the U. S. silver stockpile equaled 2 billion ounces. Today, the U. S. Mint must buy silver on the open market to fill Silver Eagle orders. Also, private supplies of small bars and coins are dwindling. Where did all the silver go?
Silver is scarce. Silver is still cheap. Short sellers have provided an opportunity for you to buy silver at an artificially low price. Are you ready for $75, $100, $150 silver?
(5) SILVER IS INDISPENSABLE.
Because of its unique properties, silver is required increasingly in industry. As the best conductor of electricity, it is used in switches, high-tech, medicine, automobiles, batteries, cameras, jet engines, plastics, insulation, air conditioning, appliances, photography, antifreeze, solar cells, water purification, computers, weaponry, etc. In addition, silver -increasingly- will be used as money for barter.
(6) WORLDWIDE INDUSTRIAL DEMAND OUTSTRIPS SUPPLY.
All known stored silver in the world is estimated to be only 350 million oz. Worldwide silver demand is about 900 million oz. a year. The amount of physical silver left for investors -after subtracting manufacturing demand- is about 100 million ounces per year ($3.5 billion). Stockpiles have been swallowed up by countries such as the U.S., China and India.
(7) CHINA WANTS MORE.
China is the world’s largest investor in copper/silver mining operations. The Chinese government – besides acquiring silver for the central bank– is encouraging its citizens to buy silver. That means a significant increase in demand for limited supplies. London metals traders report Asia is vacuuming up all available physical gold and silver on the exchanges.
(8) PAPER SILVER PRICES DO NOT REFLECT PHYSICAL SILVER SCARCITY.
Brokers are trading contracts representing millions of ounces of silver on commodity exchanges like the COMEX and through ETF’s (Exchange Traded Funds). The commodity exchanges are currently short the physical silver needed to cover their positions. Research supports fears that physical silver bars in storage facilities have been rehypothecated 100 to 1 (selling the same ounce one hundred times).
We could see a price explosion resulting from a financial run on the exchanges at any time. When nervous investors demand physical delivery of their gold and silver contracts, they will be offered cash rather than precious metals.
(9) THE NEW WALL STREET REFORM ACT WILL REGULATE YOU.
It will be too late for privacy when most investors realize that hidden in the new 2,300-page Dodd/Frank bill are new rules that allow the government to violate consumer privacy and monitor all transactions. The new law allows government to use personal financial data to regulate consumer choices. Don’t wait for the law to go into effect.
(10) HIGHER TAXES?
Congress has tossed around the idea of imposing a Financial Transaction Tax, and a Value Added Tax on all purchases. VATS around the world are used to collect up to 20% additional taxes on purchases. As the financial mess worsens, politicians will desperately seek new ways to tax.
WHEN SHOULD YOU BUY?
Buy when you have the wherewithal to do it. Buy while physical gold and silver is still available. Buy before government restricts you with capital controls. Buy before government imposes a financial transaction tax or a VAT (Value Added Tax). Buy while it is still legal to buy gold and silver. Desperate governments always restrict transactions on gold and silver.
Throughout history – in times of price inflation or price deflation – silver and gold function as real money. Act now.
WHAT TO BUY
Own the actual physical metals / coins. Buy U. S. 1 oz. Silver Eagles (100 at a time, or 500 in a sealed box from the U.S. Mint). Also, buy bags of pre-1965 90% U. S. silver dimes, quarters and half-dollars (1/4, 1/2 or full bags).
Without delay, put a significant portion of your
retirement funds in real gold and silver money.
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Capital Controls are just around the corner
(bottom of article): Why Are the 1% Now Buying Gold?