I was just thinking about how it would be nice to take the money out of my IRA and buy physical. With the latest talk of the Treasury taking all funds in IRA's and 401(K)'s and converting it to some type of bonds, I was rolling the thought around in my head.

My IRA has gold stocks in it. Wouldn't it be nice if the stocks would actually increase in value first, you know, that leverage thing the stocks are supposed to have compared to the real metal.

Then it dawned on me why all gold and silver stocks are NOT going up hardly at all, let alone with any dreams of that leverage factor.

The metals markets are tiny, and fiat money is being created at will. It only takes a small, insignificant portion of that funny money to clamp down all manner of precious metals investing except for physical. Let's face it, physical prices are rising because the crooks are having an ever more difficult time meeting physical demand; yet everything paper derived from the gold and silver prices is like dead money.

Sure, there's an occasional spike in some stock based on some news, but over all, everyone is waiting for that day when, no matter what stock they own, the sector finally catches fire.

I have this strange feeling that it simply isn't going to happen prior to a total financial system collapse, and then it's too late. In other words, there isn't going to be any benefit holding stocks rather than physical because the leverage play will never materialize before the system collapses. As long as the current system is functioning, think manipulation, the boyz will continue to be in control because that is the current system.

The Reason:

Physical is already is high demand and increasing. However, for those that are ignorant, and don't even know how to spell gold, they are deceived into shunning the metals, and are being led down the path of total poverty and government dependence.

What's that phrase? He who has the gold makes the rules. Power.

How about those that aren't ignorant and know what's going on? Anyone here know people like that? That own gold and silver stocks waiting for the big payday?

It's one thing to know, it's an altogether different thing to be in the right investment to protect oneself and/or take advantage of the current mess the world is in.

Logic and history dictates that gold and silver stocks are the place to be to cash in on this historic situation, plus owning physical. Yet, gold has been at the highest prices ever, ignoring inflation, and we're still waiting. Not even physical silver has been really able to react properly to this. Where's that great leverage advantage of owning any gold and silver stock? Not even the big producers are really going anywhere.

In the end, holders of gold and silver stocks will see the values finally rise, if there hasn't been some scheme to make sure all brokerage houses have also collapsed, leaving investors with nothing but some sort of promise or worthless claim.

Also at that point, all physical gold and silver will already be owned by someone, and they sure won't be selling. So selling our stocks will just net us worthless paper. Just what we want, right?

So I ask, have we really protected ourselves by purchasing paper in a greatly controlled market that will continue to be controlled until there's no paper market left? I'm really beginning to wonder.

Terry