When countries fail to generate enough production to produce tax revenues to cover government expenditures things start to look bleak. However, when regimes start printing their currencies to cover present day expenditures, then those currencies throughout history, regardless of the empire, always...and in every case...fall to meaningless worthless paper. That is where we are heading. It may occur in a couple of months. Perhaps it will take up to 2 years. But the course the U.S. has taken, as well as other western developed nations, point to the inevitable ending. Our currency will soon be worthless.
Prediction! Silver, gold, EXK, and other miners will enjoy prosperous futures. Unless, of course, the government big wigs elect to seize (nationalize) mining companies. If they are nationalized...they are stolen from their investors. I agree with Eric Sprott, Peter Schiff, Marc Faber, Alf Field, and so many others. Fiat is doomed and we are beyond the point of no return.
Protect yourselves. Invest in PM's. Ignore the short term "noise" of main stream media. They have their agendas and they are clueless. No government can "print wealth". No government can successfully print fiat to cover everyday expenses...like the U.S. is attempting to do. At least, not for long.
What's wrong with this next picture? You, or your father, or your adult children work their butts off in a factory or some employment environment to make a living. They manage to scrape some savings out of their hard earned bucks and decide to invest in a triple A government bond. That investment sits with an investment bank. Meanwhile, Obama and his government visionaries decide to spend "government money" (our money) on social programs but there is not enough tax revenues to cover their spending appetites. So they give a nod to the Federal Reserve to print up $85 billion a month to cover their mindless expenditures. Bernanke then give them the "wink" and voila! Money is created out of thin air to cover government spending. So we have to ask ourselves, how does a "wink" creating billions of free money/credit compare to hundred of hours of work simply to buy one of those government bonds....that Bernanke is buyin by the billions? THERE IS NO COMPARISON! Government bonds are hype, imaginary value,.... trash! Government bonds are nothing but a gargantuan bubble.
Again....the prediction! Precious metals are real. Fiat paper is nothing but a "confidence" pyramid scheme. Hold onto your PM investments. You'll be glad you did!
I was recently watching a program on our foreign aid and where it ends up. A lot of our billions ends up in the hands of dictators and their socialite companions. They own mansions and yachts both abroad and here with our taxpayer money.
Lets clarify a simple point regarding money. Gold and silver are considered by some to be barbarous relics, shiny trinkets, outdated representations of value. And yet, silver and gold have been designated "specie" or real money for thousands of years. Gold and silver do not just flutter into existence for collectors to collect. Throughout time, it has taken considerable man hours, capital investment, and oftentimes fiat investment to extract and refine the precious metals. So each ounce of silver and gold represents considerable work and investment....today and holding into every day of the future.
Fiat paper, on the other hand, requires no effort to produce. Putting extra zeros on fiat paper money requires absolutely no investment or man hours of work. It's just a flick of the switch. How can anyone claim that silver and gold will not keep rising in fiat dollar prices when the Federal Reserve with only a head nod can create $85 trillion in fiat dollars per month to finance government enterprises. This inordinate increase in the supply of dollars will compete with prices of real things...like the mined output of PM miners. When you look at those bills in your wallet, you realize those bills were created on a massive and cheap assembly line. They are just pieces of paper with the magical words inscribed on them, "legal tender". When you look at a silver coin, you know it took considerable effort to discover, dig out of the ground, and refine into a coin. You also realize that pure silver coins are respected and accepted in India, China, and the world over. So what would you rather hold in today's climate of massive fiat paper creation?
Prediction: 2013 will see a quantum leap in silver prices. EXK will see multiple new highs. Yeah....many long term silver investors frequently get ripped for "holding long and strong". But I, for one, will ignore the chaff and keep my PM investments. To do otherwise seems extremely....short sighted.