By Jay O'Keefe

My recent observations of the financial press suggest an interesting contrary opinion may be developing. Possibly the crowd may be becoming more attracted to gold than silver. That could create a potential windfall profit opportunity in silver. As you know the gold/silver ratio is at a historically high level. Ted Butler's research is convincing in stating that the price of silver has been manipulated downward for the last several years. I suspect that very few investors are even aware of this. This may have created a great opportunity to take action against the crowd. As you know, in order to achieve exceptional results you must move opposite to the crowd. If and when it becomes known that a long term manipulation has occurred and could end, it could present an outstanding opportunity. This has been one of Ted Butler's primary theses...that we may be fairly close to an end of the manipulation. I am sensing the growing popularity of gold among investors. This is easy to understand. The actions of the Fed in creating ever increasing quantities of near worthless paper currency, the action of governments in repatriating their gold to their own possession, etc.

It has been many months since I reported on my portfolio. As I write this, my portfolio is allocated 50% silver, 18% gold and 32% cash. This is approximately the same as when I last reported. I still feel this is the allocation which will produce the best results with the least risk. It is true that 2 or 3 months ago I was considering increasing my gold allocation, and I may have mentioned it to a few people. For this change I had in mind perhaps an increase to 25% gold with a reduction of my cash or possibly reducing cash and silver to offset this. Before making any change I checked with my top three experts and found they were solidly unanimous in recommending that silver be a major asset in ones portfolio, so I did nothing. My allocation has remained the same for many months. Please understand these are not my feelings, sentiment, knowledge or wisdom. This is simply confidence in the experts who have been so valuable to me over the years.

As you know, I consider Ted Butler to be the best silver analyst available. I have agreed in writing not to disclose his reports to non-subscribers, which would be a violation of copyright laws. But I would strongly recommend anyone interested in silver to subscribe to his service. Go to Butler Research LLC and click the subscribe link. The cost is only $34.95 per month, and quite honestly, a one month subscription would give you the archive to all recent reports. Reading just the past few reports would give you an amazing analysis of the potential for silver at a cost of only $35. I cannot imagine a better value.

I suspect the growing preference for gold is mostly emotional. I'm guessing people are convinced that gold is much more precious based on history. And of course it is, but at what price? For a thousand years gold sold for an average of 16 times the price of an ounce of silver. Now it is more than 50 times! Don't misunderstand me, I am not negative on gold. I have no doubt that it will continue to go up, and I want it in my portfolio. But the key is what is its potential for percentage gain compared to the potential for a gain in silver. Here I disagree with the opinion of the crowd. Ted Butler brilliantly presents the case for the potential for gain in silver to significantly exceed the potential gain in gold for the near to intermediate term (up to five years).

Of course, no one knows the future. That's one reason for having some of both metals. Favor the one you believe has the better future.

Comments from Ted Spaeth

I've known Jay for several years. After I read his book Biblical Economics, I decided to follow his portfolio as I managed my own family's portfolio. The beauty of a portfolio divided into percentages is that it can be applied by both millionaires and normal folks. I recall how Jay sold most of his stocks in early 2008, because his experts were warning of a crash. It happened about a half year later. Most people I knew who knew anything about economics or finance said, "I didn't see it coming." Thus, I knew that Jay's experts were seasoned veterans who were worth listening to, and the mainstream media and educational institutions were simply misleading the masses. 

In the summer of 2008, I began to buy silver in small steps on eBay. When I studied the writings of Ted Butler and Jason Hommel, I discovered that silver's price is extremely manipulated on the downside. Different people have different views on the reasons behind this phenomenon, but the facts from the CFTC's Commitments of Traders reports on silver futures trades as well as their monthly Bank Participation Reports have clearly shown that manipulation has been going on for many years. Ted Butler, an experienced commodities trader, is good at breaking it down for laymen. Anyone who doubts that the price of silver is manipulated is simply ignorant of the truth and/or brainwashed by mainstream media propaganda and popular economic theory. This is not the first time such a phenomenon has happened. The Apostle Paul wrote of it in a letter to the Corinthian church:

For it is written, I will destroy the wisdom of the wise, and will bring to nothing the understanding of the prudent. Where is the wise? where is the scribe? where is the disputer of this world? hath not God made foolish the wisdom of this world? - 1 Cor. 1:19,20

As a follower of Jesus Christ, I believe that God owns all the silver and gold (Haggai 2:8) and has sovereignly set up this situation in silver for the benefit of little guys - especially Christians - to prepare for hard times ahead - similar to the way He gave Joseph, Mary and Jesus gold frankincense and myrrh before they had to go into exile in Egypt. The funny thing about silver is that there's now probably less of it in the world than there is gold! Just imagine if you could buy an ounce of gold for $32. Would you buy just one? Or would you buy a bunch?

Regarding the timing of the end of the manipulation, I have thought about it carefully and listened to many people's views. I listen to Jay's experts, and I also listen to the views of men who follow Jesus and openly praise His name. The consensus I'm hearing is that the end of the silver manipulation will be coordinated with other bigger issues, like a loss of confidence in the US dollar and US Treasuries, a collapse of the derivatives bubble, gun control in the US accompanied by genocide, martial law and civil war. 

Thus, in addition to following Jay's portfolio, I recommend investing in food (rice, flour, canned goods, etc.), supplies and barter items - especially for people who live in the US. I also highly recommend buying rapture insurance.