Is silver a better buy than gold? Long term, I say yes. Why? Because, currently, gold is 50 times more expensive than silver, meaning that the ’ratio’ between them, is 50 to 1. Throughout history, and even in 1980, gold was 16 times more expensive than silver, or a ’ratio’ of 16 to 1. Look at any place in the history of the world, and the ’ratio’ between gold and silver was 16 to 1, and even 15 to 1 sometimes. A couple of years ago, gold was 77 times more expensive than silver, or the ’ratio’ between them was 77 to 1. This means that silver has risen in dollar prices a lot further than gold, and we honestly believe it will continue, till eventually, the ’ratio’ will revert to the historic 16 to 1. Next week? Next year? No one knows. All we can do is look at history for thousands of years, and the ’ratio’ was 16 to 1. If we had a gold-silver ratio today, of 16 to 1, we’d have $106 per ounce silver. Silver requires a lot more storage space than gold.
Why isn’t silver better than gold, short term? I don’t think anyone should buy either gold or silver short term. Gold and silver are to preserve your net worth, and pass on to your descendents, not to gamble with ’short term.’ Precious metals are the absolute safest place to place your dollars, without any doubt or hesitation. The Treasury sold $32 billion worth of their paper yesterday for 1/2% interest, which to me is a joke, because food prices have gone up 10% in the last year, and fuel even more. Smart people around the world, are worrying about their paper money losing value, and this is a legitimate concern. Most consider gold, not silver, to be ’safety,’ and of course gold has been historic safety throughout all revolutions, collapses, and economic upheavals. Both are extreme safety, and if the truth be known, there is far more gold above ground than silver, which speaks even better for silver. The plight of the euro and dollar, may keep the ratio at 50 to 1 for a couple of years, because of people’s frantic rush to gold’s supposed safety, but no one can know. Both are extreme safety, neither are dependent on any government, and both are self backed, having worth, beauty, and being historic, actual money themselves, in all nations and civilizations.
There are several ways to buy silver, and as far as I am concerned, all but one are OK, and the one I have a problem with, has good reasoning. The one way to buy silver that I have a problem with, is the so called ’bag’ of U.S. silver coins. ’Bags’ contain $1,000 face in pre 1964 dimes, quarters, or half dollars, the half dollars being $50 more than dimes or quarters. Why don’t I think that ’bags’ are a good way to buy silver?
Bags are heavy. 56 pounds. They are heavy cloth bags which are sealed, and they take up a lot of space in a safe or storage facility. You have to be pretty old to know or remember that America at one time even had silver coins. They stopped making them 48 years ago. Take a silver quarter to a grocery store and tell them it’s worth $6, and they’ll think you’re nuts. U.S. silver coins were 90% silver, but there is nothing on a dime, quarter, or half that says it’s silver. “See, it’s dated before 1964, so it’s silver,” you’ll say, and they’ll still think you’re nuts. There is nothing on the coin that says it’s silver, but even if it did say ’silver,’ there’s no weight on it, and believe me, a silver quarter does not have a quarter ounce of silver in it, nor does a silver dime have a tenth ounce of silver in it.
Think there’ll be rare coins in a ’bag?’ In 48 years, I am certain they’ve all been gone through many times. You’re going to barter with them? I think not. Grocers, gas stations, hardware stores and Wal Marts have to pay their bills in dollars, not silver coins. You need to have silver coins which are easy to convert into dollars, so you can buy what you wish. Possibly, farmers might trade for silver to a limited degree, but remember, they have to pay for their diesel, fertilizer, insurance and property taxes with dollars, not silver, and I’m certain they’d rather have the ounces stamped right on the coin or bar.
The silver which is easy to convert into dollars, has its contents stamped on it, such as, “One Oz, .999 pure,” or similar. When you have silver in ounce denominations, they’re easy to convert into dollars. One Hundred ounce silver bars are the cheapest at 55 cents per ounce over spot. U.S. Silver Eagles are the most expensive, at $2.50 over spot. In one ounce coin size, the A-Mark round is 85 cents over spot and very pretty. The 10 ounce bar at 80 cents over spot, is very shiny and individually wrapped in clear plastic. Hundred ounce bars are 6″ long, 1.5″ wide and 2″ thick, and stack easily. Bags are a first rate pain…in my opinion anyway, but silver is great.
Ron Paul gives all the correct answers to any question, and most think he’s great, except for his “Foreign policy.” Paul’s “foreign policy,” is to stop fighting foreign wars and bring the troops home. He can’t understand why America thinks it should be the policeman of the world. Neither can I! WHAT’S WRONG WITH GETTING OUT OF AFGHANISTAN?