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I've
been without power and email access since Thursday, 3pm, last week, until
just now. We left the JH MINT early that day, because a record snow
storm was just beginning to fall. The JH MINT has power again, but not
my house, which is minutes away.
Trees, bent
under the heavy wet snow, have fallen across the roads and powerlines.
Going without power is not too unusual for me, as I grew up alpine ski
racing, always near the mountains. I kind of like it, as no power means
no TV, and greater time for conversations, thinking, and reflection
on life.
We
live in a unique time period in human history. Only 150 years ago,
things were not all that much different than they were 2000 years
earlier. With the discovery of oil, the machine age and industrial age
began to really change things. Previously, over 90% of humanity was
farming, barely making a living, with starvation always a looming
danger. With oil and machine parts came the mechanical harvester, which
could do the work of ten men, which gave mankind the freedom from subsistence
living.
I
sometimes wonder how far society's advances may collapse backwards again, but
I think that the world will never collapse to that point again.
While
it's always good to prepare, it's certainly possible to overdo it. We
have a generator that powers part of the house, but I don't need a generator
to power everything in an emergency. The fireplace heats up most of the
house, but not the master bedroom, which can be heated by the electricity off
the generator.
Last
year, we upgraded our well, adding a holding tank, so that we would be much less
likely to run low on water. Works great! Unfortunately, the
installers took the well pump off of the generator back up system. I
remember asking them to re-do it, but they said we could always do it
later. I remember saying to them, "no, now", because by the
time later comes, the power will be off, and it will be too late. Well,
too late came about a year later.
I
forgot to call out an electrician to fix things. Without the generator
hooked up to the well, we have no water to flush toilets or take
showers. So, we melted snow on the stove in large pots to make do, and
make the poopies go away. (Yes, I'm a dad.) It worked, but it's
kind of lame. I'll have to get that pump put back on the generator
back up electrical lines. Also, I'm now considering getting a
diesel fuel tank, and a better diesel generator, but maybe that's excessive;
certainly it's expensive, and maybe overdoing it a bit.
I
suppose I was too busy always thinking of arguments and things I can write to
help my readers to prepare for financial collapse by buying silver.
Perhaps I'm a savant that way, because helping my readers is my all
consuming focus.
Interestingly,
the financial system, and the silver world, began to change with dawn of the
age of oil. It was about that same 150 years ago, that modern banking
first began to eliminate silver coinage by moving to a gold only standard,
which ultimately led to paper only, and the abandonment of gold and silver as
circulating money entirely throughout the world.
http://en.wikipedia.org/wiki/Silver_standard
I
love comparing oil to silver, as oil always makes silver look so very
much better as an investment in so many ways.
Convenience:
Silver wins! (It's lighter)
$10,000
worth of silver is now about 279 troy ounces., that weighs about 19 pounds,
or 8.6 kilos. = easy for granny to transport in her bare hands.
$10,000
worth of oil, at $98/barrel, = 102 barrels = 1/2 of an oil tanker truck load.
Market
Size: Silver wins! (It's smaller)
The
world produces about 700 million oz. of silver per year.
http://www.silverinstitute.org/supply_demand.php#supply
That, times $34/oz. = $24 billion.
The
world produces about 85 million barrels of oil per day.
http://en.wikipedia.org/wiki/World_oil_production
That, times $98/barrel, times 365 days/year = $3,040 billion.
The oil market is over 100 times larger
than the silver market!
Implication: Silver prices would
have to rise over 100 times for there to be enough silver to pay for current
oil consumption!
There is a coming financial storm.
Prepare. Get silver.
It costs you nothing, as buying silver
is simply a monetary conversion from the fake to the real, and doing so will
earn you everything!
A man asked me this morning,
"What's driving silver prices?"
He reads www.lemetropolecafe.com daily like
I do, so he's about as well informed as it gets.
I replied, "The systemic rot that
has built up over the last 100 years."
There's no way they can prevent silver
prices from moving up, long term.
Recently, I've been hammering the point
that there are two major reasons why silver is headed to $500/oz.
First, silver hit $50/oz. in 1980, and
money creation has increased 10 times since then, so the true inflation
adjusted price of silver will be $500.
Second, when 1% of money in US banks
buys silver, it will be 1% of about $18 trillion, which is $180
billion. If you divide that by 700 million, you'd get $257/oz., which
would leave no silver for industry or the rest of the world, which implies a
silver price of at least about $500.
So, here then is the problem.
How will they prevent silver from going
to $500/oz.? They can't. They can only slow down the rise,
or let it rise fast. (while increasing volatility, and creating temporary
price dips) And how will they prevent the implications of such a
massive rise to $500?
See, the problem is twofold.
If they let silver run fast to $500,
say over 6 months, the dollar will be perceived as collapsing, and could
continue to collapse to zero.
But if they let silver continue to go
up "slowly" at only 30% per year, for the next ten years to take us
to $500, this would create a worse problem. See, after nearly 20 years
of precious metals only going up, people will begin to notice -- more than
notice. They will begin to say, "precious metals only go up, they
never go down". And that's how price bubbles begin to form, making
silver go from fair value to over valued.
And if silver were to become over
valued, that would drive the price from $500 to $5000, and could continue and
ultimately collapse the dollar to zero value.
So that is quite the problem for
the people who are trying to prevent the silver price from rising.
The silver storm is coming.
Prepare.
People ask some interesting questions
when I point out that silver is headed to $500. They ask, "Gee,
who will buy it when it's that expensive?" Did they not comprehend
the argument? Only 1% of people will be buying silver when silver is
$500/oz., (a hundred times more than today, when only 1% of 1% of people are
buying silver) but yet, 99% of people won't have bought any silver in
the recent year, at $500/oz.
Some analysts today say that silver is
going to go down, because "everybody loves silver". Such analysts
don't know anything about the fundamentals, which trump any kind of
other analysis! Silver might hit the news due to new highs, but
the facts are clear. Only about 1% of 1% of money is buying silver each
year. That's one dollar out of 10,000!
Silver's not a popular
investment. Not yet. But it will be. IT WILL BE!
Prepare for it. Get it now. Anywhere below $50 to $100/oz is
cheap.
====
CONFISCATION RUMORS!
There are rumors of government confiscation again. Sigh. Not
likely. Why not? Because of the fundamentals. Only 1 person
in about 10,000 is buying silver. It makes no sense to confiscate!!!!
The entire world annual silver market is barely $21 billion. The
government budget is $3500 billion, with the deficit at $1500 billion.
$21 billion cannot actually be confiscated without the USA declaring war on
the entire world! Makes no sense!!!
Think, why would the USA confiscate silver, when it is minting, and selling
about 40 million oz. of silver Eagle coins?
Why would the USA confiscate silver, and make it "contraband" like
marijuana, and thus, help drive up the price, when the US government (via JP
Morgan) is desperately trying to keep the price down?
Hey, the war on drugs is a miserable failure. And if they can't get
drugs out of the hands of lazy teenagers, what makes you think they will be
able to get silver out of the hands of sober, anxious, gun-toting, 50 year
olds, many with former military backgrounds who would be willing to fight to
the death over their freedom and basic property rights?
Why would the USA confiscate silver, and jeapordize the franchise of the US
Dollar, which it is gleefully using to print up the budget gap of $1500
billion?
If the USA confiscated silver, they would only get about 1% of the people's
silver anyway, or less than $200 million, that's how much was
voluntarily turned in during the last confiscation.
The US government can't confiscate silver! Why not? Because
the people are not using silver as units of account in their bank accounts!
Confiscation makes no sense today.
Rumors of confiscation make sense. If they float rumors of
confiscation, maybe people won't buy any. Maybe they can get people to
think that it would be useless to buy silver, as it would just be
confiscated anyway.
Hello! Silver has moved up from $5/oz. to $34 now. Has not been
confiscated yet! But the dollar's value? Confiscated!
At every level, there were rumors of silver confiscation. Every year,
this is my most popular question asked and answered. And it has never
made any sense, except in the sense of a deliberate disinformation campaign
to keep people away from silver. And if you know the fundamentals, you
know that confiscation makes zero sense.
Confiscation makes sense only after silver hits $10,000/oz.!
=====
I strongly advise you to take possession of real gold and silver, at anywhere
near today's prices, while you still can. The fundamentals
indicate rising prices for decades to come, and a major price spike can
happen at any time.
Follow me on facebook!
http://www.facebook.com/jason.hommel
JH MINT & Coin Shop, Grass Valley, CA
USA shipping only.
MINIMUM SHIPPING ORDER,
$5,000.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank
holidays.
www.jhmint.com
(530) 273-8175
Kerri handles internet phone orders:
kerri.jhmint@yaoo.com
(530) 273-8822
Sincerely,
Jason Hommel
Silver Stock
Report
I strongly advise you to take possession
of real gold and silver, at anywhere near today's price, while you still
can. The fundamentals indicate rising prices for decades to come.
Price Board:
http://hommel.name/cgi/priceboard?store=jhmint.com
Our Coin Shops are open 10AM to 5PM Pacific Time, Monday to Friday, closed
weekends.
JH MINT & Coin Shop, Grass Valley, CA -- our largest store, minimum $1500
to ship, USA shipping only, free shipping.
(530) 273-8175
Kerri: 530 273 -8822 silver_support3@hotmail.com
www.jhmint.com
Rocklin Coin Shop, CA -- 15 min north of Sacramento on HWY 80
www.rocklincoinshop.com
Mom's Silver Shop, Sacramento, CA
www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
(916) 481 5656
(Mom will ship with no minimum order size, and overseas, and take credit
cards and paypal.)
Oakland Silver and Gold
www.oaklandsilverandgold.com
3929 Piedmont Ave.,
Oakland, CA 94611
osg2010@gmail.com
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