Let’s make an assumption, let’s assume that the entire financial system comes down and collapses in a heap. Personally, after looking at the math of the global financial situation I don’t see how this doesn’t happen but even if you don’t believe me, assume for a few minutes that I am correct. If you knew for a fact that everything was going to come to a complete halt, nothing financial, nothing that sold goods, NOTHING (other than of course government offices) would open on a given Monday morning. What would you “want” to have in preparation? Food? Absolutely. Some cash? Well, yes because it might spend for a short while until even the slowest minds figured the game out. Arms? Of course, it might just be that a few people didn’t see it coming and had only enough cereal in their cupboard to make it until Wednesday morning so it would probably be a good thing to be able to protect yourself(selves) and what you plan to eat.
As far as your investments are concerned, would you want money markets in a bank or at a broker? Well, they will be closed so they won’t do you any good until they reopen but what if they reopen like the banks did in the Soviet Union or Argentina and the currency is replaced with another “less valuable” one? Would you want stocks? What type? JP Morgan, AIG and General Electric? Or a company that produces oil, gas or coal? Or maybe even a company that produces real monies like Gold or Silver? Would you want the “safety” of government bonds? Or mutual funds? Will any of this stuff actually work and hold value when everything defaults?
Here’s another question, if you have come to the conclusion that “game over” is truly here no matter how hard the can is kicked, what about Gold and Silver? Have you already gone out and bought ETF’s like GLD and SLV and feel like you’ve covered all of the bases? I know that I’ve written about this before but it is important that you fully understand what most probably will happen. In the event of a complete collapse (assuming that markets are open), I believe it is very probable that Gold and Silver futures will collapse in price. I also believe that the “suspect” ETF’s will be sold off and crash. CNBC of course will be reporting that “Gold and Silver” are being trashed and are down 10, 20 or even 50%. (You of course will detect “glee” in their voices). But… DON’T fall for this!
We have already seen a glimpse of this scenario back in late 2008. Silver cracked through $20 to the upside and crashed down to $9… but did it really? CNBC quoted $9. Bloomberg quoted $9. The Wall Street Journal, Barron’s and all other media outlets quoted $9 per ounce… so Silver must have been $9 per ounce, right? Wrong!!! Paper Silver… yes but you could not purchase a single real, shiny, heavy ounce for much less than $15 an ounce. If you wanted size? You could not get it unless you agreed to receiving it at a future date… as in “trust me, give me your money now and we’ll get the Silver to you in 7 weeks”. (During a financial collapse do you really want to “trust someone”?)
This event has been well documented (the CFTC is still busy investigating this <…covering it up!…>) and it makes no sense at all that physical Silver became scarce with ALL that “selling”. My point is this, what happened in 2008 was merely a “warm up” for the reality of what’s coming. I believe that (while markets are open) “paper metal” may very well be sold off with a vengeance and it will be reported that the metals are in collapse. The “deflationists” will come out from under their rocks and scream “we told you so” and be given as much air time as they want. Again for 5,000th time, the public will be scared and steered 180 degrees away from where they should really be running. THIS will last until the markets close. ALL markets… everywhere! The dust will begin to clear and guess what? It will turn out that there really was a 2 tier market. One where Gold and Silver collapsed in price and one where they went to infinity and became THE only money.
Please don’t think of this as “sensationalism” because it already happened to an extent in 2008. You remember 2008 don’t you? That was back when sovereign balance sheets had not been broken and central banks not swollen with “garbage” assets. In 2008, governments and central banks still had the ability to ride in on a white horse and “save” everyone and everything. THEY are part of the problem now, they won’t be part of the solution. 2013 is a very different time than 4-5 years ago and what “got started” back then will be finished and come to fruition now.
Normally I don’t give reason for why I pen a missive but I do today. It is SO IMPORTANT that what you hear, read and even SEE with your own 2 eyes, you don’t believe. Call your coin dealer, call multiple dealers, go online and check availability of real, physical and IN STOCK metal that can be delivered in a few days BEFORE you panic! I have not been 100% correct in everything that I’ve written but I have been pretty close on most all of the major trends and even many nuances. I will leave you with this, once the curtain of “perception” is pulled back, who are you going to believe? Me or your lying eyes? When you hear that the “metals have crashed,” don’t believe what you read and hear, believe what I am telling you now, CALL your coin dealer, call Miles Franklin, find out for yourself what the REAL price is for REAL metal… that’s “if any is even available at any price!”