As of Friday at 10:30AM, when I began writing this, the gold-silver ratio was 70.24. If the ratio were 16 to 1 as it has been throughout history, (even in 1980 it was 16 to i), the price of silver today, if the ratio were 16 to 1 would be an astounding $105.75! Not the $16.97 it is now! Not let me repeat: IF THE GOLD-SILVER RATIO WERE 16 TO 1 TODAY, THE PRICE OF SILVER WOULD BE $105.75, NOT $16.97. Let that sink in for a while. (This morning, the ratio is 70.11.)
Throughout history, even in Biblical times, Roman Times, Greek Times, Medo-Persian Times, Egyptian Times, Civil War Times, etc, the gold-silver ratio was 15 to 1, 16 to 1, or thereabouts, not 70.24 to 1. There is far more gold above ground that silver. A mine in Ouray, Colorado, (The Revenue-Virginius at 12,000 foot elevation) currently operating, and producing silver, can’t produce it at this level, and the miners are laid off. THIS IS A SCREAMING BARGAIN! AN UNBELIEVABLE BARGAIN!
The Comex, which holds the silver contracts, has maybe 30% of physical silver for every contract, rather that the 100% required by law, and no one enforces this law. Suppose all the contract holders wanted to cash in and demand physical silver? There goes the Comex, and they’d have to buy the physical to fill demands, which would make the price of silver go sky high, probably.
Silver is an industrial metal as well as a precious metal. It is used in various electronic devices, such as computers, plus lots of other electronics. When silver is used for electronics, medical, or even jewelry, much of it is lost and non-recoverable. So, silver is a hedge against a falling or failing currency, and at this time, a huge hedge, because the supply is weak, and the dollar is strong. Gold has not gone as low as has silver, and if you have a place to store it, it is a huge bargain. Is it at the bottom? I have no crystal ball, and cannot for the life of me understand why it is as low as it is, since I am quite certain it cannot be mined at this price, at least in America. Overseas? I have no idea. I am not prescient; I just think I am sometimes. I bought for myself last week, and the week before, both times thinking it was at the ’bottom,’ and I was wrong both times! See? I am wrong a lot of times! But we are totally honest, have been doing this for a long time.
Why is the dollar high? The euro is weak, and the European economy is bad with high unemployment, and they are printing euros, just like the dollar. A recetly completed “Geneva Report” says that especially in Europe and Japan, the debts grow, and the growth is poor. The Japanese economy is probably the worst in the world, and they have enormous debt, and of course print the yen endlessly. The Chinese yaun? I don’t know, but many think the Chinese economy could crash because f huge debts and foolish spending. The Geneva Report backs this opinion. Should the dollar be strong? Should the stock market be high? I say they shouldn’t be and won’t be forever. Any silver or gold holdings, regardless of the currency you buy them at, are still real money, and not dependent on any government. There has NEVER in history been an unbacked paper currency that didn’t eventually go to absolute zero, and remember that has happened three times in America already.
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