Opinion
Dear Readers, a Short Update on Silver Monthly,
First off, let me thank you for your unbelievable loyalty and participation. You’re all an incredible bunch. This exciting ride over the last year couldn’t have happened without You. You’ve linked to us; you’ve email articles to friends and family; you’ve really sprung Silver Monthly to new, amazing heights. Thank you, and I hope I can continue to add tremendous value right back to you.
Second, as I try to publish only the very best quality article, I’ve run into some difficulties. Finding quality writers. However, this is about to change. Recently Silver Monthly has been in talks with several authors including, David Morgan, author of “Get The Skinny on Silver” and author of “The Morgan Report.” Mr. Morgan has agreed to work with Silver Monthly on a somewhat exclusive agreement, although details of the arrangement haven’t been hammered out. So far, the general arrangement works out to Silver Monthly giving Mr. Morgan free advertising in exchange for his outstanding work –- most likely in the form of a monthly column.
Other authors have been contacted, but agreements at this time haven’t been made. John Rubino is co-author of The Collapse of the Dollar and How to Profit From It. And Michael Maloney author of Richdad’s Advisors: Guide to Investing in Gold and Silver. Yet, the value of giving to you, the readers, hasn’t been clearly communicated to either of these authors. And, while I can’t guarantee that I’ll get these outstanding authors to you, I can guarantee you’ll have some of the best. It’s the quality of journalism and level of relevance I can guarantee, and am working towards achieving.
It’s this work I’m striving towards that brings us to what the next year holds. Growth. This past year Silver Monthly saw impressive growth, up to 5500 visitors in this past month. Next year, Silver Monthly aims to add 1000 visitors per month, bringing the per month visitor number to 6500. And how does this relate to you? With more visitors, more revenue will be invested back into this incredible community. Also more visitors equal more community participation. More comments. More questions. It means more valuable members adding helpfulness, value, and excitement straight back to you.
So as we enter this new year, first let me thank you, the readers, for this past incredible year. And second, let us all expect next year to be even better.
A Sincere Thank You,
Adam Doolittle
Publisher and Managing Editor
Silver Lacks the Central Bank’s Manipulation
Silver lacks the central banks as major players in the determinant of the price. Other than small holdings, central banks other than China do not hold substantial amounts of silver.
Which is unlike gold where central bank buying or selling has a far greater influence on the price than mine supply or fabrication demand.
This means the silver market is essentially ‘free’ of the types of manipulation that can occur in the gold market because the largest holders, central banks, do not necessarily have gold’s best interest as a motive behind their trading.
The fundamental supply-demand story provides a healthy back drop for this drama that is playing out in the financial markets. Silver demand increased 5% year over year in 2005 on the back of industrial demand for electronic usage.
United States Debt, and Gold
June 7th the national debt of the United States was $8.85 trillion, which leaves the annual interest on this large amount of debt over $406 billion or over one billion dollars everyday.
The debt of the United Sates continues to pile at the rate of $1.38 billion a day. The debt of the US is compounding, leaving a negative effect on the dollar, as well as, the incomes of the working class.
Experts continue to speculate about the financing of the US debt. “It will be financed through inflation,” said Richard Russel, a market analyst.
Russel continues by saying, “I’ve watched the purchasing power of the dollar going down the drain all my life. Now the process seems to be accelerating.”
There are a few theories based on history suggesting the price of precious metals will rise as paper money is devalued. A few analysts have named the dollar the “Achilles Heel of the U.S.”
“The US has no alternative but to continue on the path of systematic inflation,” says Russel.
Robert Kiyosaki and Silver
Robert Kiyosaki, author of the best selling book Rich Dad, Poor Dad, is a very controversial author and educator. Among his many critics, Kiyosaki has been accused of selling poor advice, advice that some say will “only make people poor.” Futhermore, critics continually say Kiyosaki is only selling advice he himself does not follow.
Regardless of the critics, or what you’ve heard of Robert Kiyosaki, he offers decent advice about the value of precious metals. Review what Robert Kiyosaki has said in his Yahoo Finance column over the past few months.
Kiyosaki remains consistent on getting education before making any investment decisions, which everyone can agree one, including Kiyosaki critics.
Kiyosaki points to the change of US laws and policies giving silver a unique advantage over traditional investments such as mutual funds or any “paper” investments like securities.
Kiyoaski points to the change under President Nixon, “world was following the Bretton Woods Agreement. Enacted in 1944, this agreement made the U.S. dollar the global medium of exchange.”
The Bretton Woods Agreement is named the “gold standard” for many people, meaning the U.S. dollar was “backed” by gold.
But in 1971, President Nixon took the U.S. off the Bretton Woods Agreement making the U.S. currency truly paper, meaning the dollar was no longer backed by any gold, as was the case under the Bretton Woods Agreement.
Kiyosaki among other investors such as Warren Buffett see the U.S. dollar as worthless paper without the gold standard backing the currency.
However, others argue the value is there because the government agrees to keep a reasonable scarcity, meaning the government won’t flood the world with currency making inflation spike.
One change the Bretton Woods Agreement changed is the amount of credit extended to America. Under the old standard the market would only allow America to carry a certain amount of debt, but when Nixon removed the standard the amount of debt the market gave America was expanded.
“The irony is that many Americans think we’re rich and China is poor. Exactly the opposite is true. This is because the removal of gold’s backing from paper money has created a virtual explosion in credit and liquidity. The sheer amount of liquidity around the globe is incalculable,” says Kiyosaki.
Regardless of the critics, Kiyosaki does offer a valid point: the only guarantee the U.S. dollar has is a promise from the government to control the scarcity of the dollar, which keeps the value of the dollar.
But keep in mind “the nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help,” said President Ragan.
