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Ardent Listener | 01-09-2009 10:07 PM
THE SILVER MILLIONAIRE Posted by pencilvanian at realcent. http://tinyurl.com/7vpwpo THE SILVER MILLIONAIRE by David Morgan July 2, 2007 Key Excerpt- "Obviously, one billion ounces divided by 715,000 ounces indicates that only 1400 silver millionaires could theoretically exist. ....If we have 2.6 million millionaires in terms of paper and it takes ten million in cash at today’s price ($13 per ounce) to become a silver millionaire, then all we need to do is cut our 2.6 million by a factor of 10. This would give us 260,000 with a ten million equivalent that have the paper necessary to purchase 715,000 ounces, -yet less than 1400 will be able to find sufficient silver to qualify as “silver millionaires.” Simply stated, there is almost 200 times as much paper available to purchase silver than silver available if we limit our analysis to the millionaire category only." .......Prices were higher when this was written but the facts speak for themselves. Silver isn't poor man's gold, its rich man's silver, but since silver is still looked upon as the poor cousin to gold it lags behind in price. Low price for silver is bad for silver producers but good for silver buyers. Once the price of gold takes off silver gets dragged up with it.

Irons | 01-09-2009 11:59 PM
Re: THE SILVER MILLIONAIRE Looks like I'm going to have to get busy, no more slackin'.

moreair | 01-10-2009 12:10 AM
Re: THE SILVER MILLIONAIRE :banghead:I want to buy more silver, but with obama moving in, I feel presured to spend my FRNs on weapons and ammo.

Jekyll7 | 01-10-2009 04:41 PM
Re: THE SILVER MILLIONAIRE Basing those calculations on a million dollars of face-value 90% silver coinage is somewhat misleading. A modern silver "millionaire" really only needs about 88,800 ounces, not 715,000. The guy with 715k oz. may be a face-value millionaire, but the total investment to get there is around around $8M, not $1M.

Twisted Avatar | 01-10-2009 06:04 PM
Re: THE SILVER MILLIONAIRE Quote:
Originally Posted by moreair (Post 1505003) :banghead:I want to buy more silver, but with obama moving in, I feel presured to spend my FRNs on weapons and ammo.
You are well served to do so. There will be a AMMO DEFAULT before there is a COMEX DEFAULT. Allocate your funds accordingly. T

Copperhead | 01-10-2009 06:09 PM
Re: THE SILVER MILLIONAIRE Well I got a jump on this because I bought a lot of my silver at $19.00! :wavey:

Jack London | 01-10-2009 10:32 PM
Re: THE SILVER MILLIONAIRE Quote:
Originally Posted by Jekyll7 (Post 1505741) Basing those calculations on a million dollars of face-value 90% silver coinage is somewhat misleading. A modern silver "millionaire" really only needs about 88,800 ounces, not 715,000. The guy with 715k oz. may be a face-value millionaire, but the total investment to get there is around around $8M, not $1M.
One of the points Morgan made in the article was that a million wasn't what it used to be, and he was exploring what a millionaire in silver money would be. Not so many decades ago a million was quite a sum. I remember watching TV back in the early 70's. A man had just won One (1) million dollars in the Illinois State Lottery. They were interviewing him on the morning talk show as "the newest millionaire in Chicago." You have to admit, a million doesn't sound like that much anymore. If we take the demise of the FRN seriously, then it would follow that we really should be thinking of measuring wealth in terms of something other than FRNs. If you want to use real dollars that's fine with me.

Jekyll7 | 01-18-2009 03:16 PM
Re: THE SILVER MILLIONAIRE Edit - my mistake, he actually does define "silver millionaire" as 90% silver coin, which I missed the first time I read the article.

Sparky | 01-18-2009 07:38 PM
Re: THE SILVER MILLIONAIRE This is one of the most worthless articles I have ever read. It begins with an error, where Morgan states "So there are literally millions of millionaires in the United States. In fact, according to this 2005 article from MarketWatch, 8.9% of Americans are millionaires. Again, that translates to roughly 2.6 million people." If you go to the MarketWatch link, it says: "...which showed the number of millionaires in the United States jumped 8% to 8.9 million, from 8.2 million a year ago." The article explicitly says 8.9 million millionaires, and Morgan says that confirms his number of 2.6 million. That would have been reason enough to stop reading. I also question the assertion that there are only one billion ounces of silver. Even if there is, the point of the article is that only 1400 people would be able to buy ten million dollars worth of silver. Why is a silver millionaire defined as owning $10m of silver? What difference does it make how that converts to back when circulating coins were silver? This is like saying: Back when silver was currency, a Corvette cost $10,000. So you needed to own 100 Corvettes to be a millionaire. Now there are 200,000 Corvettes in ownership. (I'm guessing.) So that means there can only be 2000 Corvette millionaires. So what?

TheMadHatter | 01-18-2009 07:45 PM
Re: THE SILVER MILLIONAIRE LOL This is pretty dumb.

Jekyll7 | 01-20-2009 12:36 AM
Re: THE SILVER MILLIONAIRE OK, I'm going to rewrite the article. Then versus now, by JEKYLL7: 50 years ago a dollar of silver contained around 0.77 ounces of silver. Today, a dollar worth of silver is around 0.09 ounces of silver. Conclusion: silver is silver, but paper money isn't worth sh*t. The end :biggrin:

Sparky | 01-20-2009 04:00 AM
Re: THE SILVER MILLIONAIRE Quote:
Originally Posted by Jekyll7 (Post 1520135) OK, I'm going to rewrite the article. Then versus now, by JEKYLL7: 50 years ago a dollar of silver contained around 0.77 ounces of silver. Today, a dollar worth of silver is around 0.09 ounces of silver. Conclusion: silver is silver, but paper money isn't worth sh*t. The end :biggrin:
OK, now we're getting somewhere!

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