The Rich Blog

If you have already read my article about Five Reasons to Invest in Silver Right Now, then you know why silver is a great investment opportunity. Here is another reason which is recently posted online by the Gold Anti-Trust Action Committee (GATA) and made the news on popular silver blogs.

In November 2009 Andrew Maguire, a metals trader in London, contacted the U.S. Commodity Futures Trading Commission (CFTC) enforcement division to report a criminal activity. In his emails, Maguire described in detail the way JP Morgan signals to the market its intention to take down the precious metals. When the signal is given, traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events.

On February 3 Maguire gave two days’ warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.

“It would not be possible to predict such a market move unless the market was manipulated”.

In an e-mail on February 5 Maguire wrote: “It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.”

On March 23, 2010, Andrew Maguire contacted the Gold Anti-Trust Action Committee (GATA) Director Adrian Douglas. Maguire told Douglas that he has been told first-hand by traders working for JP Morgan – Chase that JP Morgan manipulates the precious metals markets. You can find the email communications between Andrew Maguire and the CFTC here at www.gata.org/node/8466

As this case is currently being investigated by the CFTC, no major news channel, except the New York Post, has published this story yet. So nobody really knows if it is a conspiracy theory or reality. But if this case gets an approval and made public, the silver prices will skyrocket to new highs.

I strongly believe that SILVER is one of the greatest investment opportunities of the 21^st century. It is not only an industrial element widely used in industry and medicine, but also an undervalued precious metal for the investment world.

Now I will tell you why silver is such an extraordinary investment opportunity:

#1 Silver Mining Insufficient to Meet Demand

The silver supply has not been able to meet the demand since early 1990s. For this reason, the squeeze in the silver price has already started to take effect and will only accelerate in the future. You can look at the historical price chart to see what I really mean.

For the last decade, we have been actually utilizing more silver than it has been taken out of the ground causing most of the surplus disappear which has existed from 1980s. In order to offset the deficit now, silver has to be taken away from the investors. And this can only be made possible if the price of the silver appreciates.

#2 Indispensable Metal

Unlike gold, silver is both precious and an industrial metal. It is very well known that almost all of the gold produced is still around, while the bulk of the silver mined is consumed and therefore not recoverable.

From digital cameras to computers, from cell phones to batteries, silver is used in almost every electronic device since it is the most conductive metal. In addition, silver is also widely used in medicine as it kills bacteria and is also harmless to human body.

#3 Worldwide Economic Growth

The worldwide demand for silver is rapidly increasing. As the global living standards are rising, so does the consumption of metals. This trend will increase the prices of industrial metals, especially the price of silver.

#4 Increasing Demand in Investing

The investment demand in silver is surging as the investment options like ETFs and other online investment tools are becoming more accessible to the people. I believe this is one of the primary reasons behind the increase of the silver price during the last decade. Everyday more and more people are trading stocks, bonds and electronic funds that are usually backed by physical commodities.

#5 Declining Value of Dollar

If you look at the current situation in the United States, the government has trillion dollars of debt and has been printing more money every single day. This increase in the supply of money will eventually hurt the value of the currency. As the buying power of the US dollar declines, silver will be more expensive to afford.

Now you know why silver is a very important strategic element that is becoming more valuable every day and why it represents a great investment opportunity for you. If you would like to know how you can start investing in silver, please see my post on how to invest in silver.

It is never too late to start anything if you start right now. I know that as we grow older, it’s not the things we did that we often regret, but the things we did not do.

I have always wanted to have an additional source of income while I work a full time job. Since I believe starting an internet-based business is a great way to earn extra income, I signed up for my first domain in 2008 and started to blog my ideas while earning revenue through ads displayed on the website. If you never take chances in life you will miss out on the best things. Now, I am really glad that I made that decision in 2008.

It is never too late to start a college education. It is never too late to learn to play the piano. It is never too late to quit smoking. It is never too late to find love. Everyone has their own struggles and challenges, but it is your will and ambition that will help you to overcome them.  If you want to do it, nothing should get in your way. It is never too late to change your life!

Goethe completed his greatest work, Faust, when he was 80 years old. Michelangelo was 71 when he painted the Sistine Chapel. Kentucky Fried Chicken’s founder, Harland David Sanders was in his 60s when he first started his famous franchises. Grandma Moses started painting at 80 and twenty-five percent of her more than 1,500 paintings were done after she was 100 years old.

Now take a look at yourself and make that decision right now. If you want to learn how to play a guitar, then go buy a guitar. If you want to learn how to play tennis, then start taking lessons. If you need more money, then find a way to earn a side income.

“It’s never too late to be what you might have been!” – George Eliot