Eric Sprott Advocates Boycott of Fiat Money, US Dollar, etc.

Sprott last year urged the world’s largest silver producers to limit silver sales during downward corrections in favor of holding profits in the said metal. Sprott suggested that the lack of sales could bulk up silver reserves. This, he reasoned, could be a means for the silver producers to hedge in the face of irrational dips brought on by nanosecond power plays by the powers-that-be which depend upon artificially dependable fiat currencies in order to secure their profits, which, for them, equate control.

Sprott is making many connections in calling on silver producers to cease their fiat holding. What’s exciting is that tactics like these can tease the fulcrum of the monetary system, perhaps the most powerful form of control on the planet.

In his letter, Sprott challenged producers, stating that “Instead of selling all their silver for cash and depositing that cash in a levered bank, silver miners should seriously consider storing a portion of their reserves in physical silver outside of the banking system. Why take on all the risks of the bank when you can hold hard cash through the very metal that you mine? Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals.”

Sprott makes a good economic point, which is utterly backed up by the morality of the situation.
One company that heeded Sprott’s “Call to Action” was Endeavor Silver, a mid level silver miner with operations in Mexico. The company has been storing excess cash in silver and gold for short-term bases since 2008. Endeavor  “elected not to sell a significant portion of its metal production on the basis that the gold and silver prices were experiencing a major correction and the Company would be better served to hold the unsold metal in inventory until such time as the metal prices rebounded,” the company said in its earnings release on Tuesday.
Apparently, Endeavor held 980,000 ounces of silver and 5,400 ounces of gold at 2011, which clearly is a significant leap from 127,000 ounces of silver and 957 ounces of gold at the end of 2010.

The chaotic nature of the silver price—an illusion of faith in fiat—is like a tempest through an ancient town. Having opened the year at $30.63 per ounce, silver climbed to nearly $50 on April 28.  Prices were beaten down to $26 by December and closed the year at $28.18. Silver prices rebounded to $37 per ounce in February. This offered Endeavor a good time to sell its silver. The miner explained, “Metal prices did rebound in Q1, 2012 and management subsequently sold most of the metal held in inventory at prices significantly higher than the December prices.” Due to their historical statuses as money, silver and gold are extremely liquid assets.

The trend of individuals, investors and companies saving in the form of physical gold and silver is sure to continue, especially because of the crisis of fiat.  McEwen Mining, a mid-tier silver and gold producer in the Americas, recently announced it held around one-third of its $78.8 million treasury in physical bullion, predicting that gold and silver will hit $5,000 and $200 an ounce by the middle of the decade, respectively. Hopefully, as this continues, those who purchase precious metals as a way of saving will realize the moral argument for stepping outside of the cash-money system, considering the havoc it wreaks all across the planet. Everybody knows money is evil, and so why not do what’s good?