by John Galt
April 15, 2013 05:00 EDT

There is a growing problem as the United States lurches towards its ultimate goal as a good world citizen and participant in the new world order of economic and political unity under a globalist banking system overseen by a select group of unelected political appointees. The problem is almost identical to the growing firearms and ammunition shortage in the U.S. where prices are putting many weapons and types of ammunition, when it can be found, out of the price range for many middle and lower class families; that problem being the affordability of gold and silver as dealers begin to feel a problem with margin compression and supply.

What is margin compression and how does this impact the local Mom and Pop coin dealer? Let’s review the events of the last 5 years using the following chart of silver for example:

The chart looks like silver has assumed room temperature and is heading towards a massive bottom formation and crash, possibly retesting the $15 level. There is no guarantee that this will not happen but it is this author’s opinion that looking to the long term and ignoring the “paper” or futures price of gold and silver could be the key for the average person to survive the coming commodities firestorm about to hit. 

The price dip on Friday puts the market back almost 3 years to prices unseen since 2010. The $25 support level should hold but could possibly break as deflationary pressures influence not just commodities but also equities in the weeks ahead. This will not last beyond August of this year and at that point in time, if not sooner, physical precious metals prices could become untenable or beyond the reach of the average middle class American as the supply crisis finally forces reality to meet minimum purchase requirements. The following chart of silver over the last 10 years from Kitco.comhelps to explain why:

Despite several large moves above and below the uptrend lines, including last Friday’s central bankster sell off designed to pressure commodity prices, the uptrend by and large remains intact with long term support at $20 safely at hand and long term upward resistance still around $40 per ounce. The paper price for silver, as displayed in the charts might seem like a bargain for the average person if they can find it locally or on the internet. There are several caveats however when purchasing small quantities of silver versus block purchases of mint boxes and rolls: 

1. Is the silver real? With the sudden price acceleration since 2008 and the financial crisis, there has been an opportunity recognized by the Chinese (see: Bogus 1889-S Morgan dollar, Coinworld Nov. 29, 2012) to flood the markets with phoney silver coinage, including Morgans, Peace Dollars, and yes, Silver American Eagles (see: Fake American Eagle silver coins surface, Coinworld, Feb. 4, 2012). In addition to the flood of proverbial paper silver which is created by illegal naked shorts in the futures markets, the inability or should I say presumed ability of the various futures exchanges to delivery on every ounce of silver sold is a doubt highlighted by analysts for years and as recent as the February contract of this year. The ability to flood markets or saturate a legitimate monetary unit with unfulfillable phoney paper promises or counterfeit real coinage acts to suppress the price, especially when the G-8 global banking cabal has an interest in preserving the United States Dollar as the reserve currency; for the moment.

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