montross515

The Gold / Silver Ratio: From 1300 to 1900... And Now

WRONG. There is 5 times more gold above ground than silver in the world at this time. The story below ground may be similar as most silver is shallowly buried, and already mined.


On Aug 01 09:19 AM Value Added wrote:

> Though your historic ratios of gold:silver are interesting, I don't
> believe they are relevant for assessing the current situation when
> taken further back than a couple of decades. A lot has changed since
> the year 1300 - and concerning these two metals, it's a totally different
> world. Primary usage of these metals in 1300 was for coinage/jewelry
> etc., and today the usage for gold is essentially unchanged, except
> for the addition of dentistry to the list. Silver on the other hand
> has found numerous industrial uses and is being depleted. In 1300,
> there was more silver available than gold (hence gold's premium),
> but today there is actually more gold available above-ground than
> silver, just the reverse. So while I agree with you completely that
> the current price ratio is a distortion from what one should expect,
> I think we should be looking at the fundamentals of supply and demand,
> which would indicate that the current ratio is even more extremely
> out of balance than what you are suggesting. Hold onto your hat -
> it's going to be one wild ride.

U.S. Debt Default, Dollar Collapse Altogether Likely

If you had a printing press in your basement, would you default or always pay your bills on time? We live in a very large world; you can print a whole lot of money and it will still buy a lot of things. A dollar has become worth 4 cents in my lifetime, and I live better now than before. Prepare for more of what has happened in the past 60 years, but just more of it, and a lot faster.

How the U.S. Government Is Footing the Stimulus Bill

The logic of this article is widely used by other writers, and if true, we are all going to face some tough times. What is tough? Well, revolutions have started over tough times. The USA has over 250 million handguns and a real unemployment rate of probably 13% or more right now. Double that percentage and we might begin to see what is tough.

Sorry, There Is No Silver Conspiracy

Otto, you miss the point. The SEC is part of of the team trying to deceive us about what is happening to fiat money; the Administration and other Central Banks are manipulating the futures markets in gold and silver. It is just that simple.

Sorry, There Is No Silver Conspiracy

Dear Otto, If I understand you, then naked short selling of a few hundred thousand ounces of silver shouldn't depress the price?? Are you out your mind? You can drive the price of any stock or commodity to close to zero by naked short selling enough of it. such illegal behaviour is tolerated, or encouraged, by the Bush Administration, which only makes you ask if they are the ones really behind it. Having negative lease rates is obviously a ploy by the administration.

We don't have to answer your three questions, Otto, as they aren't necessarily relevant to the realities involved.

Has the Dollar Bottomed?

One bankrupt to his wife, "We are actually pretty well off; that guy over there owes his creditors ten million and we are only under water by $250,000."

Broke is broke.

If you think the USA is going to walk tall out of a situation where we produce very little of value and consume twice our income, please sell me your gold, or better yet, your silver. Little metal coins can't be important like a big roll of $100s.

Wall Street Breakfast: Must-Know News

It appears that there are many great investment opportunities in today's collapsing world. Unfortunately, the best shots are all on the short side, and short is difficult to handle. When the earthquake shakes the casino, and the ceiling is falling, it's hard to pick the winning numbers on the roulette table, as the whole table may soon be gone.

Will Gold Break Out?

Rigel: M3 is estimated to be increasing at around 14% this year. When Henry Paulson buys a trillion dollars worth of "stuff" from the Too Big to Fail banks, he uses a trillion dollars of real money which he gives these banks for their non-performing paper holdings---like sub-prime mortgage pools, or even prime mortgage pools which are also failing.

Dow Chemical raised all prices 20% four weeks ago and another 25% today: that's a 50% overall increase. Like almost everything else that is real, its price for goods has gone up 50%. Looked at more realistically, the US dollar was just devalued 50% against "things real." Revolutions start from massive price increases....

Will Gold Break Out?

This is simple: the dollar can only go down as long as the USA spends an extra trillion dollars a year from its printing press. As the dollar has to go down the price of gold has to go up. The relationship is not a straight line and the dollars fall is exponential in nature. Consider, Medicare, Social Security, the Pentagon's ability to get what it thinks it needs...People seeing the trend try to get ahead of the curve, hence, gold will go up faster than the dollars dead drop decline.