Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Natural Gas Sets Up Bottom Pattern - 26th June 19
Has Gold Price Broken Out Or Not? Technicals And Fundamentals - 26th June 19
Stocks and XAU Gold Miners Next Bull and Bear Markets are Now Set Up - 26th June 19
Gold Price Trend Forcast to End September 2019 - Video - 25th June 19
Today’s Pets.com and NINJA Loan Economy - 25th June 19
Testing the Fed’s Narrative with the Fed’s Data: QT Edition - 25th June 19
What "Pro Traders" use to Find Profitable Trades - eBook - 25th June 19
GDX Gold Stocks ETF - 25th June 19
What Does Facebook’s LIBRA New Crytocurrency Really Offer? - 25th June 19
Why Bond Investors MUST Be Paying Attention to Puerto Rico - 25th June 19
The Next Great Depression in the Making - 25th June 19
The Bad News About Record-Low Unemployment - 24th June 19
Stock Market New High, but…! - 24th June 19
Formula for when the Great Stock Market Rally Ends - 24th June 19
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Saving Silver Before the Real Confiscation

Commodities / Gold and Silver 2013 Jul 26, 2013 - 06:41 PM GMT

By: Dr_Jeff_Lewis

Commodities

The general case for holding silver continues to improve as the MFGlobal and HSBC scandals confirm the absence of any rule of law or justice in the global financial system. The Peregrine Financial fiasco only serves to verify this somewhat jaded viewpoint.

Furthermore, the Cyprus “bail-in” or savings confiscation debacle makes it perfectly clear that keeping more than a small portion of one's assets in the financial system is increasingly unwise and could be subject to greater risks than most investors think.


Add to this situation a dysfunctional government, the media's overwhelming daily propaganda, and the fact that the rest of the world is sick and tired of being bullied by the United States. Also understand that many nation deals are being forced to bypass the un-backed fiat U.S. Dollar, and it is becoming increasingly clear that the days of paper fiat currency are numbered.

Implications of the Cyprus Bail-in

Being “Cyprussed” is probably on the table if the U.S. dollar eventually collapses. The monetary powers did not state this quite so directly, but it was clear enough.

So what is left for the reasonable person who has worked hard and saved a few pennies? Not much, but silver is certainly high on the list as an investment vehicle and hedge against such a scenario.

Sadly, the majority of the American population does not have much saved, and the lucky ones who do have wealth stored are usually holding it in the form of real estate.

Perhaps one good thing is that before the projected fiat crisis is over, Keynesianism will have been debunked for a long time. They will just have to follow what the government says or what the real market dictates.

If Washington initiates a Cyprus type savings confiscation action here in the United States — which could occur as early as this year— most media consuming Americans will probably be conditioned to think it is a good idea, especially since it will not really affect them.

The growing confiscation of savings risk continues to make a good case for investing in precious metals that has been driving both new PM investors and the mainstream into the market. Silver confiscation currently seems unlikely given that it will be much easier to go after pensions, other retirement accounts, and/or bank deposits first, since they are mostly in electronic form.

Retirement Plans at Risk

We consulted with a retirement plan potential to get a sense of the vulnerability pensions and retirement plans:

The Federal government sees retirement plans as a form of "tax expenditure" in much the same way as the mortgage interest tax deduction. Nevertheless, retirement plan contributions are not an outright tax "give-away" like the mortgage interest deduction, but they are merely a deferral on taxes being paid.

Still, that logic will probably not matter for long. Thanks to the almighty ten-year budget window — and the fact that the U.S. government will need it all well before then — what you know today as 401k, 403b, etc… retirement plans will probably no longer exist in the not too distant future.

The Possibility of a Forced Treasury Allocation

Even if there is no mandated minimum U.S. Treasury bond allocation in pensions or 401k plans, even worse things could be in store. If the trend follows the healthcare and student loan template, no company-sponsored retirement plans will probably exist in just a generation.

Pension savers will very likely all get shunted into a version of the Federal government's "Thrift Savings Plan". In this scenario, you might expect a mandatory 50% Treasury bond allocation in your pension portfolio.

Salary Deferrals and Withdrawal Penalties

Such a bail in plan could even include a mandatory ten percent salary deferral for everyone earning money in the United States, perhaps combined with a roll-back of the tax-deductibility of those deferrals. These may even be considered "contributions" since you will see little back in return later on. As such, the incentive for an employer to "match" your pension plan contribution will become a relic of the past.

Furthermore, the penalties for early withdrawal will remain and will probably be made even more draconian. For instance, an increased 30% penalty for early withdrawal could be instituted versus the current 10% penalty, along with an increase in the non-penalized withdrawal age from 59.5 to 65 or higher.

When things get really serious — yes, even more serious than they are now — the retirement plan marketplace is a big target hanging right over the middle of the government’s financial bull's eye. They will come after these very tempting plans. And their tax-haven value will very likely decline over time.

About the time the typical person will say that, "it’s not even worth it to contribute anymore", they could easily mandate your contributions, in a similar way to how the Social Security system is currently funded.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2013 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules