Silver Story of The Year
Sean Rakhimov
“What is the most important silver news in the last month?”
asked David Morgan as we sat in his office in the beautiful countryside
just outside of Spokane, Washington.
“The Mexican ‘Bill’!” promptly answered this
writer, referring to the communiqué sent by the governors of
all 31 states of the Mexican Republic to the Ways and Means Committee
of the Mexican House of Representatives, in which they expressed their
unanimous support for the monetization of silver and urged the Committee
to approve a bill which aims to achieve precisely this objective. (See
original article
by Hugo Salinas Price)
“What is the most important silver news in the last year?”
continued Mr. Morgan, nodding in agreement with my reply.
“The Mexican ‘Bill’ . . . ?” responded yours
truly, this time with less confidence.
“What is the most important silver news in the last decade?”
further inquired Mr. Morgan, again nodding with approval.
“The Mexican ‘Bill’!” blurted out Mr. Morgan
seeing that I had paused, trying to remember all that has happened to
silver in the past ten years.
There you have it from Mr.
Silver himself: The most important silver news in the last
decade is the ‘Bill’ on monetization of silver submitted
unanimously by the governors of the Mexican states to their House of
Representatives.
“Have you seen it in the Wall Street Journal?” launched
Mr. Morgan again, unaware that I don’t read this revered outpost
of mainstream economic media. “Think you will read about it in
Money Magazine?” he continued to muse, as we savored a warm and
sunny winter day in the week before Christmas. An unusual warm front,
or perhaps lack of a cold one, had settled over the great Northwest
and it felt almost like spring.
I wondered if this was the beginning of a new spring in the history
of silver. It must be, for the only people who picked up the story were
the fellows at Le
Metropole Café and a few other precious metal sites.
David Bond of SilverMiners.com
followed up with an excellent
piece of his own. But I have yet to see it on CNBC and
I’m not holding my breath either.
I have had plenty of time to ponder the implications of this event.
Most likely the ‘Bill’ will not be passed in Mexico. Not
yet anyway. But the psychological effects from its consideration by
the government of a major country (one might argue about Mexico being
labeled ‘major’, but I could not bring myself to calling
it ‘minor’) should be lasting. If you haven’t heard
about this groundbreaking event folks, please adjust your radar –
this kind of information is not to be missed, especially if you care
about your financial wellbeing.
Back home, in an effort to do some last minute holiday shopping, I
decided to visit the two coin dealers I know in New York City. That’s
right, in the heart of New York’s famed Jewelry District on 47th
Street there are a total of 2 coin dealers. Guess what? There were two
coin dealers, as in used to be! One of them – let’s call
him “Jeff” to extend the courtesy of keeping our conversations
private – has been talking about retirement for a while. Seeing
my keen interest at one point, Jeff offered to sell his business to
me. He was even willing to train me for a few months, to teach me the
tricks of the trade and to pass on all pertinent knowledge he gained
during a 35 year career. On numerous occasions we talked at length about
rising silver price and its impact on bullion markets. Jeff told me
of the past. I ventured to discuss the future, shared my views on silver
price surpassing prior highs sooner rather than later and tried to convince
him to hang on.
“There is no money in bullion,” Jeff shook his head in
disbelief, packing another box. What could I tell this dealer with a
life-long experience in the coin business? That bullion is money? That
the charts are telling a different story? That the dry spell is over?
“Inevitable does not mean imminent,” I reminded myself.
Everything takes longer than expected. We do what we must today. And
today there is a coin business up for sale with buyers nowhere to be
found.
“Take it all, I will give you the bags ‘at face’
,” uttered Jeff, resorting to the marketing tactics worthy of
flea markets, but not the noble metal which 96% of polled Mexican citizenry
want as their money. This dichotomy – despised in New York and
revered in Mexico – typifies the precious metals market and ensures
that the bull market will be long and prosperous.
Further evidence can be found in the stock markets – this past
week I have been contacted by 3 exploration companies about potential
private placements. Off the top of my head, I can name perhaps another
3 that will be raising capital early in the New Year. One of them is
priced at 20 cents; they can’t seem to give the shares away. And
this at a time when the Dow is trading at a new three year high. I know
these exploration stocks are risky and not all of them will make it,
just like not all coin dealers will make it. Still, we are not talking
about slim casino odds here!
Even if nothing else matters to you, what should is whether you will
make it when silver and gold return as money. It could happen first
in Mexico or Malaysia, but once it happens in one country, others will
follow. They always do. We could be among the first or last to treat
silver and gold as money – the choice is ours.
On an offbeat note, according to studies reported by Bill Bonner’s
Agora Publishing, Mexicans topped the list of the happiest people on
earth . . . a coincidence?!?
Sean Rakhimov
Sean@SilverStrategies.com
www.SilverStrategies.com
Information contained herein is obtained from sources believed to be
reliable, but its accuracy cannot be guaranteed. It is not intended
to constitute individual investment advice and is not designed to meet
your personal financial situation. The opinions expressed herein are
those of the author and are subject to change without notice. The information
herein may become outdated and there is no obligation to update any
such information. The author, entities in which he has an interest,
family and associates may from time to time have positions in the securities
or commodities discussed. No part of this publication can be reproduced
without the written consent of the author. © Copyright 2004 by Sean
Rakhimov.
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