Learning from History: The Future Possibility of Silver Confiscation

[webmaster]

Subject:Learning from History: The Future Possibility of Silver Confiscation
By: Dr. Jeffrey Lewis

Overview: The history of confiscation of precious metals is well documented, with literally tons of gold and silver ripped from the hands of ordinary Americans during the financially tumultuous years of the Great Depression. However, history books and academic research rarely shine light into the confiscation of silver and rather focus on gold, even though both were made illegal for a total of 40 years.

Link: http://news.silverseek.com/SilverSeek/1265765715.php

[Matthew Shelley]

Is that it completely ignores the fact that the financial markets have greatly matured and expanded and precious metals as a percentage of traded volume have become a minor player.

In our grandfathers' days the metals were just about the only place to lay off financial risk. These day, I can move a bazillion dollars to the other side of the planet with the touch of a button, and if I need to hedge interest rate risk there are loads of products that I can use to tailor a hedge to the exact risk I am facing.

Not that I would say that it's impossible to happen, because anyone who says that about the markets obviously is quite new to them. Just that it's extremely unlikely and it would have to take a series of events of catastrophic magnitude for it to even be considered.

I'm still bullish, but if I'm asked to defend my position, I would prefer to stay inside the facts of the probable rather than speculate on the remote possibility that something could happen to base a trade on.

If you feel you need to protect yourself against a complete meltdown of the social, financial, and political structure of the country or the world. I would think you would be better served with a large supply of canned goods, fresh water, and well dried down grains.

Matthew Shelley
TrendPhonic Futures

Risk Disclosure: Trading involves substantial risk of loss and is not suitable for everyone and only risk capital should be used. Margins are subject to change. Past performance is not indicative of future results. Any investor could potentially lose more than originally invested.

[akak]

I'm still bullish, but if I'm asked to defend my position, I would prefer to stay inside the facts of the probable rather than speculate on the remote possibility that something could happen to base a trade on.

If you feel you need to protect yourself against a complete meltdown of the social, financial, and political structure of the country or the world, I would think you would be better served with a large supply of canned goods, fresh water, and well dried down grains.

Matthew Shelley



What about a partial meltdown, which is vastly more likely?

Why do all the lovers of the status quo always like to advance that strawman argument of a "complete meltdown", Armageddon scenario as the only possible alternative to the situation as it is today? I notice that bankster shills like Nadler also like to make this disingenuous argument too. It is a ridiculous and illogical premise to make, that all possible negative economic developments instantly lead to the "end of the world", and that it is therefore useless or pointless to prepare for them by buying and holding precious metals. Such an argument displays a fundamental ignorance (or willful avoidance) of the history of economic and financial upheavals and collapses in many nations over the last century which did not, in fact, lead to a Mad Max outcome.

[Matthew Shelley]

Because that's what it would take to tear down the financial structure enough to make this sort of thing viable. Otherwise people have become too sophisticated these days to go back to the old ideas of how to hedge their risks against metals alone. Maybe you and I know how to do it but I would bet that a large percentage of the population, including those who visit this forum wouldn't have the remotest clue of where to start the calculations of a metals hedge if it came to that. But they probably do know how to use T-Bills, etc.

Matthew C. Shelley
TrendPhonic Futures

Risk Disclosure: Trading involves substantial risk of loss and is not suitable for everyone and only risk capital should be used. Margins are subject to change. Past performance is not indicative of future results. Any investor could potentially lose more than originally invested.