Dear Reader

Poor Mans Gold (or Silver to the rest of you). From some of my previous reports you will have noticed my particular interest in Silver due to the fact its predicted to proportionally increase in value much more than Gold.

Being labelled “Gold” Dealers, Silver tends to take a back burner sometimes, especially in the news or in my reports, but this is all set to change if you read the excerpt from the CPM below. (CPM is a well respected commodities research group)

THE PRICE of physical Silver Bullion is set “to remain at historically high levels over the next ten years,” according to the new long-term outlook from New York-based metals consultancy the CPM Group.

Strong Silver Investment demand is now “the single most important factor in influencing” the Silver Price, says CPM in its 224-page study, underpinning a decade of high prices ahead.

“Investors who view silver as a safe haven asset are expected to continue buying large amounts…over the next couple of years as uncertainty regarding global economic growth, financial market instability, and volatility in major currency markets persists.

In particular, CPM Group says that silver use in China has likely risen some three-and-a-half times over since 2000, putting total global use by weight “roughly twice as large as had been suggested by commentators in the Western market.

Dear Reader

Gold is NOT in a bubble, Let’s look at the history of bubbles, shall we? Many have most of the following in common:

1. Everyone is talking about it
2. Everyone owns it or wants to own it
3. Prices are rising beyond any normal trajectory
4. “Flipping” it is a sure way to make a profit
5. Everyone believes you can’t go wrong with it

All of this applied to the great tulip bubble, the dot.com /dot.bomb stock period, and most recently housing (Think Buy to Let here). How much of this applies to gold at present?

1. Everyone is NOT talking about it
2. Very few people actually own it, and not that many seem to want to buy it thinking the price is too high
3. The price action and trajectory of gold is pretty sane and ordinary
4. There are no “flippers” in the market like with IPO’s and houses
5. Most people still deride it as a useless metal

In the face of all this, gold has made a steady climb from 2001/2002 to where it is today without any fanfare, and mostly ignored except for periodic spasms of interest from the press when it broke £700/oz and most recently when it made another high. Most people have zero understanding of the history of gold as a store of wealth, and the fact is was considered money through the world until President Nixon closed the gold window in 1971 and the world moved to a pure “fiat” system.

As the banksters have looted the societies of the world, and paper money is run off the presses like toilet paper from Andrex the early money — aka “the smart money” has slowly been building positions in gold for some time. Much of this money cares not what the price does today, tomorrow or next week. they are looking a few years down the line to the eventual bond crisis that will hit the US as it has hit the PIIGS in the EU, and want to “preserve wealth”.

Continual IMF sales have been met willingly by nations anxious to build reserves after years of drawing them down as the fiat money experiment seems destined to end. China has been building reserves via internal mines and a conscripted market internally, only announcing occasionally that they have yet again upped their holdings without major market interventions by them. In addition, they now encourage their people to own gold — a practice illegal just a few years ago — as a means of increasing national reserves without government having to pay for it.

NO, sorry, there is STILL NO BUBBLE in gold. It is still early in the process of building. But right now, if you see it as insurance against the banksters and their cartel, and not as a trading vehicle, you are still early in the process as well.