Resource Prospector In Agreement On Why Owning Silver Is Critical

Kevin McElroy, Editor of Resource Prospector is long- term bullish on PMs and commodities, but for the past 6 months he has been loading up on silver. His reasons for doing so are almost identical to mine. One reason to buy silver is that it is still cheap. Today, silver sells for under $19 an ounce. If silver catches up to its historic, inflation adjusted highs, it would sell for over $300 an ounce. Also we both believe that silver is undervalued relative to gold, and it's nowhere near its nominal highs, let alone inflation adjusted highs.


One of the primary reasons I own silver has almost nothing to do with its current valuation. Silver has more tangible benefits in the event of a total currency meltdown because of its much lower value-per-unit than gold. If hyper-inflation is in the cards, the question of how many dollars can I get for an ounce of PMs just won't matter. The better question will be: how many gallons of gasoline can I get, or how many pounds of rice, or how many cartridges of 9mm ammunition?

This is what I tell my friends and family. Tally up your living expenses (food, water, gasoline, etc.) for six months, and buy the commensurate amount of silver. In the event that the dollar implodes, your daily expenses will likely be more easily met by silver bullion than gold. A one ounce gold coin is a large amount of money, so unless you're buying food for a dozen people, it would be tough to find daily living expenses that would require gold bullion. Silver coins are much better suited to daily expenses like food and gasoline. So, I'm buying silver for the same reason. In the event that the dollars in my bank account become worthless, or near-worthless, I want to have something that I can fall back on - as an insurance policy.

MoMoney : Silver Chart Price Predictions

I always start these posts off with my standard disclaimer, I know squat about technical analysis and reading chat trends.  However, Mo Dawoud, in his MoMoney Blog explains the charts and trends of the Little zig-zags on the chart. This months silver chart  is in and Mo stated that  it was a disappointment. After climbing above the first hurdle at $19 per ounces, it stop at nearly $19.80 before dropping down to below $18.00 per ounce. I was hoping silver would jump over the second resistance at 20, but formed a new resistance level at 19.50 instead. Nonetheless, he still believe silver will finish above $21 before the end of the year and the “big players” on wall street will join the party once quantitative easing appears. This will cause massive inflation and investors will flee to the hard asset like Precious Metals

He doesn't believe there will be a hard downtrend for silver  since the fundamentals for silver is so strong that the price of silver could reach at least the triple digit by the end of the decade.  Current prices are  being manipulated by the big banks on Wall Street. They perform naked shorts in the silver market to depress the silver price and to prevent investors from dumping the US dollar for silver.The volume is light so I don’t believe the “big players” left this game as well. As a silver investor, you will have to be patience and focus on the big picture. The big picture is the upcoming inflation and the strong industrial and investment demand for silver that will boost the price a lot!

To see the charts and read Mo's analysis go to MoMoney blog.

NIA: Introduction and Silver Mining Stock Recommendation

The National Inflation Association is an organization dedicated to preparing Americans for hyperinflation and helping Americans to survive and prosper in the upcoming hyperinflationary crisis. The U.S. government’s obligations include a $12.8 trillion national debt, $6.3 trillion in Fannie/Freddie debt and $60 trillion in unfunded obligations for programs such as Social Security, Medicare and Medicaid. The NIA believes that the U.S. for all intents and purposes is bankrupt and Americans need to take steps immediately to protect themselves from the potential loss of the purchasing power of their U.S. dollars.


NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.

The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.

Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.

Today, NIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). CDE is one of the world’s leading silver companies and is also a significant gold producer. NIA's last silver recommendation was Silver Wheaton (SLW). SLW reached a new 52-week high last week of $19.83, up 194% since NIA suggested it on February 26, 2009, at $6.74.

With the recent breakout in silver prices and potential imminent short squeeze from naked short positions held by JP Morgan, NIA felt it was the perfect time to announce a new silver company that they felt has significant long-term upside potential. You can read the CDE profile at http://www.inflation.us/cde.html

As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.

A Very Good Reason To Hold Silver and Gold

Federal Deficit in the Danger Zone - Kiplinger.com
As federal spending continues to rise, a crushing mountain of debt looms.
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Better stock up on silver now!