All I Really Need To Know About Money, I Learned From A Silver Dime
 

By: Vincent Bressler

Posted 18 December, 2009

I was born in 1964. That was the last year that the USA coined real money for general circulation. Now imagine that you have two dimes in front of you, one of them is from 1964, one of them much younger. But the 1964 coin looks young, barely worn. That�s because those coins went out of circulation starting in 1965. People held on to them. The metal was worth more than 10 cents.

Look carefully at the two dimes. It�s easy to tell the difference between real silver money and the metal tokens that we use today. The silver coin is brighter. Its luster is almost creamy. The metal token has a harsh sheen and is not lustrous, as if the shine is painted on. Nicks and scratches stand out in stark relief to the hard shiny surface of the metal token, not so on the silver coin. Topple the coins over on a granite or tile surface. The metal token makes a dull sound, the silver coin rings.

Our monetary system today is in an advanced state of decay. If actions are taken during the next few years to re-establish a link between gold and the dollar, then the price of gold will stabilize somewhere between 5 and 10 thousand dollars per ounce. If not, any price is possible. Under most scenarios, the price of silver will likely reach better than 1/2 the price of gold before declining. I wrote an article about this a few years ago [link1 link2]. Today the price of silver is 1/65th the price of gold. I expect a long-term average price ratio between gold and silver to go back to its historical (in ground / constitutionally mandated) average of between 1/10th and 1/20th the price of gold.

This means that there is a tremendous opportunity in silver.

The bottom line is that our currency system is corrupt and rewards bankers at the expense of productive people. We are within a few years of the end of this system. We will see massive reduction of debt that can no longer be serviced. The fiat currencies (currencies by government degree) that we use today will be repudiated. Real money will once again arise. It is instructive to think in terms of the historical value of gold and silver in ages when there was no other money:

The Roman denarius contained about 3 grams of silver (the pre 1965 silver dime contains 2.2 grams of silver). The denarius was about 1 day�s pay for a craftsman. Think of it as the equivalent of $300 today. That�s about $100 per gram or $3000 per ounce. The ratio of the price of silver to gold in ancient times was 1/10th. That means gold was the equivalent of $30,000 per ounce. This sort of gold to silver ratio and gold price was also the case in Renaissance Italy, 1500 years later. However, since that time, debt based money has evolved and the value of gold and silver has gone down, down, down, until now.

We are living in a time of historic change that has been 500 years in the making. There are tremendous opportunities. You will profit a great deal if you think deeply about this, study it and take action. Everything you need to know is waiting for you on the Internet.

vincentbressler@yahoo.com

http://news.silverseek.com/SilverSeek/1261147077.php

Re: All I Really Need To Know About Money, I Learned From A Silver Dime
 

$100 per gram, $3000 per ounce? For silver?

That guy was smoking something serious while he wrote that article. He doesnt seem to mention anywhere that silver was much more limited back then than it is now due to limited mining machinery which made getting silver so much more expensive than today.


Interesting read but I laughed my way through most of it

Re: All I Really Need To Know About Money, I Learned From A Silver Dime
 

These people with the teddy bears says silver at $2000/oz.

People with teddy bears do not lie! :bear_wub:

Re: All I Really Need To Know About Money, I Learned From A Silver Dime
 

I never knew Sarah Palin was a silver bug :getdown:

Re: All I Really Need To Know About Money, I Learned From A Silver Dime
 

Here's more from the same fellow.

Dynamics Of The Silver Price Revolution

Vincent Bressler

17 June 2008

Recently, when silver was topping out at around $21 per ounce, there was an acute shortage of silver available for investing. This investment demand problem threatened to kick silver into an industrial deficit driven price revolution. The problem was resolved via unofficial rationing. New silver eagles and new 100 ounce bars have become increasingly unavailable since that time. In fact the time required to get new 100 ounce silver bars continues to increase. However, as the futures market price of silver went down from $21 dollars per ounce, weak hands holding silver once again have come forward to sell. The weak hands fear further price declines and are unable to wait because of financial stress. I monitor this by watching the prices on ebay. These prices have begun to converge with the futures price for the nearest delivery month. Smart, strong hands are buying this cheap silver. The silver price at this point in the cycle (illustrated below) is the Optimal Point, the point where Maximum Surplus of silver is available to investors beyond that which is consumed by industrial demand.

Over the last several years, the Maximum Surplus amount of silver available to investors at the Optimal Point has declined as the weak hands become extinct and the strong hands more certain of the coming price revolution. This game will be over when there is no more Maximum Surplus, no Optimal Point, and the only thing that can happen to free up more silver for industry is a price revolution. By forestalling the price revolution for so many years, the price managers of silver have battle hardened the strong hands. Industrial silver users and consumers will be big losers, and presumably, the price managers will be big winners, if they own a lot of silver.

This last point inspires me to speculate about short of silver position on COMEX:

Let's assume that the immense short position on COMEX is not naked, but that it is held by an entity that is beyond the reach of the law or in some sense exempt. When the price revolution happens, what is the chance that this short of silver entity will deliver actual silver to the longs? The chance is approximately zero. First, there are strict delivery limits on COMEX right now and their rules are "flexible" to say the least, second, since the entity is exempt, who can make them deliver?

Those short of silver contracts will be settled in cash or not at all, depending on who the entity on the short side is and whether they have access to the FED begging bowl or printing press. So in the end, it really does not matter at all whether the short position on COMEX is naked or not. I believe that even Dr. Antal E. Fekete would agree with this, although I suspect that he would characterize the default as the end of the world, whereas I would call it business as usual.

Vincent Bressler
vincentbressler@yahoo.com

http://www.gold-eagle.com/editorials...ler061508.html

Re: All I Really Need To Know About Money, I Learned From A Silver Dime
 

LOL! So true. :s1:

Re: All I Really Need To Know About Money, I Learned From A Silver Dime
 

If Sarah Palin had made that speech while campaining...?:36_1_34: I might have held my nose and voted Republican.:36_1_28: