-- Posted Friday, 21 April 2006 | Digg This Article
Yesterday the Gold/Silver Ratio was 43.64. As of 1300 it was 48.79. Gold just became 5% more expensive in silver ounces.
I think one of the most difficult obstacles for precious metals investors is to determine relative values. Unknowingly, we make it a complex exercise because we use a paper money medium to bridge our value determinations. Think about that for a moment. What is your house worth in American gold eagles? How much bacon can you get for an ounce of silver? Never mind. Put your calculator aside. We know we're going to need oil, cattle, bread and corn to live. We know they're going up in dollar price steadily. We can't buy them in advance with our paper medium and save them for when we need them. That's why we buy the metals. We buy the metals because they are fungible. An ounce of gold or silver is the same here as it is in Karachi. There are no other commodities in the world that have this universality of acceptance. First of all, even if you did find a bloke who needed your cow, but had no gasoline which you wanted, you'd have to keep knocking on doors to get a match. Silver and gold are there to complete that free trade transaction. You could sell your cow for a gold coin, take the coin down to the filling station and set up an account for gas at a fixed dollar price! That would only work if the station owner was a gnome, and to do that to him would be an unfair arrangement.
This is a fundamental truth that we must grasp if we are to be a survivor in a hyperinflationary lifestyle. We want to increase our ownership of the number of silver quarters
and gold eagles. Without a greater understanding of sound money in America a gold coin exchange standard is an impossibility. We would be turning to the same crooks for a solution that have enslaved us with paper. It won't work any more than for the South to secede with the dumbed-down electorate that presently populates all of America.
Each year at Christmas we give our mailman a silver dollar. Now, he hasn't come up to me yet to say "Hey, Bill, did you see what silver's going for!" But, on the other hand I would NEVER expect him to say, "Hey, Bill, did you see how much more the dollar buys today!" Try this. Package up some silver quarters in small glassine transparent envelopes. On adhesive stickers, type: "We appreciate your service and feel a silver gratuity is deserved with these silver quarters." Sure, you may get a dumb look. Tell her to ask her boss or some other third party as to their worth. If it strikes home - on your next visit you'll be remembered and appreciated. Just as important you've helped someone get an understanding of sound money. Honest money. This is the way America takes back the high moral ground. Again, relative values. Silver for services.
Just as American cigarettes were currency in post WWII Germany, Chinese firecrackers were the preferred medium of exchange for Northern per-teen youngsters growing up in the 1950s. I got many Nazi war souvenirs from pals who'd had fathers that served in Europe. Never could make a deal for a Luger though. I did get a most unusual artillery sighting device though. I was told it was a theodolite. Wish I still had it. Later on we traded cars amongst ourselves.
What do kids trade now? DVDs? I don't know if they even trade at all. Baseball cards were "money" to kids. But now as grown-ups we need a money that is readily acceptable in a greater sphere. We have more needs that can only be satisfied out of our childhood element. The dollar still fulfills that role, but people are demanding more and more to make a trade.
Is it time to trade silver for gold? Who can know for sure. But, with that old nag Greed tugging at my senses it may be worth it to fight it off and swap some silver for gold.
Honest money makes an honest people. Live it.
- - CV
-- Posted Friday, 21 April 2006 | Digg This Article
