In 1893, the U.S. Treasury decided not to renew the “Sherman Silver Purchase Act,” which was a promise to buy 4.5 million ounces of silver each month from U.S. mines. Since most of it came from Colorado mines, which gold ore also has silver in it, it became an unmitigated disaster. Hundreds of mines closed, never to re-open again. Some did when they realized that the mill dumps had a lot of gold in them which could be re-run at a profit. The 4.5 million ounces of silver was purchased with special paper money, which could be redeemed in either silver or gold. Guess what? Everyone wanted gold! This caused a run on gold, and the price of silver went from $1.16, going down to 60 cents an ounce, and everyone cashed in their silver for gold. Ft. Knox was filled with silver as well as gold, I suppose. Far too much silver! PLEASE REMEMBER THAT THE PURCHASING POWER OF THE U.S. DOLLAR HAS LOST 99% OR MORE OF ITS VALUE AND PURCHASING POWER, SINCE THE 1890’S. Sixty cent an ounce silver then, would be at least $60 an ounce today, or more!
What brought it on? Several things, among which, was the price of wheat collapsing, making farmers in many cases, unable to pay their mortgages. Railroads were overbuilt, and the Reading Railroad’s bonds crashed, among other railroads’ stocks doing the same. There was a banking problem in Australia in 1893, which caused Australian and South Africa properties to collapse, and as if that weren’t enough, the McKinley Tariff Act of 1890, which was passed by the Republicans and opposed by Democrats. Sound familiar? When it was voted in, the stock market took a 24% drop. The act increased the price of imports by close to 50%, and of course inflation occurred. In the elections of 1890, Republicans lost control of the House, and the number of Republican seats went from 171 to 88. Could it happen again?
The U.S. Government insists that it has a huge backup of gold, and probably silver at Ft. Knox, in Kentucky. Remember “Goldfinger,” (1964) which is the absolute best of the James Bond films? Goldfinger, had a plan to bomb Ft. Knox, and make it radioactive, so that no one could enter it for a hundred years, and therefore make Goldfinger’s gold ever so much more valuable. Honor Blackman was Goldfinger’s beautiful head of the dozen planes, which were going to make Ft. Knox useless. Bond had been put to sleep with drugs, and when he came to, he looked up at Blackman, and queried “Who are you? Her reply was, “My name is “Pussy Galore.” I still have to laugh at that scene 60 years later! (I made a ton of money in my Lansdowne Theatre in suburban Philadelphia, with two weeks of “Goldfinger”).
In late 1977, nearby residents of Ft. Knox, witnessed whole fleets of tractor trailers leaving Ft. Knox. What did they have in them? Where were they going? Did they have the U.S. supply of gold and silver in them? Most of us think so. Donald Trump has authorized an inventory of Ft. Knox, but note please, it has never happened, and probably never will. If an inventory showed an empty Ft. Knox, all hell would break loose. Both the U.S. Gold and Silver Eagles are supposedly made with U.S. gold and silver and I am certain they are made with the advertised contents. Does the U.S. Mint at West Point New York, have to buy the gold and silver on the market to make the coins? Is Ft. Knox empty? I think so, in my opinion anyway.
Printing money does not create wealth. World War Two was fought with paper money. That war was the most expensive war in history, and consumer prices went up 50%, in the three and a half years America fought that war. I was alive then, and I witnessed that 50% increase in prices of literally everything.
Colorado Gold’s insurance against inflation or any other economic horror, requires no medical exam, and if you purchase gold or silver, it’s price will constantly ‘go up’ in dollar price, to either buy or sell, and if you need the money we charge nothing when you sell, other than you have to ship it.
Trump & Putin meeting
It’s supposed to happen Friday. The first in-person meting of these two. Why wasn’t Ukraine included? Will Trump fall for a shady deal allowing Putin to keep part of Ukraine? That would be a disaster. Putin is in trouble, having lost 100,000 men, and depending on North Korea for his arms. His lies about Ukraine housing Nazis, can’t last forever. Why wouldn’t he be forced to pay for the damages and lost lives he has committed? What about the thousands of Ukraine kids he has captured, and is raising as Russians? Putin wants to re-create the Soviet Union, and this could never happen, as the rest of the former Soviets, are now enjoying freedom, and would want to more of the USSR. It took a long time for Trump to realize that Putin is vicious, and not to be trusted. Let us hope he will not be fooled again!
-Don Stott don@coloradogold.com