Gold and silver sell today at bargain basement prices. Those prices have held for nearly a year. But now those prices might rise and not look back.

Gold and silver: cheap

Gold and silver are both cheap today. Silver is especially cheap; it closed just under $28 an ounce last week. Gold closed at $1616.30 an ounce.

How long can they stay cheap? Maybe for a few more months. Larry Edelson says to wait several months longer, then buy gold and silver. Why? Because we’re at the wrong place in the cycle for gold and silver to rise sharply now. But he won’t say why the cycles work as they do. But he admits this: when the cycle ends, gold and silver could sell at three times what they sell for today.

Bob Livingston does not agree. He says to buy gold and silver now. Franklin Sanders (Goldprice.org) gives advice between these extremes. He says gold and silver will both rally in either September or November.

Why so cheap?

Why are gold and silver cheap? Because the government wants them to stay cheap. Sanders and Livingston both flatly accused the government of playing games with gold and silver prices. Livingston gives a little more detail. He says that JPMorgan Chase have sold those metals cheap on purpose to keep prices low.

Why would they do that? To hide the truth about paper money. Paper money cannot store value. If the government were to pledge to deliver a fixed weight in gold or silver (or anything else) for a dollar, fine. But it doesn’t. Fiat money (literally, “Let there be money!”) always inflates over time.

People are now getting wise to this. Many have quietly bought gold and silver. If enough people do that, paper money will collapse completely. Merchants will refuse it. Phrases like “legal tender” will mean nothing. Obviously the Obama administration doesn’t want to take that chance. Nor does the Federal Reserve, or any other government “careerist.” So they ask the banks to sell gold and silver cheap. The banks are happy to oblige. They make money, or commissions, on every sale and every buy.

Two problems

Gold coins.

But the government can’t do that forever. They have two problems:

1. You can’t print gold or silver. You can’t make it from anything simpler. (The government would probably have you believe in alchemy if they could. But you’re smarter than that.) You can only dig more gold and silver out of the ground. And we’re about to tap the ground out.
2. The Big Boys are buying gold and silver right now. George Soros and John Paulson both bought many shares of gold “exchange-traded funds.” Warren Buffet’s company bought something else: oil stocks. (Nigam Arora at Forbes.com says not to follow men like Soros and Paulson if you have no other evidence. The problem is: we do.)

For both these reasons, the government can’t hide inflation forever. Richard Nixon tried to make inflation illegal. He ordered his famous “Ninety-day Wage and Price Freeze,” and then a sixty-day freeze. After the second freeze, prices took off. The same thing will happen this time. One big reason: how much the government owes to foreign countries and their citizens or subjects. The latest figure: $5.29 trillion. That’s one-third of the total national debt.

The mildest thing to expect is a round of the worst inflation since the Nixon-Ford-Carter years. The worst is what Glenn Beck has said for years would happen: the total collapse of all the economies in the civilized world.

You have kept the word of My steadfast-ness. So I also will keep you out of the Hour of Trial. That Hour will come upon the entire civilized world. And it will test [to failure?] those still living on the earth. [Revelation 3:10]

When He broke the third seal, I heard the third living creature say, “Come!” I looked, and saw a black horse. The man sitting on it had a pair of scales in his hand. Then I heard what sounded like a voice from the middle of the four living creatures. It said, “A loaf of bread for a day’s pay, and three loaves of barley bread for a day’s pay. And don’t spill the oil or the wine.” [Revelation 6:5-6]

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