"[Silver] was politically demonetized beginning in 1873 and ending in the late 1930s when Roosevelt's silver manipulations forced China off the silver standard. Removing all that monetary demand for silver naturally made it lose value against gold, and rising industrial demand could not yet soak up the excess supply."
It makes you wonder whether the United States is as rich as it is because
it went off of both the gold and silver standard. Maybe the fact that America started living off of credit and fiat money (money that the government mandates is legal tender but really has no actual value) gave it the leverage to spring ahead of everybody else. However, we all know that fiat money can have the bottom fall out from under it (see the Japanese Yen in 1989 - it is still
recovering. I wonder if it was smart in the short run (of 100 years or so) but dumb in the long run. Sure I can buy expensive houses, cars, jewelry, and great stuff on credit - but that doesn't mean I can afford that debt and continue living that far above my means in the long run.
Historically gold was more expensive than silver because there was 8 to 12 times as much silver as gold. I don't know if anybody has been paying attention, but we've already mined 95% of the worlds surface silver. Nowadays there is 7 times as much gold as silver! Also, silver has a rising demand every year because it has an ever increasing industrial use. In other words we have used 90% of the worlds surface silver in the past 100 years and we are using more
every year, yet it still doesn't cost very much.
The government wanted us off actual bullion (silver, gold, etc) as currency so it forced us to use worthless paper money instead. It's an "agreement" that the government has forced upon us. When we run out of money, the government simply prints more. I feel like we've been living in a land of make believe our whole lives and somebody is just going to stop playing the game sometime soon. We're living in the money Matrix and I've just figured out the facade that has been in place this whole time. There is no dollar
Is it possible that the dollar (well, all of the world's fiat money) could collapse? I mean, do you understand that at a point in time the paper money we had were representations of actual bullion (silver or gold) that was held in a safe repository somewhere (like a bank)? Paper money exactly represented trading gold/silver for other goods or services. Now it is simply paper money that represents...uh...well, the government tells us it has legal value. Dimes and quarters used to have 90% silver in them and were roughly equal in value to the precious metals inside. In 1965 they changed half dollars from 90% to 40% silver and most other coins were filled with worthless metals. Let's just say that coins prior to 1965 are worth a bit more than face value.
Anyway, I haven't plunged into this yet, but I plan on grabbing up all kinds of silver and perhaps gold since it never really loses value. It fluctuates in the market, but over time it is more dependable and stable than almost any other commodity. In the long run your pile of silver and gold can be traded for more and more of the increasingly worthless money we use to buy things with.
Labels: money, silver