Gold vs Silver - Not the Age Old Question Anymore

The gold - silver ratio is down to a mere 93. Down from 100 just a month ago.

Historically it has been between 8 to 1 to around 12 to 1. These are the rates it comes out of the ground. And many people expect this ratio to return to this natural level, however, there is no reason for it to do so. It is all about demand… well, in the future, it will be all about demand. Right now, it is all about manipulation to keep the fiat currencies from just vaporizing. If gold was suddenly $10,000 an ounce, what would people's faith in the dollar be?

I would like to write an easy post about how silver is much better than gold. Or, believe the gold bugs, cause they know. But this isn't one of those, because the future is not so cut and dry. In fact, from our current view point, the future is a fuckin wreck.

You know, we should have taken that left turn at Albuquerque!

Gold backed money

There is a high likelihood that we, some of us on the planet, will have a gold backed currency in the near future. Or a basket of commodities (including gold, oil) backed currency.

The dollar is getting long in the tooth. And when it goes, everything else falls apart too. So, we need something quick to replace it. It would be great if people already accepted crypto-currency, but not enough have even thought about switching over yet. When the dollar goes, people will be very suspect of non-backed, easily printed, fiat. So, one way to start a new currency is to back it with gold.

Revalue the gold in Ft. Knox to some really high price, and create dollars based on that.

Something like gold is valued at $10,000 FRNs (Federal Reserve Notes) and each new dollar is 1/1000th ounce of gold. (So the exchange from old to new dollars is 10:1) (This is just an example. I do not know what the actual #s will be.)

So, you could say, that if you held gold eagles, each one will be worth $10,000. Quite a jump from the $3,000 right now.

Silver becomes a strategic metal

Silver is needed in soooo many things. From mirrors to computers. And pounds of it is needed in every cruise missile.

It is not false to say that our modern manufacturing comes to a complete halt if we run out of silver. And the banksters have been keeping the price of silver suppressed for so long, that we are almost out of silver.

So, at any moment now, we are about to have the biggest silver short squeeze ever.

To add to this, there are new technologies coming out that will NEED silver. And people will pay whatever they need to, to get those new technology items.

Silver will become a national strategic metal. Its value will be so high that there will be vans at locations paying for silver.

Before then, we will see silver going up a dollar a day. Soon $5 a day. It will go to $10,000 a tube as the govern-cement tries to low ball people into selling. Don't fall for it, wait for at least $50k a tube.

Monetary Metals?

Gold may be used as a backing for paper currency, but i doubt that people will actually accept it for purchases. But i may be wrong. It is possible people will accept recognizable gold coins as payment if someone wants to buy some beef.

Silver will never be used as a monetary metal again. It will just be too precious. (And Mexico is going to become rich. That is why they are building a wall to keep the Americans out)

Of course, we know that the future is bitcoin (or crypto). And people (the old gold bugs) will realize that sometime in the future, and just let their hold out for a gold money go. It will be recognized that there are tons of gold all over the place, and that it is not very rare, or useful. And so, as money, it lacks in the most needed characteristics, and in almost all ways is beat by crypto-currency. (bitcoin crosses the physical / digital barrier, and then it is all over for gold).

Gold and silver bugs lament. The monetary metal days are over and are not coming back.

If you are looking to invest in metals, and wonder which will be the best, well, it depends. Which spike comes first?

Will gold be revalued as new currencies are issued? If so, we are really close to that time. It will be under Trump, or never. So, holding gold right now might net you a fast 3x. (or more/less) But it is generally thought that the gold manipulation will come to a very quick end. And then real price discovery will happen.

Silver, on the other hand will probably take longer. I do not see the new technology, but i see people going around trying to buy up any excess silver like their lives depend on it. And so, i expect to be broadsided by silver price explosion.

I expect the gold / silver ratio to go to 1:1 at minimum. But, i also expect gold to do its spike first, and then silver. But, but, i would not be surprised if they happen together.

All images in this post are my own original creations.