freefallI figured I might need to buy today.
I knew the month was running out and I knew “TPTB” in the paper markets were approaching something called an “options expiry.” 
This, I knew from repeated experience and observation,  is when prices must be driven down. 


 

Submitted by Bill Rice, Jr.

Well, I was slaving away on Part 2 of my essay exploring one way “stacker issues” might finally go “mainstream” when I became distracted by the latest silver smashdown.
I stopped my frantic pecking, got out the check book, dialed the 800 number of SD Bullion and purchased 40 more Silver Eagles for my daughter’s collection.
I figured I might need to buy today.
I knew the month was running out and I knew “TPTB” in the paper markets were approaching something called an “options expiry.”
This, I knew from repeated experience and observation,  is when prices must be driven down.
Absent a nuclear war in the Ukraine or Israel or Iraq, those who wanted to drive down prices probably would drive them down today.
Plus, I’d previously read where tomorrow (Friday) is the day when the latest GDP figures for Q2 will be released.
Who knows what those figures will say? If they show that the economy shrunk in the second quarter, this would officially put the USA into a “recession.”
(My guess is that these numbers will show that the economy didn’t shrink enough to get to recession levels, an  announcement that is more likely to come with subsequent “revisions.” That is, if the MO stays the same.)
But who knows how the markets might react to news that might be so “news worthy” even the MSM can’t avoid leading with it.
Maybe “conventional wisdom” would decide that the politburo at The Fed is completely clueless, that it is going to have to start printing even more money and that gold and silver prices would soar.
All things considered, better place my order today, I decided.
About the time the price of silver was tumbling over the water fall, I happened to be writing some paragraphs where I list examples of all the gold and silver-related topics that talk radio hosts do NOT talk about (but should).
It hits me just now that here we have yet another example of an event in the precious metals world that will NOT be discussed by the likes of Rush Limbaugh, Mark Levin and Sean Hannity.
 “Folks, don’t know if you noticed this or not, but the price of silver just plummeted by 3 percent,” said El Rushbo (not).  “No ‘news’ as far as I can tell explains such a drop, which if a crash of this magnitude happened in the stock market would no doubt be front-page news in the Wall Street Journal.”
 “This, as it turns out, is a regular occurrence in silver and gold markets. The goal, as I and others have come to believe, is to make sure that sentiment for precious metals remains awful.
“This makes the U.S. dollar more attractive to investors and also ensures that our government can continue to finance its operations by selling treasuries – either to the Fed or to other suckers.”
I didn’t even have to turn on my radio to know that such a conversation did not and will not take place today. Such topics (and explanations) for some reason remain taboo (my theory on why this is so  coming tomorrow).
But such conversations need to occur if the Status Quo is ever going to change.
When a silver smash occurs and Rush Limbaugh spends 15 minutes talking about why it happened and why his listeners should be outraged by the funny business in this allegedly “free” market, we “gold bugs” might finally know that real change is at last possible.
Which – ever the idealist and optimist – is the reason I was working on my other column earlier today.
I’m not trying to change the thinking of the usual suspects who will run for president starting next year. I know that’s not going to happen. I’m fully aware that “focus groups” are not talking about the gold market being rigged or Fed activities.
Instead I’m trying to use the power of the pen to maybe persuade just one member of the conservative media establishment to finally start talking about topics that actually matter and could make a difference in a future election.
In other words  I’m trying to save the world the only way I know how.
But today I had to take a break from wordsmithing and buy some more silver coins.
Before I get back to saving the world, I’m going to do everything I can to try to save my own family. Call it priorities if you will.
The way I figure it those coins I purchased today will buy my family six to eight weeks worth of groceries at today’s prices.
Three years from now they’ll still buy me six to eight weeks worth of groceries.
Three years from now the $942 in cash I exchanged for silver might buy me one week of groceries.
Yes, I’m writing about silver, but I’m also writing about and thinking about the groceries I know I will need to feed my wife and young daughter.
In other words, this is not a trivial topic to me.
I just wish someone with the reach and influence of someone like Rush Limbaugh would talk about stuff like this.
Now back to the other column.

Bill Rice, Jr. is managing editor of The Montgomery (AL) Independent. He can be reached at bill@montgomeryindependent.com


  1. I bought 1000 ounces of Silver at $35 in 2012.  Today the silver value is $20
    The sentiment back then was Huge. Columns of frothing positive Silver predictions spilled out of the King World News website, SD, ZH and others and I ate all of it up.
    3 Years from my purchase, If I exchanged my Silver for Groceries, I would likely receive 30% less groceries than in 2012
    Food for thought.
     

    • @silver psycho, what i always do is buy in small increments .like thursday, i just happen to throw a couple extra bucks in my pocket cause i was going in the way of the lcs.picked up four ase’s.smallest purchase i have made yet so far,just to throw on to the stack.and never try to buy more than thirty two at a time either.so which ever way the price “ebbs,or flows” you can always keep a better grip on cost’s,slippage,so forth, in time you’d be pretty surprised how the “stack” grows.it’s funny how when every one got a whiff when silver went ballistic that most ran out to gobble up as much as they could,only because they thought,(this is it) to da moon,which was nothing other than a false shot,like at a race,and like you say,”look at where were at now.i remember i wanted to buy a monster box and be done with it,@19k for the box.the last time,maybe 8-9 months ago could have bought it for 10k,now that look back at it,i just figured that if you buy on a steady basis and keep it small you’ll never run into the remorse part of it.but like a “junky” i just keep it at 12-16 oz.s,and sometimes mix it up with a ten ounce bar and some rounds but keeping it around a pound or so and never more than that,and also dependent solely on cash availability.slow and steady gets the job done.

    • thank you for your profoundly witty sarcasm, silverslicker.  some people have families and lives NOW, not some time down the road, which, by the way, gets murkier and murkier everyday.
       
      I did not buy my stack to speculate, like some of your are trying to accuse me of.  I’d be happy at least keep what I had, but I also lost significantly.  Gurus are full of shit and I agree that the hype was insane back then.  Right now they are trying to keep the fires burning with thumbintheass guesses.

    • WTF  I’m taking FIAT and 20 oz of silver to the gun show
      ‘How much do you want for that  gun and ammo’?
      Sounds good
      Do you take silver?
      Yes?
       Cool
      Works for me.

  2.  
    “The way I figure it those coins I purchased today will buy my family six to eight weeks worth of groceries at today’s prices”
    Instead of buying Silver right now, why don’t you buy food right now that will last 30 years?  As you don’t know if you will be able to buy food with your silver right away when needed down the road. Prepare! Prepare! Prepare! and Keep Stacking

    • Thank you for a SANE comment.
       
      Yes, one should “invest” in long-term FOOD storage Waaaaaay before accumulating “money” in ANY form.
       
      Excellent point.

  3. How many times does one have to repeat “TRUTH”????????
     
    Silver is NOT an INVESTMENT as it is an INSURANCE POLICY against YOU  being ROBBED BLIND!!!
     
    Why would you transfer cash into REAL MONEY and then transfer it back into FRN “cash” again?????
     
    Doesn’t make sense when you THINK THINK THINK about it.
     
    Think people………. T H I N K ! ! !
     
    Do NOT ‘invest’ in metals.
     
    But…….purchase your own FREEDOM!
    ____________________________________________
     
    Never mind, I’m preachin’ to an “Oprahfied” culture of gumchewing focking SHEEP!
     
    (shaking head in complete disgust)…………Good luck.
     

  4. Coulda, shoulda, woulda.  I wish that I had only bought silver when it was $4 an oz not too long ago.  I also bought at all price levels since 2010 and continue doing so, 10 oz per month.  Definitely stacking, and it won’t go away like my thousands of stock shares and losses in the rigged stock market.  It’s PHYSICAL and will be worth SOMETHING in the future, regardless of what the latest talking head predicts.
     
    Reality is, the U.S. has dug itself such a deep hole with derivatives that it can’t ever pay back and the dollar will go worthless in the near future.  So I’m putting my discretionary cash into silver.

    Also, FWIW, we picked up some shares of DOG, an ETF that shorts the equity markets, just in case the market tanks.
    Quietly stacking, planning for the worst and hoping for the best (or better, as it may be)…
     
     
     
     

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