Thursday, October 21, 2010

25 Important Facts About Silver

Silver has been real money for thousands of years and although it is mainly seen as just a commodity these days it is starting to reclaim it monetary value as the U.S. dollar continues on it's slide down to it's intrinsic value of zero.

“Paper money eventually returns to its intrinsic value ---- zero.”
Voltaire (1694-1778)

Many believe that silver is the most overlooked and undervalued monetary asset on the planet.

Here is the 600 year chart on the price of silver. Now this is in 1998 dollars so the chart would be pushed up in 2010 dollars.

Important facts:

1. With gold now at an all time high - Silver is still half of it's all time high.

2. Silver is nature's best conductor of electricity.

3. Silver is the most reflective of all metals on the planet.

4. Silver is the best known heat conductor on the planet.

5. It was learned long ago that water, wine, milk, oil and vinegar would not spoil as fast in silver vessels. This led to a common practice of using silver vessels on long voyages at sea for their anti-bacterial properties.

6. There are few mines that extract only silver. Most of the time silver is a byproduct from mining copper/lead/zinc and gold.

7. Before 2002 it was illegal to own silver in china.

8. With the largest population on the planet, China is now actively encouraging their citizens to invest in silver.

9. The U.S. Geological Society has said that silver will be the first in the periodical table that will become extinct by 2020.

10. The mass media as will as the general public have still not realized the full potential of a silver investment.

11. In a March 2010 meeting by the Commodities Futures Trading Commission it was brought to light that there could be as many as 100 to 1 ratio of derivative (paper silver) to actual physical silver on the COMEX.

12. In the Middle Ages, silverware and other eating utensils were introduced as people found those who ate with them did not get sick as often as those who did not.

13. Silvers anti-bacterial properties make it ideal for rubber liners in dryers and refrigerators, surgical tools, woven into fabric like sheets, clothing and blankets, burn treatments and dressings, an additive to paints for walls in hospitals and prisons.

14. Silver is still very affordable to most people as an investment and a way to preserve wealth, gold however, has become out of reach in recent years.
15. Much of the silver used in industrial application like electronics is not recoverable/recyclable due to the minute quantities used. This has made it become an exhaustible resource.

16. Silver has been used as a monetary metal more often and for longer periods of time than gold throughout history.

17. In 1990 there were over 2 billion ounces of silver available for investment. Currently it is estimates that we only have 300 million.

18. The world now consumes about 1.5 ounces of Silver for every ounce of newly mined Silver.

19. The Silver/Gold ratio is currently about 60/1, historically this ratio is 15/1.

20. We have been outstripping silver for 20 years using more each year than is mined.

21. Silver is being used in many new emerging markets including medical, fabrics, water purification, solar, paints and coatings.

22. Debt is the slaves money, Silver is the people's money and Gold is the Kings money.

23. Silver can not be debased while Governments are debasing paper currency worldwide.

24. Silver recently decoupled from Copper and generlal market moves marking it's re-birth as a monetary metal first and an industrial metal second. This is very important.

25. The word money and silver is the same word in something like 140 languages.

And the list goes on and on.

Thursday, October 14, 2010

The Story Of How Silver Money Was Stolen From The American People

Many people believe that the currency we use here in the U.S. is money. I believe one of the main reasons for this is because most people have never learned the history of money in the U.S. For reasons I will leave for another post, gold and silver have been the only forms of money mankind has ever known. Many different things have been used for currencies but only gold and silver are money and nothing else.

Over the past 80 years gold and silver have been taken away from the public and people have come to have blind faith in paper currency as well as electronic credits, even though they have no intrinsic value. There is no difference between a $1 bill and a $100 bill. One is valued higher than the other because the Government says so and people accept it as so.

By executive order in 1933, President Roosevelt robbed the american citizens of their private property (gold) and over night gold ownership beyond 5 oz. was made illegal in the U.S. The silver story is more interesting and happened over a longer period of time. The following is the story of how silver was taken from the american people.

  1. Before we get started let's first look at the 1792 U.S. Coinage Act that was passed by congress in that year. It stated that the debasement of money was punishable by the death penalty. This act is still in effect today although highly modified over two centuries and obviously not enforcing death on anyone.
  2. During the Great Depression, Franklin Roosevelt signed the Silver Purchase Act Of 1934 and after this the U.S. began to collect the largest amount of silver on the planet with 3.5 billion ounces.
  3. Between 1934 and 1963 the notes issued by the Federal Reserve System promised to pay the bearer of the note in "lawful money" on demand.This bill says Silver Certificate on top and One Silver Dollar payable to the bearer on demand on the bottom.
  4. By the early 1960's an ounce of silver had risen to $1.29/per oz. due to over printing of the currency notes. The currency supply had been inflated and silver's price was catching up. At $1.29 the amount of silver in the silver coins had the same value. If the price were to rise beyond that price people could go into a bank with the paper notes and exchange them for silver dimes quarters and half dollars, melt them down, then sell them for a profit. The Government knew this and started selling silver to hold down the price.
  5. They say that throughout history, good money always forces out the bad and this was exactly what was happening. The change in the U.S. was disappearing and as a result the government was forced to start removing silver from the U.S. coinage in 1965.
  6. Keep in mind number one above: Under authorization by Pres. Lyndon Johnson our coins were reduced to 40% silver from 90% "Lawful Money".
  7. With the price of silver continuing to rise as the Gov. printed more and more notes, Pres. Johnson issued a proclamation on June 24th, 1968, that all Federal Reserve silver certificates were merely fiat legal tender and could not be redeemed for silver (real money) any longer. Basically the paper was money because the government said it was.
  8. On December 31st 1970, President Nixon signed an amendment into law of the Bank Holding Company Act. This gave the treasury the right to totally debase our coins by using zinc and other worthless metals.
So we find ourselves where we are today with a falling U.S. dollar that is eating away at your purchasing power and silver that is $24.75 as of this post.

Thursday, October 7, 2010

Gold ATMs Coming To America

This is probably just the beginning of a new way of life where people are converting paper monopoly money to Gold on a regular basis. Gold ATM machine coming to a city near you in the near future.

Monday, October 4, 2010

Gold and Silver are Still Seen by most People as "High Risk"!!!

I had an interesting conversation with a lady at work about our companies 401k plan. I told her that I wasn't participating in the 401k and she thought that I was making a mistake. When I brought up Gold and silver she responded as I would expect most people her age to do.

According to Doug Eberhardt who writes articles for the Seeking Alpha website the are 5 main reasons why most people feel the way my co-worker did.

Reason 1: Your Financial Adviser Doesn't Understand Real Diversification, Let Alone How Gold Fits Into a Diversified Portfolio

Reason 2: The Media Is Biased Against Gold and Always Pro-Stocks

Reason 3: Our Education System Teaches Us Nothing About Gold, Let Alone Money

Reason 4: Your Neighbor Probably Won't Tell You They Bought Gold

Reason 5: The Government Has An Incentive to Keep the Lid On Gold

For an in depth explanation on these five reasons you can read his article here:

J.P.Morgan's Famous Quote

"Gold is money and nothing else" was a statement made by J.P. Morgan to the US Congress in 1913. I recently compiled a group of famous quotes and put them into a video I made for my Youtube channel. The evils of paper money and our banking system have been known for a long time. Voices from the past give us a glimpse into our present situation and how it will inevitably end in a demise of the reserve currency of the world. (U.S. Dollar)

Here is the video. Enjoy!