First line from a column I wrote August 1, 2002: “Gold broke $300 this morning.” Maybe this line will make you realize the folly of storing surplus wealth in dollars.
Whenever there are improvements in anything, the manufacturers, sellers, parts dealers, and those who repair the items, lose their jobs. When diesel-electric locomotives became 100% of train power, all those who had jobs depending on steam, became unemployed. Coal miners, steam locomotive manufacturers, firemen, mechanics, and perhaps hundreds of thousands, lost their jobs. Steam locomotives had to have water every hundred miles or so, and had to have their rods greased, etc. Wonderful, romantic, inefficient, railroad locomotives, which most of us thought was almost human with its sounds, were gone, other than in tourist lines, which will never recapture “The Capitol Limited,” or others I remember so well.
Many today, and myself included, believe that gasoline and diesel powered cars, trucks, and locomotives will become extinct eventually, including repair facilities, mechanics, manufacturers of all than goes into the gas and diesel vehicles, including fueling facilities, will no longer exist. Millions of jobs will be lost, already beginning now. Ford already has over 100,000 reservations for their soon to be released electric F-150 pickups, and Tesla is making hundreds of thousands of cars each year. Mercedes will make nothing but electrics after 2025.
Since gasoline and diesel automobiles and trucks are universal in all nations, and especially in America, the millions of unemployed, will be unbelievable. Electric vehicles have no automatic transmissions, exhaust systems, radiators, fuel injection, ignition. pollution controls, etc. which are necessary in current modes of transport and freight hauling. Typewriter repairmen are long gone, and propeller planes are virtually extinct in the airline industry. No-iron clothing, bearings requiring regular lubrication, and the list is virtually un-countable, listing all the jobs which have been lost. Those who have lost jobs, have died, retired, or been re-trained in some cases, but in the auto-truck-locomotive area, these people will have a difficult time. They are not as old as steam locomotive engineers, repairmen and manufacturers, and that phenomenon took place over a 50-year period. Electric cars and trucks, will become literally un-wanted and a dreg on the market, in maybe 25 years.
I wonder why all the new electrics seem to be able to go about 300 miles before re-charge? Makes no sense to me. Why not 500 miles, or a day’s trip? Friday’s Journal had a story about a battery manufacturer who is using sodium instead of lithium in new battery technology, which will cut the cost of batteries and make them go longer before needing re-charging. There are constant developments in all areas of our lives. Can you possibly remember the world without computers? I can. Do you remember wringer washers, tires having tubes in them, dial telephones, or the carburetor? Typewriters, filament light bulbs, and cars that had grease nipples?
As the millions of jobs disappear with increased regularity, inflation will rear its ugly head, as it already has under Biden. America is now going to copy China, by subsidizing the manufacture of computer chips. I am certain government subsidies of other things China has been subsidizing, killing industries in the ‘free’ world will soon happen. Is this the beginning of the end of government non-intervention? Subsidization everywhere, has fostered corruption, inefficiency, larger government, and increases in the money supply. Will the dollar go the way of gasoline and diesel powered transportation? It already has, but it has taken longer. The result will be the same. Antique cars and trucks will become collectible as will old hundred-dollar bills in mint condition. There is a move afoot to have a one world currency, or ‘digital’ money. This is supported, by guess who? China and nations who already have become socialistic to a far greater degree than America. A digital currency around the world will kill the buck, but gold and silver will be exempt, since their value is not dependent on digital anything, or paper money anywhere. Just imagine $300 gold 19 years ago, or 19 years from now, gas powered cars or diesel trucks.
I got a call Friday, from a former customer, who bought a lot of silver, and he is thinking of selling it all, since it has gone up so high in dollar prices, and to quote him, ‘It gives me no pleasure sitting in my garage.” I told him where it would have to go, we charge nothing when he sells, but he has to ship it, etc. I also gave him a lecture about how silver and gold don’t give ‘pleasure’, but safety and security. He will probably call me about his decision, after this has been posted. He’s 82, and I told him I’m 87, and am not selling anything!
-Don Stott
don@coloradogold.com