SWITCHING ASSETS 3
Things always look great, right before the plunge over the Seneca Cliff. Gasoline is about the cheapest its been in fifty years, going by real money ( silver ). Of course, gasoline is 10% corporate welfare in the form of ethanol, and 33% banker welfare in the form of Free Money ( it won't be repaid ) to the fracking companies who pour money into the ground and get fuel out at a loss. Call it another 7% Department Of Defense subsidy in the form of lower oil due to colonialism. Gasoline should be a minimum of twice as expensive.
But then, silver should be much more expensive. It has been kept artificially low by derivatives manipulation. Hell, the entire world economy has been kept afloat for the last ten years by derivatives. The last true words out of Warren Buffet's dingus hole was “derivatives are financial weapons of mass destruction” ( before he sold his soul to the Rothschild's-or, really, when they called in their marker on him-and is now their propaganda boy. Only believe the exact opposite of what he now says ). Before Peak Oil can mop the floor with our asses, derivatives will crash this whole house of cards.
The true real honest to goodness unit of wealth for the last hundred years was oil. If you look at silver or gold during that time, they pretty much just reflected the price of production ( with a smidge of profit thrown in-this from the SRS Rocco Report Dude, an impeccable source. If I'm paying someone on Patreon each month, as I do him, they are top of the heap analysts. Orlov is on double secret probation. He might be the smartest guy in the room, but he has also been reluctant to write, much )
The US economy was twenty years ahead of the Soviets reaching peak petroleum production. Our economy crashed, hard. If you don't consider the entire industrial base of an economy being moved overseas to drastically cut input costs a severe crash, I'm afraid you have no idea of what is in store for us. Only Saudi Arabian oil saved us. Gold disappearing from Fort Knox was immaterial. It was all about energy control and access. That entire time, with one exception that occurred during the transaction process ( industry to financial ), gold and silver were secondary to oil. Texas Tea.
Silver has been artificially low just because oil existed in the first place. It has been held down through derivatives manipulation ( institutionalized Money For Nothing, which can never last very long ). It has been treated and depleted as a industrial commodity. To think that silver cannot price increase six times is ludicrous. It has already quadrupled in price just in the last fifteen years. It hasn't even started reverting to its pre-oil price ( see the beginning about gasoline being artificially lowered in price ). Furthermore, supply ( please bear with me as I repeat-this is rather important ).
The YouTuber “Silver Report Uncut” pegs the above ground supply of silver as BENETH the weight of gold. Because silver is essentially destroyed if put into solar panels or water filters or circuit boards or antibacterial socks ( or what have you ), the cost of recovery being what it is. SRS Rocco says the amounts are even ( X number of tons of gold, compared to silver mined but NOT used for industrial purposes ). I believe SRS is being ultra conservative so as never to be accused of doom and gloom. But we'll go with that.
If there is the same amount of silver hoarded as there is gold, what the hell are you using the gold/silver ratio for? Yes, in the past the ratio of silver to gold was around 17 to 1. That is the ore availability in the earths crust. By law, Rome said 12 to 1, the US ( before precious metal was withdrawn as money ), 15 to one. All well and good. If silver is now 75 to 1, you can expect silver to revert to historical price points. Silver, by this metric, should be $100 to golds $1500.
But silver WILL be worth a heck of a lot more than one fifteenth of gold, because when the whole thing collapses, there will still only be half gold and half silver above ground. The price of silver can be held so much lower because there is a lot of it mined every year. But every year, the industrial demand for silver increases, even as the globe stagnates economically. As the production of silver declines. And that is JUST looking at primary silver mines. Secondary silver ( byproduct from copper, etc., mining ) is low as industrial metals use declines. From any way you care to look at it, silver WILL go up drastically in price.
Not in inflationary pressure price, either. In purchasing power price. Yes, I'm well aware that except in 1980 as the Hunt Brothers manipulated the silver market, silver has stayed low all our lives. As I said, oil has been the metric of wealth. We've gone to war over it for a century ( WWI was a colonial resource war, and involved the US stealing [ at first it was balance of payments, but then we never paid back those holding dollars ] gold, but it was also the first war waged over middle east colonies which holds you know what ).
But this is were my usual deafening insistence on Peak Oil comes in. If we are indeedally doodally running out of petroleum, then the entire economic foundation of our world is crumbling beneath us. If oil is no longer wealth, gold and silver will return to that role. And beware, I'm talking about a world where trade is still conducted. Precious metals are worth pretty much zero in a civilization collapse. They are worth less than zero during a die-off. They are only good for hoarding for future generations throughout a Dark Ages.
But during an economic collapse, where the infrastructure of government and trade still hold on, no matter how dysfunctional they have become, silver is still worth big bucks. In 1980 it was worth over $700, in today's dollars. It is worth $1500 right now, if the derivatives market imploded. Not that it WILL get that high anytime soon, because people simply have no idea so little silver remains above ground. They only look at how much was mined. But people are idiots, aren't they?
People are genetically programmed to follow the herd. A fact the elite know very well. Of course, people also lie very well to themselves, so even the elite are blinded by their own hubris ( and, apparently, by the need to be pedophiles as we seem to be witnessing from the last Clinton “suicide” ). The question is, are you willing to believe not is all it seems? I am. Money where my mouth is. I mean, don't think I'm not sweating it a little bit. There is always that kernel of doubt. But I stayed far too long in “safe, as defined by the past” mode. Time to bet on the future, as it is almost here.
( .Y. )
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Regarding those Amazon links on this blog: are these books that you have read or books that should be read based on your post? My guess is you've read them all. If so, are you that guy Condor (Robt Redford), whose job was to read everything published? If you remember, he found out the secret US Govt plan to invade the ME and TAKE the oil, which is why Cliff Robertson sent Max von Sydow to kill him. LOL. Seriously, your stuff is way above my pay grade, so I'm not feeling all that secure.ReplyDelete
I've really cut down on my paper book reading these last four years, now mostly reading online. So, no, most linked books are not ones I've read. The top right Amazon graphic is one I've bought. But not always read yet. A couple of times I've tried to re-watch the Three Days Of The Condor, but it always bores me. I enjoyed it when I first watched it on video. But that viewing is 30 plus years ago. Same with David Lynch's "Dune". I couldn't watch it again. And yet the other night I watched the remake of Rollarball ( I think the original sucked ass, being too talky ) for the third time and enjoyed it. You want a good James Caan? "Thief" is on Amazon Prime ( or, just was anyway ). Yeah, Baby, Tangerine Dream. I don't think Caan saved RollerBall. God, sometimes even I know I babble too much. Later.Delete
The Hunt brothers were not 'manipulating' the silver market. They simply noticed, nearly 50 years ago, what you are pointing out: that when a currency leaves the gold-standard it becomes a fiat, and silver would be a good investment.ReplyDelete
Their mistake was that they bought so goddamned much of it with their oil wealth, that by 1980 the world governments took notice and conspired against them by claiming that they were trying to 'corner the silver market'. They were just smart investors who over-did it.
As an aside: the U.S. had no choice other than to leave the gold-standard. France, and a few other nations, decided to take us up on our offer to exchange dollars for physical gold. After 2/3rd's of our physical gold supply was depleted, Nixon put the 'nix' to it. Maybe that's where the term 'nix' comes from.
Correct. I should have said "cornered the silver market" or similar. The price was manipulated by their actions but they could have just wanted real wealth to protect themselves ( who wouldn't after that decade? ).Delete
Gold, if a Minionite is a successful unicorn rancher in the redoubt and can afford to buy up it will be too top heavy valued for common uses, or more dangerous to deal with like that of narcotics and human trafficking etc. Silver being more low to the ground is more fluid for trade purposes. Think low denom bills versus C notes in street level business transactions. Practicality post apocalypse is a must.ReplyDelete
This is a soon to pass First World problem. All through the Agricultural Age to 1500, only kings had gold. And they had really big bills what with armies and all. Pretty soon, the commoners will never know what gold even looks like. D&D notwithstanding :)Delete
Yeah, I like diversity......when it is money spent towards tangible assets and legacy heirloom level items. Having your frugal prep monies spread out into the various departments, ensures you won't get too hurt on market-value-demand changes.ReplyDelete
I used tangibles of excess guns, ammo, related stuff as a sell off asset during unemployment, so as to not touch deep cash or high end assets. It worked well and carried the day thru a long stretch. The post collapse economies and it's new importance priority items will change economics forever.
Diversity is our strength :(Delete
Nuclear is our friend, if we have the wisdom to get there. (need to buy more silver)ReplyDelete
Elite. Bankers. Wisdom. No, oxymoron.Delete