Don’t Lose Sight of the Facts!

Don’t Lose Sight of the Facts!

• The U.S. national debt is approaching $17 trillion.

• Unfunded liabilities are more than $123 trillion for entitlement programs alone.

• The Federal Reserve is unable to raise interest rates anytime soon despite rumors to the contrary.

• If rates were to rise to 5% as they were pre-crisis, the government could not afford to run the country, let alone repay any portion of the debt.

• Stagflation is very, very probable.

• The dollar is slowing, but steadily losing its position as the preeminent financial reserve instrument for individuals, corporations and central banks worldwide.

• The dollar, although strong in the short term and still the best deal going worldwide, has everything going against it in the long term.  It is fiat, it is paper, it is printed (or electronically created) in unlimited quantities, and it cannot / will not last.

Opportunity Now

The dollar strength we are witnessing at present makes this an opportunistic time to buy silver at a tremendous discount. Silver prices have fallen more than 50% after recently reaching almost $50.  Currently trading around $22 per ounce, analysis shows that silver is a very good buy all the way up to $36 per ounce, and a hold thereafter (we will revisit those numbers once we approach $36).

Silver’s price decline is based largely on 1) a burgeoning U.S. stock market, 2) dollar strength as noted above, 3) massive ‘paper’ silver liquidations including:  ETF’s, leveraged ETF’s such as ProShares, long stops triggered in the futures markets, increased short selling, prominent hedge funds making their exit from the market known and silver investor apathy/boredom.  Of course there is some level of manipulation, on which I do not care to dwell until it begins to become public and actionable.