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Market Comments from Jerry Williams – Mar. 26, 2014

Where is Germany’s 300 tons of gold that were stored here in the U.S. since 1948 for safe keeping?  Why were they told it would take 7 years to get delivery?  Why did Germany get a measly 5 tons paid last year?  One source says they were told that the gold had to be “re-refined” to meet “current” standards.  If so, why?  Why are refineries backlogged and running 24/7?

Why is China the world’s largest producer of gold also the largest importer?  Given their shrewdness, shouldn’t we emulate them?

Why are investors worldwide running to the U.S. dollar for safety?  Any housewife can attest that the dollar buys less and less every month. The mainstream media is finally acknowledging and reporting on consumer price inflation.

At a 65:1 ratio, silver looks ridiculously underpriced compared to gold.  We see few retail sellers and inventories are at low levels.  So why aren’t prices higher?  Evidence shows that gold and silver prices are still dominated by paper trading.  Price swings of $50-$70 per ounce in gold occurring in one day like last week don’t come from physical investor activity.

One must always remember that gold and silver are for SAVING and not speculation.  It takes courage and conviction to establish, or add to, a position in markets like these.  I remember a transaction back in 2004 with a young couple that I know who bought 20 ounces of gold for $10,000 with part of their inheritance.  They nervously watched the price fluctuate for several months and then sold as soon as they broke even, relieved of the pressure.  Like a lot of people, they preferred the safety and predictability of CD’s.  Today, their 20 ounces would be worth around $26,000.

Predictions: Eventually, the paper market manipulation will fail, a new world currency will emerge with gold backing.  Gold and silver will finish out this year higher than they started at $1,202 and $19.50, respectively.

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