Buying Opportunity For Gold And Silver

The international banking cartel during the past month has managed to push the price of gold down to the $850 – $880 level and silver down to the $16 – $17 level. The manipulation of the gold and silver market is incredibly obvious just by looking at daily charts of the gold and silver prices. Quite frequently you’ll see a nose dive in the price of both gold and silver without any sort of rationale behind the price swing. Also consider the fact that the price of oil is around $120 barrel which means that gold is incredibly undervalued relative to the oil price.

Even a 10 to 1 gold to oil ratio is low from a historical perspective and as we speak, gold is well under that ratio. Gold at the $850 – $880 level is a tremendous buying opportunity. The corporate controlled media is telling us that the commodity bull is over and the U.S. Dollar is stabilizing. Therefore it is prudent to do the opposite of what they are advocating. Anyone saying that the U.S. Dollar has stabilized is living in fantasy land. The Federal Reserve recently cut interest rates another 25 basis points and they continue talking about creating more money out of thin air to bailout banks that are on the brink of collapse. The U.S. Dollar is heading further down the toilet unless there is a dramatic reversal in monetary policy and that doesn’t look as if it will happen anytime soon.

(Buying Gold and Silver may save your life, when the economy crashes. But you can’t eat it.
Thats why you have to store lots of food and water as well. – The Infinite Unknown)

Why is it that commodities are all moving up except for gold and silver? We have seen a dramatic price rise in oil as well as various food related commodities. The primary driving forces behind the price rise in oil has been the war in Iraq and Afghanistan and the inflationary policies of the Federal Reserve. Inflation is also driving the rise in food prices but that is also being compounded by government mandated biofuels in which food that would otherwise be used to feed people is being turned into fuel. This is indirectly reducing the supply of food which is driving the price of these commodities even higher. The biofuel mandates are a scam because there is no definitive proof that global warming is a real threat or if man made carbon emissions are contributing to this so called threat. Biofuel mandates were implemented under the guise of fighting man made carbon emissions that supposedly cause global warming. It is all lies designed to bring in the eventual phony solution of a carbon tax. If you don’t believe me, read Senate Bill 2191 which will give the EPA draconian police powers to regulate and enforce the carbon footprint levels of individuals and businesses.

The one thing that both oil and food related commodities have in common is the fact that they are rising in U.S. Dollar denominated terms. Therefore it doesn’t make much sense that gold and silver have declined in value, but when you consider the manipulation in these markets it makes perfect sense. The bankers literally create money out of thin air which means that they can’t have items like gold and silver which store value and represent real money, move too high up in value in a short period of a time. If that happens, their fiat currencies will lose credibility and with it the banking establishment itself would expose themselves to risk. The bankers unquestionably want a slow decline of the U.S. Dollar’s value so they can set the stage for a regional or a combined currency for North America and Europe. The formation of the Transatlantic Economic Council is a sign that this is something that they might be considering.

Regardless of future currency proposals, the Federal Reserve has adopted an inflationary policy and there are no signs that they intend to reverse that policy. It is ridiculous for financial pundits to say that the U.S. Dollar is stabilizing when the Federal Reserve continues to cut interest rates and when there are countless stories about how they are creating more money out of thin air to bailout banks. According to independent estimates, the M3 money supply is increasing at around 18% on a yearly basis. If the Federal Reserve were serious about stabilizing the value of the U.S. Dollar, interest rates would be set at around 20% so holders of the U.S. Dollar could get some sort of return without inflation destroying their purchasing power. The failure of the Federal Reserve to increase interest rates to levels in which inflation does not eat away at its purchasing power is leading towards higher prices. This will continue unless there’s a reversal in policy.

The death of the U.S. Dollar is really the death of America and the Federal Reserve is doing an outstanding job destroying its value. As the U.S. Dollar is devalued, wealth is being sucked out of American middle class and into the hands of the elite financial interests who are setting up shop in the Middle East and in Asia. Why would a private central bank care about the American people when there are major profits to be had via their power to create money out of thin air? The Bush stimulus plan which is being heralded as a quick fix for the economy is simply going to lead to more inflation. With the U.S. government close to $10 Trillion in debt, they paid for the stimulus package by having the Federal Reserve create more money out of thin air.

With gold currently trading at around the $870 – $880, this is a clear buying opportunity. Gold and silver have maintained their value for thousands of years where as every fiat currency in the history of mankind has been replaced or collapsed. The fundamentals surrounding the U.S. Dollar are no different than previous fiat currencies. The Federal Reserve has now devalued the U.S. Dollar since inception in 1913 by approximately 95% to 99% from its initial value. How’s that a long term trend? Considering this trend, how can you go wrong with the purchase of gold and silver? At least gold and silver won’t go to zero value and it will maintain its purchasing power. One cannot say the same thing about the U.S. Dollar especially considering that the Federal Reserve is intentionally devaluing it because that is what’s best for the financial elites and not the average American.

2008-05-06
Lee Rogers

Source: Funny Money Report

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