GOLD SILVER RATIO 10:1 IS COMING

[SilverGameOfThrones]

 

[sixgun]

i have heard 1:1 - i have heard silver at a premium to gold.

The 'natural ratio' is something between 8 and 15 to one. Now just become it is in this ratio in the ground does not mean it should be at prices in that ratio. A lot of silver is lost but at the same time a lot of gold is lost into the vaults of Russia and China. Don't expect any of that to come up for sale on the silver forum. 
The price ratio will be driven by gold and how much alpha there is in silver - how short the silver supply is and how much industry demands. 

Ideas we will be buying stuff with silver coins. i hear those with bunker mentality talking about buying milk and potatoes from a farmer with silver coins. This is barmy -  ideas like this are naive in my view. 

The investment side of silver has started to re-emerge, but it is blockchain that will put silver back into monetary circulation - which is why i jumped on board the Kinesis project. At the end of the day however gold is King and always has been.

[SilverGameOfThrones]

Gold is for Kings , Silver is for people 👍 

But i am going to play GSR anywhere  

 

[Happypanda88]

........Barter is the currency of peasants;

And debt is the currency of slaves.

But I doubt we will ever see GSR 10:1   

[sstrrs]

5 hours ago, sixgun said:

i hear those with bunker mentality talking about buying milk and potatoes from a farmer with silver coins. This is barmy -  ideas like this are naive in my view. 

Not entirely. This would be quite reasonable to expect in rural USA, the culture there would allow for it. If there were serious issues with the USD, the US is probably the one place in the world where silver would become a temporary de facto currency. Europe is another situation altogether, a place where rebellious industriousness has long since been bred out.

[vand]

10:1 is possible; anything is possible.

However if and when it does eventually happen, I can gaurantee you that most of the early silver adopters won't be around to benefit from it. The vast majority of people are pyschologically ill equipped to handle huge run ups in price and will be bagging their profits way, way earlier. 

The need to balance staying invested all the way to the peak of the bubble and keeping your portfolio balanced is incredibly difficult. I've actually been thinking a lot about this recently, and having been coming up with a plan that I can follow if silver "does a rhodium".

[Kookaburracollector]

2 minutes ago, vand said:

10:1 is possible; anything is possible.

However if and when it does eventually happen, I can gaurantee you that most of the early silver adopters won't be around to benefit from it. The vast majority of people are pyschologically ill equipped to handle huge run ups in price and will be bagging their profits way, way earlier. 

The need to balance staying invested all the way to the peak of the bubble and keeping your portfolio balanced is incredibly difficult. I've actually been thinking a lot about this recently, and having been coming up with a plan that I can follow if silver "does a rhodium".

Sometimes I think you write these articles with me in mind (you perfectly describe my psychological weaknesses 😂). I own physical silver which has doubled in value, and I’m getting thoughts of selling😂.

My gold / silver ETF’s have done the same (in way less time), and I did sell some on Thursday...just to rebalance by portfolio. I had way too much invested in one asset class. 

I will try and sit on my hands for a good while longer, but having been scarred in the past (by not taking profits), it’s a tricky, but nice position to be in!

Thank you again for reminding me of the above👍

 

[Cornishfarmer]

6 hours ago, sixgun said:

Ideas we will be buying stuff with silver coins. i hear those with bunker mentality talking about buying milk and potatoes from a farmer with silver coins. 

I’d happy swap a bullock and a ton of spuds for an Oz of gold!!!

[Martlet]

The video doesn't actually predict 10:1, just a click bait title.  He says 40-30:1 in 4 years.

The ratio to as low as 10:1 needs gold to go down, a lot.  There are thousands of tons dug up every year, left in copper, nickle and other mining tailings uneconomical to refine.  As silver prices rise and stay stable, those resources will come to market and hold the price. Even to get to 40:1 means gold to hold around were it is while silver doubles. 

 

[Shinus73]

38 minutes ago, Martlet said:

Even to get to 40:1 means gold to hold around were it is while silver doubles. 

Which is what happened in 2010/11.

[HawkHybrid]

3 hours ago, vand said:

10:1 is possible; anything is possible.

However if and when it does eventually happen, I can gaurantee you that most of the early silver adopters won't be around to benefit from it.

 

this is because many of those early adopters will more than likely be 6 foot under.

the gsr is a 30+ years cycle.

 

HH

[sixgun]

2 hours ago, Cornishfarmer said:

I’d happy swap a bullock and a ton of spuds for an Oz of gold!!!

i'm sure you would do a swap but how many farmers does they average coins collector in Manchester, Leeds, Birmingham and London know? 

[sixgun]

3 hours ago, Martlet said:

The video doesn't actually predict 10:1, just a click bait title.  He says 40-30:1 in 4 years.

The ratio to as low as 10:1 needs gold to go down, a lot.  There are thousands of tons dug up every year, left in copper, nickle and other mining tailings uneconomical to refine.  As silver prices rise and stay stable, those resources will come to market and hold the price. Even to get to 40:1 means gold to hold around were it is while silver doubles. 

Gold has a long way to go up. It is not really at all time highs. From memory it has to get to something like $8k to be at an all time high - this is inflation adjusted and shows how much the USD has gone down since the highs of the early 1980's. Governments are crashing the currencies. They are producing $trillions as if it were pocket change. A lot of this will be finding its way out onto Main Street. There actually appears to be a deliberate intention to cause inflation. i recently calculated silver would need to be at about $175 for its inflation adjusted all time high. That was using the official inflation index which we know from Shadow Stats is much too low. So that is 4x for gold and over 6x for silver. We are looking at 45:1 then. i know it sounds like an hysterical pumper but $500 silver is not outlandish - but i think not when you apply Shadow Stats type inflation numbers to the mix.

[jultorsk]

^^ Yep, grabbed this inflation adjusted silver pic from Twitter the other day...

 

[sixgun]

@jultorskyeah and we thought silver got expensive - then think again. 

These numbers are impressive but they are real - this is not Peter Schiff's babbling now. The value is not actually getting more b/c it is measured in dollars and pounds. Having said that the metals will go up in real terms as well as suppression falls away. As the impact of inflation is allowed to kick in there is so much upside to come. There has been no free market in gold for a long time - the price was fixed and then the price was suppressed.

When i was a kid most of other mums were housewives. Looking after the home, bringing up children and the like. An ordinary bloke could keep a family. Since then real wages have fallen - we know this b/c there is more debt and most men can't raise a family like they used to. 
There is a Twitter channel "WTF Happened in 1971?" - the USD came off the gold standard. So much can be dated back to that point in time. Currencies were linked to the dollar so the world came off the gold standard. For the first time every currency was pure fiat.
There was the fake oil crisis were there was no real crisis it was just another scam to push up oil prices.  When the Saudis promised to sell only in USD it meant the demand for USD shot up too. It was the birth of the Petro-dollar. This tool of the cabal is now dying on its feet. Even Saudi is selling off the dollar now. The end is coming for fiat but you won't hear that on the BBC. This is the time we have stacked precious metal for. 

[Roy]

@sixgun what about this?

@KDave said:

Under a gold standard everyone would be hoarding gold now and previously profitable businesses would be going bust, unemployment would be far worse than it is, etc. I also don't see a benefit from a return to the gold standard when human nature is involved, people call the fiat system corrupt and dishonest, but seem to forget gold was confiscated and revalued several times by decree prior to the end. Human nature is the common theme.

I can see that both arguments carry weight.

[HawkHybrid]

all those figures and charts depend on how you calculate inflation.

 

https://inflationdata.com/articles/2013/03/21/food-price-inflation-1913/

things have changed over the decades.

I wouldn't use shadow stats calculation of inflation. it's based on a system of a time that has passed.

 

HH

[Martlet]

2 hours ago, sixgun said:

Gold has a long way to go up. It is not really at all time highs. From memory it has to get to something like $8k to be at an all time high - this is inflation adjusted and shows how much the USD has gone down since the highs of the early 1980's. 

Always interesting claims around that level, if this is correct gold has severely failed to keep track with inflation (of any calculation).  Why should it align to inflation now if it hasn't for so long?

[sixgun]

On 09/08/2020 at 16:01, Roy said:

@sixgun what about this?

Under a gold standard everyone would be hoarding gold now and previously profitable businesses would be going bust, unemployment would be far worse than it is, etc. I also don't see a benefit from a return to the gold standard when human nature is involved, people call the fiat system corrupt and dishonest, but seem to forget gold was confiscated and revalued several times by decree prior to the end. Human nature is the common theme.

I can see that both arguments carry weight.

The purpose of the gold standard is to bring trust, stability and discipline to the monetary system.
The biggest thief in the night is inflation. - Inflation is theft by stealth. Anyone with savings is losing value. A $20 gold coin of 1900 was used to buy $20 of goods. Gold is money - everything else is credit. The dollar value of gold is now over $2000. Your $20 note is now 1% of its value in 1900. Paper money has gone to rat sh it. 
The banking system is stealing our labour with inflation. They can't do that with gold.

Gold is hoarded. It has always been hoarded. It is Gresham's law. 

Quote

Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.

The idea is that in a dual system people will spend the paper and hoard the gold. Now if gold were revalued to $60k - (we need figures of that order to cover the mountains of paper) and gold or its representations are the money, when you spend money you spend gold and vice versa. This is the idea behind Kinesis. The KAU is 1g of gold and the KAG 1oz of silver. They are fully backed. Kinesis says it defeats Gresham's law by distributing the fees to use the system amongst those who use it. So you add functionality to precious metal through the blockchain - that you can save, spend on a card, through an account like a bank account, send across the world. There is a fee but those who put value into the system will get a share of this fee.  This incentivises the used of digital precious metal on the blockchain.

Now ignoring the defeat of Gresham's law, i got a few bits of silver this weekend. i sent the member some fiat. i get my silver and it goes into the stash. No doubt that member bought the silver from someone else. That fiat paid for the silver is moving round the system. My fiat input is moving. i have no idea what it will do in the future but it is out there. If i buy gold to hoard, the fiat i paid is still out there. It is no different from me buying an oil painting and putting it on the wall. The fiat i pay for the painting is out there and moving. 

If i buy coins and bars from someone else i pay with fiat. Those coins and bars were held by someone - can we say hoarded - their conscience started pricking them and they sold to me, whose conscience will never p rick in these matters. Someone has to hold the gold and silver. They say virtually all the gold ever mined is still available - someone is holding the stuff - makes no difference whether there is a gold standard or not, someone has got their mitts on the metal.
 

The Great Depression of the 1930's it is said was much worse in America than it should have been b/c FDR increased the gold holdings of the US. He created a massive gold hoard. The problem (deliberately) created was that value was not put to work. The gold was not monetised. This created deflation. This contributed to the depression. So i would argue the gold standard is good b/c it puts that gold to work. It brings inflationary stability and discipline to governments which would otherwise overspend. 

[SilverGameOfThrones]

Good conversation fellas !  

[sixgun]

32 minutes ago, HawkHybrid said:

all those figures and charts depend on how you calculate inflation.

https://inflationdata.com/articles/2013/03/21/food-price-inflation-1913/

things have changed over the decades.

I wouldn't use shadow stats calculation of inflation. it's based on a system of a time that has passed.

HH

Governments rig the inflation figures - there are various bonds, benefits and wages which are inflation linked. So they rig the inflation figures to create a picture that inflation is low, then the pay out is less.
For some reason we keep supermarket receipts - there is a drawer full of the things. Looking back over them i can see the official rate of inflation bears no relation to the way prices have gone up. Another member said he had looked at prices over time and they followed something like Shadow Stats. The official figures are disinformation.

[Roy]

I suggest there is a need for both systems. Gold is an awful currency, fiat is an awful savings mechanism.

As @HawkHybrid has always maintained,

'Trade in currency, save in Gold.'

[sstrrs]

2 minutes ago, Roy said:

I suggest there is a need for both systems. Gold is an awful currency, fiat is an awful savings mechanism.

As @HawkHybrid has always maintained,

'Trade in currency, save in Gold.'

If only the two could be linked in some way… 🤔

[HawkHybrid]

4 minutes ago, sixgun said:

Another member said he had looked at prices over time and they followed something like Shadow Stats.

 

the figures don't lie, it's the application of the figures that's at fault.

technology, materials, design etc are all superior to what they were before.

markets change accordingly. we have better access to resources worldwide then we've ever had in history.

 

HH

[Roy]

I believe @sixgun to be a pioneer investor in such a system.

I think it makes sense.