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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 10/06/2008 : 20:49:24
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50 Lies About Silver
(A Handy Reference Guide for Journalists)
Silver Stock Report
by Jason Hommel, October 5th, 2008
Here's my summary of the silver story in 154 words:
Over 100 years ago, nations began stopping using silver as money, creating excess, cheap, silver. That trend ended between 1964, the last year the U.S. minted silver coinage, and around 2000, when the U.S. government ran out of silver. A new trend started around 1945, as silver was used in electronics and 10,000 other industrial uses, including photography. Of the 43 billion oz. of silver mined throughout human history, over half has been consumed and lost, and 95% of the rest is in forms inconvenient to recover, such as jewelry and tableware. Of the 1 billion ounces of silver remaining, most is held by long term investors, leaving nothing left for new investors, as industry continues to consume more than is mined each year. The long term price trend will now reverse, as people discover that silver has use as money, as silver will now prove to be an excellent store of value, and later, as a medium of exchange.
Shelby Moore explains the silver story in more detail.
"Silver: Up To 5x More Rare Than Gold"
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I have discerned that Shelby's report is the truth, examines much research, and is very good.
Discernment is the ability to distinguish between truth and what is false, what is good and what is bad. You increase your discernment through experience.
I have a lot of experience with silver. I share my experience with you on a regular basis, usually by refuting the many arguments against silver, and presenting the bullish case for silver in various ways.
Today, I figured I'd try something different. Here are "arguments" against silver. Whether they are truthful and rational or not, you decide. If you think about these, you will help to exercise and strengthen your discernment.
You will discover that you know more about silver than you thought you knew, if you can discover why these are all lies, or why, if they do contain a bit of truth, why it is misapplied, exaggerated, or unimportant.
For some reason, when the arguments against silver are all on one place, (especially when presented after the summary of the silver story) they seem rather ridiculous, but I've read and heard each one of these, and many more, over the years.
1. Silver is old and outdated, and nobody uses it as money anymore, and never will.
2. Silver tarnishes and rusts and is unpleasant to touch and handle because it makes your hands dirty.
3. You cannot verify whether silver is real without high assaying costs.
4. Silver too expensive to store at home, the safe and home security system are just too expensive.
5. Silver is too heavy, too bulky, too inconvenient, and too expensive to transport and ship, to ever use as money as a medium of exchange.
6. Silver has wide spreads between when you go to buy it, and when you sell it, and thus, it will never be money, and cannot be money, and does not thus have the attributes of money.
7. Silver bars are bulky and impractical, because you cannot easily divide them, so silver is not easily divisible, like paper money.
8. They manipulate silver prices, they have been manipulating silver prices for over 100 years, and they will always be successful at manipulating silver prices, so what's the point of trying to buy silver?
9. Silver is too volatile with prices that change too much, so it's not stable enough to be money anymore.
10. My Elliot wave chart analysis tells me that the formation now showing shows that silver will go down, short term, although long term, it's clearly headed up.
11. Before silver takes off and goes up 100% to 200% to 10,000% or more, you should wait for it to go down 10% first.
12. Even though silver just went up 10%, you should wait for it to pullback a bit, before buying.
13. Silver is merely an industrial commodity now, no different than copper, zinc, lead, molybdenum, nickel, platinum or palladium.
14. There will be deflation, and silver does not perform well during deflation, and did not perform well during the depression of the 1930's when silver was 25 cents per ounce.
15. There will be inflation, and silver does not do well during inflation, we had inflation from 1980 to now, and silver did horrible during that time.
16. There is not enough silver to use it as money.
17. Most major coin shops are frauds, they will take your money and not deliver silver for months, so you are likely risking losing your money when you go to buy silver, if they go bankrupt.
18. You can't even get silver anywhere, so what's the point?
19. There is a surplus of silver these days.
20. There are no silver shortages, you can buy all you want.
21. I can buy all the silver I want, so there is no silver shortage.
22. This one coin shop I know can buy all the silver I want, so there is no silver shortage.
23. Bonds are the safest place you can put your money.
24. Who would want silver when you can buy inflation indexed bonds instead?
25. Who would want silver when you can buy silver futures contracts instead?
26. Who would want silver when you can buy silver certificates instead?
27. Who would want silver, when you can buy the SLV instead?
28. Who would want silver, when you can buy a leveraged account at MONEX, or GOLDLINE, instead?
29. Who would want silver, when you can buy options on a silver futures contract, instead?
30. Who would want silver, when you can buy a silver mining stock, or exploration stock, instead?
31. Who would want silver, when you can buy rare coins, that carry so much more value, in such a smaller package, instead.
32. Who would want silver when you can buy silver in your brokerage account instead?
33. Silver has counter party risk; your brokerage house or storage company can go bankrupt.
34. If you store silver at home, the thieves will just come into your home and threaten to cut your toes off one by one unless you give them the combination to the safe, so you can't store silver at home.
35. You can't eat silver.
36. Silver does not pay interest.
37. Silver's totally useless.
38. Silver's inert.
39. You can't use silver for anything, you can't spend it anywhere, no stores will take it.
40. The banks won't take silver, so it's useless.
41. The Federal Reserve is all powerful, so silver is useless.
42. The government would never lie to us about inflation, so we don't need silver anymore.
43. A private central bank would never ruin their own money-printing franchise with too much inflation, so we have nothing to worry about, and thus have no need for silver.
44. People are too poor to buy silver, because they are in debt.
45. Silver investors are just religious freaks, hoping for the world to end, they are stupid.
46. If silver prices ever rise, it will be a financial Armageddon, and you won't want to be alive when that happens.
47. If silver prices ever rise, they will confiscate your silver, and steal your silver.
48. It makes no sense to dig up silver out of the ground, just to bury it back underground in some vault somewhere.
49. There is no inflation, the dollar will get stronger.
50. What would you actually do with silver anyway?
So, as you can see, I've heard plenty of arguments against silver. I've just not ever heard any rational and persuasive arguments against owning silver.
Over the next few years, as you follow the silver market, watch the news stories coming out about silver. I typically see at least 3-5 of these types of inane comments in each one.
Oh yes. In case you are one of the weak minded persons who cannot form an opinion on his own, and is easily swayed by multiple one-sided claims, (or in case you have a personal financial emergency) you can sell your silver to Miles Franklin. They are dying to buy your silver to sell to many silver investors who do understand silver, but cannot find silver.
Miles Franklin is paying top dollar for silver.
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Sincerely,
Jason Hommel
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All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Robarons
Penny Hoarding Member
USA
522 Posts |
Posted - 10/06/2008 : 21:05:01
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I do have one argument with that list. They do not mention the word 'gold' anywhere on that list as its a direct competitor to Silver for investment and wealth reasons (kinda as they can also work in harmony with each other too).
Hrmmmmm.... I guess theres no lies when it comes to gold and silver |
Robber Baron= Robarons |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 10/06/2008 : 21:29:59
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I never realized what a foolish mistake I made buying silver, I need to dump this stuff post-haste!
Hey guys, silver eagles, maples, philharmonics and bars 50% BELOW SPOT!!! First come, first served!!!!
PSYCH!!... |
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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Computer Jones
1000+ Penny Miser Member
USA
1112 Posts |
Posted - 10/06/2008 : 22:46:30
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There is a difference between value and price.
Try to think in terms of value!!!
Stay true to to the fundamentals you were supposed to have been taught in schools and Churches.
True value will never diminish.
Why do think there are so many references to a "Silver Cup"? |
There's profit if you melt things!!
8{> |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 10/08/2008 : 11:18:26
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Most of the general public have heard mention our strategic oil reserves. The government also holds strategic reserves in other commodities as well. Yet the US government back in the early 1980's stated that as a policy they saw no "strategic value" in holding silver, period, end of story!
This is why back in the 1980's they started selling off all their holdings and a few years later cleverly marketed to the public the US Silver Eagles! Yes, I know the US Mint might show on their books some silver on hand but they have to go into the market and buy it just like we do. There is not huge stockpile at West Point or Fort Knox of silver!
But still the question remains...will silver ever be allowed it go up like it once did or all we all being played for suckers? What say you? |
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Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 10/08/2008 : 13:32:32
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I.
Silver is the everyman's Gold for those of us too poor to buy Gold.
If you read the history of money the old Silver Denarius was worth a day's wage. The Denarius later came to be the European Penny. Later devalued to Copper, later copied by the U.S. and called a cent.
This Denarius (very similar to the US Silver Quarter) was a day’s wages. Five of these were a week’s wages, or an ounce of Silver.
Twenty weeks Silver wages bought and ounce of Gold.
How many of us have the ability to hold 20 weeks wages, let a lone carry it around with us.
Just to keep this in perspective you could buy a slave in Biblical time for 20 ounces of Silver (20 weeks wages).
Does this show how cheap this is?
II.
Second the historic Ratio of Silver to Gold has been between 20:1 to 15:1. Right now in the markets this has been living closer to 50:1, which tells us Silver is really cheap compared to Gold.
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Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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n/a
deleted
146 Posts |
Posted - 10/08/2008 : 20:01:49
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| I see Hommel has followed Butler's footsteps in the "silver is rarer than gold" claim. I know they both agreed on the short selling thing but didn't Hommel reject the "silver is rarer than gold" claim? I remember reading that Butler counted everything made of gold but left out silver jewelry in his computation. |
THE Red Blade
Accept No Substitutions!
Save the trees.
Use REAL Money! |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 10/08/2008 : 20:06:14
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35. You can't eat silver. Maybe that's not a good reason not to buy silver, but it's true, you can't. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 10/08/2008 : 20:12:07
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| Actually Ardent, you can and maybe should eat silver in small volume. I have a bottle of "Silver Solution" that is thought to cure or prevent all kinds of stuff. I don't recommed chowing down on Maple Leafs or ASEs for dinner though. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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n/a
deleted
146 Posts |
Posted - 10/08/2008 : 21:59:06
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quote:
Originally posted by legacypac
Actually Ardent, you can and maybe should eat silver in small volume. I have a bottle of "Silver Solution" that is thought to cure or prevent all kinds of stuff. I don't recommed chowing down on Maple Leafs or ASEs for dinner though.
Doesn't overdoing it turn your skin blue?
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THE Red Blade
Accept No Substitutions!
Save the trees.
Use REAL Money! |
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n/a
deleted
35 Posts |
Posted - 10/09/2008 : 16:48:27
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HaHa,Ardent this list is great!!!!,I like no.7 silver can't be easily divided - so my barter bars i presume must be indestructible!!!!
One other possibilty is that this list is correct and we have all been brainwashed by the "satanic flying spaghetti monster" in to beleiving we're right!!!(However this is as likely as Stephen Hawkin confessing to knowing nothing about space!!!!) |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 10/09/2008 : 18:38:54
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| 36. Silver does not pay interest. I recall when they made it legal to own gold again (think about that for a while) my bank giving out fliers stating that "gold dosen't pay interest". That was all my cousin-in-law needed to read. "I didn't know that", he said, and never bought any. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
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jadedragon
Administrator
Canada
3788 Posts |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 10/09/2008 : 19:00:06
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2. Silver tarnishes and rusts and is unpleasant to touch and handle because it makes your hands dirty. I had all of mine rust-proofed to keep the road salt off of it. WTF! As far as dirty hands, tell that to a bunch of penny sorters. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
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50 Lies About Silver
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