Gold is the money of kings and silver is money of the people.
Over the past several years there have been any number of people, including myself, saying to get into silver. While I like silver and believe it is a great investment, it has become quiet clear that silver will have a very hard time ever being remonetized. There simply is too much industrial demand for silver for it be reintroduced as a currency. Can silver back a currency? Maybe.
Hugo Salinas Price has been making a case for the country of Mexico to reintroduce silver as money and to reintroduce silver currency. Mr. Salinas Price also offered Greek Prime Minister Tsipras a similar program to reintroduce a silver Drachma. To date, no one has considered the points laid out in easy-to-read language, nor has anyone reintroduced a silver coin to the monetary system.
Mexico is one of the largest silver producing countries in the world and has the supply to do such a thing. If Mexico, or any other country for that matter, were to introduce a currency backed by silver, or gold, that currency would instantly catapult to the top currency in the world. It would have the potential to upset the entire financial, monetary and economic systems throughout the world. This is probably the main reason no country has decided to take on the task of requesting to be bombed into oblivion by the makers of the Federal Reserve note, U.S. dollar, which still enjoys the exorbitant privilege of being the worlds reserve currency. This, too, shall pass, but that still leaves the questions of how and when the Federal Reserve note, U.S. dollar will step aside.
Over the years silver has held my attention more so than gold. Gold, with acquisition cost much higher than silver, was not as attractive and a little further from reach. My view has changed. When a person speaks of money, real money, they rarely, if ever, mention silver. Why? Silver, by and large, is seen as an industrial metal. It is never discussed, with the exception of the alternative media, speculators and people that have a program based on silver, as being money or currency. For this reason, my focus has shifted away from silver and now gold is the primary focus for the future.
Silver coins and collectibles will remain part of what happens within the vault, however, the main thrust of savings will be placed in gold. Even with the GSR (gold/silver ratio) being as skewed as it is today just above 72:1, meaning, for every one ounce of gold it takes seventy-two ounces of silver to equal the same value. The natural gold-silver ratio, the actual amount of mined metals, is actually just under 10:1, meaning, for every one ounce of gold mined, there are only about nine and half ounces of silver mined. Historically, this was how the value of the two metals worked. If, for example, gold was valued at $30 per ounce then silver would be valued around $3.16 per ounce. With gold trading today around $1,200 per ounce, silver, based on 4,000+ years of history and the current mining gold-silver ratio, should be trading around $126.32/ounce, but it’s not. The real question is – will it ever reach the historical norm of approximately 16:1 GSR? My guess is, probably not. This is the reason silver will be placed on the back burner and gold will move to the fore. Until the rule of law is returned to the market place the criminals will continually keep the gold-silver ratio where the criminal banks profits are maximized and wealth of the people is kept to a minimum.
When there is an argument, that can be proven, to support silver “making a moonshot” then I will be ready to listen. In the meantime, it seems now is as good time as any to convert silver to gold and begin lightening the load. Silver is bulky and cumbersome, where as gold packs a punch in a small space. Don’t get me wrong, I have some very cool silver coins and bars that will remain right where they are, however, the bulk of eagles, maples and rounds – the ones produced by the tens of millions – will be converted from silver to gold. For me and my situation, it is the only thing that makes sense. Don’t get wrong, I love silver and will continue gathering some, but my focus, for the reasons pointed out above, will be more so on gold.
I feel confident there are people that now hate me and want listen to anything I have to say. Well, so be it. Gold is the money of Kings and silver is the money of the people, always has been and always will be. If you want to be wealthy, like the truly wealthy people, then you have to follow their logic in their investments. You are welcome to fuss or say whatever you wish, but every time George Soros moves in or out of gold it makes the news and you read about it. Every time Jim Rogers, Ray Dalio, Carl Icahn and the other big name investors move in or out of gold you read about it. When was the last time you sat down to read about one of these big name investors moving into or out of silver? That’s my point. You haven’t read anything recently simply because it hasn’t happened. Why? Because their focus is on gold, not silver. These investor are far wealthier than I. I will never have the opportunity to attain their type of wealth by ignoring their practices. Got gold?