Saturday, September 24, 2011

Why is Silver Falling?

I have some theories. If you try to use my theories as investing advice, you are probably a fool and I am not responsible for the consequences.

Now that the obligatory disclaimer is out of the way ...

Gold and silver do not decrease or increase in value. They stay the same. What happens is that the dollar fluctuates in value and will then either purchase more or less gold and silver. Precious metals are the anchor point.

Bernanke just pulled a "QE3" move and offered to trade dollars for the euro at current exchange rates. The European bankers are bailing out of the euro as fast as possible (since it's not too far from becoming the Confederate dollar of this century) and trading that for dollars. This is creating an artificial market for the dollar and making it a little stronger (temporarily ,I'm sure). This means the dollar can buy a little more gold and silver and that makes the price of gold and silver appear to fall.

So if you're thinking about investing in gold or silver, I suggest you give Bobby at Just Measures Coin Shop a call. He can walk you through the process. You might be able to find a better deal elsewhere but here's the big clincher with Bobby ... he's a Christian and a patriot. He doesn't keep records of who has purchased from him or where he has sent product. So if you're holding any gold or silver then it's nobody's business but your own. This is important. In the 1930's, the government made it illegal to own gold and required you by law to sell it back to them at a ridiculously low price, which they then turned around and sold it to foreign countries at a much higher price. Don't think today's government wouldn't do the same to you.

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