Silver Best Bet for the Little Guy, it Could Make You Rich!

By Michael Webster: Syndicated Investigative Reporter.   Opinion:

I’ve been advocating for years that in my humble opinion the average person like me should buy silver, real silver not paper or certificates but rather coins, bars, bullion and even silver jewelry.

I’m not a financial adviser, financial consultant or in anyway benefit from sharing with my readers what I do and it’s up to them what they do.

I believe to further protect yourself if you do buy silver take physical possession and hung on and buckle up as the silver ride soon starts to unfold upward.

Silver is the poor mans gold, as of this writing silver spot is around $20.00 dollars per OZ. That still means a relatively small amount of money will buy a lot of silver.

The extraordinarily bullish fundamentals of the Silver Market suggest, at current prices, that investing in silver could offer investors one of the single best long-term investments today. It is no secret that both gold and silver are recognized as a store of value. What is not so well known is that while gold has demonstrated a solid trend of price appreciation since 2001, more than quintupling in price, the price of silver has in the past outperformed that of gold.

In fact, between January 2, 2009 and December 31, 2012, the price of gold increased over 90%, while the price of silver increased over 160%. In addition, there is a compelling argument for silver investing because the economic and monetary fundamentals in place today are even more bullish than the conditions of the 1970s when the silver price exceeded $50 per ounce. Yet today's market prices, at well below the $50 level, are a mere fraction of levels projected by silver industry experts for the future

In my opinion investing in silver is the best hedge and defense against all future economic forecasts including a predicted devaluing U.S. dollar, recession, depression, inflation, deflation and hyperinflation.

Let us look at what others are saying about the economy, investing and the future.

Clive Maund is an English technical analyst, holding a diploma from the Society of Technical Analysts, at Cambridge University, Cambridge England. Maund warns, "Watching investors fleeing into the perceived safety of US Treasuries is akin to watching people board the Titanic in the movie – you know that they are doomed.

This is because the United States is totally bankrupt – more than bankrupt in fact, since its debts are physically impossible to repay in any circumstances and what we are witnessing now is the cowards way out – the creation of money in whatever quantity is necessary to prevent total gridlock…..This has one inevitable outcome – hyperinflation, which, incidentally, can take hold even in conditions of deepening recession/depression."

Investment manager Puru Saxena expresses his view this way. "It is worth remembering that our world’s financial system has been hijacked by money-printers. Whether it is the Federal Reserve, Bank of England or the European Central Bank – they are all creating money ‘out of thin air’ and inflating the supply of paper currencies…..Whilst paper currencies (cash) regained some purchasing power in the past few months due to forced liquidation in the asset markets, there is no chance that they will maintain their value over the medium to long-term. History is littered with numerous paper currencies which became totally worthless and I suspect many of the current ones will also disappear."

Even the largest financial entities are suspect. Analyst James Quinn writes, "Hank Paulson dished out $180 billion to the largest 30 banks in the country in an effort to keep them solvent. It has now become quite clear that the largest banks in the country, with the ‘smartest’ MBAs, took excessive risk, created and then bought their own toxic derivatives, and lied to the public and their shareholders about their true financial position."

The money managers, the talking heads on financial TV, and the perma-bulls have been proven wrong. It’s time to start listening to the people who have been right.  They have all warned about the dangers of runaway money and credit expansion. Most people are still underestimating the extent of this crisis. They are hoping the stock market will continue to recover and everything will be alright. What will happen is unknown, but it’s dangerous to base your beliefs on the things you want to have happen. If you only want to listen to Wall Street types who constantly express optimism, you can lose even more.

Dr. Krassimir Petrov, writes, "Unfortunately, the depth and length of the crisis are currently being discounted. At the moment, the crisis is in its initial phases."

Analyst Christopher Laird would agree. He writes, "The U.S. accumulates $9 trillion of national debt in 240 years, and in a mere year and a half, adds another $8 trillion? And for what? The credit markets are still frozen solid." He continues, "Over $1000 trillion of leveraged markets are unwinding, and if you add up all the central bank efforts to loosen credit markets and do bank bailouts, it adds up to roughly 15 to 20 $ trillion. Well, $20 trillion is not near enough to stop $1000 trillion of markets deleveraging. So, the efforts are doomed to fail."

James Quinn conveys this worrisome message. "There are $50 trillion of credit default swaps still outstanding. The hundreds of billions in taxpayer funds that have been poured into AIG have been used to pay out CDSs [credit default swaps].

According to the brilliant bank analyst, Chris Whalen, at least $15 trillion of these CDSs will need to be paid out. All the Central Banks in the world cannot create that much paper out of thin air."

Quinn continued, "Colossal amounts of credit card debt and auto loans will be defaulting. Consumers currently owe $3 trillion of consumer debt, up from $2.1 trillion in 2004, or a 30% increase…. the credit card losses will be much greater than $100 billion. JP Morgan, Bank of America, and Citigroup will sidle up to the taxpayer trough again due to these unforeseen losses. Nationwide, an estimated $575 billion in new and used auto loans are written every year by auto manufacturers, banks, credit unions and other lenders…..With the average length of auto loans exceeding 5 years and the tremendous downturn, there are millions of consumers underwater with their car loans…..It is quite clear that consumers are collapsing. The toxic combination of reduced spending and mass layoffs will bring down the last remaining pillar of the economy, commercial real estate…..After the coming horrific holiday sales, weak heavily indebted retailers will be filing for bankruptcy en mass. Mall owners that had expanded hastily with generous amounts of debt in the last few years will see rents dry up and their debt payments will choke them to death…..Office occupancy will decline and rental income will tank."

What’s an investor to do? How do you protect yourself? After the Treasury gave Citigroup $300 billion, one of the bank’s financial analysts wrote these words. "Gold is poised for a dramatic surge and could blast through $2,000 an ounce by the end of 2014 as central banks flood the world’s monetary system with liquidity." Although silver isn’t mentioned, it should be clear that the reasons for a rise in gold will also boost silver, probably even more so.

According to silver analyst Ted Butler “This decline in base metals and silver byproduct output, as well as the deteriorating world economic conditions have afforded you the opportunity to take advantage of a truly exceptional situation. The circumstances have converged to make silver a better buy than ever before, thanks to the sharp sell-off since summer. Its one thing to say silver is a better buy than ever before, and another to back that statement up. Here’s the backup - It’s in tighter supply than ever and that supply threatens to get tighter. It’s at reasonable prices now. World economic conditions favor it more than ever. It has more one-way converts and strong long-term holders daily. The manipulation is closer to ending than ever before. The only thing you must avoid is waiting too long to buy it.”