What The Silver Vigilantes Understand That You Probably Don’t (Arithmetic, Human Nature and other Stuff)
In Open Thread, Silver, stocks finance, Treasuries on Wednesday, December 15, 2010 at 6:03 pm
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Part 6. So what’s silver worth.
The short answer is: more. If silver were priced based on its occurrence relative to gold, it would be over $125/oz. If it were priced on its availability – somewhere around $2,000. But if you are content to let the likes of Blythe Masters dictate the value based on truckloads of worthless paper promises, you can expect ultra-low prices until the whole thing blows up. Of course at that point, we’ll be so busy killing each other for food no one will have time to say, “I told you so.”
The silver vigilantes just want you to re-learn what the phrases like, “cold, hard cash,” and“payment in full” are supposed to mean. There not asking you to sink everything you have into physical silver, just a little. Silver can’t be printed into oblivion, or stolen by a cyber attack. Why wouldn’t you want to own some of your very own?
A paper dollar from 1960 is worth exactly the same as a paper dollar in 2010, but four quarters from 1960 are worth more than $21. Given the fiscal insanity of the US government, I can’t imagine the US dollar surviving another 50 years, but I’m quite sure that silver will still be useful. Please consider getting some.
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Amazing the price estimation. Question: if silver is 125$/oz or 2k$/oz, what will be the value of the dollar, gold, oil, and everything else? Argh!
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