In the first part of these two articles, there was a discussion of how manipulation and fraud by the US government and banking industry has turned investment upside down. The government with its “zero interest rate policy” (ZIRP) has made “conservative investors” the high risk players of 2011. This will end my thoughts on how the risk of being a conservative investor has never been higher . All investors who have bought municipal bonds [funds] because they were told that a municipal bond is one of the safest investments in the world, unfortunately they are being hurt very badly right now.
Four very smart business owners who didn’t know what to do with their investment money, so they kept much of it in cash and municipal bonds, all because they were being “conservative” in protecting their wealth. Each of them self-identified as “conservative.” But being in cash for the last eight years (two of them with this approach) with the dollar falling 34% is not conservative, it is dangerous. They had lost 1/3 of their purchasing power with that cash. And that’s just against other fiat currencies that are also printing trillions of units of paper money (yen, euro, pound, etc.).
The US dollar over the past nine years is down 34.21% from the 2002 high against other paper currencies. Making them see that the US dollar has lost 80% of its purchasing power against gold and silver in the last ten years. Comparing gold and silver to the US dollar, investment in 50% silver/50% gold has increased 466% against the US dollar over the last eleven years. You see, it’s not just the municipal bond market that is spilling its secrets, gold and silver have been saddled with this job for a decade. Are investors listening?
The definition of a revolution is when things turn upside down. What used to be down is now up. And what was up before is now down. Safe has become dangerous. And the dangerous has become safe(r). Safe “conservative” assets like municipal bonds and cash are extremely risky places to put your money today (principal loss has never been higher in this sector). And “risky” investments like stocks are being backed by the US Congress, the Treasury, and the world’s Central Banks. What used to be safe and risk-free is now toxic and dangerous. And what was once risky is now being heavily promoted by the powers that be as the place to invest. Something bad is going on and it only seems to be getting worse. People have been told to buy gold and silver back in 2004 when it was considered a marginal investment. Warning people to avoid real estate in 2006 and then bank stocks in 2007. And then in 2008, on January 15, to go into cash, thus avoiding a 50% crash in the stock market. It is good to return to the market as of August 7, 2010. I refer to these points because I believe that what is happening today is even bigger.
So what can investors do today? There is an asset that has an almost perfect relationship with government stupidity. As government stupidity increases, so does this asset. And when government stupidity declines so does this asset. When we look back five years at the best investments from 2011 to 2015, we will see that it is, in fact, this one asset. The asset I’m talking about is silver. And while silver is in for a much-needed correction after surging 102% from February to December 2010, you should seriously consider what the muni bond price chart is telling investors. Not all it’s rigth. Let’s be clear, dear reader, Ben Bernanke has not fixed anything. Timmy Geithner hasn’t fixed anything. Hank Paulson didn’t fix anything. The 111th Congress fixed nothing. And the 112th Congress won’t fix anything.
It’s up to you to protect your family’s money. And one way to do that is to position a portion of your portfolio alongside one of the few asset classes that the government literally guarantees will rise. This is better than FDIC insured. This is the Central Bank Deposit Insurance Program or CBDIP. So how can investors buy silver?
Investors can buy
- silver coins
- silver ETFs
- Silver closed-end funds
- silver mining companies.
A good preference is a closed-end fund called the Sprott Physical Silver Trust (PSLV) In fact, PSLV is selling at a premium due to the policies of JP Morgan, which is the custodian of SLV (the world’s largest silver ETF). Basically, JP Morgan may not have all the silver it says it does to back its silver ETF. Why would the company (JP Morgan) that is the custodian of the world’s largest silver ETF also have the world’s largest short position against the metal that they have been tasked with managing for their shareholders? There is a better way to position your portfolio than even buying PSLV. One way that when silver goes up, this investment will go up twice as fast or even more.
Together, we are protecting and growing your wealth,
RC pecking
