Stacking Silver = Simple Solution

Look at our financial world over 30 years from 30 miles high – the BIG PERSPECTIVE.

  • Global debt exceeds $200 Trillion and is increasing rapidly. It will not be repaid at current value, and in the unlikely chance it is repaid, those future dollars, euros, yen, whatever will have been deeply devalued.  Debt created to fund current consumption, instead of productive investment, is dangerous.  Excessive debt is deadly.
  • Global spending on war, militaries, invasions, weapons and so much more is huge. Net productive investment and value produced from those expenditures is effectively zero.  Worse, wars are fought with borrowed “money” and the increased debt demands additional future revenue allocations to pay interest.  Our future will be more and more debt.
  • The war cycles are accelerating. War creates more debt, more commodity inflation, less personal freedom, and more profits for bankers and the military-industrial complex.  War will become more common and far more costly.
  • The process is simple – generate more warfare and welfare, more debt, more printed currencies, higher prices, more propaganda telling the populace that war is necessary, and repeat. It works, so don’t expect change.

Break the cycle in your life!

First, look at US population adjusted national debt and the smoothed annual price of silver for the past 30 years.

Nat Debt & Silver

Then look at US population adjusted national debt and the annual price of crude oil for the past 30 years.

National Debt & Crude

 Simple Conclusion:  National debt increases inexorably – by 9% to 10% per year, each and every year, and will until the system is forced to reset at some undetermined future date.  Silver and crude oil prices will also increase, but very erratically.  They are currently quite low.  Note these examples of large moves in crude oil and silver.

     Market          From            To                   From                 To

Crude          $10.75        $36.90            Dec. 1998       Oct. 2000

Crude          $51.00      $147.20            Jan 2007         July 2008

Crude        $147.20        $35.35            July 2008        Dec. 2008

Crude        $106.80        $44.45            June 2014       January 2015

Silver              20.94             8.53            March 2008     Oct. 2008

Silver                8.53          48.58            Oct. 2008        April 2011

Silver              48.58          15.41            April 2011        Nov. 2014

 Yes, crude oil and silver are notoriously volatile, opposite to the inevitable government debt increases or the election of the next big-spending but impressively sincere politician.

So Stack Silver and remember that the big picture confirms that time, government spending, massive increases in debt, war, and political stupidity are all “on your side,” making that stacked silver more valuable.

No, it will not go up every year – as proven by the last four years of brutal correction in the ongoing silver bull market, or the last year of ugly correction in the crude oil market.  All markets boom and bust, in variable cycles.  Silver has been crushed for four years and will, in my opinion, rally substantially in 2015 and 2016.

Silver

Your stack of silver does not care that the powers-that-be have been manipulating the prices of gold and silver downward, or bonds and the S&P upward, because from the big perspective, silver prices will drive much higher, along with national debt, and most other prices.

KISS:  Keep It Simple – Stack!

KISS:  Keep Investing in Stacked Silver!

KISS:  Kindly Ignore Social Stupidity.

KISS:  Kleptocracies Invalidated by Stacking Silver!

 Buy Low, Sell High.  Silver prices have been crushed – a gift from the financial powers-that-be to the patient stacker.  Yes, the correction has persisted longer than most “silver bulls” thought possible, but the value in silver remains, and the investment potential has increased in the past two years.

Final question:  Would you rather possess a stack of silver eagles, or a stack of $20 paper Federal Reserve Notes, issued by a dodgy central bank and backed by nothing but full faith and credit of a government in obviously shaky financial condition?  Repeat the question using euros, yen, pounds, or pesos and you are likely to come to the same conclusion.  Trust real money, real silver, in your possession or preferably in secure storage outside of the banking system.

Repeat:  Keep It Simple – Stack!  Governments borrow and spend, debt increases, and commodity prices inevitably follow.  Silver and gold have been money for thousands of years, and still are.  Paper substitutes have all failed, either slowly or rapidly, and they will continue to fail, unless governments and central banks responsibly manage the value of currencies (NOT likely).

Gary Christenson

The Deviant Investor

GEChristenson.com

22 thoughts on “Stacking Silver = Simple Solution

  1. I stack silver quite hard. To me it’s both a store of value and great investment. I don’t want anything to do with stocks. Silver is the most real investment I can think of. Gold is too high.

    I don’t want fiat currency for my silver and would not mind saving it for 30 years or more. I am waiting for something better than fiat currency.

    I want to trade with it directly at a valuation that’s unheard of today. I think silver having the value of $1000 per ounce in today’s money is even on the low end of expectations.

    I am very cheap and for me to put my money into something it must be good.


  2. Thanks for the advice. Been stacking for a year now. Lots of people saying the dollar is going to be worthless. This is scarey specially since I have a family to care for. Even if things don’t crash I have a investment for the long term future. This is a win win situation. A lot of people going to loose their jobs and go hungry. My grandfather lived through the great depression and has been warning me.


  3. Ok, I stack silver because the fiat money will become worthless. So, after silver goes up, I sell at a high price for worthless money? Don’t get me wrong, I have stacked for some years now, howver, what will I be willing to trade my silver staff for if currency fails.



    • You trade in part of your stack of silver for fiat money and then quickly use the fiat money to buy what you need before it looses more value.
      I the fiat money looses all it’s value -becoming ‘worthless money’ as you say, then that’s another problem which I don’t have an answer for.
      John


  4. I think what people are missing here in their comments is the fact that they are looking at this in just a few years space and time.
    I always tell people that if you had a monetary timeline of the world that was 30 feet long and you wanted to mark the time on it that fiat currency (what we presently call money) was what the world has used for money, it would be a .05mm pencil mark at the very end of the timeline or about 50 years. For the rest of the this 29.9999 feet of timeline (about 4,000 years) the world used gold and silver as money.
    People also have to remember that the gold and silver markets are horrendously manipulated right now by the financial powers that be. Everyone knows it, just the talking heads don’t want to admit it, nor talk about it. They like us in the little controlled world of theirs where they can manipulate markets with impunity for their benefit and get away with it. But sooner or later these markets will be unshackled and when they throw off these oligarchical chains, look out. There is no limit to where the PM Markets can rise.
    To use a recent commercial phrase I ask you, “What’s in your wallet?”


  5. I have no intentions of trading any of my *money* for worthless federal debt instruments, so I’m not worried about corrections. And if it goes to $11, I’m stacking it even deeper.


  6. I read the article and its the same old speech.The bottom line with anything is to sell it in the bubble.this applies to precious metals, real estate etc.. As we all know the volitility of silver, you can make money on the extreme moves.The buy and hold , well you can see where that will get you.Alot of these guys telling you how silver will go to the moon have websites selling silver at current prices.Remember that.


    • I’m not selling anything. I just write and think. And silver is not, in my opinion, going the the moon. But it is quite clear that currencies are going down and silver will go up far more rapidly. When it gets MANY times higher then it might be a “sell.”
      The Deviant Investor


  7. whatever’s making silver jump around, it’s not a rational “market”: in fact there’s c. 100 unbacked paper derivative ounces of silver out there for every actual hard ounce, which massively dilutes real demand. I myself was once into SLV, but have long since moved to the real thing. Difficult to say how high silver will go when the dollar-monetized debtPonzi collapses and all the derivative paper burns away. I’m thinking c. $200/oz., and then the dollar itself will inflate away to nothing. At which point one silver eagle will be “worth” whatever it can get you in exchange value; might be 2-3 days food at the local green market, 100 rounds of .308, or something like that


  8. I disagree with a lot in this article, but this one especially gets me. “No, it will not go up every year – as proven by the last four years of brutal correction in the ongoing silver bull market” Dude, when something goes down, it is a correction. When it goes down by 20% that is by definition no longer a correction but a bear market. By definition! And silver is down from $48 to $16, and you say it is an “ongoing bull market”?? That alone tells me your objectivity is out the window and the rest of what you write is not worth inserting into my due diligence universe. Sorry, but even though it is a GREAT time to stack silver, it is because we are near the END of the four year BEAR market, NOT because we are still in some fake BULL market.


    • First, thanks for your comment.

      Second – let’s not get bogged down in the differences between bull markets, bear markets, long-term bull markets, corrections, etc. If you want to define a bear market as down 20% but down 19.5% as a correction, then use that definition. I find it rather tiresome and not helpful. It is however a simple concept that sells newspapers.

      As for silver, it was selling for under a dollar 100 years ago, under $2 in the 1960, under $4 in the 1990s, and for over $15 now. I see that as a long-term bull market. And yes there are corrections, as in every market.

      Also, if you want to focus on silver dropping from $48 to $16 you probably see a serious correction or, using the arbitrary 20% definition, a bear market. But before silver was $48 in 2011 it was also under $9 in 2008. So if silver had steadily risen from $9 in 2008 to $16 today you would probably say it was a decent investment and still in a long term bull market. History matters for perspective.

      The important thing is, in my opinion, now is a great time to buy and stack silver. You even said that. And now is a great time because we are near or just past the correction (or was it a bear market) during the past 4 years.

      So take a chill pill, look at the big picture, don’t obsess over the $48 number in 2011, unless you give equal consideration to $9 in 2008, and stack silver – as you stated.
      The Deviant Investor


  9. I hear you.Makes sense to me.But,I have heard this same confident prediction for four years.I am so underwater with my PM puchases that I am hesitant to buy more.I just read today that Clive Maund says silver might go to $11.
    This whole PM thing is making my head hurt !.


    • Markets move higher and lower. People said the same of the S&P in 2008 and 2009. The difference is that gold and silver are real assets with 1000s of years of history. I have no advice for traders, but in the long term, history is on the side of metals.
      The Deviant Investor


    • Just hang on buddy. The PM markets have to shake out the weak hands first. If silver does go down to $11 that should be the final shake down and then onward and upward. I don’t think the fundamentals have changed. That’s what I think anyways but what do I know.


    • I am seeing this type of physical investment this way. He who has the gold makes the rules, he who has the silver survives. Some people think this is a way to get rich. It is not. This is a way to survive and even prosper if your careful. Sell silver for paper when its high? Not likely. Barter silver for commodities such as land, food, water, etc,…now your getting it. on a side note Thomas Jefferson told his servants {before he rode off} to hide his silver from the british sildiers at his home. Apparently it was valuable then too.


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