Lets talk “supply and demand”.
Suppose Ford releases a new truck, one that virtually everyone wants. This truck has it all – looks, power, fuel efficiency, and a quality build.
The truck sales are so successful in its first weeks of release, Ford can not even keep up with demand.
Considering these facts, when you go to the showroom to buy this truck, how much of a discount do you think you’re going to get?
If you said “none”, or “I might even have to pay OVER sticker” to get the truck, you’re likely
Lets fast-forward 6 months. In response to Ford’s new truck, Chevy releases the “latest and greatest” and as it turns out, every new truck buyer wants the Chevy (this is after all an imaginary scenario!) When this chain of events occurs, you can virtually see tumble-weeds blowing through the Ford dealerships.
It is at this time you go to your local Ford dealer to buy their truck (you’re the smart one actually!), but considering these new facts, what do you think you’ll be able to do on the price? Much better than before right?
What you have just experienced is the law of supply and demand – when we all want something, pricing will command a premium; when its not hot, the price falls.
Why should commodities be any different? Right now, relatively few Americans own or are interested in silver and gold. Combine that fact with a “paper market” that most experts believe has been manipulated down, the price of these precious metals has been on the decline for over two years now.
Consider now the action of the Federal Reserve (and other central banks worldwide) – as they “monetize their debt” (in english “print” money), at some point, the currency they manage MUST collapse.
The simple fact is, the U.S. dollar went off the gold standard in 1971, and (on average) fiat (non-gold backed) currencies “live” for about 40 years. Do the math! How much longer can our dollar survive? AND… what will people “seek refuge” in when it does collapse?
Answer: Historically (and I’m talking THOUSANDS of years of history), the average person will WANT gold and silver then. So, who profits then? Simply put, those who have the gold and silver in their own possession!
If you agree with my argument presented here, your next action should be to purchase some for yourself!