Archives for February2011

The Silver Bullet And The Silver Shield

Here’s a link to a great article on
The Silver Bear Cafe

If you really want to know WHY you MUST have GOLD & SILVER, here is a couple paragraphs from the article.

This is a very fundamental question. I think one of the best answers came from a movie called the Treasure of Sierra Madre. An old miner was explaining why gold has value. He said that 1,000 men head for the hills with pick axes and provisions after 6 months only one finds any gold. That find represents not only the labor of the man that finds that gold but that of the other 999 miners that did not find anything. That is 6,000 months or 500 years scrambling over mountains going hungry and thirsty. Think about the luck of finding something so rare. Think about how much energy, labor, ingenuity and time that goes into finding silver or gold. Sometimes it takes moving a couple tons of earth to find one ounce of gold or silver. And here we can buy all of that for less than a dinner for four at your local sports bar.
When Silver peaked in 1980 you could buy the average house for about 800 ounces of silver. This was the days of 20% mortgages and the inflation “slayer” Paul Volker. If you got out of housing at the top of the recent housing bubble you could have traded out of your inflated house value and into the undervalued silver and took delivery of say 40,000 ounces of silver. If/when we get back to the silver house ratio of 1980 you will be able to buy 50 houses for your 40,000 ounces.

The average price of a home in Canada in 2010 was $331,000 and an ounce of silver was $50 at its peak back in 1980. If we apply the above scenario ($331,000 per home / 800oz of silver), the price of silver today should be $413.75/oz! , yet silver is trading for about $33/oz? I think it’s safe to say that silver is WAY UNDERVALUED and due for a HUGE gain in the years ahead!   BK

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Canadian Mint Sold ALL its Silver?


Clark: Many people don’t realize this, but silver rose 3,646% in the 1970s, from its November ’71 low to its January 1980 high. If you were to apply the same percentage rise to our current bull market, silver would climb another 500% from here, and the price would hit $160 an ounce.

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