Something Weimar this way comes?
There is almost no doubt in my mind that we will see these prices for gold and silver. I am just not sure exactly how we will get there, and when. But I expect the unexpected, or at least that which is not expected by the many.
The gold / silver ratio between those prices is 17, which is close to the historically important ratio of about 16. The legal ratio of gold to silver set in France in 1803 was 15.5, and this was emulated in England and later in the US.
Obviously I am thinking of a return to a world bi-metallic 'weak standard' through the inclusion of both gold and silver in the basket of currencies that will be replacing the dollar as a unit of value in international trade. There are also several movements in the developing world to adopt silver for domestic use as a store of value. I think they will gain some traction as the currency wars intensify.
The current ratio is about 67. I cannot help but feel that silver is going to be simply amazing when its time comes, in part due to the decades of price suppression by US banking institutions.
According to the latest report from Shadowstats:
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I always call into question the source of these articles. This is from a site called the Silver Bear Cafe, so I can't help but think it is not impartial. All the talk of bi-metal currency and the "true" ratio of silver leads me to believe that the author owns silver and would either like to create demand in order to see his holdings increase in value, or the author is influenced by wishful thinking.
ReplyDeleteEverything they write may in fact be true, but I would rather hear it from an impartial source (if one exists).
The words in the article "both gold and silver in the basket of currencies" could be a good reason to suppress the price of silver and for them to later reap the benefits of a very large jump in the price of silver IF it was used to back a new currency.
ReplyDelete9:30, the article was posted on Silver Bear Cafe but written by another author from another site, check the link out.
ReplyDeleteEconomic Analyst, thanks for pointing that out. I googled the author of the article "Jesse's Café Américain" and found the article on another blog. I assumed that since the author's name was "Café" that they were tied to the "Silver Bear Café" blog.
ReplyDeleteI really enjoy the "Coming Depression" website and check it daily. I do make an effort to track down the original sources of the information I read on here because I've noticed that this site often does not link to them, as in this case. I wish it did so more often, since it adds credibility to the reports.
I feel a strong sense that silver and gold will become obsolete when the dollar dies. Who's going to give a fuck about your metals? There will be no centralized system to tell people what they're worth. It's only in our brains we've given metals their absolute value.
ReplyDeleteIn reality they have no value, like forks their usefulness derives from thought and came into existence through bullshit. Europeans ate with their hands until the 1500s, when a Turkish princess brought silverware to Italy and ate with it they stared at her like she was a barbarian and the Venetian Monarch threw her out.
In the 21st century when money died some former millionaire went up to a bunch of people who were working on building a community and offered them gold. They stared at him like he was a moron and told him to get the fuck out.
To Anonymous 1:20
ReplyDeleteThe thing is, how can we know that the dollar will completely "die"? If it retains any value at all, then Gold (and probably silver) will retain their high value. It's also very America-centric to think that, even if the dollar "dies", that gold will lose value. The Chinese or somebody with a stable-ish currency will still want it. If the dollar dies, we may all be trading in Yuans or something else. I mean, how can you import goods from other countries without currency? There will likely be something out there to replace the dollar if it were to actually die.
No - not stupid at all I think.
ReplyDeleteSpecifically when it comes to gold - silver is a little different story; because it is so widely used as an industrial metal.
Other than recent history; there is very little that says gold has to be 1200/oz other than "our thinking" AKA we really don't need that particular metal. I mean - yeah, a gold wedding band is nice but when push comes to shove; one made out of silver, copper or nickel means just as much.
5 47
ReplyDeleteyour to funny
and i like he said one dum mofo
id like to thank you any many dum mofo americans for keeping the price down.
thanks
cant wait to buy more toinght on the dip
I once saw a fiction movie where it happened that huge stores of gold were found and gold was no longer rare. It caused anarchy.
ReplyDeleteSo money is an abstract thing, really.
Money only represents value. It is not value.
What is value. Something that you act to keep.
5:47 I guess that you did not understand the article as it explained why the price of gold and silver will go up even if adjusted only for inflation.
ReplyDeleteGold and Silver have been valueable metals and MONEY for over 5,000 years and NO FIAT MONEY system has lasted even close to that long.
Yes if there is a really bad collapse then people may not care about gold and silver but they will still be worth something long after the US Dollar is dead.
Of course you first buy food, ammo, etc... and then some gold and silver if you have money left which many people do not because they spent it all on junk.
P.M silver and gold and silver , investors (some are “survivalist”psychopath individualists) dream of gaining great personal wealth and power as fiat money collapses with a quick clever speculative profit at social expense , can imagine any ‘logical “ or fantastic price in their dreams for gold and call that fantastic level of price true value.
ReplyDeleteSilver has an industrial use value , gold may a useful “permanent” store of labour created value . Both metals have historically been used and could still be used as money / exchange value to facilitate exchange and circulation of other commodity use values.
I consider, gold is already currently already wildly overvalued by these speculators, as it sells way above its actual production price . Even Though The PTB and derivatives scammers are working overtime in keeping the price down, making profits from the foolish speculators going long on gold ,thereby keeping the speculators and their wild speculative price dreams reigned in, as it is an embarrassment to the public confidence in their paper money .
The production price of gold being ,I suggest, the average cost of socially necessary labour time for its production in the competition .
For example ,third world labor hand digging .or extracting the gold out of tiny mines ,the ground or rivers ,competing for price with the costs of the capital invested by more productive industrial mining companies. Mining companies have to make a profit after paying for the cost of their labor and to get at least an average profit on their capital invested.
$1200 is already way above the world production costs of the gold companies and the cost of third world subsistence labor.
The value of gold can also be crashed down to the production cost price, any time the PTB producing paper fiat money see fit ,even if they have to spend trillions of fast hyper inflating dollars to do so.
Thus ,gold could even sell for a trillion paper dollars an ounce ,its price ,but its real value will remain the average socialy necessary labour time needed for its production, and their is a lot of cheap labour in the third world!
1:20 / 5:47 represents the typical American knowledge and understanding of gold and silver. The government and elites succeeded in brainwashing them, and will rape these individuals to the very end.
ReplyDeleteYou can sure see by the amount of replies the gold and silver comments elicit as opposed to the paltry few the survivalist stuff gets. I would think if the ass of my pants was ripped out and I was unemployed living on food stamps, the last thing I`d be listening to is some fast buck asshole trying to flog silver and gold. It may look pretty, but it sure as hell makes thin watery soup.
ReplyDelete5;47 here
ReplyDeleteThis is exactly why I always hesitate to post here. These numbnuts ride you like a cow in heat; never even having really digested what it is you've written.
Where did I say Gold is worthless? I am quite aware of the history of PM's.
I was merely stating ( as others have here since)
that Silver is protected somewhat from the whims of speculators because it is used in everything from radios and TVs to your microwave oven and it cannot be substituted for.
As the Poster at 8:31 correctly points out; Gold on the other hand is way over it's extraction price - which means somebody out there is artificially pushing it.
Never said it won't go to 5,000 an oz.
Just said there's not substantive reason for it to be there ( and more importantly; stay there ).
Prople like to jump on a rolling bandwagon and will ride that puppy come hell or highwater - and sure as hell do NOT want to hear theya re in the wrong.
The people that were really smart? Those are the ones that bought gold 3 years ago at 350 and sold 3 months ago at 1295; took those profits and bought another rising comet.
lol u got that right 12:48 I think 1:20 has something, maybe not exactly on time but he's on to something.
ReplyDeleteThe individuals calling him a MF and what ever are the ones who bought this stuff ad are now "hoping" it goes to 20K an ounce, lol
like the people in the stocks.
Beside why is this stuff always figured in "dollars"? and why would I if I had all this gold sell any of it if I knew it was going to 5 or 10 K an ounce? why would I even want any of your dollars at 1200? Hell why "sell" any of it at all.
This stuff is like that Kramer on CNBC pitching stocks to the usual lemmings that would buy anything in the market. Yeah its OK if that's your life and you live and breath that and know every in and out, you will probably make money, but most are the usual greedy "give it to me now" lemmings that he's selling this to, which makes him more money as they buy all that crap.
Exactly so !
ReplyDeleteI have posted here on numerous occasions saying the same thing.
Let us all not forget that 98% of the time - people are selling to you - and also do not forget - they sell just about damn near anything
Sometimes it's as honest and unassuming as an idea of theirs and they are desperate for you and others to share that viewpoint to validate themselves.
Mostly though peopel sell yo you for monetary gain and we have been playing that game since the beginning of time.
All I say to people is think it thru and dwell on it a week or 2. If it still makes sense then go - if you smell something fishy - get out.
I smell something fishy when a commodity with an extraction value of $475 bucks is all of a sudden triple that amount.