Just imagine an imaginary, well publicized and advertised, un-backed by anything, and very popular coin, going from $90,000, down to $16,000, in a matter of weeks. That coin is called ‘crypto,’ meaning ’fake,’ and its name is “Bitcoin.” I have written about this fraud a couple of times in the past two years, and what I said then, has come true. Millions have fallen for this ‘crypto’ or fake, and have lost their shirts.
And then there was Enron, the darling of the stock market. From $90 per share to .02.
Or perhaps Sears, which went from $157 to .92
Bernie Madoff, who took 37,000 ‘investors’ for $65 billion.
Remember Blockbuster? It’s high was $5, and closed at .0026
J.C. Penney, was practically on everyone’s shopping list, and one CEO took it to virtually zero. It was recently bought entirely by one investor, who thinks he can make it work again. Good luck buying all the stock at a few cents each share.
Bitcoin, started in 2008, and it took 10,000 of them to buy a pizza. Was it by advertising, or a promotion of some kind, which brought Bitcoin from a teensy fraction of a cent, to $90,000 per coin? And at $90,000 or recently at $16,000, you didn’t get a coin at all, but a computer entry. The computer system got so expensive to operate, it threatened to overload the electrical grid, and locally, Bitcoin spent millions to install a huge solar farm, just to operate the computers in this area. I hear currently, that the ‘farm,’ is hooked up to the electrical grid. For $90,000, or now $16,000, you get a computer entry, which promises or guarantees you a fractional ownership of a non-metallic coin, which was originally priced at a small fraction of a penny.
A 30-year-old, stole $10 billion from Bitcoin ‘savers,’ and gave it all to Democrats running at mid=term elections, with which they captured the U.S. Senate. I just watched a true cowboy story in a 1957 movie on Turner Classic Movies, and the price of silver was $1.33. Gold, for 150 years, was $20.67 per ounce, and when I started doing precious metals in the fall of 1977, silver was still about a dollar and change. I used to love to play Monopoly as a kid, and I still would, if I could find someone to play with me. As a kid, Monopoly gave me a very basic knowledge of economics. Monopoly, is a wonderful kindergarten economics lesson. You learn that all properties are not the same price, and give corresponding returns on purchase prices. You learn that you can borrow on properties, sell them, and build on them. Did you know that the streets, railroads, and properties, came from Atlantic City New Jersey, when the game was first manufactured, and I guess patented? You also learn from Monopoly, that a throw of the dice, can easily make or break you! It is a great teacher. No such worry with gold and silver.
Monopoly, doesn’t teach you how to save, as there are no savings properties on its board. Players have to figure that out for themselves in life, not by playing Monopoly. I wonder if anyone ever re-worked a Monopoly Game with a Bitcoin property or railroad? Bitcoin buyers, have probably bought Enron, J.C. Penney, Sears, Kodak, Blockbuster, Enron, or Radio Shack. That would serve them right. With Monopoly, you get actual deeds to property, not promises made out of thin air. Gold and silver, are such marvelous ways to save, either for a rainy or sunny day. They’re marvelous, beautiful, tangible, physical things. Not promises, which stocks and dollars are, but physical, beautiful things, you can keep, admire, store, pass on, or sell easily, if you need a few bucks. The gold-silver ratio, is about 85 to 1, meaning that one ounce of gold, equals 85 ounces of silver, rather than the historic ratio of 16 to 1, which it was throughout history, and even in 2000. Why is the ratio that high? I have no idea, but compared to gold, it is a historic bargain, which can be used to barter, if all hell breaks loose. The popular one ounce ‘Buffalo’ silver coin, is made in our supplier’s own mint in Indiana, the SilverTowne Mint, and it has been working 24/7 for a couple of years. Ordering now, will get your physical delivery in mid-March, the demand is so high.
Why not build a new mint? Easy. Because it would cost a few million dollars, and take at least two, and maybe more years to build, and the ‘buffy,’ as we call them, are so close to the spot price, that a new mint would make little economic sense. The Silver Eagle, is made by union employees of the U.S. government mint at West point New York, and of course, government does nothing efficiently or economically, so it costs about $15 per ounce more. Silver Eagles, currently, take far less time for delivery, and a year from now, $15 may not make any difference. The Silver Eagle, does have $1.00 stamped on it, and it does come from the U.S. government. Would that make it a better bartering item? You decide, but save not in paper promises. Have a great Thanksgiving! don@coloradogold.com or 1-970-249-4646 for conversation.