Monday , 17 June 2024

10 Reasons Why – Despite the Decline – You Should Own Some Physical Gold and/or Silver

Sit back and take a look at the economic & financial situation in the world today andcrowne-gold-silver-bullion_l I wouldn’t be surprised in the least that you will conclude that it makes sense to own some physical gold and/or silver – and there couldn’t be a better time than now, with both down so much in price, to start accumulating some as finances permit.

The above introductory comments are edited excerpts from an article* by Larry LaBorde ( entitled Is It Time to Buy PM’s?.

LaBorde goes on to say in further edited excerpts:

Consider the following:

  1. Growth of the Federal Government: The followers of Lord Keynes have the controls of power firmly in hand. A larger central government = larger central power (central planning) = larger drag on the real economy. Ask any small businessman (if you can still find one) about the costs of taxes, regulations and licenses.
  2. Federal Debt: Extinguishing debt is mathematically impossible with our system of money / debt. The biblical Jubilee called for all debt to be cancelled every 50 years so that excess debt could be washed out; otherwise one person would end up owning everything with enough time. Our federal debt is officially listed as $18.2T based on a cash accounting system. (Based on GAAP the debt is estimated at $100T more or less.) Our entire yearly federal budget is only $3.8T. Our yearly national GDP is only $17.5T.
  3. Private/Corporate Debt: Since 2007 private, corporate & financial debt is down by about 50% of GDP. However, the federal government has increased their debt by about 33% of GDP. While most households and businesses are trying to get their financial houses in order the federal government debt is rocketing higher (classical Keynes reaction). All this additional public debt is causing a drag on the real economy. If interest rates rise from the present record low rates we will find ourselves in big trouble. That is a bet I would not make.
  4. Derivatives: Speaking of debts that I would not make concerning interest rates the worldwide derivative market is estimated to be around $1,000T. The top 5 US banks hold around $290T. Most of these derivatives (or bets) are based on interest rates. Just for the record, $1,000T is about 14 times the total world GDP. Hopefully all the counterparties will remain solvent if interest rates rise and it all unravels in an orderly fashion (LMAO).
  5. Casinos & Mega-banks: The local intra-county banks of my childhood are mostly all gone. Banking is a special privilege where money is created through the process of loaning it into existence. Therefore intra-county banking was only allowed because the profits from that magic were supposed to stay in the local economy. Mega-banks in New York suck the life out of local communities and transfer that wealth out of town at the end of every day. Casinos pretty much do the same thing in most communities. The house take on all gambling pretty much leaves town every night minus a little local payroll and local taxes.   Both casinos and mega-banks suck the lifeblood out of communities given enough time. The too big to fail banks are also now even bigger and have become too big for bailouts. Watch out for bail-ins in the future (as per IMF recommendations).
  6. Monetary Policy: The current zero interest rate policy or ZIRP has allowed the federal government to expand its debt load, however, the unintended consequence is that savers have been forced into speculation. Years ago middle class workers saved at the local bank and received interest of 5% or so in passbook savings accounts and a little more with certificates of deposit in time accounts. The ZIRP has forced these savers into speculating in the stock market in search of yield. Furthermore the competitive currency devaluations between countries are a race to the bottom. No country in the history of the earth has ever achieved long-term prosperity by devaluing their currency. This is simply insane and will result in inflation or worse when velocity finally increases.
  7. Central Bank Balance Sheets: The federal reserve balance sheet has ballooned to around $4.5T (no telling how much of that is worthless). The IMF (the central bank’s central bank with Christine Lagarde at the helm) can generate fictional SDR’s at will (currently worth about $1.5/each). Their balance sheet is only around $0.5T so there is room for expansion here it seems. Look for more money (not wealth) to be generated at the IMF in the future.
  8. U.S. Stock Market: The p/e ratio of the Dow 30 is getting a little high which says a correction is in the air. This may take longer to come about since with all the trouble in the world the US is still seen as a safe haven and people in troubled parts of the world like to park their wealth here in times of uncertainty. Just for a better feel for the numbers the market cap or total value of Apple is $0.6T. The total market cap of the largest 50 US corporations is around $10T.
  9. Foreign Intervention: George Washington warned us against “entangling alliances”. Eisenhower warned us against the “military industrial complex”. General Smedley Butler said the US Navy should not be allowed more than 600 miles from the coast of the continental US and that we should have the strongest DEFENSIVE military ever to protect our shores. In an effort to prop up the USD we have ignored them all. At present it seems that we are trying to reignite the cold war with the Russians. Pipeline politics has become the mission of the State Department. The BRICS nations seem to be aligning against us economically as a result of our misguided foreign policy.
  10. Current Availability of Gold & Silver: The number one reason to buy PM’s now is simply because you still can get them. During the 2007/2008 crisis the PM market seized up. Bullion dealers in the U.S. had to suspend trading because orders had backed the system up and we had to wait days for it to clear before we could take further orders.

I think the above 10 reasons provide ample evidence that owning some gold and/or silver would probably be an excellent idea in the current economic and financial environment – and they’re currently on sale. I trust you agree. If so, contact us at 1-318-470-7291 or [email protected]. We would be pleased to fill your order.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.


If you liked this article then “Follow the munKNEE” & get each new post via

Related Articles:

1. Don’t Buy Gold Until Price Falls Below $1100! Here’s Why

An analysis of the ratio between the market capitalization of gold and the gross world product over the past 63 years suggests that the current price for gold has further to fall and that it would not be wise to begin buying gold until prices have fallen below at least $1100 – and not expect gold to appreciate beyond $2,000 any time soon. Here’s why. Read More »

2. $15 Silver A Good Point At Which to Buy – Here’s Why

The $15 zone in silver looks to be an interesting point at which to start buying. Here’s why? Read More »

3. Gold Will Drop to $900 – Silver to $15 – Before Going Parabolic!

Back in early May, 2013, I correctly forecast the lows in gold & silver which occurred 2 months later. Today, my new analyses indicates they both will show further weakness before both jumping dramatically in price by the end of 2014. Below are the specific details of my forecasts (with charts) to help you reap substantial financial rewards should you wish to avail yourself of my insightful analyses. Read More »

4. Long-term Picture Shows Bull Market In Gold & Silver Is STILL Intact

The day is coming when insincere promises made by bankers to deliver tons of silver and gold sometime in an uncertain future will not be good enough to satisfy market demand, and that’s when this farce ends. Expect it to end with a bang, not a whimper, and people will either be in or out when it ends, so the time to get in is now. Read More »

5. It’s Time to Get Aggressive On the Long Side of Gold – Here’s Why

For those of you who fall in the gold bug camp, the technicals and sentiment may finally be aligning in your favor once again. Here’s why. Read More »

6. Silver: The Price Could Easily Double or Triple – Here’s Why

Silver is selling at less than half its 2011 high. It is being ignored more than gold. It has explosive fundamentals. This article assesses silver’s potential by looking at the big-picture forces that could impact silver over the next several years – and point to a possible runaway price scenario. Read More »

7. Noonan: Not Owning Physical Gold & Silver Is A Huge Risk – Here’s Why

Once the grip of the fiat “dollar” gives way, and it is slowly losing ground, then the price for gold and silver will find their more natural value – and not until then. When might that happen? It could be weeks, it could be months, maybe even another year or two, but whenever it happens, it is more likely to be an overnight “adjustment.” Plan accordingly. Read More »

8. Buckle Up: Gold’s About to Begin A Major Breakout! Here’s Why

Buckle up! Gold is coming out of hibernation within the next 6 to 12 months and will then begin a major breakout to the upside to at least $3,600 over the next 2 to 4 years. Read More »

9. 4 Unique Characteristics Should Propel Silver Skyward

With the likes of Ray Dalio and billionaire George Soros placing big bets on a recovery in precious metals now is likely the time for investors to take the plunge. The key question remains, however, which precious metal? My preference is silver. Here’s why. Read More »

10. Gold Production to Drop By 50%; Few New Discoveries Will Exacerbate Problem

The amount of gold becoming available for production in the near term will be well under 50% of that currently being produced and the longer-term downward trend in discoveries will likely continue for at least the next few years. Read More »

11. Own Gold & Protect Your Wealth; Keep Your Mouth Shut & Protect Your Safety

If you own and possess gold and silver, you’ve taken a big step toward securing financial protection for yourself and your family. The next, even more important, step is to then keep your mouth shut to protect your safety. Read More »

12. Apply Gold:Silver Ratio Ups & Downs to Greatly Increase Your PM Holdings – Here’s How

Should you buy & hold your gold or silver or switch back and forth depending on the gold/silver ratio? This article examines 3 scenarios and identifies certain rules that should be followed to make the most of the ups and downs of the gold/silver ratio to substantially increase your holdings over time. Read More »

13. Part 2: Gold Has Bottomed & Is Now On Way to $4,000

In an opposite mode to the very bearish outlook for stock markets, developing evidence suggests that precious metals and in particular gold and gold stocks have completed a bear market low…and have already begun a major bull market. Read More »

14. A 5-digit Price for Gold Is Not That Far-fetched – Here’s Why

When I suggest that the gold price can rise to a level in the 5-digit range, I expect to be ridiculed or to have my forecast overlooked by most market participants. Nevertheless, as we will see in a moment the prospect of 5-digit gold is not so far-fetched. Read More »

15. Pros & Cons Of Investing In Gold & Silver At This Particular Point In Time

Despite the precious metal’s recent rally, and though silver may be somewhat more interesting than gold, I’m not convinced that this is a market that most investors want to chase. Here’s why. Read More »

16. Where Is Gold Likely Headed & Why?

Gold, like any merchandise, changes price according to supply and demand. In this article, we look at the supply and demand to understand where the gold price is possibly heading. Read More »

17. Mark My Words: 2017 Will See A 31,000 Dow; $5,000 Gold; $125 Silver & Select PM Stocks Up 3,000%! Here’s Why

The pullback I’ve been warning you about in the U.S. equity markets is finally at hand but, once this pullback in the broad stock indices is over, the Dow Jones Industrial will lead the way higher yet again, and catapult to 31,000 over the next three years, with gold reaching $5,000, silver $125 and select individual stocks in the mining sector spinning off gains of 2,000%, 3,000% and even more. No, I’m not out of my mind. Quite to the contrary, I believe I am the one analyst who really understands the forces that are building to enable such to occur. Read on to learn about my enviable track record over the years and specifically why such gains will be realized over the next three years. Read More »

18. The Pros & Cons of Buying Gold Bars vs. Ingots vs. Coins

It is during difficult times [such as these when] quantitative easing and currency wars have highlighted the volatility and vulnerability of currencies…that the true, safe value of gold really stands out. It is now easier for you to convert your savings into gold than ever before and this article outlines the reason for buying physical gold and the advantages and disadvantages of buying gold bars, ingots and/or coins. Read on! Words: 853 Read More »

19. Buy Silver Instead of Gold! Here’s Why

We are at the beginning of a major shift out of paper assets into real assets and the more I studied the merits of owning gold and silver the more I realized that silver was the smart decision. Let me explain. Read More »

20. Gold Going Parabolic In Next Few Years – Here’s Why

We are now starting the hyperinflationary phase in the USA and many other countries as a result of the accelerated fall of the U.S. dollar and this will be reflected in the parabolic rise in the price of gold over the next few years. Read More »

21. Mark My Words: Gold & Silver Are About to Explode Higher – Here’s Why

War cycles – cycles that govern human social interaction on a grand scale, cycles that can be quantified and used to forecast periods of peace and war, periods of civil unrest and international conflict – are now ramping up and converging in the worst possible combination of forces not seen since the late 1800s. In the process they are setting the stage for gold and silver to explode higher with gold going up to well over $5,000 an ounce a few years from now … silver to more than $125 an ounce … and mining shares, to the moon. Read More »

22. Is Owning Gold A Crazy Notion? I Think Not! Here’s Why

Why do more and more countries want to repatriate their gold from foreign vaults? Because their governments no longer trust the global, fiat monetary system…[Neither] should you. Let me explain further. Read More »

23. Early 2017 Should See A Minimum of $3,600 for Gold & $100 for Silver! Here’s Why

Since the start of June, typically the worst month for precious metals when looking at seasonal charts, gold is up $75 or 6% and silver is up over $2 or 11% while many of the mining stocks that we track are up 30% or more in the past 3 weeks. Prices normally start to gain momentum after June and close the year very strongly so, while a pullback tomorrow would not be surprising, I believe the trend will be towards higher prices for the remainder of the year. Read More »

24. Authors Of “The Money Bubble” Foresee $10-12,000 Gold & $500 Silver – Here’s Why

James Turk and John Rubino are well known figures in the gold industry and they’ve just published a new book, ‘The Money Bubble’ in which they argue that the price of gold is about to soar to $10-12,000/ozt. – and silver to $500/ozt. Here’s why. Read More »

25. Silver Presents A “Golden” Investment Opportunity – Here’s Why

Silver has a reputation for being gold’s less desirable sister, but make no mistake, silver may still be a golden opportunity to invest in. Silver’s use is already very prevalent in the photography, consumer electronics, medical, and high tech industries and a major consumer of silver in the future will be the green technology sector in products such as solar cells and batteries. Read More »