THE SILVER MANIFESTO: Precious Metal Investors Guide To Surviving The Coming Debt Bomb

Silver Manifesto ImageInvestors worried about the highly leveraged fiat monetary system based on massive debt and derivatives need to read the new book, “The Silver Manifesto.”  This book was written by David Morgan and Chris Marchese of Silver-Investor.com.

The primary purpose of writing The Silver Manifesto is to educate the reader as to why there is no way out the financial morass by the political class or the financial elite. In order accomplish this objective to examine every aspect of the silver market including:

A monetary of history of silver from 3,200 B.C. to present day, with additional attention paid to the monetary history of silver in the United States. These chapters examine a vast array of topics including the origin of money, the storied history of silver’s use as money since the advent of handwriting, the various coinage acts, the free banking era and the constitutionality of fiat “paper money”

An in depth analysis of the supply-demand dynamics in the market, past, present and in the future. We examine “peak silver”, industrial demand and most importantly investment demand and where it is headed in the short-to-medium term.

• In order to fully understand and appreciate the predicament the worldwide fiat monetary system is in, we walk through and explain the process of fractional reserve banking, maturity mismatching and the various stages on inflation. This is also necessary to understand intervention induced price suppression in the silver and gold markets.

• Money and Banking is also vital to understanding the only correct explanation of the cause and effect of the modern day business cycle, developed by Ludwig von Mises. In this loaded chapter, we through the ins and outs of Austrian Business Cycle Theory. We focus on interest and economic calculation, capital formation and accumulation and the market process. We also compare and contrast how economic growth and increased credit expansion backed by real savings vs. the central bank induced business cycle.

• These chapters build upon one another, applying everything to the current circumstance of the U.S. and global economy.

• The crux of every currency crisis is debt, which is exactly what the global economy and especially western world economies are saddled with today. This examination of the “debt bomb” is critical to comprehend why a wave of currency crisis will occur in the near future.

• Is It also important to understand how to put together a precious metals portfolio, including owning physical metals and an examination of various leveraged instruments to price of silver and gold. One of these has to do with investing in mining stocks and how to pick one.

• The final chapter examines the bigger picture, that is the underlying issues i.e cultural, etc.

David and Chris were nice enough to provide me with a few excerpts from the book.  Here are a few:

SIlver Manifesto Image 2Silver’s Use as Money: a Brief History

While it is unclear who the first people to mine silver were, we can trace silver
mining and silver used as money back to 3400 BC in Mesopotamia (although some argue that silver mining began before that, in Hungary, closer to 4000 BC). This was also beginning of writing, and correspondingly, journal entries. These entries were for local trade, which had various standards as a unit of account, such as silver and animals, amongst several other goods, illustrating that even 5,000 years ago, the market chose silver as a medium of exchange. While this money system was very primitive and remained so until coinage came about, it didn’t stop other societies from using silver as a monetary unit nor did it impede the advancement of the monetary system.

The first instance of bimetallism, actually the use of three metals, began 1,400
years later (2000 BC) in Egypt. The monetary system evolved and had definitive weights for trade purposes as well as exchange rates against one another….

The Lydian System

An immense advancement in the monetary system was made by the Lydians, who
were the first to utilize coinage (silver and gold) for monetary purposes, which first
occurred around 700 BC. The Lydians were the first to not only coin money but to also develop the first system of coins, initially making them from gold and silver alloys.  They were also the first to establish retail shops. Some argue it was King Alyattes who developed and then first coined the stater, while others argue it was King Gyges who first circulated this coinage.

SM image 1These small oval nuggets circulated throughout the East. As you can see, the oval
nuggets were not 100% homogenous, so technically could not be called coinage.

King Gyges ruled from 690 to 657 BC, while King Alyattes ruled from 610 to 550 BC. Historians tend to link King Gyges with the first coinage and system of coins. These coins were actually not silver or gold, but rather an alloy of the two. Later, the son of King Gyges, King Croesus, greatly improved the smelting technique of his predecessor via separating silver and gold from the electrum. While either King Alyattes or King Gyges came up with the first coinage and system of coins, King Croesus originated the first bimetallic system of coins, with an exchange rate between the two, as follows:

1 gold stater = 8.17 grams of gold
1 silver stater = 10.89 grams of silver
1 gold stater = 10 silver staters
(8.17) x (1) = (10.89) x (10) OR
Gold-to-silver ratio = (108.90/8.17) = 13.33

Chapter 4: Silver Demand Dynamics

Silver has two demand dynamics. First, as discussed in the first two chapters of this book, is its monetary aspect, which dates back over 5,000 years; but also, because it is or was essentially an industrial metal “ahead of its time,” it will soon show how vital it is for its many uses in industry. The potential future use in industry is so significant as to be essentially unlimited. We will be looking at the industrial aspect, followed by the fabrication and monetary aspect and forecasts……

Let’s put silver’s industrial demand growth into perspective and explain why it has unique dynamics unlike most other investments. In 1990, industrial demand totaled roughly 275,000,000 ounces. Just nine years later, industrial demand surged over 36% to 375,000,000 ounces. This means the compound annual growth rate was just over 3.5%. Over the next decade, ending 2010, industrial demand surged roughly 115,000,000 ounces to 510,000,000 ounces, or 36% +/- or 3.12% compound annual growth rate. Note that this was in the face of a rapid silver elimination from the photography industry, making it that much more impressive….

————–

I highly recommend getting THE SILVER MANIFESTO book if you want to get a great understanding of history of money as well as all the different dynamics of the silver market.  You can find out more about the book the website, THE SILVER MANIFESTO, or you can get a copy at Amazon.com.

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13 Comments on "THE SILVER MANIFESTO: Precious Metal Investors Guide To Surviving The Coming Debt Bomb"

  1. David Morgan is a blowhard. I remember him saying silver will never go below $30 again several years ago. And then you listen to him on an interview and he is always patting himself on the back for saying he predicted the latest rise or fall a few weeks ago.

    Dave Morgan is an empty suit. Andy Hoffman, Rob Kirby, BrotherJohn are far better than this clown.

    • I disagree 100%. And nobody gets it right every time, especially in a rigged market.

    • Let me guess, this is Your humble opinion, the way you see it, or is this actually the fact. It would appear the opinion is not shared by the author of the article.

    • Steve,

      We all thought the price of silver wouldn’t drop this low. Morgan has been talking about silver for nearly 2 decades. While the precious metal community may have been wrong on the timing, it won’t be wrong on the future disintegration of the U.S. Dollar & Treasury Market.

      Thus, owning gold and silver at that time will make waiting a few more years seem quite meaningless. David Morgan will turn out to be RIGHT a hell of a lot more than the typical analyst on MSM.

      steve

      • There will come a time, and I suspect less than five years, when people trying to buy silver with fiat currency will be shocked at how unavailable it is at a price they thought they would be willing to pay. If they can get it at all.

        Better too early than one day too late.

        Go to the largest outdoor & sports suppliers online. Try to get .22 ammunition. You may get a box of 50 of the non-jacketed variety that dirties your barrel. For those that know nothing about guns .22 ammunition isn’t a good choice for anything other that plinking at cans. It has been in short supply for 2+ years. Before that it was cheap & widely available.
        If I want more I’m going to have to go to a local dealer and put a deposit on it and get in line for weeks Silver may go the same route.

        • David,

          I agree with you on the subject of SILVER & AMMO. When the day finally arrives and the U.S. Dollar gets devalued, you will see a run on Gold & Silver. Which is why I still believe the Silver Miners are an investment worth looking at. Again, investing in the miners should only be a small fraction of your physical gold and silver holdings.

          steve

          • Steve,

            I’m concerned about takeover or nationalization of silver mines…rendering the stock a much lower value.

          • David,

            That’s why if you invest, you only invest a fraction of your funds. Owning precious metal stocks is high risk. Which is why I believe one should have the majority of their funds in physical gold and silver. However, the chance of ALL silver mines being nationalized or taken over is slim.

            steve

  2. I completely agree with this assessment. What concerns me is the probable inclination of a bankrupt government to make it impossible to sell silver without reporting all transactions to the government in order to evade stiff prison terms. I grasp that during Prohibition there were “speakeasies” that flaunted the unpopular law, but France has shown that the use of cash can be proscribed. All my savings (in real money) shall be exploited by a corrupt government empowered by the willfully ignorant. This is because the majority of Americans will be invested in paper money and destitute, regarding metal savings as fair game for confiscation in the name of “fairness.” Human nature is predictable out to six decimal places.

    • “What concerns me is the probable inclination of a bankrupt government to make it impossible to sell silver without reporting all transactions to the government in order to evade stiff prison terms”

      Really? The current well funded [on debt] central government has no clue how to stop illegal drug traffic and other black markets. Do you think a funds-starved government in fear of reprisal for the shoddy job they have done will be out in force to stop drugs, alcohol, silver, prostitution, or other things it may frown upon?

      In regards to silver, INDUSTRY must have it..THEY will buy directly or indirectly.

  3. So the dollar fails and you’re worried about the govt keeping track of YOUR silver?? I think they’ll be busy enough with that crisis and evading gunfire mostly. The gunfire aimed at them should that happen.
    Anyway, while Amazon may be the retailer of choice for David Morgan’s new book, they are apparently out of stock at the moment. So the next question would be is this by design or do all potential best sellers get these low initial release numbers?? Anyway, good things come to those that wait. And if you want his new book and you’re planning on ordering from Amazon, right now we wait till they get restocked.

  4. Excellent book for the beginner to understand silver and for the more familiar, to reinforce their understanding of the underlying reasons to own it.

    Among geoscientists and geologists there is a common thread of research papers that say, silver could be the first element from the periodic table to go extinct. That is to say, any economically recoverable silver would cease to exist, at present levels of useage.

    There is historical evidence of silver being valued much more than gold, because of it’s rarity compared to that of gold. That was just before the old world discovered the new world and Spain’s plundering of Inca and Aztec treasure. Which had a profound effect on the old world economic system.

    To know where you are and where you are going in today’s financial mine filled landscape, you must first know where you have been and why. This book is a very good starting point. To those with a very narrow view I would say, study the message. Don’t just shoot the messenger!

  5. There is not enough physical above ground silver for the government to raise fuss over. It wouldn’t be worth all the trouble for them to try and ferret it out. Besides how many people in the U.S. have really shown any interest in collecting it ? Maybe 1/2 of 1 % ?

    No , the media and naysayers all have done a wonderful job downplaying the subject.

    For the holders of this wonderful commodity that has to be great news. When the proverbial s*** does hit the fan there will be opportunities for using it to attain a secure lifestyle.

    The question will be how to properly value it at that time . Perhaps a silver dime will be quantified as $ 200.00 towards any thing or service.

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