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<p>[QUOTE=&quot;InfleXion, post: 1774364, member: 29012&quot;]Not exactly. The inflation adjusted high for silver is $800/oz in 1998 dollars a few centuries back. I don&#039;t know what that would be today, but you&#039;re not going back far enough and the limited perspective you&#039;ve imposed is misleading.</p><p><br /></p><p><br /></p><p>Again, you are imposing a misleading scope. The gold/silver ratio was fixed in 1791 at 15:1. The free market was ignored after that and fair value was lost. Again, you need to go back farther. Even the Coinage Act of 1792 is not an ideal resource. You will have to go back farther than that and look at free market forces if you want to know the last time we had fair value.</p><p><br /></p><p>Of course that was prior to dollars as we know them today, during a time when all other assets were valued in grains of gold and silver. So all we can really deduce is that an ounce of silver is worth an ounce of silver unless you want to look at it from the perspective of money supply divided by metal supply which is the only reliable indicator in my book.</p><p><br /></p><p>If you want to go way back in time to the BC days silver and gold were at parity for a time in Egypt prior to silver refinement being commonly understood. It doesn&#039;t just fall out of the dirt like gold. So it has happened before.</p><p>&nbsp;</p><p><br /></p><p>Fair value will come into play when the physical market is sparse enough to require it. I believe it could come into play in my lifetime because of the nature of exponentially growing debt. Allow me to elaborate on exponents.</p><p><br /></p><p>[Kudos to Chris Martenson for this analogy]:</p><p>Take a sports arena, and put 1 drop of water in it. This is a special drop of water, it grows exponentially every minute.</p><p>1 minute passes: 2 drops</p><p>another minute: 4 drops</p><p>another minute: 8 drops, then 16 drops, 32 drops, and so on.</p><p><br /></p><p>Hours may pass without anyone noticing the tiny puddle on the floor.</p><p><br /></p><p>It might take a few days before that arena gets to 10% full of water.</p><p><br /></p><p>But after that it would only take 5 minutes to fill the entire thing. People would stampede for the door but it will be too late by the time they notice it. There was more than adequate advance notice, but they didn&#039;t heed it.</p><p><br /></p><p>Anything growing exponentially is not to be taken lightly, but when that thing is debt which burdens our citizenry it is of paramount importance.</p><p><br /></p><p>In my view you are the one rolling the dice by assuming that things can continue to go on like this. I am playing it safe. And since I don&#039;t plan on selling my stack for debt-based fiat currency I have no risk on my &quot;bet&quot;. I was betting my whole life by holding fiat dollars, and now I&#039;ve exited the casino. Your perspective is inverted.</p><p><br /></p><p>Once things revert to equilibrium we will have a window of opportunity at fair value before the next oppressive system comes into play.</p><p><br /></p><p>Additionally we are at a unique point in US history where there is literally zero government stockpile of silver. They can&#039;t even adhere to their own laws around silver eagles which require all silver used to make them to be mined in the US, because demand for SAE&#039;s alone exceeds all the silver mined in the US in a year.</p><p><br /></p><p>Of course all the prices I am discussing are in USD. China has plenty of gold and silver and so their prices will much more affordable in their (much stronger due to having metals) currency going forward. The US/EU empire currently sets the price of metals, and once they lose that ability (COMEX inventories running out of gold faster than ever) the current manipulation scheme will be over, and it remains to be seen whether a new one will (or can) take its place (it would have to come from China/Russia/India since they have all the metal). However they have no incentive to suppress the price because they will be the beneficiaries of rising prices. Why do you think they have been telling their citizens to buy gold?</p><p><br /></p><p>Additionally, due to continual inability for silver mining supply to meet yearly demand coupled with declining ore grades (hence 8:1 GSR mining ratio instead of 15:1, silver is becoming scarce underground faster than gold due to being deposited only epithermally [near the surface of the crust] where as gold is deposited both epithermally and mesothermally [deep veins]) there will inevitably come a day where the price will have to be set by the physical market, and then we will see fair value going forward. There could also potentially come a day where silver is more rare than gold underground if the trend continues.</p><p><br /></p><p>If these things do not occur in my lifetime then my children or their children will benefit, but I am my own central bank acquiring my own generational wealth in real assets, not IOU&#039;s with counter party risk and no intrinsic value.</p><p><br /></p><p>How much is trust worth? Opinions will vary. For me you can&#039;t put a price on it. The price is whatever I can afford.</p><p><br /></p><p>Apologies for the thread drift, but these things need to be understood if we are to prosper as a nation in the years to come.[/QUOTE]</p><p><br /></p>

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