Diversified Investments Newsletter, February 2009 — Do it yourself Silver Futures!

Ouch! Please note we are not the Diversified Investment company that has been hiding from the investing public. Nor are we smart enough to be “certified financial” planners that can charge you a fee, for selling you “discounted blocks of stock,” for profit, or a commission. Please do not call and yell in my ear because you are mad at what some other "financial expert" has done. After all I have been on the record, online elsewhere, since 2002, that a dangerous housing bubble was building. In the early 90’s, in my gloss paper print magazine, Economic Currents, I mentioned that rewarding incompetence of CEO’s taking functioning manufacturing companies into bankruptcy, was a form of national “stupidcide.”

Then, I was writing about International Harvester. And, about Wall Street firing the two kids who had built Apple Computer in a garage —that had a 100% market share in education— to be replaced by a former CEO of Pepsi, not particularly experienced in things high tech. After John Scully almost scuttled Apple, the Macintosh's father, Steve Jobs, had to be brought back in, at a dollar per year, to save the brand, company, and the value of employee stock options.

Today, as you know the professional “financial industry” has gone much, much, too far. Where is it all to stop? Do you remember a few years ago that the President of the non-profit NYSE was awarded a $400 million dollar bonus. Now, just like the big banks that used taxpayer money to merge into what used to be an illegal monopoly — “Don’t mess with us as we are too big!” — the NYSE has been having talks with the German stock exchange. Which would really mean —remember Ross Perot— that the multinational corporations have totally succeeded in exporting American businesses overseas. What a hell of a way for us to loose World War III.

Not Supply and Demand, But Control and Churn

I don’t have the time for all the tightly controlled Wall Street non-productive fun and games. I do not have the academic degree, and cannot afford a “think tank” mentality, beyond the country-boy vision I have of a “bear,” tussling with a “bull,” and somehow, when all the dust is settled the animals have merged into one gigantic, self serving, feral HOG! With tusks.

Pretty crazy, yes? But didn't you hear the guttural noises, on multi-nationally owned network TV, by Entertainment Tonight’s “Cat-fight Couric,” by not disclosing that it was the desire of the oil and gas industry that Alaska Governor be trashed in what was presented as “CBS news,” that really did not meet AP, and UPS reporting standards — or measure up to CBS icon Edward R. Murrow’s reputation. And, snort, snort, didn't’t you just love ABC’s Law and Order ADA Charles Gibson’s cross examination of Palin on the "Bush Doctrine?" I too, as an Alaskan, from Nowhere, wasn't aware the "liberator of Iraq" actually had one. Wish these networks had spent a little time instead investigating how thousands of small Alaska businessmen had been forced into bankruptcy because Exxon was excused by Bush's Federal Courts from paying the punitive damages (about four days profit) caused by Exxon's drunken sailor.

I haven’t turned off NBC News because of the unbiased journalistic reporting professionalism of Brian Williams, who understands what it is to be a big business “nothing,” having once been a New Jersey firefighter. I also applaud him for daring to mention on the national news, the dreaded “D” word. No, not depression. Almost the opposite —a readjustment of the confusion caused by unexplainable long term inflation. Devaluation!

Devaluation to the point, perhaps, where another Hitler could became a savour to a population forced to burn wheelbarrows full of paper money, for heat, because it was cheaper than buying coal, or importing multinational oil.

Remember the Solid Ring of a Silver Dollar on a Countertop?

The depressing part of the Wall Street mess is where the British Barclay Banks ETF gold and silver futures stocks, "the largest corporate money manager in the world," with a website currently under reconstructioncan be bought on the margin — which was one of the causes of the Great Depression— has become the world wide silver-for-paper standard, replacing what Richard Millhouse Nixon did away with as not being relevant to American workers who toiled an honest day for an honest dollar.

Even more interesting is the world’s industrial consumption of silver (especially China and India) has been more than six times annual production. England has no silver mines. Her monetary reserves before America sent the whole world into a inflationary spiral to pay off WWII, were in gold, and dollars. Since America’s Chicago futures traders of silver have been allowed to amass a 200 million ounce short position, even though the identifiable above ground silver supply is 50 million ounces less than that, and there has been a 20-year shortfall between consumption, and production— exactly where did a London Bank find enough to build the reserves backing their ETF proposal stocks?

Sorry. I was born in the Depression. Bill Moyer's describes my generation as "Bookends, to the depressions," and what? The Great Depression, and what? The Grest Depression I? I understand the "seeing is believing" mentality of hard times. I also understood the Texas Hunt brother’s outsiders battle with Wall Street manipulators in the early 80's. Silver went to $50, and turned my dreams of developing my claims —documented at www.SilverMiningClaims.com— into a nightmare. To me, this was the beginning of the spin-doctoring downfall of all American "not in my back yard" mining investment. Silver fell to such low levels that the only people who have made money over the past 30-years, in mining, were the short sellers, as most silver production occurs with the much more expensive mining of zinc, copper, lead.

Using Enron style tactics selling something they didn't own, silver user experts, and short sellers, whose futures market manipulations are based on trying to keep the price down, or at least erratic, loved it when photography turned digital. Now, however, the same reaction to light is being employed to generate solar energy, in a zinc frame, feeding amps to lead storage batteries. I find it very funny to look upon my 25% lead ore, instead of a freight liability, as being an asset, raising in value past the zinc assays. Couple solar with the use of silver in smart fuel cells, also not invented and manufactured in America, as R&D funding in this country has also sucked up by hogs flipping the stock market snorting short term profits.

So, back to that term, devaluation. The unemployed financial wizards loitering on the corner of StoneWall Street, and Hog Alley, NYC, have had trouble figuring out what anything is worth today. Here is a lesson for those who have never held a career position where a worker gets dirt under his fingernails. All wealth created really comes from the earth. If it isn't grown, it is mined, or manufactured by a craftsman who spent just as long learning how to be productive, as an overpriced doctor (usually stock speculators) the cause, we are told for GM’s problems competing with imports dumped from countries who actually have a functioning national health care system for it’s citizens.

So When Did PAC Dictated Financial Stupidity Become A U.S. Government Check and Balance?

Perhaps devaluation should be allowed to happen in the U.S., to correct artificially stimulated housing prices, that leaves one old U.S. Senator shaking his head, wondering, “How did this ever happen?” I too am so old I remember a secure savings and loan industry —destroyed by Texas hawgs in the 1980s— would not fund a mortgage unless the borrower had an annual income of twice the price of a home. And, of course, these value calculations were based upon a 20% down payment!

Perhaps it is a smart move to pay off all those CEO, banker, stockbroker, and insurance company bailouts with a printing press devalued dollar. Problem is, though how to keep foreign countries (read: multinationals) from taking advantage of using their paper purchasing power, to buy out America? Already the largest steel producer in the world (China) has dumped dollars to buy up one of the financially troubled “big six” iron mines in Michigan. Perhaps that too would be OK. The Chinese have a standing offer for my Alaska galena ore, provided I can load it on a seagoing barge for shipment to Nanking, which is closer than LA, which of course, thanks to a multinational funded environmental movement (remember the tree hugger in Oregon duped by fabricated spotted owl studies that drove small American logging companies out of business?), doesn't have a smelter.

And thus, we have arrived at the end of the point of my pretending to be a talking head expert. I agree with some of the conclusions of my Ivy League trained "colleagues." We are in a banking crisis, as small American mining companies has known for 50-years. All the financial industry can seem to do today is buy each other up, with taxpayer funds, to clone “Super Hog,” national banks and brokerages (not legal just a few years ago), nurtured by the tears of family’s torn apart by unaffordable housing (again take a look at the role of lumber, and oil) foreclosures.

So, my Diversified Investment approach, fighting the control freaks on their own turf, is for you widows, orphans, and homeless, that may happen to have some of those “In God We Trust,” devalued dollars, play the Monopoly Game of today by becoming a banker — yourself.

Always Follow the Pitch To See Who Is Benefiting From "Free" Financial Advice

I just happen to own 167 mining claims in Alaska, with a total proven value of $21,432,207. Divide these by 167 and each claim has, on the surface, a proven 2,345 ounces of silver, as verified by the U.S. Geological Survey, The State of Alaska, Homestake Mining of Canada, and numerous, and respected, consulting economic geologists. A spreadsheet reflecting the current value in paper dollars, is attached, and further documentation of what I speak is at www.SilverMiningClaims.com.

My personal proposition (see spreadsheet below) is that I want you to lend me (the claim owner) the spot price of silver on January 2nd, 2009, times 2,345 silver ounces, which works out to, $25,000, so I can mine the known lead, zinc, copper, and silver deposit, and pay you (the bank) back, besides annual interest, with 2,345 one ounce silver bars to hold in your hand, to trade (tax free?), or sell, as needed at a much higher spot price.

As most investors today, instead of helping build a successful venture, somehow seem to need a junkies immediate immediate fix to flip, making money churning a flop. To help you answer golf course friends comments of — "Nobody pays interest on silver stored in the bank!" — I do! The loan silver happens to be locked up with other valuable minerals as zinc, copper, lead, and perhaps gold, that will also be mined at the same time. As this will take effort, I will be paying you for your support a yearly interest equal to the average base lending rate for banking, per year, on a simple, standard, transferable, I-Owe-You note, that most likely itself will have an increased value as a transferable document. In effect these would be a real silver certificate, that promises to pay back 2,345 ounces of silver, no matter the spot price upon delivery. Plus whatever interest it takes to make it all happen.

No we can’t offer a way to leverage a loan by “leveraged buying in” on the margin. No, this mining venture cannot compete with promises to equal the raise in flipped housing prices, or an annual return on New York Ponzi schemes, or the money made by stockbrokers and security lawyers on mining property “pump and dumps,” as the Kinsley, Nevada open pit that took out almost $200 million in gold, in a very short time, before going bankrupt for cost overruns on other projects. At one time I had my name on some of the claims (a long story involving yet another self-serving lawyer), and having visited geologists in charge of deep drilling I am fairly sure there is another $200 million at depth. I personally know pump and dump from the TSX exchange's listing of CAF. But, that’s just an old fashioned frontier prospector crank-a-dank, who is a conservationist, believing that if you do kill a buffalo out of need —just taking the hump, tongue, and hide, and leaving the rest to rot, is a crime against nature.

The Bolttom Line is it is possible, through A Nevada LLC, to keep control . Click Here for the numbers.