Originally posted by Amagnon
Originally posted by metalpr
if gold goes skyrocket, the US gold reserves value will skyrocket too. Being the United State the biggest gold owner in the world (I'm not talking
about if the US owe it all or not), having 8x more gold than China with the crash of the dollar and the re-establishment of the gold based system, I
think the US will benefit too.
Dont be too sure those reserves are correct or there - Fort Knox has not been audited for 50+ years - and the gold may have been sold to prop up the
There are also many tonnes of gold held in the US that belongs to Germany - however, does any of it still remain? Germany is unlikely to ever see
that gold again I think,.
You seem to think that the people who may control this thing care what happens to the US - I doubt it. The gold that once belonged to the US people
is likely long since stolen - and now resides in private hands - the hands of the scum.
I transferred all my assets into mainly silver at the end of 08, I also hold some gold and equities. The silver has more than doubled - and I see
nothing that is going to prevent silver from going up - I think a natural silver:gold ratio in the future will be 8:1 or lower. We now mine only
around 8 times more silver than gold and the ratio is falling - also above ground stocks of silver are lower than that of gold - in the past the ratio
was around 15, to 20 to 1 with gold - we have consumed a great deal of silver over the last 100 years, this has never happened before in human
The fundamental historical ratios are therefore no longer useful - there is a new paradigm guiding the value of silver in the future - on the upslope
I think that the silver price may exceed that of gold - though long term it will possibly be less.
More patents using silver were developed last year than for any other metal - it is the most reflective, thermally and electrically conductive and it
kills bacteria - it has value as an industrial and precious metal - and it is rare.
I do not rule out the possibility that the future silver price will exceed gold, and stay there.
On the monetary crisis - the problem is systemic - money creation requires expansion of debt. The debt has expanded exponentially with respect to
underlying assets - there are too many claims to underlying assets, and they cannot all be resolved/satisfied.
So at some point there will be a rush to grab what you can - gold is like transportable real estate, demand will increase sharply - there is no upper
limit to price with respect to dollars. A trillion dollars an ounce is achievable in a hyper-inflationary environment - so guessing at a dollar value
is not really useful unless you have some idea of the dollars purchasing power. Its value with respect to other commodities such as oil is more
useful - and I expect its value to increase sharply.
In the event of a dollar collapse, people will still need money to trade between themselves - things like tins of food, packs of cigarettes and so on
will do - as will silver and gold coins - people will accept them as valuable and useful for trading, as they have done for thousands of
edit on 1-12-2010 by Amagnon because: (no reason given)
I seldom quote in entirety, but I want to make sure people read your post.
Finally someone who really gets it! The whole thing, and puts it in a way anyone should be able to understand (I wish I could do that!).
SILVER: It is still actually the very rare person who understands silver, and obviously you did your due diligence, and were rewarded accordingly.
Silver is interesting for another reason, beyond fundamentals (to die for), silver may be the Achilles heel of the entire financial house of
As I'm sure you know Amagnon, if even just one person in a hundred decided to go out and buy silver, just a small amount (like one ounce maybe), it
could bring the price manipulators to their knees. Who are the mega-manipulators? Only a few large banks are in on the game, with the biggest being
JP Morgan. They have depressed the price for many years, shorting the metal constantly, using precise (illegal) coordinated timing to make billions.
They consider it their "cash cow", having long ago identified it as a market just small enough to effectively control. Of course, the jig is up if
they fail to cover their shorts one day, and that day can come anytime. As Jason Hommel recently pointed out in one of his newsletters, silver can
get to $500 per ounce in a big hurry if there is the classic short-squeeze.
SO, what happens if JP Morgan goes down as a result of finally getting caught in their silver fraud? Who else will follow? We've already had
massive bank failures, generally kept quite by the media, lots of banks being folded into bigger ones. The system really doesn't need a big stressor
right now. And yet, there is growing silver awareness that could have completely out-of-proportion effects upon the entire financial system.
I see lots of people posting in this thread who really seem rather complacent, are pretty sure nothing "sudden" could happen. Well, these big
banksters are not gods! Things can happen, even if they did not ordain it. Unexpected things, like silver being bought hand-over-fist in China, a
nation traditionally very attracted to silver ownership, far more so than gold.
When this cat gets out of the bag, there will be no putting it back in again.