Has The Run Begun?

I have been watching trends in the market place all week long and it is my belief that a run on gold and silver has begun.

Silver up 8% Gold up 7% on the Week

Over the past 7 days silver is up approximately $0.85 per ounce and gold up about $6.50. That translates to an increase of about 8% on the week for silver and about 7% for gold. Very respectable returns in my book and makes my silver purchase from last week look even better.

Don’t Run Into Corporgovernment Brick Wall

How long will the run last? First if the market were allowed to run without interference from government and banks, I would say that $20.00 for silver and $1000.00 for gold is possible within less than a month. But these fine institutions will not allow that to happen.

Why, you ask? It is simple. They want to keep the US dollar as the worlds reserve currency and do not want us trading our paper for bullion. If the collective ‘We’ start dumping paper money for bullion, government and financial institutions get nervous because we are signaling that we do not have confidence in the currency or the institutions that create it.

Trickery 101

They are pulling all sorts of tricks. Banks have been selling large portions of their bullion to flood the market and drive the price down. They have also been shorting it on massive scales in the stock market. There purchasing power has a wide and far-reaching influence.

SOURCE: Theodore Butler, Silverseek.com

Next up we have the US mint rationing sales of bullion. From the Gold and Silver Blog:

“On August 14, 2008, the US Mint announced that they were suspending sales of American Gold Eagle bullion coins. The suspension was in place until August 25, 2008, when sales resumed under an allocation program. The program divides available gold coins into two pools. The first pool is divided equally among all authorized bullion purchasers. The second pool is allocated based on past sales performance.”

Both of these forces are counter intuitive to each other but they have managed to temporarily drive demand down. Don’t be fooled. This is a only temporary measure because the general public has not completely awaken to the fact that their cash is trash. When they do, no amount of government or banker intervention will be able to halt the BIG run on precious metals.

The Gold Anti-Trust Action Committee

Also while I am at it, here is an interesting site for you to look at. GATA. They are the Gold Anti-Trust Action Committee. They, like me, want to know the inventory of US Gold reserves. There has not been a public audit of these reserves for nearly half a century.

According to GATA, Barrick Gold has been used as an instrurment by the US Government to drive down the price of gold. Another example of the type of corruption that the world deals with on a daily basis.

Will You Be An Enemy of the Union?

So the bottom line is this. The natural tendency of the market place will always trump over artificial interventions. Short of a repeat performance of the government declaring that owning precious metals is illegal, there will be a a HUGE run on precious metals within the next 2 to 4 years. You need to stockpile your reserves now, while your paper money still has some value in the market place.

Of course if the government declares personal holdings of bullion illegal they won’t get mine. It is and will remain well hidden. I am not one to preach breaking the law, but when a law is unjust, civil disobedience is warranted. One would have to wonder if such a law were established if anarchy would prevail. Me thinks so!

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