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In this report, I am
going to go over another factor that the media does
NOT want you to know about that I think plays a big
factor in why gold and silver will be going
significantly higher from their current price. In my
opinion, I believe silver could become an even more
profitable investment than gold! If you haven't
realized EVERY pick from my gold report is up big
and my average gain for my top ten gold picks is
already a whopping 129% in just a few months! Our
latest 5 Star Stock- DROOY released in our gold
report is already up 190%! Now let's get into my
report...
Above is a chart that I
would like every to take a look at. The chart shows
the M3 money supply (Green Line). M3 is an estimate
of the total money supply in Dollars in our banks
and economy. In the Spring of 2006, the Fed stopped
publishing numbers for M3 to supposedly "save money"
when M3 was about $10.3 Trillion. The Dollar, which
is said to be a "unit of account", no longer has any
accounting!
A private company is
keeping track of M3, and M3 is soaring past $13.5
Trillion, hitting a high of 17% in annual change
year over year! The Federal Reserve is accountable
to you, but only if you do something about it, such
as buy silver and gold! In 1971 when the rate of
annual change reached a high of 16% we saw massive
inflation in the years ahead that sent gold through
the roof to as high as $850 which when adjusted for
inflation today equals $2,300 per ounce! With
Bernanke taking interest rates to 0% and printing
Trillions of Dollars out of the printing press I
think it could head to these levels within the next
3 years.
Even though the U.S.
dollar isn't backed by gold any more, anyone with
Dollars could smarten up and start buying silver and
gold at any time. In fact, I have a feeling we will
start to see this happen very soon! China, for
example, could spend their $1.3 Trillion U.S.
Dollars in bonds and go buy gold and silver! We
could see the dollar seriously collapse overnight
and there isn't a single thing the U.S. could do
about this. It is a scary thought but it's true and
that's why you need to take action RIGHT NOW! I have
stressed this to our club time and time again but I
can only pray that everyone is becoming more
educated and does something about it!
About 10 years ago, M3
was about $4 Trillion, and silver was at $5 an
ounce. By the spring of 2008, M3 exceeded $13
Trillion, and silver is at $20 an ounce. Relative to
the recent increase in money supply, silver is as
cheap as it ever was and I believe along with gold
it is an opportunity of a lifetime! The historic
price ratio of silver to gold shows that about 15
ounces of silver would buy once ounce of gold, a
15:1 ratio! Recently, the gold to silver ratio is
about a 70:1 ratio ( with silver at about $14/oz and
gold at about $980/oz.) As the silver to gold ratio
returns to historic values within the next 5 years,
from 70:1 to 15:1, you may make almost 5 times more
money investing in silver than gold!!!
More than all of the
silver produced by mines each year is consumed by
industry, jewelry, and photography which leaves
little to no room for substantial investment demand.
In my opinion, a marginal increase in investment
demand will drive prices through the roof! Think
about it, when gold is becoming too expensive to be
used as money and paper money fails, silver is the
only thing left to use as money. We have consumed
nearly all the silver in the world, we continue to
consume more than we mine, and the world has totally
abandoned silver as money. But whether you know it ,
or can accept it, silver is money. In my opinion,
silver is the only commodity that can be used as
real money besides gold! The problem is most people
don't know what real money is! Let me break it down
for you.
To function as money, a
monetary item should possess a number of features:
To be a medium of exchange:
� It should have liquidity, and be easily tradable,
with a low spread between the prices to buy and
sell, in other words, a low transaction cost.
� It should be easily transportable; precious metals
have a high value to weight ratio. This is why oil,
coal, or water are not suitable as money even though
they are valuable.
� It should be durable. Gold or silver coins are
often mixed with 10% copper to improve durability,
and coins are made with ridges around the rim to
prevent coin shaving or debasement.
To be a unit of account:
� It should be divisible into small units without
destroying its value; precious metals can be coined
from bars, or melted down into bars again, with a
low percentage cost. This is why leather, or live
animals are not suitable as money.
� It should be fungible: that is, one unit or piece
must be equivalent to another, which is why
diamonds, works of art or real estate are not
suitable as money.
� It must be a specific weight, or measure, or size
to be verifiably countable. You must be able to
weigh, measure, and count, your unit of account!
To be a store of value:
� It should be long lasting, durable, it must not be
perishable or subject to decay. This is why food
items, expensive spices, or even fine silks or
oriental rugs, are not generally suitable as money.
� It should have a stable value.
� It should be difficult to counterfeit, and the
genuine must be easily recognizable.
To be anonymous:
� Money should not be subject to government tracking
� It should be useable for purchases in a black
market
� It should not require equipment, tools or
electricity to use
� It
should not require a mark, or image, to be valuable,
but rather, be a just weight, and measure.
So, if you want to �MAKE
MONEY�, YOU SHOULD TRY TO ACQUIRE THINGS THAT HAVE
THE ABOVE CHARACTERISTICS! I think silver is best,
especially because silver is cheap, and will be a
great store of value.
When I wrote my gold
report I stated that there was a major disconnect
between the true value of gold on Wall Street and
physically. I proved that the average gold coin on
eBay at that time was going for $950 an ounce while
the market valued one ounce of gold at only $800. I
predicted that we would see the prices match and we
would quickly see gold head to $950 an ounce, a 22%
premium from where it was when we noticed this
disconnect in price. Today, gold closed at $978.20!
We were right once again! Now the same factor this
time goes with silver except this time it is even
bigger! The average one ounce of silver on eBay is
selling for about $20 while silver is only trading
for only about $14! This is a 43% premium from the
current Silver price of $14 right now! This is HUGE!
In my opinion, we could
see silver move much faster than gold this year and
could make even bigger gains for investors. If I am
right and silver heads back to its historic gold to
silver ratio of 15:1 and gold goes to $5,000 within
5 years, we could potentially see silver head to
$333 an ounce! This is a 2,279% gain from the
current price! Even if we are more conservative and
gold only goes to $1,500 by the end of the year and
we could still potentially see the silver to gold
ratio go to 35:1, sending the price of silver go to
$42, a 200% gain from the current level! In my
opinion, I highly suggest diversifying in both gold
and silver right now. Think about how many
ten-baggers we could have in the upcoming years!
2,279% gain from the
current price! Even if we are more conservative and
gold only goes to $1,500 by the end of the year and
we could still potentially see the silver to gold
ratio go to 35:1, sending the price of silver go to
$42, a 200% gain from the current level! In my
opinion, I highly suggest diversifying in both gold
and silver right now. Think about how many
ten-baggers we could have in the upcoming years! I
recommend the silver ETF- SLV which tracks the price
of silver. SLV is currently trading at $14.17 and I
believe will head to $20+ this year. When DGP was
trading for about $14 when I issued my gold report
in late November, I predicted we would see it above
$20 quickly and it just hit a high of $22.84 today!
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