ABOUT PM RATIOS AND PRICES
ABOUT PM RATIOS AND PRICES by Charles Savoie – Silver Market New Online
“U.S. Gold Market Switches From A Surplus in 2016 To Deficit In 2017” appeared at SRS Rocco site on January 5, 2018. I want to ask some questions and raise some issues about a portion of this presentation; I am not trying to hinder someone’s work. I want to bring up what I see as neglected aspects, to consider some ramifications; same as he “forgot” to say “at those prices”
previously when he wrote that in the 1960s that “there just wasn’t enough silver to go around” (to maintain coinage issues and supply industry both). I was stunned that such an obvious point was treated as if it didn’t apply and wasn’t mentioned! Silver mining companies sure knew about it, and faced holy hell in Congress year after year to ask for tiny price increases to keep pace with costs. Had so called “silver bloc” states not lost the support of “farm bloc” states by the early 1960s due to ongoing cartelization of agriculture, I believe silver coin issues would have persisted minimum another ten years—by letting silver values rise, incentivizing more production!
Owners of family farms hurt by Monsanto and Big Agribusiness combines should buy as much silver as they can comfortably afford; it will eventually afford them retaliation!
The higher the price of any commodity, the more inducement to produce or mine it; higher price also starts to discourage use in some instances. Minor examples of this principle today are the copper one ounce rounds, the poor man’s silver. With a higher purchasing power assigned to silver, less silver could have been used very effectively as money! Chris Duane has often made the historical reference that a silver dime correlates to a day’s wages.
That was valid until organized financial cliques began interfering. The subsidiary role for copper would have improved, and that also would have made more silver available. Now I want to focus on the SRS notion of the gold/silver price ratio and the gold/silver mining output ratio. I want also to raise the questions others must have thought about, because these aspects weren’t mentioned at all, and they should be mentioned!
Everything in the realm of gold and silver mining does not trace entirely to the energy needed to extract these metals. I feel it’s not his intent to so depict.
It’s quite relevant but let’s also point out the sad fact that any commodity traded as a future on exchanges is subject to severe price abuse by industrial commodity consumers. Silver has a huge historic profile as money and the matter of the created money crowd pushing silver out of payments systems, and interfering with price increases (for many years this was an out in the open situation in Congress with 64.64 cents, 71.1 cents, 90.1 cents/ounce actually legislated) shows that manipulation is the reason for chronically slumped silver prices.
See for ex the May 2009 release, “Users Demand 71 Cent Silver” http://nosilvernationalization.org/95.pdf
Energy costs can and do act as a floor. When/if (if =?) energy costs rise, the basement price for silver will rise or mines will suspend. I can’t see that energy producers will be bankrupted due to no price increases or that any glut won’t be addressed by governments, industrty and markets—unless it’s a plan to severely curtail middle class living standards, which I could believe.