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Panic Before the Herd and Win-Win with Silver!

By Lorimer Wilson      Printer Friendly Version Bookmark and Share
Jan 17 2011 12:32PM

A win-win situation, as we all know, occurs when opposing parties both gain from a certain outcome. Perhaps both don't always get all that they want but both 'win' something in the bargain. It's the best outcome that can be expected for both parties. With silver there is a lose-lose and a win-win scenario.

The Lose-Lose Scenario

While owning silver outright is a win-win situation, it will be a lose-lose situation for all those large banks around the world such as JPMorgan and HSBC who are reported to be short silver to the tune of 3.3 BILLION ounces!  That figure is a multiple of all known above-ground silver in tradable bullion form – and a multiple of annual world silver production. The saying 'He who sells what isn't “hisin? gives it back or goes to prison' comes to mind.  These shorts may need to deliver more silver than can possibly be delivered in any reasonable timeframe and once they begin (and there are reports that some have already begun) to cover their positions it will have major bullish implications for the price of silver.

The Win-Win Scenario

How do you orchestrate a win-win in silver for yourself? It's really very simple. Because there is not enough physical silver to go around at today's price (or the price would not be on the rise), all you need to do is to purchase physical silver. This has the dual effect of 1) taking available silver off the market, meaning silver then becomes all the more scarce, and 2) it bids up the price. Any time a commodity is bought, it puts upward pressure on the price. Any time it is sold, it puts downward pressure. See how simple this stuff is?  It's a perpetual motion machine. 

The more physical silver people buy and take off the market, the higher the price goes. The higher the price goes, the more investors buy in. It has a self fulfilling effect. Silver and gold are unique in that trait. With most commodities, buyers try to get the lowest price possible because they intend to use that commodity. With the money metals, the reason most investors are buying is to protect themselves from the loss of purchasing power of the currency through inflation of the money supply. They intend to store the metal for sale at a much higher price at a time when the currency stabilizes. 

You must remember that silver and gold are the anti-dollar. Theoretically, you are simply retaining your wealth by holding them even though the dollar value is increasing. The more the dollar value is increasing, the greater the debasement, and the more the need to protect oneself. At some point this will turn into a panic and today's dollar price will seem ridiculously low.

Owning Silver Is a Win-Win in Numerous Ways

  1. You win by holding an asset that is no one else's liability.  You do not have to depend on a counter party.
  2. You win by taking physical metal off the market which helps increase its price.
  3. You win by having a valuable commodity that is money itself and outside of the faltering banking system.
  4. You win because you are protecting your wealth from the ravages of inflation.
  5. You win because you are showing others, by your actions, that you believe in the worth and value of holding real money.
  6. You win again if they follow your lead.  The further we go in time and price in the silver bull market, the more people will realize what they are missing out on, and the quicker and higher the dollar price will rise.


Owning silver is a win-win all around. The only way you can lose by holding physical silver at this point is via theft, or confiscation, which is the same as theft.  I'll take my chances.  I'd rather have someone try to take what I already have in my possession than have someone fail to deliver to me what is rightfully mine. In the former, I'm in control. In the latter, someone else is calling the shots.

Got physical silver yet?  Panic first before the herd and win-win!

By Jerry Western and Lorimer Wilson



Jerry Western (a.k.a. ‘Gold Money’ at, is the author of “Got Gold? Get Gold!? which is available online and at major book retailers, and also provides a Model Portfolio Service listing his top precious metal company picks and weighted rankings which is available by e-mailing westernoutlook at with the word ‘peek’ in the subject line.

Lorimer Wilson is editor of both and and offers a FREE weekly "Top 100 Stock Market, Asset Ratio & Economic Indicators in Review" which is available by sending an e-mail to  and saying “sign me up? in the subject line.