We are only just now arriving at a time period that will bring about “The Currency Wars”.   Everything prior to this was only a preparation period to build an alternative currency.
The years spent traveling this road were done to prepare the world for an escape medium when the dollar finally began it’s “price” hyper-inflation stage.
The next fortune in gold will be made via long physical gold margin free in an enormous way:

 

Submitted by Jim Sinclair, JSMineset:

QE to Infinity, followed by Gold balancing the balance sheets of the sovereign balance sheet disasters. Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold. It is just that simple. –Jim Sinclair

 

Dear Jim,

Due to its criminal hyper-manipulation, golds price has become a paradox.
Paper gold’s weakness actually reflects the forthcoming strength of the physical gold market. I feel this statement, as paradoxical as it seems, hits the nail on the head.

Best regards,
CIGA GG

Dear GG,

Contained in this statement is the basis for my conclusion and the formation of long term plan since gold made its high in it last bull run from 1968 to 1980.
Those that read my writings have heard the plan at least once a year since my exit from the paper gold business in 1980.

In the period of 1968 to March 1980 it was rumored that I was the largest volume gold trader in the world. If there was someone larger I never met them.
In 1980 the Wall Street Journal ran an article “Bull Takes off his Horns,” which I hold as a reminder of that period.

The statement that GG points out in the opening note to me finds its roots in the school of “Free Gold.” This group of thinkers is absolutely correct on its main subject, gold itself. Like any other group there are offshoots that hold various views that can cloud the main thesis.

In my opinion, their foundation is the only correct answer to what gold is, how gold functions in the economic system, why the paper gold market was started, by whom it was started and for what purpose the paper gold market actually exists. This school of thought goes on to predict that the future of gold’s value is not as an alternative currency for the exchange of good and services but as a storehouse of value for holders both public and private.

In March of 1980, which was the end of the 1968 gold bull market, a client of one of my firms came to visit. He was extremely happy for the experience and came to thank me. I told him that he was thanking the wrong person. His great success was based on his courage and understanding that made him so successful. The client was Carl Seaman of Seaman’s furniture in the New York metropolitan area. Carl had made himself one of the first 1% due to inherently knowing Jesse Livermore’s discipline that major fortunes are when you are right and do not deviate.

He was one of the world’s greatest traders.

I asked Carl if he would wait for me for a few moments. I called the accounting department on the 8th floor requesting a check for the collective balance in all of Carl’s accounts. That check was indeed a hum dinger. I held it and asked how many feet away was the revolving door to my firm’s main office. He replied about 20 feet. I handed Carl his checks and asked him never to come back again, to call me only as a friend.

We will never do this again in the way we did based on paper gold.
I told him I anticipated a bear market in gold of no less than 15 years and that I was in the process of selling all my firms and then I would walk out the same door.

The next fortune in gold will be made via long physical gold margin free in an enormous way. Due to the volatility of the price of gold there can be no margin involved nor paper gold derivatives.

The formula is simple to expound but very hard to exercise. It called for full utilization of our capital individually to identify a huge deposit of gold relatively inexpensive to mine. The key is NOT to sell the gold produced but to get your leverage from bullion refiners, not banks, that loan to producers as part and parcel of their business.

The strategy is to own a gold mine that mined its product, paid the host government their royalty and other charges, then use the production as the basis to borrow funds required for operations at an inexpensive rate. We then put all our funds in US 10yr. T Bonds yielding almost 15%.

What I proposed was a public mining company that held all it’s gold refined and above ground not in a bank, but in a non-financial company, in a refinery that is not in North America and does make loans to its clients based on refined to market product. The price that I envisioned the entity might be worth is many billions assuming my final prediction is correct.

The fight to build this has been enormous. It has required close to everything I have and 19 years of life.

The strategy has required 100% dedication of my time and finance to fight in many instances attempts at the largest claim jump in history by the Chinese, using every modern method known to financial engineers.
They have not succeeded. There is much more to be done and risk therein, but survival has been the key so far in this field while awaiting the next bull leg in the final gold bull market.

A recent NI 43-101 for the first time has hinted at the developing size of this strategy that I believe will write history because of the basic tenets of “Free Gold” in a somewhat different way that “Free Gold” anticipates.
In 2013 CIGA Belgium wrote the following letter that I feel you should read and re-read now. If you do you will be one of the very few that really understands all about gold and its outrageous future. You will understand the huge selling into the paper market and why it is limited in time by its own construction.

CIGA Belgium has permitted me posting excerpts as long as his identity is confidential.

Dear Jim, (written to me on February 18th 2013)

We are only just now arriving at a time period that will bring about “The Currency Wars”.   Everything prior to this was only a preparation period to build an alternative currency. The years spent traveling this road were done to prepare the world for an escape medium when the dollar finally began it’s “price” hyper-inflation stage.

Few investors can “grasp” that in reality, our dollar has already been hyper inflated, but without the higher price effects. Years of deficit spending, over borrowing, debt expansion have created an illusion that the dollar was immune to price inflation. This illusion is evident in our massive trade deficit as it carries on with no negative effects on dollar exchange rates. Clearly other investors, outside the Central Banks were helping in the dollar support process without knowing they were buying into a dying currency system.

The only thing that kept this process from showing up in the prices of everyday goods was the support other Central Banks showed for our currency through exchange intervention. As I pointed out in my other writings, this support was convoluted at best and done over 15 to 20 years. Still, it’s been done with a purpose all this time. That purpose was to maintain the dollar for world economic trade, without which we would all sink into depression. Indeed, the mainstay of this support required an ever expanding world dollar base. There is simply no way the old dollar debts along with the new ones could have been serviced without this money expansion.

The entire long term process is/was very clear to a few major financial players as they prepared for the dollar’s retirement as a reserve. Their main strategy for dealing with this was found in several positions. One was a long term buying of real physical gold. The other was the acceptance that all trade and investments would eventually transition away from dollar use. To combat this they began to denominate their paper assets and business transactions in other currencies (now the Euro holds the main transition flow). This was done because, as the dollar prices of real things first show real signs of rising, all forms of dollar derivative contracts would begin to unravel.

Better said, the process of dollar contract failure would show up in the form of discounts on these derivatives from par value. Because most of our “end time” dollar world has built itself into a huge derivative game, this discounting will occur across the board in almost everything we deal in. Not just gold.

The first signs that official dollar support is winding down is seen in real world pricing and official policy. The most obvious “first” price sensitive arena to reflect a “real coming inflation” is not gold as so many think, it’s the stock markets. Their long term bull run, mostly starting around the early 80s completely reflected this official sanction of world dollar expansion without price inflation. It’s only in the last year that we can see where equity markets are telegraphing a transition into dollar expansion “without world support”. Better said, major price inflation is coming on a level equal to hyper status. Many stock markets have headed straight up in reflection of this.

Another area where we see this change is in crude oil. For years, every rise in crude prices was quickly shut down from added supply. Done to add the producers portion of help to the dollar support effort. Even war in the oil fields was not allowed to create a dollar destroying price rise. Once the Euro was born and seen in operation as a possible “backup” currency, added crude supply to keep prices low was no longer available. Prices have risen and fallen in a broken fashion that will continue it’s upward bias.

This policy change is not only a vote of confidence in Euroland, it’s also a Euro reserve support function that will lead to much higher physical gold prices later. Oil around $30 (and $45+ later) now values gold upwards to $930 using the old one gram = one barrel from a pre 1971 gold dollar price ratio. This has fueled ongoing trade in gold by the BIS as it seeks more physical gold supply outside the LBMA paper contract world. A process that can only further destroy the present contract gold illusion as expressed in a paper dollar gold marketplace. Eventually, $930 gold crude will become the absolute bottom pricing range as real dollar price inflation begins.

The most recent example of official policy change toward the dollar was found in the Washington Agreement. It marks the end of Euroland support for the paper gold markets that helped maintain a dollar/ oil settlement bond. In the beginning (1980s) it was a joint effort by at least two factions that has today become only a single effort by one faction. The US/Britain.
Even with this, the US accepted a reworked IMF gold structure. Because of this, they (US) are today operating two policy positions that contradict each other. One tries to use an escalation of the gold price to maintain IMF support for foreign US debt, while the other tries to keep the “gold trading desk” of several market makers solvent through an even lower price.

This places Euroland, the BIS and major world physical gold players on a direct collision course with the US backed contract gold marketplace. The effects of this will “most likely” be seen in a literal flood of new paper gold entering this arena in an effort to maintain “bookkeeping” credibility for the market makers. Today we see the beginnings of this change impacting the market as it is evolving into little more than a large paper float that exists mostly for this “bookkeeping” purpose. It will stay viable until dollar price inflation dries up to physical supply that to date still sells into this market. No doubt, the mine companies will become the very last sellers to support this arena. Possibly, selling into it’s paper pricing all the way down.

For years, gold bugs have figured that gold would be the next dollar escape mechanism. Not another currency. They gave little thought to the reality that our modern world could not, would not price gold as a “reserve free trading asset” without a digital paper money reserve to do it in. Once the dollar begins it’s decline through price inflation, it’s use as a reserve and more importantly it’s use to establish a gold market will stop. This will cause an unexpected delayed positive impact on gold values as gold’s paper marketplace goes through tremendous convulsions.

We may see dollar price inflation in all things, yet gold values fall as contracts fail from constricted supply. Eventually, even the mining sector will be forced from shareholder loses and poor contract price economics to abandon the dollar pricing contract system. I expect that during this time the physical price of gold will be soaring as it’s lack of trade constricts supply. Most paper gold traders today, don’t understand how a real dollar price inflation shrinks physical gold trade, no matter how high or low the price goes.

Further, they continue to use the various dollar gold derivatives even as their paper supply mushrooms. A process that forces the contract gold price down. Yet, all the while they are proclaiming that they are “in the gold market” and bemoaning how the manipulation of the metal is giving them loses.

It’s important for new players to understand that no government or private banker in the world today can manipulate the dollar price of traded physical gold once real price inflation begins in the reserve currency. A failing currency system would find governments and bankers selling into a virtual “black hole” of demand.

Prior to dollar price inflation effects, the impact of official policy can only manipulate paper contract prices. Just because traders are willing to sell physical gold for a paper settled contract price doesn’t mean that’s the real gold value in the world today. More to the point, this is simply a temporary condition that could exhaust itself before price inflation, once physical delivered against paper prices dries up. Thereby forcing contract prices into discount and destruction.

This modern paper market is relatively a new concept in world gold trade. It was created by banks, western traders and mine operators themselves over the last 15+ years. They supported this market by buying into it instead of buying and trading only real gold. True, the paper promoters may have been dishonest in presenting the effects of this process, but no one was forced to use it! Without user cash flow giving credibility to these paper derivatives, the market would not exist in it’s present form.

Yes, it’s true that the Euroland and dollar faction agenda, along with oil interest and indeed physical gold traders all benefited from this investors market making cash flow! But this is reality for any investment where a buyer of a contract abrogates the security of present real ownership into a paper position with counterparties risk. Even today, call option buyers give their money away in support of this illusion, instead of buying coins outright. Truly, western gold paper traders and gold stock investors today a have evolved and in no way represent what the term “gold bug” used to mean. Today, physical gold advocates are the real gold bugs as they now posses the real leverage paper players only think they have!

CIGA Belgian

Bill Holter’s comment on the above is exchange is:

Dear Jim,

I believe it was Isaac Newton who theorized for “every action there is an equal and opposite reaction”. Just as stretching a rubber band too far, the “reaction” often times is much faster and far more violent! As an addendum, wasn’t it an “Apple” that fell on his head?

Best,
Bill

    • Agreed @UglyDog

      But, in that event, will they continue to be in denial about this possibility?  I think that they will, at least for a period of time.  But, sooner or later, reality has a way of intruding upon the most closely held beliefs.

       

       

    • how will bitcoin become inaccessible ?? it is a decentralized blockchain . you would have to take down every single node, or maybe take down all the miners..

       

      if your bitcoins are on an exchange, then that is possible. if they are in your cold storage wallet, probably not as easy to do.

    • Aztec…Internet is vulnerable to space weather i.e. solar flares knocking out satellites, cyber-wars as well as cutting undersea cables, and political instability just to name a few.

  1. HKEX News Release

    Updated:  05/05/2017

    +Share

    HKEX Announces Plan for Physically Settled CNH and US$ Gold Futures

    https://steemit.com/money/@contrarianinvest/4vvyfu-the-hong-kong-golden-dragon-that-kills-comex

    http://www.hkex.com.hk/eng/newsconsul/hkexnews/2017/1705052news.htm

    Now if your thinking what I was thinking at first glance… your thinking wrong!

    Because the Shanghai exchange was within China alone, and this is the first GLOBAL PHYSICAL EXCHANGE requiring ACTUAL physical to be a “Seller”.  Read this article closely, and the following one in detail.  Because LME is a subsidiary of HKEX, the exchanges globally are set up to be ran by China. The vaults are in place, and have been for over a year (we recall reading about the purchase of the vaults) but NOW this is coming together…. SMASH the west paper market in a quick fashion!  The more gold & silver is shorted on comex, the larger the losses from West to East and the quicker the paper exchanges fall apart.

    This is actually, REALLY EXCITING!  

    -Que- Trolls…..

  2. BITCOIN is not ‘Untouchable’ it’s a safe haven for dirty money and a little clean money from the run up..it has 3rd party risk ,internet and a financial re-set ..Ag Silver is so undervalued that even a blind man should be able to see.

    • You’re all or nothing mentality will be the death of you. It is the fool who is all in on any “just one thing”. Take it from someone that has sunk enough bullion at the bottom of the lake to flood the adjoining homes. I’ve studied, purchased, saved, and used BTC and you couldn’t be more ignorant in your suppositions if you tried.

      I have been watching for the gold trade note, the gold backed currency, or the gold backed systems for decades. It is not happening. You know what is happening? Japan now accepts BTC as legal tender. Australia will accept it as legal tender and will not tax the trading revenues as of July 1 this year. China has cracked down on the BTC abuses. Why? Because they plan to implement it as a national payment system as so much of the money that flows to the provinces gets siphoned off through graft and corruption. BTC and the blockchain brings that to an end. Have you heard of Antshares? I didn’t thinks so. I’m not going to teach you, go do your own due diligence.

      I am prepared for the gold system should it ever come. I am not holding my breath though as I see the cryptocurrency systems filling the voids that I thought bullion would fill.  Like it or not, this time just may be different.

    • “Totally illiquid”?  Hardly.  It’s not even partly illiquid, since most coin and pawn shops plus many jewelry stores will exchange cash for gold and silver.  Been there, done that.  It was not a problem.

       

    • @Bullion_and_Bitcoin agreed. I own a good amount of silver …. and i own an even larger amount of btc, eth, and several alts ….. i continue to buy the alts since i believe they will be pumped next as mainstream newbs flood the market. the newbs will go for the cheap coins. i understand pms are valuable . however, i have yet to figure out how to get a pm into my pc to conduct an instant transaction…. i believe that in the new crypto currency economy, pms will be reset to new higher values. i believe owning both is the best strategy going forward ..

    • One is currency and one is wealth, they have an overlap of course in that they can both be exchanged for something else. I don’t mind using BTC to conduct a trade, but don’t consider it the right way to store wealth long term.

  3. What is silver used for in industry?

    The industrial demand for silver
    Silver has many industrial uses, accounting for more than half of annual demand worldwide over the last five years.

    This means that economic growth can affect silver prices far more than it affects gold. Only 10-15% of annual gold demand worldwide comes from industrial use, the rest going to jewelry and investment.

    Because of silver’s physical strength, brilliance, malleability and ductility (it can be squashed or pulled into shape), people have also used silver in jewelry, tableware and fine art for thousands of years. Industrial applications use silver’s conductivity (the highest of any element for electricity and heat) as well as its sensitivity to light and anti-bacterial qualities.

    Today silver is invaluable to solder and brazing alloys, batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic (or solar) energy, RFID chips (for tracking parcels or shipments worldwide), semiconductors, touch screens, water purification, wood preservatives and many other industrial uses. Washington-based industry group the Silver Institute calls it “the indispensable metal”.

    The biggest consumers of silver for industrial applications this past decade have been the US, Canada, China, India, Japan, South Korea, Germany and Russia. Over that time silver demand from older industries has faded, only to be replaced by new technological uses.

    Here we look at three major industrial uses of silver – photography, solar energy, and medical – and how they are changing.
    Photographic silver use
    Photography used to be the No.1 end-use of the silver, using silver nitrate to create light-sensitive halide crystals. This sector includes consumer photography, the graphic arts and radiography (x-rays), both in medicine and industrial inspection of heavy machinery.

    Photographic silver demand hit its peak in 1999, representing 25% of total fabrication. The film market in the United States alone used over 93 million ounces of silver that year, more than one ounce in every ten sold worldwide. Within five years, however, photographic demand slipped below 20% of total demand, and it fell to 9% by 2013.

    The growth of digital photography has played the greatest part in this decline. Still-photography used in x-rays remains a big consumer of silver, but total photographic demand has contracted 70% by weight from its peak.
    Photovoltaic (solar energy) silver demand
    Silver’s sensitivity to light has found fast-growing use in the photovoltaic, or solar energy, industry. Using silver as a conductive ink, photovoltaic cells transform sunlight into electricity.

    Photovoltaic use first made an impact on silver demand in 2000, just as photographic use began its decline, with the sector consuming 1 million ounces that year. This was not even one tenth of the amount used by the electronics industry, but by 2008 the photovoltaic sector was consuming 19 million ounces per year as major government subsidies promoted the industry’s growth in the US, Western Europe and particularly China.

    Photovoltaic demand for silver exploded on these taxpayer subsidies, growing at a 50% annual rate and starting to fill the gap left by the declining photographic industry. But with subsidies then cut as the financial crisis wore on, and with silver prices doubling in 2011 to hit almost $50 per ounce – the all-time peak set in January 1980 – silver industrial demand declined for three years running.

    Higher prices meant technology developed to use less silver in producing the same amount of solar power. This “thrifting” has now cut the quantity of silver by up to 80% per solar cell from a decade ago. So despite a rise in total solar panel production, US photovoltaic demand for silver has actually fallen in recent years. In Europe, those earlier government subsidies led to huge over-production, and excess capacity in the industry saw many solar-cell manufacturers go bankrupt, also hurt by competition from China.

    Even so, global photovoltaic demand for silver has grown at a compound annual rate of 20% over the last decade, according to the Silver Institute’s World Silver Survey 2014. China is now the leader in solar-panel manufacturing, producing 60% of 2013’s global output. Solar capacity in China leapt from 0.8 to 18.6 gigawatts between 2010 and 2013, with Beijing setting a target of 70GW by 2017.
    Medicine’s growing silver use
    Of all chemical elements, silver has the most powerful antibacterial action with the least toxicity to animal cells. Because like the other, more expensive precious metals, it interrupts the ability of bacteria cells to form certain chemical bonds essential to their survival. But cells in humans and other animals have thicker walls, and are so undisturbed.

    When added to water, silver releases silver ions. These ions also kill and prevent biological growth, again disabling the metabolism of germs and hindering their membrane functions. The value of these properties has been known and used for centuries.

    The Ancient Phoenicians, for instance, found they could keep water and other liquids fresh by storing them in silver-coated bottles. American pioneers 3,000 years later prevented dysentery, colds, and flu by putting silver dollars in milk bottles. Silver biocides are today found in hospital water systems, catheters, furniture and almost every tool in the operating theatre. Silver-copper ionisation has also been approved as a primary treatment for long-term control of legionella in air-cooling systems.

    Silver nitrate was used in the late 1800s to cure new-born babies of certain eye infections, and doctors found that wounds healed faster with silver dressings. The metal was used in sutures for surgical wounds and to cure ulcers – a use which continues today, with silver-embedded bandages proven to be especially effective in healing the wounds of burn victims.

    During the 1920s, over 3 million prescriptions per year were written in the US for medications containing silver. Due to the introduction of penicillin in the 1940s, antibiotics became the standard treatment for bacterial infections, and this use of silver diminished. But new scientific research has since allowed fresh expansion of the medical industry’s use of silver.

    Nanotechnology uses silver as an antimicrobial, reducing the metal to particles measured in billionths of a metre. This nanosilver acts as a catalyst for oxidation, generating oxygen from air or water which destroys the cell wall membranes of single-cell bacteria. Because it only “turns on” this reaction, it does not pollute the surrounding environment.

    In sum, there is much more to silver than its historical use as a monetary metal, or its ongoing use in jewellery and investment. Industrial and technological use of silver accounts for well over half annual demand. That demand plays an important and changing part in helping set long-term price direction

    • @Bopper09 i been taking colloidal silver about three years. colloidal silver makes anything else ur taking 1000 xs more powerful . it will help to cure ANYTHING fungus, bacteria, or virus … cancer falls under fungus .

    • I’m a silver bug myself…. much more upside vs. gold.  And ditto on the colloidal silver, though I use a variant called cellular silver. Works wonders.

      As for Jim’s article:

      “We may see dollar price inflation in all things, yet gold values fall as contracts fail from constricted supply. Eventually, even the mining sector will be forced from shareholder loses and poor contract price economics to abandon the dollar pricing contract system. I expect that during this time the physical price of gold will be soaring as it’s lack of trade constricts supply.”

      Am I too dense to understand this stuff, or did this guy just say the gold price will rise AND fall as a result of constructing supply? WTF…

  4. Global Silver Mine Production Drops in 2016 for First Time in 14 Years
    Posted on May 11, 2017 by adminis

    Silver’s Use in Solar Sector Surged 34 Percent, Posts New Record

    (New York City – May 11, 2017) Global silver mine production in 2016 recorded its first decline since 2002, largely the result of lower by-product output from the lead/zinc and gold sectors.  Coupled with less silver scrap supply to the market, which posted its lowest level since 1996, as well as a contraction in producer hedging, total silver supply decreased by 32.6 million ounces (Moz) in 2016.  Moreover, new highs were recorded for silver’s use in the photovoltaic and ethylene oxide sectors, both growing and significant industrial applications for silver.  These findings, and other key components of the silver market, are discussed in World Silver Survey 2017, released today by the Silver Institute and produced on its behalf by the GFMS Team at Thomson Reuters (GFMS).

    Silver Supply

    Global silver mine production declined by 0.6 percent in 2016 to a total of 885.8 Moz.  A large proportion of the drop was attributable to the lead/zinc and gold sectors, where production dipped by a combined 15.9 Moz.  On a regional basis, Mexico registered the largest drop in production last year, followed by Australia and Argentina, yet those losses were partially offset by gains in Central and South America and Asia.  Even so, Mexico was again the world’s largest silver producing country, followed by Peru, China, Chile and Russia.

    Primary silver mine production grew by 1 percent to realize 30 percent of total silver mine output last year. Lead/zinc mines contributed 35 percent of 2016 by-product output, followed by copper mines at 23 percent and gold mining at 12 percent.

    Silver scrap supply fell to 139.7 Moz in 2016, a level not seen since 1996, despite higher silver prices.  The contraction was largely driven by lower Asian flows, due in part to lower industrial fabrication volumes.  Scrap supply from the industrialized world was also muted, as partial jumps in flows from the United Kingdom and Europe in general, offset falls in North America and Japan.

    In other areas of silver supply, GFMS reports that again government sales of silver were essentially non-existent last year, while in 2016, delta-adjusted silver hedging by producers contracted by 18.4 Moz.

    World Silver Supply and Demand (million ounces)
    (totals may not add due to rounding)

  5. Silver In History

    The mining of silver began some 5000 years ago.
    Silver was first mined in about 3000 B.C. in Anatolia (modern day Turkey). These early lodes were a valuable resource for the civilizations that flourished in the Near East, Crete, and Greece throughout antiquity.

    In about 1200 B.C., the center of silver production shifted to Greece’s Laurium mines, where it continued to feed the region’s burgeoning empires. In about 100 A.D., Spain became the capital of silver production. The Spanish mines were the major supplier for the Roman Empire and an essential trading component along the Asian spice routes.

    With the Moorish invasion of Spain, the practice of silver mining migrated to a broader range of countries, most of them in Central Europe. Several major silver mine discoveries occurred between 750 and 1200 A.D., including the Germany and Eastern Europe.

    The 500-year period from 1000 and 1500 A.D. was one of significant growth thanks to an increased number of mines as well as improvements in production and technology.

    However, no single event in the history of silver rivals the importance of the discovery of the New World in 1492. This momentous finding and the years that followed reinvented the role of silver throughout the world.

    The Spanish conquest of the New World led to mining of the silver element that dramatically eclipsed anything that had come before that time. Between 1500 and 1800, Bolivia, Peru and Mexico accounted for over 85 percent of world production and trade.

    Later, several other countries began to contribute more substantially, notably the United States with the discovery of the Comstock Lode in Nevada. Silver production continued to expand worldwide, growing from 40 to 80 million troy ounces annually by the 1870s.

    The period from 1876 to 1920 represented an explosion in both technological innovation and exploitation of new regions worldwide. Production over the last quarter of the 19th century quadrupled over the average of the first 75 years to a total of nearly 120 million troy ounces annually.

    Similarly, new discoveries in Australia, Central America and Europe greatly augmented total world silver production. The twenty years between 1900 and 1920 resulted in a 50 % increase in global production, and brought the total to about 190 million troy ounces annually. These increases were spurred by discoveries in Canada, the United States, Africa, Mexico, Chile, Japan, and other countries.

    In the last century, new technologies have also contributed to a massive rise in overall silver production. Major breakthroughs included steam-assisted drilling, mining, mine dewatering, and improved haulage. Furthermore, advances in mining techniques enhanced the ability to separate silver from other ores and made it possible to handle larger volumes of ore that contained silver.

    Such methods were critical to the increased volume of production, as many of the high-grade ores throughout the world had been largely depleted by the end of the 19th century.

    Today, more than 5000 years after ancient cultures first began to mine this precious metal, yearly global mine production averages 671 million troy ounces.

  6. In January 2009, the bitcoin network came into existence with the release of the first open source bitcoin client and the issuance of the first bitcoins, with Satoshi Nakamoto mining the first block of bitcoins ever (known as the genesis block), which had a reward of 50 bitcoins

    • Speedy…Sinclair is saying the coming inflation will drive people to store their wealth in physical gold.  Understand the Fed only controls dollars in the U.S.  All the dollars held overseas are out of the Fed’s control.  Should an event (take your choice of black swans) cause the world to dump dollars, the inflation that would hit U.S. shores would be unrelenting.

       

  7. Want to make Silver abundant?  Kill off 5 billion people!  Otherwise, God stopped minting silver veins a long time ago, and the sources are depleting… before you know it, your grandchildren will be holding onto one of the most scarce resources on the planet.

    Today…. If only my Grandpa lived to see people purchasing bottled water!  Let’s be frank, we’ve been duped into paying for bottled water for a couple decades now, and my Grandpa owned a well with the freshest, best tasting water God ever created! -and that the Earth herself ever filtered….. He never imagined so many suckers buying a “pet rock” in the bottled water industry!

    • Have a look at $265 on the chart. No pullback. Big move missed if you sold there. So much for “ inherently knowing Jesse Livermore’s discipline that major fortunes are when you are right and do not deviate.”

    • Oh hand here’s fax to a client in 93 (not 15 years sorry) telling them to buy gold. “The Bear maket in gold is absolutely over”. And look at the reasons, full of Sinclair sophistry. I wonder why such a legendary trader was working as a client advisor?

  8. Silver is less rare than Gold, but Silver is more intrinsically valuable and useful than Gold. Good money drives out bad money. Eventually Silver will drive out Gold and Silver will be the monetary standard, and Gold will get the back seat and be like the precious stones and pretty art to look at. God made silver more plentiful than gold but more useful, to as to offset the difference in rarity. Silver has been attacked harder than anything else, yet I believe God will just reveal another amazing use for Silver every century. Don’t give up your Silver, it is more valuable than we even realize!!!

    • Gold has a huge advantage, doesn´t tarnish, silver after contact with hands and air becomes black, loses beauty. With gold you can manipulate all you want and its beauty is preserved. I think for this gold will always be the first monetary metal for Banks and Large Investors, sovereigns, etc.

    • “Good money drives out bad money.”

      So, instead of using silver coins to buy things these days, we use cheap pot metal coins that don’t have much buying power instead?  Seems to me that this is reversed in that BAD money drove out good money, which becomes hoarded wealth rather than money.  Is anyone else confused about this?

    • Hey @Paco, we all agree that silver reacts with your hand oils and taints the metal.  But aside from JUST the beauty of gold “Ooooo look how shiney it is!” pure silver doesn’t turn black on it’s own. and if it did some tens or hundreds of years later, one good “buff” like your car, and it’s shiny again for some inordinate amount of years.

      Please do not confuse silver mixed with other metals or ore as it’s pure capability I can’t count how many gold ore veins I turned over in huge rocks and didn’t recognize ACTUAL GOLD veins mingled in quartz because it looked like rust in it’s natural form. (had shiny flaky gold dust images in my head when I was looking) – PLEASE DON’T LAUGH AT ME,  this was in 2011 when I first started learning about gold & silver for the first time. (spent my life as a fiat fool)

      As for silver….PURE silver, I have coins that have not been touched in a 2008 tube… that’s damn near 10 years, and they are PERFECT!  They’ve hit the air several times, been scattered out, looked at, and handled on the edges; but somehow they didn’t “magically” tarnish to black all on their own?  Hmm..

      Go Figure! 😉

    • @Aztecminer

       

      ” .. we will build gold and silver space ships .”

      I hope not.  Neither would be a good structural material.  BUT… perhaps as in the old Lensman series of sci-fi books, FTL ships will be powered by disintegrating atoms of various elements, including silver.  🙂

       

  9. As to the article…

     

    Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold. It is just that simple“. –Jim Sinclair

     

    Well, as long as we are making this simple, how about some comment on the fact that most sovereign states have sold / leased their once substantial national gold hoards and now have very little physical gold remaining in their vaults?  Nations who have little to no physical gold on hand won’t be real keen on making gold some sort of new currency, either as money itself or as backing for it.

     

    • Or looking through coloured lens….

      That is just a big front running scam, they sell the gold to insiders.  When gold backing is needed when it all falls apart they can profit selling the gold back to the state at great gains.

       

    • Maybe so @Loman

      That makes a lot of sense.  I stack because this is what the Chinese and Hedge Funds are doing.  Those people are very smart and have their finger on the pulse of all that happens.  If anyone knows the future trends, they do.  Worse comes to worst, I still have my stack as a form of long-term savings.  🙂

       

    • GBS , Thanks for the link to the pdf. I’m a cheap basted, so I copied the lot without the pretty pictures.

      At the bottom of the article is the usual.

      Disclaimer …

       

    • GBS…Agreed, if anyone wants an education on the gold-petro-dollar system then read the posts of a commentator who posted under the name ‘Another’ at FOFOA’s blog.

    • @GBS

       

      “… just in case anyone missed it and is interested to take the time to discover the difference between money and wealth”

      I suspect that many on here already know that money does not equal wealth.  But then, it doesn’t hurt to revisit and emphasize this point from time to time.

  10. Wow – my local bank just sent me an offer , open an account (free checking & debit – DEBIT CARD ISSUED IMMEDIATELY AT TIME OF OPENING ACCOUNT) and make 20 POS debit trasnsactions within 60 days – they give me $150. WOW – can you say desperate? These guys sound like they are done!

  11. Seligman has never got a bullish prediction correct, ever. Should anyone care to dispute that assertion then provide a link.

    His tiny band of followers harp on about his gold to $1,650 in 2011 call. They always conveniently omit to mention he said by a specific date five months before it did actually cross that threshold. He had droned on for years that he would be proved correct and maintained he would be correct until six weeks before he was proved wrong. If he had had a scintilla of integrity he’d have shut his pompous trap, but instead he continued to make useless predictions.

    • None of us should pay the slightest attention to anyone’s “predictions”.  No one knows or can know the future.  The sooner we all get over the need to read or hear predictions, the sooner we can get on with doing what WE think needs to be done.

      I stack because I have done the research necessary to pursue that course of action and not because some mystical “guru” tells me to.  I suspect that this is true for many on here.  🙂

       

  12. @Ed_B  I agree. Some of these predictions should be considered in the light of wanting to sell you something. The fundamentals of overcooked stock exchange, debt, lessons from history tell me that some stacking is excellent insurance. Might not make me rich, particularly in the short term, but won’t leave my familly in serious difficulties when SHTF. Non-financial prepping is also an insurance. I have a metalworking lathe, milling machine, lead, charcoal etc… because hey, you never know if you need to build a really good fishing rod/reel to catch fish and grill it;)  I am not in the USA with the 2nd amendment.

    Also stack up on information – the internet may not be around when you need it. Medical, maps, howto’s,  etc. Plus what you have learnt and memorised cannot be stolen. For the rest I have what I call my Y2K compliant, batteryless, unhackable information repository – a notebook.

    • @Alan

       

      “I agree. Some of these predictions should be considered in the light of wanting to sell you something.”

      Indeed so.  There are some who sell PMs because they truly believe in them as the best way to preserve one’s wealth and want to share that protection with everyone else.  I can understand this as motivation for them to get into the PM-selling business.  To others who have jumped onto the PM-selling bandwagon, it’s just a business and they want to push it as hard as they can.   In either case, it is up to us all to think very clearly about what owning PMs means to us and not worry about what others might think of what we’re doing.  We do have to be smart about it, though, as with any other personal business and especially those involving money.  We can do that via reading and learning.  Many on here know more than most of us and are happy to help when they can.  They do not gain anything but satisfaction when others are helped by their advice.

       

      “The fundamentals of overcooked stock exchange, debt, lessons from history tell me that some stacking is excellent insurance.”

      Yes!  This is precisely the case.  For me, PMs are mostly wealth insurance but also a long-term savings plan and a hedge against inflation.  As one of the older members here, I well remember using US 90% silver coins to buy things back in the late 1950s and early 1960s.  That was REAL money back then and it had considerable buying power.  A nice dinner, for example, could be purchased for $1.50-$2.00… in silver.  That same dinner today costs about 12x that, so gives us a good look at what inflation does to the buying power of fiat currency.  Of course, that $1.50-$2.00 in silver is now worth $18-$24 @ $17 an oz. silver.

      That era also gave me my first experience with inflation.  That was around 1960 when comic books cost a dime each and then the price went to 12 cents each… a 20% increase!  This was noticed because my budget allowed me to purchase certain things I liked and was balanced for those things costing no more than 25 cents each week.  Those extra 2 cents in cost meant that something else had to be reduced, either in amount or  altogether.  Such were my first thoughts in personal finance.  😉

       

      “Might not make me rich, particularly in the short term, but won’t leave my familly in serious difficulties when SHTF.”

      Absolutely.  Many who have abandoned PM ownership have done so because they were told that PM prices were absolutely going to shoot up… SOON.  The “to the moon” type comments regarding PM prices were everywhere on the PM enthusiast web sites.  Some were taken in by these comments, all of which formed the basis of unrealistic expectations.  When those expectations were not realized in the expected time frame, those people were severely disappointed.  Some had even borrowed money in order to buy the maximum amount of PMs, thinking that when PM prices shot up, they could easily repay those loans.  Many sold their PMs and now have little or nothing protecting their financial future from some possibly very hard times.  But buying PMs is no different from buying any other valuable asset.  There are rules of behavior that are associated with successful investing, most of which were violated during this time.  They are not violated with impunity, however.  There is a cost associated with this and they either have paid or are now paying it.  While they are not happy about that, it is what happens when either poor decisions are made or when assets are purchased for the wrong reasons.

       

      “Non-financial prepping is also an insurance. I have a metalworking lathe, milling machine, lead, charcoal etc… because hey, you never know if you need to build a really good fishing rod/reel to catch fish and grill it;)”

      Indeed it is and you will often see comments on this web site about stacking items that we all need as support for everyday living.  Things such as food, water, water purification means, medicines, guns and ammo, where allowed, and either sling shots, bows and arrows, or crossbows where they are allowed.  Also of great use tools of all kinds, ways to make heat and light, tarps, building materials, fuel, paper products, first aid supplies, etc.  While many of us see holding gold and silver in our own hands and necessary, we do not skip daily essentials.

       

      “I am not in the USA with the 2nd amendment.”

      The 2nd Amendment keeps some power in the hands of We the People.  We have not only the freedom to challenge a government that has descended into tyranny but the moral obligation to future generations to do so.  Personal firearms are but the means to ensure that the government does not descend into tyranny.   They also give us the means to protect ourselves and our family members from social unrest if looting, rioting, and all manner of mayhem should break out someday.  Those who scoff at this almost never have experienced the real need for immediate protection in their lives.  Their answer is to call the police, which is a good answer IF there is time for them to arrive, but beyond that they have no answer.  To the proactive, having multiple answers to such questions seems best, so we have Plan A (call police) but also Plans B, C, D, etc. just in case Plan A fails to work.  We’re not betting our lives on Plan A, as some seem to think best.  I would hate having to shoot someone but I would hate letting them kill me or my family a whole lot more.

       
      “Also stack up on information – the internet may not be around when you need it. Medical, maps, howto’s,  etc.”
      This is excellent advice, IMO.  Much that we now know and depend upon may or may not be available to us during a SHTF scenario.  Looking up info on the Internet is great but when really good info is found, it should be printed out and saved in large 3-ring binders.  Books like the Foxfire series are also great sources of info that work just fine whether there is an Internet or the electrical power to run it.  Having a low-power laptop computer and a decent solar charger for it is also a good idea but make sure to have the printed info too… just in case.  As with all forms of information, make sure that it is well organized and indexed so that it can be found quickly when the need arises.

      “Plus what you have learnt and memorised cannot be stolen.”
      Agreed.  This is why some people emphasize skills as one of the best preps one can have.  Knowing how to do home repairs, for example, will be in considerable demand.  So will gardening skills and the fruits, nuts, vegetables, and seeds that result from gardening.

      “For the rest I have what I call my Y2K compliant, batteryless, unhackable information repository – a notebook.”
      Excellent, Alan.  There are definitely times when situations call for a reliable low-tech answer that always works.  The need for reliability in necessary items cannot be overstated.  No matter how whiz-bang some hot new tech may be, if it isn’t available when it is most needed, what real good is it?  I think of things like this as I watch the current crop of “zombies” wandering around, oblivious to the world around them as they stare at their phones.

  13. Funny thing about that cartoon above   If you add the letter S  to Ball, you now see how tax lawyers and bankers actually work.

    Pay particular attention to how the letter S changes the meaning of the last line  😉

    Something I noted on TFMR this AM.  If the stock market craps the bed, there will be a very large tranche of capital flowing to cryptos.  With a $70 billion total market cap, wait until its $500 billion and then a trillion as cryptos sprout like weeds after a rain.  Or mushrooms

    And then that form of capital hits it limits either due to a massive Rhino Horn explosion in price and the owners move to something that is really convert

    What’s covert?

    Da shiny.

    • Sinclair was telling people to sell their cars and buy gold about 1 month before it fell off a cliff in early 2013.  Years later it still has not recovered. Sinclair is a terrible source for accurate info on the gold market. He is a big self promoter but when you look into it you see just how bad his moves have been.

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