David Morgan – Silver is the Achilles Heel of the Financial System

David Morgan quotes the often repeated axiom “he who owns the gold makes the rules.” The majority of gold is with the central banks. Possession is nine tenths ownership and we have seen the power of the financial institutions to bend the rules to suit their goals. Silver is not really considered a monetary alternative by the banks and not really held by them. David comments on the video done by Brother John F. In it he has a clip of Dr. Ron Paul asking Ben Bernanke some hard questions about why precious metals cannot be used beside paper money. This confrontation took place during a take down of the silver market It took roughly 550 million ounces of PAPER SILVER to take the price of silver down. What does that volume of paper silver have to do with the actual amount of physical silver that supposedly this paper silver derives it value from? Some experts have said their are 50, 100, or even 500 ounces of paper silver for every ounce of physical silver.

David believes people will increasingly seek value based money like silver and this will increasingly cripple the power of the banks and financial concerns to manipulate the perceived price of silver through their enormous buying and selling of PAPER SILVER that bears very little relationship to the amount of actual physical silver. Some experts have said there are 50, 100, or even 500 ounces of paper silver for every ounce of physical silver.

In the end what would you feel more confident holding in your hand -an ounce of physical silver in the form of an American Silver Eagle or someone in the financial system’s promise you can exchange that the piece of paper in you hand for physical silver?

Just look what happened to Germany recently when they asked for the gold they had stored with the US FED for “safe keeping.” Germany, the world’s second largest holder of gold with 3,700 tons, wanted it back and was told by the US FED that was storing the gold for Germany that it would take seven years to get their own gold back!

How does that make holder of “paper promise gold” feel about the security of their claim on the physical metal that the derivative paper promise derives its value from? If the US FED has Germany’s gold why not just give it back? Germany wasn’t seeking to dump it on the market and cause a disruption. They just felt a little safer and felt it would be better for domestic confidence if they had it close by. If a government, which I think wields a lot more clout than you or I can’t get it’s gold back what would you feel safer with?

Read more in David Morgan’s book Get The Skinny on Silver.

Get the Skinny on Silver Investing

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