Sideways Precious Metals Prices Mean It’s Not Too Late

Sideways Precious Metals Prices Mean It’s Not Too Late
Posted: 27 Mar 2012 06:50 AM PDT

Throughout the history of our industrialized economies, gold and silver have typically represented between 5% and 10% of the average investor portfolio – or roughly 5% to 10% of their wealth. Note that historically this ratio has typically risen in times of financial turmoil, crisis, or simply any time of high inflation.
Today, despite the price of gold having surged in price by well over 500% from its absolute low, despite the price of silver having surged more than 800% off of its absolute low; gold and silver still represent little more than 1% of the wealth of the average individual. The gross under-ownership of this historic “safe haven” is taking place at a time when Western markets, financial systems, and their entire economies have never been in a greater state of crisis.
Already, these debt-saturated dominoes have begun effectively declaring national bankruptcy. This is the only way to describe the 75% default on Greek government debt and the wholesale liquidation of government-owned assets. This only increases the leverage (and the strain) on the bankers’ $1+ quadrillion derivatives market.
The derivatives market is a totally unregulated casino, operated by Western banking Oligarchs. It is nothing but a collection of bets on the world’s markets and economies. Indeed, one of the largest category of derivatives are credit default swaps – which had been banned for decades based upon U.S. anti-gambling statutes.
With this insanely leveraged casino having swollen to a size equal to more than 20 times total, global GDP; it is only a question of “when” not if this paper Ponzi-scheme will implode. The amounts are so huge that a “bail-out” isn’t even theoretically possible. When this implosion occurs, the Western financial system is 100% certain to be vaporized (and most likely all Western paper currencies).
Meanwhile, the same cabal of bankers is printing-up their paper money at the most reckless rates in history, which is the only reason they have been able to delay the implosion of their paper house-of-cards this long. It is a matter of elementary economics and arithmetic that if you print currency at a rate in excess of economic growth that the value of that paper must decline.
Hence, an ounce of gold which used to be priced at under $300/oz is now over $1600 (and had been much higher). An ounce of silver which used to be sold for less than $4/oz is now close to $32/oz (and had been much higher). A barrel of oil which was priced at $30/barrel a few years ago is priced at over $100/barrel today – despite energy analysts continuing to talk about a glut of current supplies/inventories.
A loaf of bread which cost $2 only a few years ago costs $4 today. A dozen eggs which used to be under $2 is now over $3. A pound of ground beef which used to cost about $2/lb is now about $4/lb. The quality of none of these goods has improved. Indeed, the disease-ridden livestock which produce much of our food are arguably getting more and more inferior. Rather, it is the paper which is plummeting in value – despite our dishonest governments foisting their “low inflation” lies upon us.
The paper-printing continues to increase exponentially. Every time you hear the phrase “bail-out” understand that none of our governments has any money, and that all that “bail-out” means is printing-up much, much more paper. Thus the inflation which has already ravaged our purchasing power has only just begun.

via: Bullion Bulls Canada

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