Boomer’s case for silver

My humble effort to warn/help those who matter to me most. One 80-year old’s take the case for silver.

All,

This email is directed to some 100 people. You are included among my family, friends, relatives, neighbors, golf buddies, and business associates. You are included in this mailing because you are important to me. The purpose of the email is to tell you of an activity relating to precious metals, particularly silver. This activity could have a dramatic affect on the financial status of this country. If successful, this activity might do what neither the financial crises of 2000 or 2008 nor the COVID pandemic could do; namely bring down our financial system. At the risk of being a laughable alarmist, I tell you this only to ask you to look into it yourself and make your own judgement.

As many of you know, I’ve been a contrarian for some 10 years, moving further and further away from the everything bubbles – assets, debt, stock market. Of course it has kept me from realizing significant stock market success, but I have slept better. Ever since the crash of 2008, I’ve feared the FED’s propensity to PRINT money and our government’s propensity to SPEND money, thereby growing an unsustainable debt, a debt welcomed by our adversaries who would love to see our dollar lose its Reserve Currency status, and thereby its destruction.

Precious metals have become a significant part of my net worth. I have learned about metals the hard way, adding to my stack as the metals declined in value over the past several years. Our government fears that the resurgence of precious metal prices would hasten the demise of the dollar. So do I. With what I believe is our government’s approval, certain large commercial banks, in particular J P Morgan, have systematically held the value of precious metals in check. They have done so by shorting the metals. Accordingly, unlike any other asset class, the value of precious metal, an asset class that has true intrinsic value, has remained suppressed – until lately!! This past year precious metals have recovered. Gold touched its all time high only to retreat somewhat recently. Silver has nearly doubled in value, yet is still below its all time high. Enter a potentially game changing event!!!

You are probably familiar with the recent GameStop phenomena. The GameStop caper was carried out by a group of Reddit investors, mostly amateurs, corresponding in a Reddit “chat room” called #WallStreetBets. That chat room had some 8,000,000 registered participants. Noticing a significant shorting of GameStop stock by a few hedge funds, the #WallStreetBets crowd came after them driving a $3 stock up to $450. It ultimately returned to $50, still higher than at the start of the run. The GameStop effort became anti-climatic, even though those shorting the stock (the hedge funds) were “handed their shorts”. Sadly, the run up of GameStop stock, then its subsequent decline, left many late investors losing money.

There have now evolved offshoot chat rooms within Reddit. One is called #Wall StreetSilver. There are sister chat rooms such as #Silver Squeeze and #SilverBugs. Unlike #Wall StreetBets, these movements are only 30,000 strong. But in a week I have watched the size of these chat rooms double. I am now following these movements. Like me, they fear the potential failure of the dollar. Also like me, they have discovered the biggest short in history – that of the precious metals – in particular silver. Their purpose is to bring down those shorting silver. In just two weeks they have had a major impact.

The recommended actions of the #WallStreetSilver crowd are threefold. First, buy all the physical silver one can afford from wherever one can get it – coin shops, authorized dealers, or wherever. Then refuse to sell no matter what the bullion banks do to drive the COMEX price down. Second, sell the ETF “SLV” which is not backed by real silver and buy instead the Sprott Silver Trust “PSLV” each unit of which represents .3628 ounces of silver. If you download the Reddit app and search “WallStreetSilver” you will observe the constant drum beat to buy physical silver and to sell the ETF “SLV” and buy Sprott’s “PSLV”. Third, consider buying metal miners equities; namely First Majestic Silver Corp.

The above effort, which is world wide, has taken most silver out of coin shops, left most major authorized dealers without product, forced the ETFs to modify their prospectuses to warn against shortages, substantially separated the spot price from the ask price, doubled the premiums on silver purchases, and caused Sprott to increase their silver holdings in PSLV by 10% in just a month keep up with new buyers.

I think this movement to hammer the shorts in silver (the big commercial banks), thereby freeing the price of silver to float with the demand, will end differently than it did for GameStop. The run up of silver prices, while taking out the short sellers, will leave the buyers holding real money -silver – at a higher price. Silver, now costing $35/oz to purchase, may well return to its former high of $50/oz and beyond. $100? $300? Of course the outcome portends a catastrophic impact on the stock market, the FED, our government, and our life in general – at least in the short term. But such a reset is sadly way overdue and its realization has only been a matter of time.

I’m not offering investment advice. I’m not even insisting that I am correct in my thinking! But I would be sorry if I didn’t at least mention this development to you, as someone who matters to me. I’m only trying to give those closest to me a heads up. Each of you will use this information as you see fit – probably in a manner more successfully than me. I’d love to hear your thoughts on the above development.

All the best,

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