The Precious Metals Monetary-Political Debacle

May 11, 2014


 - Attributed to Groucho Marx

The tie between money and politics is inseparable. Money, economics, and currency seem more palpable and less prone to fits of emotion. Unfortunately, the degree to which monetary issues are misunderstood seems to negatively correlate with the politics surrounding them. 

Any mainstream intellectual response to the various monetary options is a knee jerk. Most of us fail to think twice or deeply about constructs such as ownership, investment, and wealth. The majority of mortgage holders believe they own their homes, when all they truly own is the responsibility to service the physical structure, the debt, and the tax. 

Labor participation rate has fallen beyond 1980 levels; pockets of housing recovery have been fueled by speculative (cash) investment at unprecedented levels. Mortgage applications continue to plunge.

And just about all things liquid paper are managed by robots programmed (by humans) to sell mindlessly at the slightest panic. We have machines programmed to interact with, ultimately, an irrational construct.

Real business activity has fallen and inflation has surged - not only in health care and student loans, but in food and energy (like equities, a measure most can see clearly), regardless of how hedonically adjusted measurements are reported to the 1%.

But there is no way of understanding it for the masses, especially when there is such a massive political inertia against what the idea has been crafted to represent. 

Ultimately, it means further isolation. Those investing now are early; the majority will reap only the asset preservation aspect.


It is quite easy to see the reasons for investing in precious metals and, in particular, silver. 

Sentiment is so horrible that we are not even to the point of price inquiry. When your neighbors, colleagues, and patients bring it up, they are still a long way from taking possession. Most people like the idea of being early, but rarely take the chance. 

This is, of course, a great paradox - given that the nature of precious metals investment is safety for most. 

The elite feed the intellegencia its propaganda just enough to let people think they are making independent decisions, that they are on the right side. Sadly, while principles leak through here and there, either side is a fabrication. 

No fundamental understanding of currencies. Blissful ignorance of the most important aspect of society trumps all other issues and cuts across every sector.

If you were to administer a free association exercise to the mainstream elite, and offered "gold" as the seed word, no doubt you would elicit such precipitants as “the End of World", "Madmax", Hyperinflationary Death Spiral, Tin Foil Hat Wearers, "Hoarders", "Ron Paul", Bomb Shelters, "Preppers", and "Tea Party". And each of those would fuel further automated responses from deep within the media controlled collective psyche - each with similar derogatory character. 

For those who can see beyond that or have had exposure to metals in the past, the reaction goes something along the lines of:

“I got burned. It's just too volatile. And while it's easy to explain the artificial volatility that goes with manipulation, it would simply open up another set of issues”. 

Who is comfortable with the price manipulation of any market? Who can win in a tainted market, especially when the instigators are clearly banks who most likely act congruently with central banks? (The best answer is to circle back to the reasons why the conversation began in the first place.) 

The belief in robust assets like this requires historical thinking, a leap not of faith - but almost backward and far from the mainstream. An isolation that borders on discomfort for most. 


For more articles like this, including thoughtful precious metals analysis beyond the mainstream propaganda and basically everything you need to know about silver, short of outlandish fiat price predictions, check out

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The naturally occurring gold-silver alloy is called electrum.

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