-- Posted 6 October, 2009 | | Discuss This Article - Comments:

The amount of information on silver as an investment being analyzed and discussed lately has been astonishing. I remember only a few years ago that it was only the likes of Ted Butler, David Morgan and Jason Hommel that ever promoted the amazing investment opportunity that silver represented. Now there are literally hundreds of “pro-silver analysts” out there talking about the supply/demand deficit, COMEX Commitment of Traders Report, fraudulent Silver ETFs and the dual role of silver as both an industrial metal and monetary metal. I LOVE IT!

Of course having so many eyes on the silver market you would expect that all the bullish silver angles have been addressed, investigated and exposed but I have found over the years that there are always some bullish factors hidden in the mysterious world of silver investing that explode into the consciousness of the market at the oddest time compounding the reason for silver to rapidly rise in price. Ted Butler has exposed the most of the bullish silver discoveries in his studies of silver spanning many decades, but that does not preclude the little guys out there from exposing a new idea/discovery that further promotes the silver cause. Here are some of the unique angles I have brought to the table over the years:

The Great Silver Mystery (..and the greatest secret of all time!)
Melt the Witch – swap all your gold for silver!
Who’s the little man behind the curtain pulling the levers of the Gold and Silver ETFs?
CFTC Silver Manipulation: 6 strikes and yer out!
US Silver Eagles Illegally Rationed
When the music stops…Who’s got the Silver?

Today we are on the threshold of something so large in the silver world that it will astound every man, woman and child on the planet…even the silver bugs! In my second Road to Roota article Maestro Greenspan’s Mangum Opus! I discussed the plan by Alan Greenspan and friends to destroy the entire monetary system in a one time Creative Destruction Event. Read this article to understand what that means.  If you open your eyes long enough to see past the monetary smoke and mirrors these days you can tell it is happening as we speak. We are down to the end days for the fiat monetary system with the implosion being dragged on since September of 2008 and very soon to come to a climax.

So what will happen to silver? Glad you asked!

There are many silver enthusiasts out there today with vast amounts of money sloshing around in “silver related” investments such as silver derivatives ($111B as per the BIS), silver ETF’s ($5B+ most in SLV), silver mining companies (est $8B by JH), silver certificates ($10B… my own estimate), silver futures and options (unknown billions) etc., etc.

This is about $150B+ worth of silver investments that really have NOT positively affected the price of physical silver since no silver was actually purchased. At least half of this money has negatively suppressed the price of silver by selling silver derivatives with no physical backing at all. Even mining share investments. Think about it. Your silver mining company investment helps capitalizes mining companies to create more physical silver adding to the supply where that money could have gone directly into physical silver decreasing the supply!

I see these people as “knowledgeable silver investors” who know the story but chose to believe that the system will stay in tact such that they will have time to obtain the reward for their investment when silver rises in price….that will be their big mistake when the final hammer falls.

This is where I see a NEW Silver Slingshot effect for silver.

Although greed is a great psychological force that can drive markets up, fear is by far the ultimate motivator in any investment mania. Trying to “stop the bleeding” on investment losses is like trying to catch a Samurai Sword dropped from the top Empire State Building! When we have the Creative Destruction event I doubt the $150B in “silver related” investments will ever pay off because of all the risk/credit layers between you and your silver. Imagine the chaos when we have total banking failure, total brokerage house failure, total exchange failure, total 401k failure, etc.  How will those “investments” ever pay off with all those levels of credit risk and defaulted entities between the investor and his silver rewards? Will mining company stocks still be traded without the DTCC or the NYSE or the CFTC?

And what about those silver mining stock certificates that you have in your safe deposit box? Will they be worth anything? First ask yourself…with a fiat money crash what will be the new currency? You can bet it will have to be backed by something (most likely gold and silver) but what will the citizens of the world say about private ownership of the mines that control their money? With 99.99% of the population NOT holding any real gold or silver do you think they would allow the .01% to control all the wealth of the nation or the world? I doubt it.

Well “Silver Related” Investment Gurus…whatcha gonna do now? The worst thing I can imagine is fighting the silver battle for all these years and not getting the payoff when all your predictions come true.

So here’s the SLINGSHOT moment.

When silver investors realize the scope of the Creative Destruction Event the flood of cash from $150B of “silver related” investments into the tiny physical silver market will destroy “silver related” investments and SLINGSHOT the price of physical silver to unimaginable heights…are you really ready?

Don’t delay because as this reality begins to show over the next few weeks I doubt you will be able to get that physical position you’ve been putting off for those increased silver returns from your mining stocks, options and derivatives.

It’s game time for silver so don’t get caught sitting on the bench!