Gold, silver, copper, and zinc all soaring!

Silver Stock Report

by Jason Hommel, Jan 26, 2006

We are probably in a better position that even I can realize, so forgive me for my excitement and wordiness today, as I try to understand, and explain, our good fortune!

Silver, exploding to new highs: $9.50/oz. now!
Gold, exploding to new highs: $567/oz. earlier today.
Copper, exploding to new highs: $2.20/lb., showing no sign of slowing; with world stocks at 2 days inventory!
Zinc, exploding to new highs: $1.04/lb. up nearly 100% in 6 months; and ready to outperform for several years!

You see, my largest investments are silver stocks, and since silver is often found with copper and zinc, these “added bonuses” just got a lot better–so much better I can hardly keep up with it, mentally.

Why is hyperinflation hitting the zinc and copper prices so strongly?  Will it continue, as many expect, and why?  Why these basic industrial materials?  hmmm… Copper wires carry electricity, zinc is used to rust proof steel, but it’s got to be more than just the new Chinese industrial demand for steel and electricity, right?

It may just be that zinc and copper are exploding in price because they are suppressing the price of gold and silver!  See the DVD for proof of the gold price suppression–I will not elaborate on that point here, the DVD does a fine job.  

You see, back in our industrial revolution in the 1800’s to 1900’s, we were living in a gold standard.  Back then, silver and gold were real money, and had substantial value.  The point is that back then, copper and zinc were produced abundantly and cheaply as byproducts of gold and silver mining.  With high precious metal values, we had an abundance of cheap copper and zinc and lead and all sorts of other minerals that helped to fuel our industrial revolution.

Today, there is a bigger industrial revolution than we ever had.  China & India!  But, alas, gold and silver prices today are so low, that silver is the byproduct of copper and zinc mining!  It’s backwards!  Today, there is no multi-year abundant supply of excess copper and excess zinc from highly profitable gold and silver mining!  

Today, our government leaders seem to think that all we need is cheap oil, and they go to war over it, partly also to protect their paper dollar printing racket.  But the world needs more than cheap oil and fraudulent paper money!  (It could even be argued that the wars are driving up the price of oil, but I digress.)  We also need cheap copper and cheap zinc, and that can only be achieved if all of society uses honest money, which will make gold mining and silver mining profitable enough to produce the zinc and copper in the abundance that we also need.

The real beauty of the gold price suppression, and excess creation of paper money that is now heading to China to help fuel their economic development, is that their schemes are failing, as copper and zinc are soaring, and are now ready to continue soaring for the next 2-3 years, or as long as China continues to industrialize.

The beauty of this is that for us silver investors, we get this surprising bonus in our exploration stocks, because silver is found with copper and zinc, giving us a bonus that I did not really predict.  (See what a lousy investor I am?)  Generally speaking, industry can move counter cyclical to rising gold and silver prices–But I do expect, and have predicted, that rising silver and prices will be bullish for the economy in the long run!