Silver has often been called “Poor Man’s Gold,” and for a logical reason. Both are real money throughout history, and both, in all civilizations, and both have required much effort and capitalization to produce, not counting the possibility of their ores eventually being exhausted. Both make great insurance against the inflation. Inflation caused by endless printing of pieces of paper, backed by nothing, by which all governments, since the invention of paper, have used to defraud their citizenry of their wealth, paying their debts with ever decreasing value currency, and laws making their paper, ‘legal tender.’ The name ’poor man’s gold,’ comes from the fact that throughout history, gold has been more valuable than silver, although the differential is far greater now.
Other substances have been used as money, such as mulberry leaves, and cigarettes in WW II, when U.S. servicemen used them to purchase foods, and even female companionship. In ancient Rome, silver coins were ‘clipped’ of some of their silver, making them less than their original weights, an earlier version of inflation. In America, as well as all other nations afflicted with inflation, (all of them), as governments decayed, less valuable metals are always used as a substitute for silver and gold. Base metals, substituting for silver and gold, and even formerly copper pennies, now being made of virtually worthless metal. Just think of the tragedy of it. Close to 70 years ago, our coinage was made of silver, and the paper money was backed by gold as well as silver, and convertible into silver or gold, with no problem. I still have little packet of silver grains, sent to me by the Treasury, for a dollar bill sent to them.
The last silver dimes, quarters, and halves, are now worth many times their face values. How soon we forget times past, before power steering, power brakes, automatic transmissions, air conditioning, cruise control, points, carburetors, etc., were on cars. Few people around today remember silver dimes, halves and quarters. The improvements in cars, are the results of inventions, private capital and effort, plus patents, advertising, and the capitalistic method of prosperity, unknown to the Chinese or Russians. Our freedoms, so far, to invent, merchandise, profit, and live in comfort, do not result from government, which, in the name of ‘helping,’ has made it foolish to save in its currency. The so called ‘help,’ provided by politicians, results in virtually no ‘help,’ but a plethora of new laws, rules, and regulations, not to mention, inflation, and constant loss of freedoms.
The ratio of silver to gold, throughout history, in all civilizations, has been about 16 to 1, meaning that gold was sixteen times the value of silver. The ratio in 1980 was 16 to 1, but today it is 82 to 1, and if that ratio were restored to its historical ratio, silver would be $115 per ounce. I am totally unable to know what will happen ten minutes from now, including registered, licensed, ‘financial advisors.’ No one knows, in advance of the future, be it good or bad. Gold has taken a $150 plunge, and maybe, when this column is put up, it will be on its way back up. NO ONE KNOWS, and that’s the purpose of insurance. I always have liability car insurance, because I can never tell what someone else will do to me. If we could see intro the future, silver and gold may be even more necessary than now, but doubtfully less, unless there ceases to be paper and printing presses, or politicians becoming honest.
The small amount you pay for any insurance, is a pittance, if it is ever needed, and insurance policies give no refunds, if not used. I have never had collision or other auto insurances on my cars, because I am a careful driver, and over the years, I have saved tens of thousands of dollars, not buying collision insurance. Insurance on cars, homes, or medical, if never used, gave protection, but no refunds if not used. Gold and silver go ‘up’ as the currency ‘goes down,’ which is the same as having an insurance policy which gives hefty refunds if never used or sold. With gold and silver insurance, there is no need to haggle and argue with an agent over payments, if a claim is requested due to an accident or health emergency. The contents, weight, and purity of your gold and silver insurance, is stamped right on the bar or coin. There are ads and commercials constantly, urging the purchase of glittering, gold coins, at absurd prices, because they are plated with about 1/200th of an ounce of gold. Currently, I have seen an ad for five ‘gold’ buffalos, for $9.95, which look great on TV, but after paying for the ad and its cost to produce and run, I doubt that the seller has any more than a couple of dollars in the product, and they certainly have no value.
As an indication of our current American financial situation, page 17 of the current National Review states, “The (federal) debt in 1998 was $10.3 trillion, went down the next year to $9.67 trillion, and has gone up ever since then, and is currently at $31 trillion.” Gold and silver are eternal, beautiful insurance against universal inflation, with no monthly fees, and plenty of value if never used.