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Jim Forsythe: Stampede Coming Into Gold and Silver

Tom welcomes a new guest Jim Forsythe to the show. Jim discusses visiting Russia in the mid-80s and working in the Air Force as a KC 135 pilot and later an instructor. In part, these experiences led him to campaign for Ron Paul in 2008, and he became a New Hampshire State Senator from 2010-2012.

Learning from Ron Paul helped him understand the economic system that the world is under, and “The bigger problems facing the U.S. that are internal.” He has been a firm gold and silver believer since 2007, investing in both miners and physical. He says, “People need to make their own choice to have gold and silver as money.”

He believes many politicians do understand how the system works and take full advantage of this understanding. There is bipartisan support for maintaining the status quo.

We are in a 100-year sovereign debt supercycle, and the bond market has been in a bull market for forty years. Whenever there is a hint of recession, they lower rates, and now we’ve hit the zero level, which he believes is a tipping point. They can no longer claim that they can raise rates and normalize, and most investors now understand this fact. They will try yield curve control next, which means retirees and pensions will get wiped out.

Gold and silver don’t receive much yield, but you will see a stampede coming because the alternative to gold is negative yields. Gold is a once-in-a-lifetime opportunity.

He argues that gold and silver volatility is unnatural and serves to keep investors out of the markets.

Jim explains the dynamics of silver in both its industrial and investment demand. The price suppression has increased the potential upside and provided a lot of buying opportunities.

Silver is a small sector, and just a little attention from the WallStreetBets crowd has caused physical supply issues. Silver is far more undervalued than gold, and for that reason, there is more upside potential.

Jim outlines the differences between SLV and PSLV and what you should consider when investing in an ETF. In any investment, you need to trust the counterparty, and there is room for doubt with SLV.

Lastly, Jim discusses a possible future for digital currencies.

Time Stamp References:
0:00 – Intro
0:38 – His Background
5:33 – Political Understanding
7:10 – Macro Metals Picture
10:22 – Resolving Constitutional Money
12:04 – Futures & Price Suppression
14:20 – Importance of Silver
19:06 – Playing the Squeeze
21:48 – SLV or PSLV
25:56 – SLV Prospectus Change
30:20 – PSLV’s Methodology
33:23 – Basel III Bank Regs.
36:18 – Banks & Digital Currency
39:08 – Kinesis & Gresham’s Law
43:42 – Reddit WallStreetSilver
44:59 – Wrap Up

Talking Points From This Episode

  • U.S. Economics and Political Willpower.
  • The end of the Debt Super Cycle
  • Volatility and Manipulation in metals
  • Silvers dynamics and crypto-backed metals.

Guest Links
Reddit User:
Reddit Group:
Website Mentioned:
Futures Creation Article:

Jim Forsythe is a Cornell graduate who studied Russian and Engineering (B.S., M.Eng) and visited the Soviet Union in ’84 and ’86. His visits to the Communist country cemented his strong belief in free markets. Jim flew KC-135s in the Air Force and taught at the Air Force Academy after receiving his Ph.D. in Aerospace Engineering. He was a small business owner in New Hampshire after leaving the Air Force.

After campaigning for Ron Paul for the 2008 election, he was elected to the N.H. Senate, and as a prime sponsor, passed Education Tax Credits and Medical Marijuana. In the 2012 election, he served as the N.H. Campaign Chair for Dr. Paul. He has been a precious metal and mining investor since 2007 and is a member of the Reddit Wallstreet silver sub and an active participant in #silversqueeze and #SilverIsMoney on Twitter.

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