Bix Weir: Friday Road Trip - 9/7/2012
What to Think About Silver
those of you who have been on the Road to Roota long enough you know
that I think the ONLY way to invest in silver is in the physical form
and outside of any third party control. That means no storage
facilities, no ETF's, no mining stocks and no safe deposit boxes. It
also means keeping your silver INSIDE of the country in which you live.
The whole concept of keeping metal outside of the US because the US once
confiscated metal makes no sense at all. First of all gold and silver
WERE MONEY back then and they aren't now but even more important...if
the US, which controls the world's reserve currency, were to confiscate
gold and silver don't you think every country in the world would do the
EXACT same thing?! Of course they would. The world is much different
today than in the 1930's. There is information available at the click of
a mouse whereas back in the 1920's you relied on the newspaper and we
all know who controls those. CONFISCATION OF PERSONAL METAL WILL NOT
HAPPEN IN THE US.
Back to silver -
the COMEX PAPER price was allowed to rise over 20%% in the past few
weeks. Did you notice I said "allowed to rise" as it was not caused by
more people buying up silver contracts. That's what "they" want you to
think. It was allowed to rise because for some reason that those who
control the price WANTED it to rise. Now there could be a couple of
reasons for this. The reason I believe is the the United States wants to
END the game. To end the decades long computer manipulation started in
the early 1970's by Alan Greenspan, John Kemeny and Stephen Devaux. It
is the core of the entire Road to Roota Theory.
It's all here...and it's all true.
The Original Road to Roota
Greenspan's Golden Secret
you understand the ulterior motives of the original manipulators and
you understand that they did have an end game in mind you can understand
that the rising price of silver MAY spark that end game. The Global
Monetary Meltdown. The end of fiat money. The end of the banksters.
And the RETURN of our Constitutional Republic.
are getting there but there is more work to do. Luckily, courageous and
dedicated men are working on it including my friends at GATA. Here we
have a GREAT interview by Bill Murphy. The flood gates are opening and
there's billions of tons of water behind these gates. Think of the
silver scandal breaking at the exact time when there is a silver
shortage! That's what Bill is taking about...
GATA's Bill Murphy on the JP Morgan Silver Shortage and the next Bullion Bank Run!
We promised fireworks starting in August and they are here.
Where The Price of Silver Is Going and Why
should under estimate the COILED SPRING EFFECT that underlies the
silver price. 40 years of computer price suppression won't blow off
smoothly! I will attempt to quantify the potential price movements in
Silver based on my 20 reasons to SELL/BUY from this article:
20 Reasons to Sell (BUY!!) Physical Silver
each instance I will give my reasoning but it must all be taken with a
grain of salt because there are MANY factors and consequences related to
each point...but here it goes.
CURRENT PRICE OF SILVER = Let's use $30 to be conservative.
The removal of the gigantic concentrated short position on the COMEX
Silver market as reported in the CFTC Commitment of Traders and Bank
the Hunt Brothers attempted to corner the silver market with both COMEX
contracts as well as holding physical silver. When the US Government
made the decision to shut them down and end the supposed manipulation
the Hunts held 90M ounces worth of long COMEX silver contracts. When the
COMEX changed the rules to allow only selling of silver contracts the
Hunts were forced to liquidate their COMEX position and the price fell
from $50 to $10 in a matter of 2 months. Since the current manipulative
short position held by JPM is estimated to represent 110M ounces short
it is reasonable to project a slightly larger % move to correct the
manipulation. Since silver dropped 1/5 when the Hunts were taken out
let's assume a little more when JPM is taken out.
PRICE ANALYSIS = $30 x 6 = $180/oz
Let's now move on to the reversal of point #2 starting from a base of $180...
The announcement of charges filed by both the CFTC and the FBI in the
pending investigations of Silver market manipulation by JP Morgan.
have had an open investigation into silver market manipulation for
close to three years now. The CFTC even stated that it was currently in
the "ENFORCEMENT DIVISION" and no longer in the investigation arena. I
find that very revealing as we all know that the CFTC doesn't want to
upset the apple cart...but they really have no choice in the end. Silver
must be allowed to return to it's Fair Market Value. Given that there
was a VERY VISIBLE whistle-blower with proof of collusion and
manipulation by JPM in silver there is no way the CFTC or the FBI can
not announce some kind of charges in the very near future. The effect on
the price of silver should be SUBSTANTIAL and without the bad guys
there to cap the price again on the news..look out above! I'll put the
announcement of this news as a doubling of the price of silver.
PRICE ANALYSIS = $180 x 2 = $360/oz
Now let's move on to the next active fraud...
The shut down of the iShares Silver ETF (SLV) and the subsequent
attempt by SLV investors to transfer into physical silver in their own
For anyone that
believes that the iShares Silver ETF is legit I have a nice piece of
swamp land in Florida I'd like to sell you! The extent of the fraud at
SLV should not be underestimated as it involves the entire banking cabal
that is currently being coordinated by the hedge fund BlackRock. I know
this because after BlackRock bought the SLV from Barclays they kept JP
Morgan on as the Custodian of the physical silver. Can you imagine the
liability that was taken on by BlackRock KNOWING that JP Morgan was
under investigation by the CFTC and the FBI and has multiple class
action suits against them for silver market manipulation. YET THEY STILL
KEEP THEM ON AS CUSTODIAN DISREGARDING ALL FIDUCIARY RESPONSIBILITY TO
THE SLV SHAREHOLDERS! The mass exodus of SLV investors out of the
iShares ETF and into REAL PHYSICAL SILVER will be a sight to behold. I'd
say that's enough to double the price again...
PRICE ANALYSIS = $360 x 2 = $720/oz
Ok, 3 big injustices have been reversed and the price of silver has risen above $700...but how will it continue to rise?
The implementation of COMEX Position Limits in Silver of no more than
5,000 contracts and the enforcement of the Disruptive Trading Practices
The implementation of
position limits is HUGE. It's doesn't stop manipulation but it REALLY
handcuffs the market riggers. They currently continue to naked short to
unlimited amounts...always enough to stop silver from blasting off. With
ENFORCED position limits they can only play their dangerous games to a
point and then they get CRUSHED. Anybody bumping up against the limits
in order to slow the price of silver will be playing with FIRE! I'll
settle down a bit and give that a 10% bump to the price.
PRICE ANALYSIS = $720 + 10% = $792/oz
But we're still not at "Fair Market Value" as there is another monster short bubble that needs to be unwound...
The winding down of the outrageous and manipulative Silver derivative
positions held by both JP Morgan and HSBC as reported by the Bank for
of June 2010 the JPM/HSBC derivative position in silver was around
$120B. That was when silver was trading for $20/oz which means their
total derivative games going on with silver was in the 6B ounce range!
Considering there's less than 1B ounces of investment silver and only
$16B ounces of discovered reserves in the entire WORLD this number is
RIDICULOUS! The unwinding of some of this will be taken care of above in
points #1 & #2 but there still remains a large portion of these
derivatives to be unwound. I'll give this "great unwind" a 20% bump to
the price of real physical silver.
PRICE ANALYSIS = $792 + 20% = $950/oz
Are we done with the fraud aspects yet? NOPE!
The mass redemption of paper Silver currently held in Pooled Silver
Accounts and Silver Certificate Programs into physical silver held in
the possession of the owner.
we have the rare case in which the Banking Cabal has ALREADY admitted
to running a scam with warehousing phantom silver for investors when
Morgan Stanley was busted for charging storage on metal that they didn't
even have in their warehouse...and they claimed it was an "INDUSTRY
STANDARD" to store phantom metal for account holders! The pooled account
model is also a JOKE because they charge hardly any fees...clearly not
enough to cover storage, insurance, marketing, administration, profit,
etc. etc. The only way that business model works is if they DON'T
actually buy any metal for the customers account but rather invest the
money somewhere else believing that if customers cash in their
certificate they can go into the market and source the metal at that
time. "FRACTIONAL RESERVE METAL STORAGE"! This was the model set up by
Jon Nadler for the Perth Mint and then for Kitco and then for The Royal
Bank of Canada. It was his invention many years ago and now it's his
FAULT. THAT IS WHY NADER IS SO ANTI GOLD AND SILVER!!! The mass
redemption of all this silver will drive the price of REAL PHYSICAL
towards the moon once word gets out....and it's getting out. I'd give
that one a 50% bump.
PRICE ANALYSIS = $950 + 50% = $1,425/oz
here we are sitting at $1,425/oz silver with much of the fraud in
silver shaken from the market so now we get to concentrate on the REAL
Silver to Gold Price Ratio reflects the true physical relationship
between above ground gold and above ground silver that is available for
sale on a free and open market.
is where the ENTIRE WORLD needs a big slap in the face. 100-1 silver to
gold ratio just a few years ago?! If you are invested in silver in
order to ride the wave back to 12-1 gold/silver YOU WILL SELL WAY TOO
EARLY! Most of the monetary history of silver has seen 10 or 15 to 1
ratio but THAT WAS BEFORE SILVER WAS DEMONETIZED! 10 Billion ounces of
above ground silver that was used as money up until a few short decades
ago has been DESTROYED in modern electrical applications! ALL THE SILVER
THAT HAD BEEN MINED OVER 1,000's OF YEARS IS NOW GONE FOREVER!!! Before
this is all over silver will reverse history and trade at a 1-1+ ratio
to gold. That means at $2,000 gold we will see $2,000+ per ounce price
for silver. That's how much potential price energy is inherent in silver
due to 100 years of price manipulation. I'll be conservative here since
our price is already above the price of gold and just call it a REASON
for silver to stay high. Should the price of gold take off silver will
take off with it maintaining a high ratio.
PRICE ANALYSIS = $1,425 + 0% = $1,425/oz
Ok...Here's where it gets tricky...
The realization by industrial users of silver that the supply of
physical silver is rapidly depleting and with the future of producing
their products in jeopardy they begin stockpiling physical silver.
$1,425 silver we will lose a good chunk of industrial uses due to the
cost but not as much as you think. Most electronics use silver measured
in grams and not ounces. Tiny amounts in cell phones, computers, RFID
chips...and although a large flat screen TV may see it's price double
due to $1,425 silver for those who want that big screen football game
price may not be that much of an object. On the other hand, at today's
price of $30 silver every manufacturer in the world should be crawling
over the competition to get their hands on every ounce of physical
silver they can find because for some silver is 100% necessary to create
their products. No Silver...Goodbye Company! So the trade off will be
interesting between those who cut back on silver use and those who
scramble to get their hands on industrial silver at such cheap prices.
My short term outlook on price is VERY bullish for this reason so I'd
give it a +50%.
PRICE ANALYSIS = $1,425/oz + 50% = $2,138/oz
Are you getting a little shaky at these numbers...as in are you thinking "Not a chance"? It gets better!
reversal of Silver's ever increasing use in industrial applications due
to either high prices or the discovery of a viable substitute with
similar physical properties and attributes.
is similar to the above but with a twist. Silver is the BEST conductor
of electricity and the BEST reflector of light which are two key
requirements in the ever expanding solar energy field. We are in the
very early stages of development of alternative power and silver is sure
to be part of any future technological breakthroughs. Not only that but
nothing replaces silver as a use in soldering and it is used in such
tiny amounts that PRICE DOES NOT MATTER! So far nothing comes close to
silver in most industrial uses so until we find something to replace it
you can expect manufacturers to pay through the nose to get it. It's
hard to quantify the future uses of silver but where there's necessity
of invention there is a pocketbook ready to pay for it. I'll add 10% for
now with an option to raise that number as the next great thing is
PRICE ANALYSIS = $2,138/oz + 10% = $2,352/oz
Now here's where we get a little silly...
The realization by the remaining 99.9% of the investing public that
does not currently own any physical that Silver is extremely undervalued
and should be held by all investors interested in portfolio safety and
NOBODY is invested in physical silver. I mean it. Ask around. Ask 1,000
people if they own any physical silver bullion and you will get a few
"my mother left me her coin collection" or "I have some jewelery" and
most of those people will offer to sell it to you because they have no
idea that it will be very valuable...very soon. As all these reasons for
investing in physical silver become reality the investing world will
stand up and take notice. TRILLIONS WILL FLOW INTO THE PHYSICAL SILVER
MARKETS FIRST TO TRY AND GET RICH AND THEN OUT OF FEAR OF LOSING
EVERYTHING MADE OF PAPER!!! That is what lies ahead so I'm going to
double our Silver Fair Market Value again!
PRICE ANALYSIS = $2,352/oz x 2 = $4,704/oz
here we sit with many of the more "manipulative imbalances" worked
through the reversal process. But there are many more reasons that we
have still not reached the true Fair Market Value for silver even yet.
Acknowledgment by the Bullion Banks and US Government that they have
been involved in the price suppression of Silver for over 50 years in
order to support and extend the global confidence in un-backed fiat US
When the first 10
reasons are actualized there will be many questions raised by the people
of the world. "Why wasn't the rigging of the silver markets stopped if
the government and market regulators knew all along?" Of course there is
an answer and that answer is "To facilitate the the fiat monetary
system." That's it. That's the reason that the CFTC, SEC, FBI etc have
not stopped the scam. THE PRICE OF SILVER HAS TO BE CONTROLLED OR THE
UN-BACKED FIAT MONETARY SYSTEM WOULD FAIL! This admission by "The Powers
That Be" will totally destroy the current paper and electronic monetary
system and there will be a necessity of instituting a new system with
some kind of backing...most likely gold and silver. Given it will be a
"new money" that will be issued we may revert back to $1 silver but with
different purchasing power. For the sake of argument I'll keep this
analysis in un-backed fiat terms as well as a potential gold/silver
PRICE ANALYSIS = $4,704/oz x 2 = $9,408/oz
1oz SILVER/GOLD BACKED CURRENCY= $1
Now let's more towards the truth behind the supply/demand fundamentals of silver.
All Silver statistical reporting companies have completely revised
their historical numbers to reflect the true supply/demand realities of
the past and admit to the massive annual physical silver deficit going
Lies, lies, lies.
Over 100 years of lies about how much silver in available above ground
as well as below ground. Today GFMS and the CPM Group are the liars and
shills set up to obfuscate and conceal the truth about the rareness and
importance of silver. They have no idea how much silver is bought and
sold every year but they serve their purpose very well...to keep people
in the dark. They make up numbers year after year such that it won't
diverge too far from the prior year's numbers as to raise red flags. All
pure bullshit. One day...very soon they will be taken out to the
woodshed and replaced by a REAL reporting system and it will become
known that the demand for silver is much, much greater and the supply of
silver is much, much smaller.
PRICE ANALYSIS = $9,408/oz x 2 = $18,816/oz
1oz SILVER/GOLD BACKED CURRENCY = $2
now we are closer to discovering the truth about the scarcity of silver
let's move on to some of the realities of that scarcity.
The USGS alerts the world to the reality that at the REAL current
Silver consumption rates there is less than 10 years of known below
ground Silver reserves remaining in the world.
USGS currently reports global silver reserves in the ground to be
510,000 tons or around 16M ounces. Industrial demand alone stands at
between 600-700M ounces and is rapidly rising year after year. Of course
when you add all demand together you will get somewhere between 1-2B
ounces per year. As the above conspiracy issues are resolved a big
bright spotlight will be shinning on the "silver as an investment" issue
so expect massive demand from the investing public which only heightens
the shortage. I'd give the silver in the ground about 10 years to be
totally spoken for in one form or another...then what? Yes, they can and
will find more but at ever escalating prices. There will be a
significant PANIC to buy silver from all areas of manufacturing and
investment. Powerful stuff.
PRICE ANALYSIS = $18,816/oz x 2 = $37,632/oz
1oz SILVER/GOLD BACKED CURRENCY = $4
here we sit at $56k silver and the same purchasing power in the new 1oz
silver currency sitting at $4. But we still aren't at Fair Market
14) The realization by
investors that significant increases in the price of Silver would not
curtail industrial demand as silver is mostly used in very small amounts
in each product produced.
have already seen a 10 fold price in silver in the last 10 years and all
those those doomsday Sayers who believed higher prices would destroy
silver demand are surely scratching their heads. Yes, demand for silver
in photography has decreased massively but it has done absolutely
NOTHING to stop the rising price. Most photography silver was recycled
anyways. The fact is that more and more applications for using silver
are being discovered everyday and the physical properties of silver are
JUST BEING RECOGNIZED by modern science and will continue to grow
exponentially! Most of these application are in tiny amounts that will
never get recycled. Since silver is also a monetary metal, as the price
rises more and more investors want to get their hands on some. The
higher the price goes the more people will get involved on an investment
side increasing the demand. Word is spreading.
PRICE ANALYSIS = $37,632/oz + 50% = $56,448/oz
1oz SILVER/GOLD BACKED CURRENCY = $6
15) The mainstream media highlights that the investment drivers for Silver far out weight the investment drivers for Gold.
of you who are in a love driven lip-lock with gold should seriously get
your head examined. Really. Other than gold's ability not to tarnish
silver is a vastly better investment. Silver has ALL the monetary
properties and history that gold has but many more uses currently and as
yet undiscovered. Very soon it will be revealed that the world does not
possess 160,000 tons of gold above ground but rather OVER 1M TONS! This
gold has come from secret stashes all around the world including
Yamashita's Gold, Nazi Gold, Grand Canyon Gold, Chocolate Mountain Gold
and on and on. Lot's and lot's of gold out there...AND ALMOST NO SECRET
SILVER STASHES! Why do I believe this? Because in the early 1990's the
US dismantled the Manhattan Project's Y12 Facility, the most important
nuclear processing facility on the face of the earth, just to retrieve
the 500M ounces of silver used in the Calutron Magnets. If they had any
other source for the 500M ounces needed to calm the physical market they
would have used it first. Soon it will be common knowledge that silver
is much more rare than gold and the price implications for silver in
relation to gold are staggering.
PRICE ANALYSIS = $56,448/oz x 2 = $112,896/oz
1oz SILVER/GOLD BACKED CURRENCY = $12
The US Mint starts to produce US Silver Eagle coins "in quantities
sufficient to meet demand" and no longer illegally rations their
that the San Francisco Mint will start coining US Silver Eagles caught
the market by surprise...but not here on the Road to Roota. I pointed
out two years ago that the SF Mint was undergoing a gigantic retrofit
that was supposedly a "historical preservation" but that was just a
cover story. Pelosi and Feinstein gleaming at the opening ceremony was
"the tell". Also the brand new CNC (computer numerical controlled)
coining machines was a hint that there was nothing historic about this
retrofit. Also, the recent resignation of the US Mint Director, Edmund
Moy, last December was a flushing out of the Bad Guy operatives. Soon
the US Mint will FINALLY live up to it's legal mandate of producing
enough coins to meet demand...no matter how high the price of silver
goes. (It will also add a higher premium to the price of US Silver
Eagles as they will be deemed the very BEST silver coin investment)
PRICE ANALYSIS = $112,896/oz + 10% = $124,186/oz
1oz SILVER/GOLD BACKED CURRENCY = $15
When investors stop saying that silver is "too hard to store" and start
worrying that silver is "too valuable to leave in a bank's safe deposit
Storing silver is FUN!
At these ridiculously low prices it is also a great workout! If you are
one of those people who don't buy silver because it is too difficult to
store then let me ask you a question...Do you think the equivalent
amount of gold would be too difficult to store? Think about it. If you
had 10,000 ounces of gold you'd buy a really nice secure safe or keep it
in a secure facility that you trust and take care to keep it out of the
hands of the Banksters (hopefully). So why is 10,000 ounces of silver
any different? If you truly know how valuable silver is in relation to
gold you would go out of your way to make sure that silver is stored
properly. It's a value perception problem that investors have not a
storage problem. As far as a safe deposit box I can't tell you in more
plain terms...they are DANGEROUS. Why would you let the very same
Banksters that rig the silver markets hold your physical silver? One day
people will not be concerned about the hassles of storing but rather
the problem in FINDING MORE!
PRICE ANALYSIS = $124,186/oz + 10% = $136,604/oz
1oz SILVER/GOLD BACKED CURRENCY = $16.50
When Central Bankers around the world stop printing money every time
there is a "bump in the road" on their never ending quest to foster
perpetual growth and end the extraordinary transfer of wealth from "the
many" to "the few".
root of the problem. The fact is not that silver is of infinite value
but rather that un-backed fiat currency is totally and completely
intrinsically worthless! The United States and most every country, state
and local government is bankrupt with NO WAY TO PAY BACK DEBT EXCEPT BY
PRINTING MORE OF IT! The monetary supply must ALWAYS expand in order to
pay the interest on the debt money that is already in existence. It's a
vicious circle with total and complete destruction of debt as the only
conclusion. This is what lies directly ahead of us. The total and
complete destruction of all paper and electronic debt money. There are
many ways this can happen but the most likely way is through a
derivative meltdown and banking collapse that was averted in 2008.
Strike that...delayed in 2008 and will reappear this fall. The END of
un-backed fiat money is upon us and physical silver and gold will become
non-existent for any exchange in worthless fiat paper terms.
PRICE ANALYSIS = INFINITY IN UN-BACKED FIAT DOLLAR TERMS
1oz SILVER/GOLD BACKED CURRENCY = $50 in relation to Gold Eagles
The US Government and the Citizens of the United States recognize and
acknowledge that Article I, Sec. 10 of the US Constitution specifies
that only gold and silver coin can be legally used as money and the
Coinage Act of 1792 defined the US Dollar as "three hundred and
seventy-one grains and four sixteenth parts of a grain of pure, or four
hundred and sixteen grains of standard silver."
where is gets very interesting. The new gold/silver backed currency of
the United States will surely begin with the US Silver and Gold Eagles
but at what price in US Dollars will the metal be valued? Will it be
another FIAT currency mandated by the Government that Silver Eagles will
be valued at their face value of $1 and Gold Eagles at their face value
of $50? Since there is far less silver than reflected in that ratio
there would be a mad rush out of gold and into silver. It won't work. If
silver and gold are to be used as money they must be allowed to float
against each other relative to supply and demand. In this respect silver
should fly by gold in the new backed currency.
1oz SILVER/GOLD BACKED CURRENCY = $100 in relation to $50 Gold Eagles
The price of silver has risen so high that it has fulfilled all my
hopes and aspirations as an investor and I can now sit back and enjoy
those other pleasures of life that I had put off in pursuit of FREEING
THE SILVER MARKET FROM THE CLUTCHES OF MANIPULATION!
been a long hard fight up against a very formidable opponent. This
battle has gone on for over 100 years but we will have FINALLY slain the
Banksters and returned to an honest monetary system. Remember all those
who have fought these battles with you but never lived to see the end
result. Jefferson, Jackson, Eisenhower, Kennedy, Buffett Sr. and the
list goes on and on.
WE OWE THEM ALL A DEBT OF GRATITUDE.
that was my attempt to QUANTIFY the subsequent price action in Silver
when these issues are addressed by the market. At some point we WILL
return to a TRUE "FAIR MARKET VALUE" for silver and the final conclusion
will be shocking to most...but not to us. Remember, it's not the
numerical value attached to currency but rather the purchasing power of
UNTIL THESE 20 REASONS
TO SELL ARE REALIZED I WILL NOT SELL AN OUNCE OF SILVER. LET THESE
NUMBERS SINK IN AND ASK YOURSELF IF YOU HAVE ENOUGH SILVER TO LIVE
COMFORTABLY FOR THE REST OF YOUR LIFE...
IT WON'T TAKE MUCH!
The Drake vs. Road to Roota Analysis
have talked about Drake in the past and have followed his interviews
yet I don't buy everything he says. Don't get me wrong, I do think he
believes 100% of what he says but I also think he is being told
different stories as so he's not taken all too seriously by those who
may act on his information...mainly the Bad Guys. In his latest
interviews he's all about Ron Paul. He hasn't been in the past but ever
since Ron's nomination was stolen he's all about talking Ron up. This
tells me that the Good Guys didn't count on losing the Republican
nomination. Here's where you can find his interviews...
here's the latest news on the lawsuit to remove Romney from his
illegally gained nomination. Warning...there is a lot of disruptions in
this long interview but the information is very interesting especially
about writing in Ron Paul in a worst case scenario.
Richard Gilbert-Where Do We Go Next After the RNC?
of the things that Drake has been saying that I don't think is true is
the mass arrests. I don't think these will happen until AFTER the global
monetary crash but I do think they will happen after. In his latest
interview he talks about the arrest of Nancy Pelosi which I think is a
lie to steer the Bad Guys off the trail of those within Congress trying
to destroy the dollar. Yes, the plan for the last 3 years has been to
destroy the US dollar in order to return to the Gold Standard and Pelosi
has been one of those leading the charge.
day the world will know the truth. Unfortunately, it will take the
largest, most painful global economic implosion in the history of the
world to get there.
But it is necessary for the people of the world to move forward as free people.
Freedom is within our grasp...but it won't be easy.
May the Road you choose be the Right Road.
9/07/2012 06:08:00 PM
Thanks to: http://www.ascensionwithearth.com