If you had the winning lotto numbers would you play?

Sounds like a silly question doesn’t it, but what I’m about to tell you is as close as you are going to get to that.  Whether you are in the know or not, it has been pretty well publicized lately that Gold & Silver are enjoying a welcome return to price increases, is this the end of a short bear market? Are we about to enter a bull market?, who knows, but the signs and indicators not only technical but fundamental one are starting to take note.

The Outsider Club outsider club blog has reported the Silver price breakout saying ‘…Moments after Janet Yellen came out and reaffired that interest rates would stay low, low, low for the foreseeable future, both Gold & Silver took their biggest jumps of the year.  And it happened fast: Silver prices rose 30 Cents in 90 minutes, and Silver futures hit a three-month high’. 

That price expansion is RAPID, expect more over the coming weeks, especially as other metal investors are awaiting the D-Day in August when the Silver price fix comes to an end (previously reported on Mokarimakka).

I move on to some more encouraging words as to why you might consider owning Gold & Silver right now. 

Jim Sinclair of JSMinet.com offers no less than 30 reasons, that I must share verbatim with you:

30 Reasons to own Gold & Silver:

1. The new definition of warfare is economic.  Sanctions against Russia and the implications for the Petrodollar.

2. FACTA and the universal long arm of the US government via any transaction internationally that passes even momentarily through the dollar as a contract settlement mechanism.  The negative implications for the dollar’s future as a contract settlement mechanism internationally.

3. EU split over sanctions due to Russian energy demand and Russian business interests.

4. Middle East Western hegemony and Arab Spring is defunct

5. Iran to assist in Iraq if asked, which is a failure of ‘Mission Accomplished’

6. Iraq oil production challenged by ISEL

7. Kurds emboldened by ISEL

8. US relationship with Saudi Arabia and Qatar is strained

9. BRICs uniting economically and politically as a standalone force

10. China expands Yuan/Renminbi as an international currency

11. China’s China Sea energy tensions with Japan and Vietnam

12. USA’s position on the China Sea crisis where Japan is concerned

13. The militarization of Japan

14. The distinct scent of inflation

15. General dissatisfaction with answers to questions to Chair Yellen regarding the FOMC meeting last week

16. IMF reduced expectations of US economic recovery

17. US Zombie Banks as defined by banks leveraged generally 30 to 35 times the size of their capital of total OTC derivative exposure

18. Condition of the flooded municipal bond market

19. Decline in volume with rise in value of equities, making equity price shadows our reality

20. Totally irrational exuberance driven by hyper liquidity

21. Hyper liquidity can become hyperinflation via the velocity of money in a crisis of confidence of the dollar, therefore hyperinflation will be a currency motivated event

22. Reaction in the momentum equity leaders of the last 2 years burning a public

23. Strength of the utilities group which has historical attachment to tops in equity markets

24. The one quadrillion, one hundred and forty four trillion dollars real size of the OTC derivatives market

25. Economic underpinning of the dollar in jeopardy as recovery sputters globally

26. Absurd size of the Fed balance sheet and lack of marketability of significant size legacy derivative positions

27. Taper of QE and little Belgium to the QE rescue

28. China and Russia on the sell side of the US treasuries

29. MY RA exposed consideration of invasion of retirement accounts and GOTS (Get out of the System) as a defense strategy

30. The huge drop out of the labor pool in the US, making employment figures sketchy at best

Pheww… a lengthy list I admit and possibly a little exaggerated in parts, but the message is sound; the global economy is still functioning on the addiction of ‘printed currency’ and ‘government intervention schemes’ that are UNSUSTAINABLE.  Take from this what you will.

I will end on a piece from on of my favorite research sources goldsilver.com and 10 reasons to buy Gold & Silver:

10 reasons to buy gold – goldsilver.com

1. Moving to true Money – Would you convert your labor into depreciating Fiat paper or into an appreciating tangible asset with intrinsic value?

2. The common mans Gold – The acquisition of Silver is much more attainable for global population compared to Gold

3. The ultimate insurance policy – Throughout history most episodes of printing (money) have been followed by pronounced periods of inflation or even extreme cases of hyperinflation.

4. Silver: Much more than a monetary metal – Industrial and medical applications

5. A dwarfed physical market & vanishing inventories – Supply continues to be limited as applications in broad range of fields continue to grow

6. Uncertainties in Future supply – The majority of the worlds Silver come from nations marked with political turmoil, labor unrest and underdeveloped economies

7. Emerging World Demand – China and India represent two behemoth markets where populations have shown a tremendous appetite for Gold & Silver

8. End of manipulation – London price fix in August

9. The Paper Funds Exposed – ETF’s and other paper derivatives funnel away demand from physical metal in return for a paper certificate ONLY.

10. Gold & Silver ratio – historically has been on average 12:1 but today its more like 67:1 making Silver one of the most UNDERVALUED assets in history.

So there you have it, an update of lists this week but its important that you consider all of the potential factors (lotto numbers) affecting the price of Gold & Silver. So considering the political instability in the Ukraine, Global markets at all time highs… again, US inflation above expectation and GDP is down, ECB introducing negative interest rates (effectively a bank that charges you to keep money in it), Barclays trader found guilty of Gold price manipulation, UK house prices reaching all time highs again and Gold at its lowest price since 2010….these are all contributing factors to your investment decisions.

I asked at the beginning of this update if you would play the lotto if you knew what the numbers would be before you played, yes it’s a bit of a silly question but what I’ve told you in this update should give you at the very least an indicator of whether or not the price of Gold & Silver will rise or fall over the coming years, which way would you bet?

‘..the single most powerful asset we all have is our mind.  If it is trained well, it can create enormous wealth in what seems to be an instant’

(Robert Kiyosaki)