Silver getting crushed today

That was a very complex scenario back in 1994 timeframe.

You can create a similar effect in modern economies. Just peg the currency to PMs.

 

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Are we ready to RUMBLE !!

 

Lets see if the saudi rise in oil effects PM prices.

 

The problem with middle east oil, is mid-America fracking oil.

I'm sure Argentina would love to surge sales if the middle east reduced production.
http://www.kitco.com/images/live/silver.gif?0.20686558348126582

 

I think that in this point in time it would be well-nigh if not downright impossible, and not merely unfeasible, to peg any currency to PMs under any circumstances whatsoever anymore. Before the creation of our modern fiat currencies, PMs clearly were the primary vehicle for ordinary financial transactions. Then, PMs were withdrawn from day-to-day public usage and stored away in vaults to back up the gold and silver certificates that represented a virtual ownership by the holder of actual stores of gold and/or silver locked away in some secure location. The next step eventually taken was to detach fiat money from any connection to an equivalent amount of value in stored PMs. Once this maneuver succeeded, it was no longer incumbent for the fiat-currency-issuing entities to have any need and/or cause to maintain any equivalency between currency-backing PMs and the fiat currency itself, and storehouse quantities of PMs could be drawn down upon as needed, for whatever purpose designed, without impacting the public's trust in the solvency of their fiat currency. And now, not in any way surprisingly so, we are faced with a situation where most and in the cases of some storehouses possibly all of the PMs no longer constitute any actual presence, which is to say they have literally "migrated" elsewhere forever. Since PMs, and most specifically so in the case of gold, have a fixed quantitative physical limitation, which is to say that there is a condition of absolute stasis in the amount of gold in existence in the world, fiat currencies long ago passed, and by an already considerable and ever-increasing number of multiples, the point where they could ever be covered by their equivalent in PMs. In summary, it isn't possible to back up any more than a tiny fraction of the world's fiat currencies with ALL the existing amounts of PMs put together, so that ship has long since sailed. We are stuck with fiat currency that has no equivalent PM back-up, and as the population and with it the economies of the world grow, that already-enormous discrepancy between circulating fiat currency and existing quantities of PM will inevitably continue to increase at an ever faster clip.

 

Yes, unfortunately, the notion that an increase in money supply = trickle-down inflation is a popular myth. The inflation starts with rising prices that stick. Generally that's commodity-related. The increase in currency is a reactionary accommodating measure - it doesn't cause/start the process.

Often it's monopolistic scenarios relating to a particular high-demand commodity that drive up price, which can ripple through several sectors. Though the 'cartel effect' functions just the same.

 

Totally agree. Just think of the massive currency fluctuations that would happen if one tried.

Plus, economies have changed from localized/national economies to global economies. Which totally messes up the currency/PM pegging.

Also, I think the US Gov't only maintained around 30+% of PM in storage in relation to floated currency back in the day anyways.

 

I have mentioned this before, but perhaps it is worth repeating.

Everyone should read The Creature From Jekyll Island. You don't have to agree with its contents but you should at least read it and form you own opinions of it.

 

The SINGLE WORST tome on any aspect of economics ever written by the hand of man. It is literally filled with outright lies and misrepresentations and is written by an individual with absolutely no credentials in economics whatsoever. The author is a well-known conspiracy monger and his education is in broadcasting, not econ or finance. He was the speech writer for a past out-of-the-mainstream V.P. candidate (not of either main party).

How's that for my own opinion?

 

I don't see it happening in our lifetimes, not to that extent even with inflation. For 14k gold to happen that's basically a 6/7x increase over it's highest high which it didn't sustain for long. Even for a spike that's a very extreme increase that will have to fight through significant downward pressure of a lot of investors waiting for the fall

 

When are you going to tell us how you really feel?

Glenn Beck's a believer!!!! That adds some real credibility!!!

 

My God I am so bored of if it will go up, will it go down,my God...

 

What.... it whet to .26 An Oz. bored , tired, sood off

 

No, no it doesn't.

 

I prefer Francisco's money speech. Although it is bit long, it's a fantastic read.

 

http://www.kitco.com/news/2017-11-07/Gold-Silver-Pressured-By-Higher-Greenback.html

 

When are you going to tell us how you really feel?

I agree w/ you, Glenn Beck is a joke IMO.
I was making a joke.

 

Actually, CT rules prevent me from saying how I really feel about this shameful piece of garbage, ... and the book he wrote.

 

You did a pretty good job, IMO.

 

There isn't enough of anything "real" in the world, to cover the issuances of "fiat currencies". The current Ponzi scheme is debt based, it's a claim (promise) on future wealth, it doesn't actually represent current "stuff". When it inevitably does, it will collapse like previous schemes.