Long Position on Silver and Gold?

[sellersm]

And one more quote for the day, from William Kaye:

“We are at levels in gold that are absolutely compelling. We are betting with our own pocketbook, and the money of people who have entrusted us with their savings as well. I would be stunned if you are talking one year from today and gold is not 50% to 60% higher than where it’s trading today....

“I will say that if you don’t have any humility after 35 years in this business, then you probably haven’t been in this business. We’ve taken a shellacking on our gold position, and guys who I have a lot less respect for are looking better at this point because the dumb money is getting paid.
But this is a long-term game, investing. It requires patience, and the ability to see idiots around you making money and crowing about it. But this is like one inning in a 9-inning ball game. If you’ve been around this game for 30+ years as I have, as guys like Eric Sprott have, it’s not a 9-inning game, it’s really a 30-or-40-inning game.


I think if you look at our record in that time frame, you would have a greater appreciation for what we do. We look at things through a different prism. We have experience, having seen major cycles such as the one I witnessed in the 1970s and early 1980s -- the stagflation that was so endemic in that era. Some of the younger people just don’t have an appreciation for that history because they didn’t have to live through that history, nor did they have to make money during that unbelievable turbulence.


And this year the lesson has been that the dark forces which have gripped the United States politically, and more importantly in terms of the central bank, forces that have gripped Europe, the ECB which only came into being roughly 13 years ago, the forces at play even in Japan, have been extremely destructive, but the reality is that we’re just not paying the price for it yet. But that day will surely come.


If you look at Japan in the past, the value of the savings of the people had increased every year, even as people in the West asked them, ‘How can you put up with a stagnant economy that doesn’t even grow?’ Well, the Japanese people had the benefit of deflation, while people in the West experienced inflation. This gave the Japanese people, particularly the savers, a distinct advantage over those in the West.


So the Japanese were on a different business model. But now the Japanese have been co-opted by the same dark forces which rule the West, to join the parade and the ongoing race to the bottom in currencies. Now, in the race to the bottom the question is, who wins?


People have begun to wonder to themselves, ‘Why didn’t I just buy the S&P? Why have I endured holding precious metals, which have done so poorly over the past couple of years?’ So, people may wonder if people like myself, Eric Sprott, and others you interview are correct in our thesis, but if they look at 30+ years of our history, they would basically say, well, maybe we do know what we are talking about.


Assuming we have learned something in that 30+ years, it’s that this experiment, which is an extraordinary experiment in central banking fiat currency debasement, is going to end very, very poorly. It’s going to end poorly for the economies involved. It’s also going to end poorly for the people who have assets denominated in those currencies.


But it’s going to end very well, at the end of the day, and I now think the end of the day looks like the first quarter of next year, for the people who have positioned themselves in the anti-fiat currency, and that’s gold and silver. It’s going to go extremely well for things like gold that for 5,000 years people have gone to when they’ve lost confidence and respect in governments and the fiat currencies they issue. That’s my final say on this, Eric.”