Friday, December 31, 2010
An end of the year suggestion, buy silver in 2011...
Part 4. A little more math
Estimates of total silver production since the dawn of man range from 46 to 53 billion ounces (roughly 11x gold production), but unlike gold, we've used pretty much all of it (although squandered might be a better word). It's in our cemeteries (fillings) and scattered throughout our landfills. There hasn't been a significant surplus since 1990. Ted Butler and others estimate that there is far less silver bullion in the world than gold bullion and they back up their case with numbers that the paperbugs have never even bothered to refute. So why does gold trade at more than 45 times the price of silver? Because JP Morgan, the US government, and every other psuedo-capitalist parasite wants it that way. But that's a truth for another day...
Part 6. So what's silver worth?
The short answer is: more. If silver were priced based on its occurrence relative to gold, it would be over $125/oz. If it were priced on its availability - somewhere around $2,000. But if you are content to let the likes of Blythe Masters dictate the value based on truckloads of worthless paper promises, you can expect ultra-low prices until the whole thing blows up. Of course at that point, we'll be so busy killing each other for food no one will have time to say, "I told you so."
The silver vigilantes just want you to re-learn what the phrases like, "cold, hard cash," and "payment in full" are supposed to mean. There not asking you to sink everything you have into physical silver, just a little. Silver can't be printed into oblivion, or stolen by a cyber attack. Why wouldn't you want to own some of your very own?
A paper dollar from 1960 is worth exactly the same as a paper dollar in 2010, but four quarters from 1960 are worth more than $21. Given the fiscal insanity of the US government, I can't imagine the US dollar surviving another 50 years, but I'm quite sure that silver will still be useful.
Please consider getting some.
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