Discussion in 'Bullion Investing' started by fretboard, Dec 19, 2020.
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Paradise, then, might surely be lost.
Paradise Lost, by Milton.
Gustave Dore was born January of 1832. The silver to gold ratio was 15:1. In 1834 the Silver and Gold ratio was raised to 16:1. When Dore passed away in 1883, the silver and gold ratio was 18.4:1. One ounce of gold bought 18.4 ounces of silver. In 51 years of Dore's lifetime, the silver and gold ratio changed very little. What has the ratio done during your current life, not counting unusual events. As for me, in 1949 gold was $31.69 per ounce and silver was 70 cents per ounce or 45.27:1. Today as I type this the ratio is 73:1. Have faith. There is a chance in a your lifetime the value of silver will go back to $40 per ounce. It's been there a couple times. What unusual event or drop in the value of the dollar will bring it to $40 per ounce?
That's because it was more or less fixed by law. Those laws led to spirited, and sometimes violent, political conflict. They also led to economic upheaval, as the gold supply suddenly increased (various gold rushes) or dropped (a single shipwreck kicking off a depression).
I'm happy to trade a fixed gold/silver ratio for a more distributed and more stable economy.
(lights fuse, runs away...)
IMO, Dore, Bernini, and a few others have created works of art that are not of this word.
Dore's illustrations in the Divine Comedy, Bernini sculpture of the Ecstasy of Saint Teresa, and some others.
I'm blown away at the unworldly quality of some works of art that do not appear to me as being created in our world.
Now for the bad news related to stocks and bonds. Lets assume the markets crash. I'm not talking about a drop in value I'm talking about total or close to total wipe out. 1929 was a close to wipe out. That would also mean the federal government can no longer back it up. Then the stocks and bonds have zero value. In other words your stocks and bonds are toilet paper. This can happen and has happened. You could have a thousand shares in Microsoft but, if Microsoft goes under you have ZERO. This can happen. You can have all the paper you want but if no one wants it your done.
Right now I have no idea why the stock market is as high as it is. There is no reason with the amount of people out of work and the government just printing paper money with nothing backing it at some point the federal reserve will implode. Everyone needs to understand that the cities and towns are not getting the tax income they were normally getting so they will run out of money soon. What can they do? Get rid of their employees, stop paying for health care, stop paying pensions and all the benefits they give out. So what can they do? The state governments are in the same boat. So what's next go to the federal government? Guess what they have the same problem. So their only choice is to print more green toilet paper. See the picture below of Germany after WW 1.
I don’t think I would want silver to be $40 an ounce. Or gold to be $2000+ an ounce.
Usually when precious metals skyrocket like that it means something terrible has happened and the economy is in crappy condition.
I would much rather have a strong economy with low precious metals prices so I can keep stacking and buying gold & silver coins at lower prices so in the event a really horrible thing happens I’ll be prepared.
That’s just me though.
I just can't see how holding more silver will help fight COVID or unemployment.
It won't help fight covid or unemployment , but will help to protect your wealth.
Economy won't be same anymore after all those money being printed , and the debt all time high .
There's no end in sight for massive deficit spending. In the not too distant future interest on the national debt will reach >$trillion/year.
I must agree with your comments. I don't know what is holding the economy together right now. Unemployment is really at 20 to 25% don't be fooled by CNN or other news broadcasters are saying. For those that still have jobs some have been given pay cuts. Also when they talk about new jobs added most of those jobs are low paying jobs. So when discussing gold and silver as an investment it's not. It's survival money. Covid-19 has just shown the world how weak we really are. The world economy is on the edge of a cliff. Humans have beat many enemies but, viruses will win every time. We will beat Covid but the damage has already been done. So Covid has already won the war. So the bottom line is never assume gold and silver are good investments. Gold and silver are great to have and use for trade. Humans have an over 5,000 year history of using gold and silver for trade. That will never go away.
We have two (or three or four) economy's in USA. For those making over 75-100K (white, college educated professionals) the unemployment has been very low. They are working from home, saving on expenses from that, refinancing their homes to historic low rates to save more money, homes have shot up in value, and their 401K's are doing well with the stock market. Car sales are even up. The top 1% have made out like bandits. But the bulk of the country as you say is not doing well - and thats going to continue to impact us for a while - not to mention federal/state/local governments who are in terrible shape with debt, loss of tax revenue, etc.
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