Undervalued
Silver in a Government Spending Frenzy By Richard Daughty
| September 25, 2010
To prove that all my yelling, “Buy silver now, or
you’re a moron!” has paid off, silver is getting
a lot more press coverage lately, like the headline “Silver
Hits ’80 Level; Gold Sets Fresh High,” which
appeared on the front page of The Wall Street Journal’s
“Money and Investing” section.
The reason that gold at $1,271 was hitting new record-highs,
but not silver, is that silver, at $20.74 per ounce, is
only at the highest price since October 1980, which is almost
exactly 30 years ago.
Suddenly, I feel myself wanting to launch into some hyperventilating,
rabid recommendation to buy silver, waxing overly-enthusiastic
about silver as some “bargain investment of the century”
because of any of a dozen reasons right off the top of my
head, and probably many, many more if I were smart enough
to understand their significance, which I can only barely
sense, even though people are screaming at me, “What
is it that you don’t understand, you moron? We’re
been over this a dozen times!”
All I know for sure is that silver is actually not anywhere
near its record high, as it now sells for a piddly $20.74
per ounce, less than half as high as silver’s all-time
record price of $48.70 per ounce, which occurred in January
1980 during the infamous episode where the Hunt brothers
tried, and almost succeeded, to corner the silver market,
which brought out the slimy and infamous insider and government
response to counter their ploy and crush the Hunt brothers.
This is not, however, a discussion about how the government
is a far greater bunch of scumbags than the Hunt brothers
at their worst, and don’t get me started on the slimy
goings-on in the commodity exchanges, or how the Hunts were
destroyed because, I assume, out of envy that they were
so rich and so megalomaniacal that they enjoyed shameless
orgiastic bacchanalia and other disgraceful perversions
of the kind and expense that the government workers have
to content themselves to, nowadays, merely view on their
computers all day.
Of course, critical people want to know why I even bring
up the topic of pornography in the first place, and why
dog-eared copies of “Leggy, Lusty and Luscious”
magazines are all over my office, when none of it has any
relevance to anything, other than my idly musing that if
I were rich enough to try and corner the silver market,
I know what I would do, you know what I mean?
And anyway, there are enough accumulated news reports of
government workers being caught-out watching porn while
at work to indicate that the practice is pandemic, which
doesn’t explain how the average government worker
makes twice as much in wages and benefits as the average
private-sector worker, nor does it explain how I can get
one of those terrific government jobs making a lot of money
to watch dirty movies all day, which are not (in case you
were wondering) listed on any job listings I’ve seen,
although, believe me, I looked!
But they do make this kind of money, and since the odious
Supreme Court said that they could unionize so as to channel
gobs of election-money to the very politicians who authorize
their salary and benefit packages, I assume it will continue
as part of Obama’s deficit-spending massive, massive,
humongous amounts of money to maintain ALL government spending.
And more, to offset the inflation caused by the previous
deficit-spending!
Oddly enough, as sadly suicidal as this is to the country,
it should make you, a Junior Mogambo Ranger (JMR), giddy
with delight, as all this new money means that inflation
in prices will soar, which is the stuff of euphoria for
those buying gold, silver and oil stocks today at such bargain
levels, so that we will attain the state of Nirvana known
as “Rich, Rich, Rich (RRR)” when their prices
soar as the Federal Reserve continues to destroy the buying
power of the dollar!
And with the government and the Federal Reserve working
overtime to make it happen just like that, what can you
say but, “Whee! This investing stuff is easy!”?
Richard Daughty (Mogambo Guru) is general partner and
COO for Smith Consultant Group, serving the financial and
medical communities, and the writer/publisher of the Mogambo
Guru economic newsletter, an avocational exercise to better
heap disrespect on those who desperately deserve it. The
Mogambo Guru is quoted frequently in Barron’s, The
Daily Reckoning, and other fine publications.