Why most people buy PMs for the wrong reasons...

How old are you, @Johndoe2000$ ? If you are under about 50, you MIGHT CONCEIVABLY live long enough to see $200 silver, but you'll be decrepit. If you are on the long side of 50, you'll NEVER see it. In fact, it's only about a 50/50 shot you'll ever see $60 silver.

We only lose our collective minds about every 30 years.

 

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In Detroit, the "recycling" of catalytic converters was done mostly whilst you were in the donut shop standing in line waiting

I don't know how the new law has affected it, but it was still a strong thing happening ==> http://www.clickondetroit.com/news/thieves-targeting-catalytic-converters-in-detroit-macomb-county

 

Yes, but the huge sudden glut of used cars decommissioned in 2009 was a windfall supply. But they didn't get my 1962 Continental or my 1988 T-Bird.

 

I analyze public economic data for a living, and I am 61 years of age, and I expect I have already seen the highest silver prices I ever expect to see in my lifetime. My son's lifetime is another matter. But he's 21 and he'll never see triple digit silver. I'd say it's about a 50/50 chance he'll see $60, but after he does, he'll see $25 again.

Why? Because we've beaten inflation. What we have NOT beaten is an irrational fear of it.

You see some prices go up and you're all, "Look, inflation!"

That's WRONG. That's not inflation, it's an economy so wussified that we no longer crush monopolies and oligopolies when they raise their malodorous heads.

You want stable prices? Don't talk to the Fed, go see the FTC, the SEC, and the Commerce Department and tell them to put on their Teddy Roosevelt trust-busting big boy pants and go do their stinking jobs.

 

My thoughts exactly.....

 

TREASURE BATH!!!!!

 

Not true. I use "real" money (PMs) occasionally though rarely, Gresham's law being what it is.

State taxes here are off the charts and so too, property taxes. Big ticket items such as vehicles, are a no brainer if and when you can get the other party to understand (buyer/seller). Even buy lunch for three people for $1.00 (silver eagle) every now and then.

Starve the Beast! Freedom demands no less...

 

I think it comes down to definitions. Most modern "experts" (Keynesian) define inflation/deflation as an increase or decrease in general prices but other economists define them as an increase or decrease in the money supply. I agree with the latter.

 

Bbbbbbaaassswwwwhhh!!!! Who's the "we've" that has beaten (price?) inflation? Asset prices? Healthcare? Homes? Food? Rent? Energy? Oh wait a minute... Big screen TV prices and other junk from China seems stable, even (price) deflationary.

Who might we talk to at the "FTC, SEC" or the "Commerce Department"? Do we vote or just call directly and have them break up their monopolies? (lol)

 

Of course you may use what you call "real" money, or any other commodity or service, if the recipient accepts it. You just need to agree on how much your gold or wheat is worth.

Christian

 

The Government thinks an ounce of silver is "real" money, they even have the treasury denominate it at $1.00. They don't do that with "wheat".

I wonder what the definition of a U.S. Dollar is or if it is even important? Unit of account (Measure of value).

 

How can that analysis possibly be right? According to that theory, the government thinks an ounce of gold is both $50 and $100 simultaneously. No, PM's are not money. They can be TOKENS representing money, as can many things, but to say precious metals ARE money is a bald-faced lie.

 

Nearly everything where a truly free market applies is price deflationary. Where monopoly or oligopoly reigns, whether done by industry itself or governmental licensure, we find price inflation. It's quite simple really, there is far too much of our economy that doesn't work like a marketplace. We need to get away from this jingoistic "'Murrican free market" silliness. It largely is a figment of our imaginations.

 

Right, if you use a one dollar, one ounce silver coin as a means of payment, people may well accept that as a $1 coin. If anybody accepts that at a different value, fine - but then we're back to (any) commodities.

Christian

 

It ISN'T important. It's a score, a method of keeping track. That's all it is. The world economy is one without a fixed yardstick with which to measure anything else. It's almost "cosmological" in nature. Nothing can be measured except in relation to something else. I know that makes some people's minds bend, but it happens to be true. It can be uncomfortable for those who feel a fixed yardstick is important, but I guess they've been "out-voted".

 

Beautiful article. Where I feel we are different today however, is there is no inflation. Why? No one has money. If for example, fuel cost increase the $/gallon, we would drive less, thus pushing the cost down again.
In past times, when people had higher wages, they would not adjust their lives since they could afford the increases.
The American economy drives the world economy...still, and we are losing our wages. Consequently, there is no room for inflation. Now, artificially inserted climate taxes will cripple us.

 

Brilliant! There is hope for some in this hobby!

 

I agree with you. One thing that gnaws me however, is eventually, we (or my grand kids) must pay back $ 20 Trillion dollars. If our salaries continue to fall, eventually it has to cave in. And remember, 1 Trillion seconds = 33,000 years.

 

I use them as money (medium of exchange) as do some number of others I do business with therefore, they are money.

Local taxes create a market environment that favors PM monetary units over fiat for initial purchases (lower prices). Of course tax settlement is still best accomplished with the paper version of the dollar.