In the 1800’s, almost every nation used silver for coins, and as a monetary system. The U.S. stopped buying silver, known as the ‘crime of 93,’ because it thought it had enough, (it didn’t), causing the mines to shut down, and creating a silver shortage for several years. The 1849 gold discovery in California, plus similar discoveries in Australia and Siberia, made the world have plenty of gold, but not nearly enough silver. World gold production in the years 1850 – 1875, exceeded production in the previous 350 years. The gold-silver ratio was 15.5 to 1. Mexico’s silver mines were rich in the shiny metal, and still are. In January of 1853, Mexico elected Santa Anna as president. In December of 1863, the Gadsden Treaty, allotted even more Mexican Territory to the United States. Also in 1863, under Santa Anna, Mexico refused to export silver, which exacerbated the world shortage of silver.
Santa Anna, was illegitimate, a womanizer, mean, and in general, not a nice guy, even though he had a brilliant career in Mexico, till his inglorious end. Mexico, had allowed Americans to settle into the Texas Territory, and populate it. It was a flat desert, had no minerals, and Mexico really didn’t want it, but thousands of Americans from Arkansas, Tennessee, and other places, decided to move into the Mexican Territory of Texas. They got their land for two cents an acre, and called themselves “Texicans.” Santa Anna, wanted the Texicans to pay taxes to Mexico, and naturally they refused, which brought on the Alamo. Sam Houston, was one of the settlers. A former governor, congressman, general, and friend of President Andrew Jackson, he was not present at the Alamo, which the Texans lost.
A visit to the Alamo at San Antonio, I am certain, will bring tears to your eyes. If you haven’t visited The Alamo, you certainly should.
In San Jacinto, the Texans won, thanks Sam Houston’s lead, even though they were outnumbered 4 to 1. Santa Anna, had his men ready to fight, but the Texans didn’t show up, so he told his men to take a nap and relax, which they did. Santa Anna, went into his tent with a black gal named Emily, who was also a secret friend of the Texans. She seduced Santa Anna, and when the Texans came, he had his pants down. The Texans won, the Republic of Texas was born, and she became known as “The Yellow Rose of Texas.” That’s where the song originated. After his defeat, Santa Anna faded into obscurity.
What does this have to do with silver? Not an awful lot I guess, except I love Texas, except its too flat and hot, but Colorado gold, has a lot of Texans as customers, and they might like the above story. We Colorado people, say that it is Texas’ money which keeps Colorado green in summers, and we keep Texas green in winters. “The Yellow Rose of Texas,” I am certain is known by everyone, and not just Texans. Next time you hear it, think of old Santa Anna with his pants down, and the origin of that familiar song.
As opposed to times past, neither silver nor gold is in short supply, but mint capacity for silver, is short. Why? Because the ratio is no longer 15.1 as it was 175 years ago, but 86 to 1, making silver cheap, compared to gold, even though it requires 86 times as much space to store. No one knows what will happen in the future. In Mexico, there have been two earthquakes at the same spot in a week. Did anyone know in advance, this would happen? Could anyone possibly predict that Nova Scotia would have a hurricane? Of course not. All we know, is that the Swamp is populated with politicians and bureaucrats, who are interested in one thing, and that is advancement and winning an election. Both of which, mean that government will constantly increase, national debt will escalate, and the presses will continue to run, causing inflation, regardless of the nonsense which the Federal Reserve spouts forth weekly. The Fed’s erroneous thinking, is if they increase the interest rate, fewer people will buy homes and use credit to spend, which credit and mortgages, are created out of thin air. All the mortgage and credit money created out of thin air, is microscopic, compared to what Biden and his congress have caused to be printed, about five trillion bucks, added to the national debt. The result of the Fed’s mistake, is a crippling of the real estate industry, and perhaps another recession. How nice our economy was under Trump!
Silver and gold, will remain real money, regardless of what the future holds. No one knows when the dollar, or any other paper money, ends at zero. The buck has gone down probably 95%, since we had nickel candy and Cokes. Leave real money it to your kids with no inheritance tax and probate, but certainly do not save in anything but gold and silver! In ten years, gold has gone up 50% and silver 300%, making the buck seem insignificant, to me anyway.
GOOD NEWS
The UK has a new prime minister. A tall gal, who is doing almost the same things as did Maggie Thatcher, Ronnie Reagan, and Donald Trump in America. She has cut taxes by 50%, and is weeding out absurd bureaucracies, to hopefully balance UK’s budget, and slow or stop the pound’s presses. In Iran and Russia, the citizens are rioting, complaining about their respective governments, but not having guns, they have no power over the ruling elite, so their efforts may be in vain. Believe it or not, Italy is having an election, with right wingers in the lead, although the results may not be available for a week or so. We’re stuck with empty faced and brain Biden, and his far-left stooges, who we all hope will bite the dust in a matter of weeks. Keep the faith!
Don Stott – don@coloradogold.com.