Consider that with more than six billion people on world there plainly is not sufficient gold and silver available to have these cherished metals fulfill the role of cash for everyone. It is approximated that with regards to 4.4 billion ounces of gold have been mined in historical times and at least 4 billion ounces are still with us as pure bullion, or effortlessly recovered and smelted into pure bullion; this amounts to only two-thirds ounce per person. It is likewise approximated that in regards to 44 billion ounces of silver have been mined in historical times and with regards to 20 billion ounces of this silver has been consumed in the past and disposed in ways that are not profitable to recover. Approximately 24 billion ounces of silver could be recovered and converted to coins or bullion; this amounts to when it comes to four ounces per person. Central banks and governments hold when it comes to 800 million ounces of gold and negligible amounts of silver, leaving just over 3 billion ounces of gold and 24 billion ounces of silver in the hands if businesses and individuals; or an approximate symmetry of 8 to 1.
If our paper currency fails, causing humans to barter with gold and silver for their daily needs and wages, then gold may at most command a value of eight times that of silver. Since the current proportionality of value is $750 to $10, or 75 to 1(in the fall of 2008), gold is almost 10 times higher that it must be relative to silver. This means that silver will be grateful for a good deal of times over when gold and silver become barter cash again. It is less than 50 years since silver was taken out of our US coinage; yet prior to 1964 silver has been in coins going back over 1000 years. While gold has not been barter cash since 1934 in the United States, it is history as coined cash goes back more that 2000 years.
It makes no sense to ask whether gold will go to $10,000 per ounce or $10 per ounce, because it is the US dollar that is altering value. Gold and silver alter their value very little with respect to goods and services for which they may be bartered. One hundred and two hundred years ago an ounce of gold would buy a good suit of clothes and an ounce of silver would buy a good meal at a restaurant, and so they will today. Over the years these metals have not strayed very far from this valuation except underneath severe economic tensions, at which time they specifically rise in value rapidly.
Even though gold and silver are in relative short supply and little used as money, the U.S. paper dollar is the wrong barometer of economic stability. Assets and commodities must not be valued in terms of US dollars, but in terms of fixed amount commodities like gold and silver. The unstable item (dollar) fluctuates in terms of the stable (gold), not vice versa. Reporting it backwards does not make it valid. Worldwide currencies will have to be interchanged by valuing them to gold and silver, not to the U.S. dollar, or any other currency for that matter.
In the past there have been some government attempts to peg a monetary symmetry amongst gold and silver. It has been ten-to-one, twenty-to-one and even thirty-four-to-one for the duration of the depression. Teddy Roosevelt ran for President promising to fix the proportionality at sixteen ounces of silver to one ounce of gold. These ratios not only show a historical variance, they likewise are all showing ratios of silver to gold that are more outstanding than the real amounts of these metals mined and refined. The reason that these metals are not valued in direct kinship with the amounts mined is mainly the hoarding of gold by governments, central banks, global banks, and a lot of global corporations. This hoarding of gold is the same as it having never been mined, as far as the markets are concerned. This hoarding of gold have a tendancy to skew the proportionality of gold available to buyers and investors as equated to the silver available. And it is a valid factor in arriving at a proper price for gold with respect to silver, provided that this hoarded gold remains unavailable for investment or payment in trade. If this hoarded gold came back into the markets as a monetary unit it would un-skew a gold-silver kinship that goes back to the late 1800?s. However, if governments determine by law to remove even more gold from private ownership to government ownership, they will do so at their price, similar to the US government action in 1934; and whatsoever is left in private hands will be too little of a amount to serve as money. In either case silver would increase in value as equated to gold.
I am not asserting that gold and silver are improperly valued today. But I am asserting that investors who own gold to protect themselves from the calamity of a failed economy and inflating paper currency are investing in the wrong metal, by a factor of at least eight. Our current industrial and jewelry use of these metals would have no kinship to the value they would become as barter-money in a failing US economy. So one cannot compare these metals today and make an investment in keeping either of them, based on their current uses and values in our social economy. When gold and silver are re-monetized to act as cash in our economies it will not be by government decree, but by the actions of citizens acting to create prospect and build a new economy.
If a well-to-do person were going to set isolated feed and other requisites for future consumption in case of economic depression, must they be advised to buy champagne, caviar, and frozen pastries (gold); or must they perhaps buy apple juice, sardines, and crackers (silver)? Quantity is more important than show when one is attempting to survive. People who invest in gold as insurance versus economic depression are not acting in their own best interest; they are merely following their investment counselor?s bad advice.
If investors and their counselors genuinely understood gold and silver they would never buy or commend the buy of gold at it is current inflated price. If silver is mined at ten ounces for each ounce of gold and is priced in the right way at $10.00 per ounce then gold must only be $100.00 per ounce, when we consider their monetary barter value. But if gold is priced correctly at $750.00 per ounce then silver must be $75.00 per ounce. Whichever way the market moves in a panic, silver will be grateful for by a more prominent element in kinship to gold. Actually, both metals would be grateful for with respect to the US dollar, but silver would outpace gold in portion growth at the point where manufacturers and buyers started preferring gold and silver in interchange for goods and services. Giving investment in silver today substantial value over investment in gold, because of this growth potential.
Besides the ratio of gold to silver issue there is another essential aspect of gold usage in tough economic times that will have to be considered; and that is the usage of gold to buy food, toiletries, medicines, clothes; etc. If we were to do the Zimbabwe thing and have the US dollar inflating 100 % per week while very few goods are available to purchase; anybody going to a store with a shiny 1-oz gold coin would find that their purchases may only use up 10 to 20 percent of the value of their gold coin and that the store cashier would not give them modify in gold or silver (even if the store had gold and silver to make change); the cashier would give them modify in paper dollars that would speedily inflate to not one thing if they could not be quickly spent.
This problem would not occur with silver to any outstanding extent because silver is still available from 100 oz bars down to 1 oz coins, and likewise available as old US coins, right down to silver dimes, permitting shoppers to recompense with precise alter for the goods they require. In the late 1970?s an elderly Dutch gentleman told me how he experienced this very problem when he was sent to Germany in the early 1920?s to go to university. The gold coins he received from home, for living expenses, was mainly sought by the shopkeepers, but they had little to trade and he always received change in German Marks (paper) that lost more than half their value in a week. He seldom got full value for his money, because of each and everyday inflation. The same circumstance could occur here; it surely has hit some nations in the last few decades, and for a lot of it lasted a lot of years. Silver is by far a superior investment to gold when it is being held as insurance versus inflationary times and economic panics.
The companies that mine gold and silver for our industrial and personal consumption will have to be conscious of the potential re-monitization of these metals by buyers and retailers; and what this could mean for their businesses in tough economic times. Recovery from a bout of depression caused by hyperinflation will depend a outstanding deal on having a good supply of gold and silver and a vibrant mining industry to supply the cash necessary to grow and exaggerate a new economy and aid international trade.
Craig D. HanksEugene, Oregon
Gold Or Silver Which Is The Best Investment
$1,400 Gold Coin Put In Salvation Army Kettle By Coin Dealer Michael Fuljenz, Urges Others To Do The Same
Beaumont, Texas (PRWEB) November 16, 2010 Nationally-known rare coin dealer Michael Fuljenz, President of Universal Coin & Bullion Co. (http://www.universalcoin.com) in Beaumont, Texas, has placed a one-ounce American Eagle gold coin donation valued at $1,400 into a Salvation Army collection kettle. He urged others across the country this holiday...
The dollar is in trouble. It has fallen versus other currencies for the past three years, and now it is orderly retreat could well become a rout. This spells potential disaster for the American economy?and potential riches for a few smart investors. In The Coming Collapse of the Dollar and How to Profit from It, financial gurus James Turk and John Rubino show how the dollar arrived at this precipice, why it will plunge, and how you may net income from the resulting financial crisis. The U.S. today is the world?s greatest debtor nation, printing cash with abandon to sustain the illusion of prosperity. The federal government owes $7 trillion and it is debt is soaring. As a society, we owe more than $37 trillion, or when it comes to $500,000 per family of four. Our trade deficit with other countries is staggering, and to finance this mountain of debt we?re flooding the world with dollars. The inevitable result: The dollar will decline until it is displaced as the world?s dominant currency. Precious metals will soar in value, and gold will reclaim it is monetary role at the center of the international financial system. Traditionally a haven for the duration of times of uncertainty, gold has risen dramatically since 2001. By the fall of 2004 it was up by closely 50%, at over $400 an ounce. But this is just the beginning. James Turk, a leading gold authority and the founder of GoldMoney.com, and veteran financial writer John Rubino, show readers how to capitalize on gold?s dramatic climb. In The Coming Collapse of the Dollar, Turk and Rubino disclose which stocks and bonds will falter as the dollar declines and why that decline is almost inevitable. They offer schemes for using gold coins, gold stocks, gold-based digital currencies, and other hard sum totals to formulate a profitable portfolio. And they explain how to make the most of your gold and other precious metal holdings, identifying the chances and pitfalls of buying gold mining stocks and the mutual funds that invest in them. America?s debt binge has put it is economy at grave risk. The value of the dollar is falling; a lot of stocks are once again wildly overvalued; and bonds, tied to an ever-diminishing dollar, are a disaster waiting to happen. By investing in gold and other hard assets, Turk and Rubino explain how you may protect yourself from these dangers. The Coming Collapse of the Dollar and How to Profit from It is a will have to read for each investor, whatsoever the size of his or her portfolio. For more information, visit www.dollarcollapse.com.9 Outpace Gold Sites
Silver, 'Bullion's Bridesmaid,' May Outpace Gold: Chart of Day .Oct 19, 2009 Silver may outpace gold through mid- 2010 as a recovering global economy increases industrial Buy Silver: Silver to Outpace GoldMar 5, 2010 Silver looks set to outpace gold in the coming months with the current shortage...
Most helpful client reviews 134 of 134 persons found the following review helpful.Timely Advice for Our Fiat CurrencyBy Mike D. LandfairI just finished reading The Coming Collapse of the Dollar and How to Profit From It By James Turk & John Rubino published in 2004. James Turk is founder of GoldMoney.com, the leading digital gold currency payment system. John Rubino is the author of How to Profit from the Real Estate Bust.I?ve posted a lot when it comes to inflation and gold, the Federal Reserve, and the destruction of the US Dollar. I have read in regards to the inflation that Germany experienced after WWII, the devaluation of the Mexican Peso and the Argentine Peso. If that is our future, I wanted to have a good deal of idea of what is in store for us and. The book is disunited into four constituents and is well written and difficult conceptions are explained well:Part One ? Why the dollar will collapsePart Two ? Money Then and NowPart Three ? Wht Gold Will SoarPart Four ? Profiting From The Dollar?s CollapseIn part one we learn that we have a fiat currency, backed by not one thing except a decree that the US Dollar is legal tender. Throughout history, in order for governments to satisfy demands without raising taxes, a government not only begins to debase it is money, but inflates as well. Both are happening in the US and no government has been successful. We have a history of that in this country with the Continentals and the Confederate currency, both worthless.Another fact that dooms our currency is that we have too much debt. Total unfunded obligations of the US are in excess of $43 Trillion, as a society we owe another $37 Trillion and Derivatives are in excess of $200 Trillion.Then we have a trade imbalance which just topped $800 Billion for 2005. We have been up in arms not long back by the Chinese wanting to buy Unocal, then Dubai wanting to own our eastern port management companies and Dubai wanting to own some of our critical defense industry by attempting to buy Doncasters Turk and Rubino point out on p31: Foreign investors now own in regards to $8 trillion of U.S. financial assets, including 13 percent of all U.S. stocks, 24 percent of corporate bonds, 43 percent of Treasury bonds, and 14 percent of government agency debt. By the end of 2003, regarding a third of Fannie Mae?s mortgage-backed bonds were being sold outside of the U.S. That was in 2003 and it has gotten substantially worse. What?s in store for us: Over time, the gap among tax revenue and the demands placed on government have a tendancy to grow, and spending, borrowing, and currency creation commence to exaggerate at increasing rates. Inflation accelerates, and the populace comes to see the routine of ?debasement? for what it is: the destruction of their savings. They abandon the currency en masse, spending it or converting it to more stable forms of cash as fast as possible. The currency?s value plunges (another way of saying prices soar), wiping out the accumulated savings of a whole generation. Such is the fate of each fiat currency. The government wants to keep this game going as long as possible by issuing bogus CPI numbers, then by excluding energy and food, concentrating on a ?core? rate. Phoney low inflation numbers keep bond yields down and ?COLA? adjustments low. What is the housing bubble, but selling USDs for a tangible asset. Gold is a warning sign and a rising gold interchange rate is fought by capping and leasing gold, until the central banks are short 12,000 to 16,000 tons. And now one of the tools Turk and Rubino use, The Fear Index, to gauge where gold is going in the next few years will be handicapped by the ending of release of M3 data.Turk and Rubino do an magnificent occupation of instructing you in Part Four. Can you net profit from your cognition of an approaching collapse of the dollar? How may you protect yourself? How may you protect your gathered savings?I highly commend this book to professional and novice, alike. 171 of 184 people found the following review helpful.More than a little uttermost ??.By Stuart GardnerThe writers do a good occupation of explaining how to invest in gold and how to put a portfolio together (from coins to mining stock).Following the counsel and laying out capital all your funds into gold and a fixed number of stocks could be self detrimental though.However, as the writers point out, the Government has confiscated gold before ? and could again. If things get as bad as they suggest Governments could nationalize mines ??..If the writers are on target with their predictions, investing now in an assault rifle, a cabin in the woods and alot of tinned feed would make a better investment than gold. Gold could very well make a outstanding investment given a sliding dollar; the argument that the dollar will collapse completely is taken to an sheer uttermost (the Dollar Crisis, Causes Consequence Cures, covers the same ground more convincingly).Useful book ? worth taking into account as share of your personal investment strategy. However, I wouldn?t plan my portfolio around the writers counsel alone ? having too outstanding a dependance on any one asset class may be bad. Advice on how to invest in gold (practicalities)is very good though. 234 of 263 people found the following review helpful.Good Advice?If Things Go Their WayBy B. LovianThe writers are convinced that the dollar will collapse, but their book is far from convincing. Even if the dollar does collapse, it might not do so for years or even decades. They offer up historical and theoretical reasons why the dollar ought to collapse, and they sound persuasive, but they never show incisively WHY the dollar MUST collapse.That said, if the dollar does collapse, then following their counsel ought to prove fruitful. They present a number of dissimilar ways for both comparatively conservative and aggressive investors to profit. But, embarrasingly, one of the contra-dollar mutual funds they commend (PIMCO Foreign Bond) is in truth a dollar-hedged bond fund, meaning it?s not designed to gain from a dollar decline. I guess they didn?t bother to read the prospectus.Their model portfolios would have even ?conservative? investors basically place all their bets on a falling dollar. This is arrogant and irresponsible. Unless you?re a speculator who may afford to lose big, you need some diversification (cash, short- term U.S. bonds, dividend stocks, etc.) so that a dollar rally won?t lead to huge losses. I?m with regards to 1/3 gold/contra-dollar, 1/3 cash/short-term bonds, and 1/3 dividend stocks. (I am avoiding long-term bonds exclusively until we see at least 7% yields to remunerate for the risk.) When I become bearish on stocks, which I suppose to do by 2006, then I may go up to 49% contra-dollar and 51% cash, but I?d never bet more than half my dough on a single investment system and no responsible consultant would suggest that you do. Strangely, the publisher touts praise of the book from ultra-bear Robert Prechter, whose forecastings have been finelooking lousy of late. Prechter is a deflationist who has been a long-term bear on gold for rather a heap of time. Did Prechter bother to read this gold bug tome before he lavished praise on it?Gold is money, yes, and every one will have to have some. But that doesn?t mean ?money? is or will be the most profitable asset to hold. We just don?t know. If this book may convince numerous of those people who have been taught by Wall Street and CNBC that all they need is S&P 500 index funds ? and possibly a lot of bonds ? to diversify into hard pluses like gold, it will serve a utile prupose. If it turns sane persons into raging gold bugs who mortgage their house to stockpile gold coins and go on margin to buy shares in mining companies (something the writers genuinely suggest since they?re so sure gold is going up), then this book is just another vehicle for creating more gold bug losers who get caught up in a mania and ride it down to the inevitable crash (the irrationally euphoric gold bugs of the late 70s are STILL attempting to recoup their losses). See all 43 client reviews?In Simply Irresistible the movie with Sarah Michelle Gellar. What is the dessert eaten in the elevator?
It's the dessert that is cylindrical in shape and had a gold like substance on the top. Sarah the lead girl brings it as a gift to the lead guy in his store and he eats it in the elevator of the store and completely loses control while eating it....
Numis Network Review ? Is Numis Network For Real?
Numis Network is a fairly new multi level marketing company which was founded to sell silver and gold coins through the multi level marketing vehicle. This critique will provide some very important information about this company. This is information you need to know to make any informed decisions so don't...
Source: http://www.bellybone.net/gold-or-silver-which-is-the-best-investment/
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