Physical Buying will Prevail

No matter what spin or manipulation the financiers, mediamen, and economists give, in the end there will be no way to stop a sharp price rise in physical bullion.  It has taken awhile and it could take longer and it may take until there is litterally a shortage of bullion for purchase.  That is the long term scenario though, as it is also possible that one of the Central Banks runs out of ammo, switches to back their currency with gold, and the shorts get squeezed out epically.

It is a David vs Goliath battle.  On one side are the people that buy physical bullion.  These people are rarely even millionaires which makes the buying small in comparison to what the paper pushers (banks, HFs) can do.  On the other side is anyone buying miners, ETFs, and other paper vihecles, people shorting the vehicles (JPM or individual day traders), and also people who believe paper is money.

The last group is important to dissect because if people stopped using dollars to buy milk and cookies and we used silver we would crash the system in a day, but this would mean a paradigm change and the status quo is not ready for that and will likely clutch their milk bottles until a new system has formed.  People who own the paper metals and short the metals and other vehicles are just chasing paper and do not realize their is a better system.  This is why it is likely that the only way the system will change is if enough people take enough bullion off the market and create an actual physical squeeze.

There is also a chance that the Central Banks go careening over an edge of monetary policy that no one knew was there, but since all Central Banks are cordinating with each other it is likely that they will not lose their nerve and will keep printing.  If one Bank did jump from the dollar to gold the system would change on a dime but I don't think that will happen.  That is why it is important for us to continue to spread the word and do our part and buy silver.

It may seem like a tall task to take on - the fight for our ability to use real money - but it is ours to keep.  We have the wind at our back considering we our taking a finite resource from a group that prints their resource - the dollar - out of thin air.  But it seems daunting when it takes years and years of high unemployment and other troubling economic news to wade through.  We keep fighting though, as it is not only our nature, it is our destiny.