The case for silver at $250 per fine ounceon December 19, 2011 at 19:13
Eric King of King World News recently interviewed the Chief Investment Strategist of Sprott Asset Management, John Embry, a self-declared supporter of Austrian economics. Embry is of the opinion that the existing fiat currency system is going to collapse, which will lead to soaring gold and silver prices, despite the current rampant paper manipulation of both gold and silver prices.
King asked Embry for one “…if there was any chance for the central planners to save the system” (Embry – $2,500 to $3,000 Gold Could Send Silver to $250, King World News, 8 December 2011). Embry responded: “Zero. I’m a huge believer in Austrian economics, so you have to know where I’m coming from. Ludwig von Mises, the Founder of Austrian economics, said it best, when you have an excessive credit cycle you only have two choices”, and continuing, “You can stop it when it gets beyond where it should be, and it’s way beyond where it should be now. You can either take the pain and clean out the debt or you can continue to try and create more and more debt to keep the other stuff afloat and have a complete collapse of the currency system. Well, we’ve opted for the latter and that’s where we are going” (Embry – $2,500 to $3,000 Gold Could Send Silver to $250, King World News, 8 December 2011). Embry has echoed Silver Bullion’s take on what’s going on. A collapse of the system is after all at this stage a mathematical certainty, whether you choose to believe it or not. We went passed the point of no return already a while ago.
Needless to say, the majority of people are still stuck in denial mode, drenched in a false sense of prosperity, especially as the prices of fiat or debt-based assets inflate as a direct result of the mountains and mountains of fiat currencies (non-redeemable paper notes, fiat paper money, electronic money, the Devil’s money, fiat money, toilet paper money, trash) that get created. In fact, many falsely believe that the existing currency system cannot collapse, because the authorities can simply reduce the fiat currencies in circulation without having to face devastating consequences.
The reality is that we’re facing a Catch-22 situation…
Firstly, it is at this stage not possible for them to substantially reduce the fiat currencies in circulation without causing a collapse (they can only meet debt obligations by creating more fiat money – monetizing the debt), secondly, fiat currencies are not money, but debt instruments that only have value while more and more debt gets created annually (however, only up to a certain point before the underlying fiat currencies completely collapse), and last but not least, history has proven beyond a reasonable doubt that all fiat currencies collapse at some stage or another, while non-fiat or non-debt based monetary assets such as physical gold and silver retain its purchase value. Make no mistake about it; the collapse of the current system will have devastating consequences for most of us, since all of us are still dependent on the system (global fiat Ponzi scheme) one way or another. It is not something that is desired, but such a collapse will happen whether we like it or not. However, history has proven that it is possible to reduce one’s exposure to the negative consequences of such a collapse through gold and silver ownership. In short, chances are great that you will be able to acquire possibly lifesaving products and services with gold and silver in hand, after or during such collapse, especially in the form of gold and silver coins, while the same can unfortunately not be said of fiat currencies.
Now we know that at even at this late stage, the majority of people are simply not prepared for what’s coming, mainly as a result of their insane refusal to do so. In fact, they have numerous excuses for not doing the right thing, excuses that can easily be refuted in most instances, if they would only choose to listen and not repeat the mainstream garbage (to state it mildly!).
Back to the interview…
When King asked Embry about silver specifically, he replied: “As you know I’ve been very vocal on the subject of silver. When gold goes, silver is going to go further for the simple reason that in extended bull markets for precious metals, the gold/silver ratio tends to fall. Historically it’s gotten down as low as ten or fifteen to one. It’s currently over fifty. So consequently silver has all sorts of room on the upside. For instance, $2,500 or $3,000 gold, that could underwrite $250 silver. Think about that, that’s eight times where it’s trading today” (Embry – $2,500 to $3,000 Gold Could Send Silver to $250, King World News, 8 December 2011). Embry has once again echoed Silver Bullion’s views to a great extent. It does not take rocket science to figure out that the Gold/Silver Ratio (GSR), also known as the gold/silver price ratio, cannot stay at current levels. The gold price has to come down, the silver price has to go up or both prices need to go up (what is most likely to happen!).
Thus, with the above in mind, if you have not yet bought or acquired physical silver, especially at a price close to the current paper manipulated silver price of more or less $30 an ounce (troy ounce), are you going to take a step forward or rather choose to wait until fiat currencies become more or completely worthless? Now you might ask yourself: What kind of a decision do I have to make to buy silver? We have the answer here.