Future Silver priced in dollars is meaningless. The real question becomes "what will an ounce of silver buy a year from now or two years from now" or better yet what will an ounce buy once we have our much anticipated economic collapse.
I want to buy land with mine and hope to convert an ounce to an acre.
Great point, you sparked some curiosity.
So if Mexico does end up backing their Peso with silver, that is, actual physical silver which one can trade one's Peso's for, then would it not be a great US Dollar hedge to open a savings account denominated in Pesos? I'm thinking that if TSHTF here in So Cal., then it seems to be a dual benefit.
I'm thinking something like this: Travel across the International Border at San Ysidro. Exchange some FRN's, either from an ATM, or from actual FRN's, for Peso's. Come on back to US with the Pesos. Hold the Peso's in the safe rather than the FRN's. When TSHTF, cross border back to Mexico and exchange Peso's for physical silver. Paper would be easier to transport across the border than silver, plus it seems that there is no requirement to declare possession of Peso's vs. FRN's. Am I just being looney on this?
@California Lawyer
I would be hesitant to try crossing the U.S. border with anything of value during a time of crisis. I can imagine that in the not too distance future the U.S. Government will institute some type of capital and currency controls to stop any outflows from this country. An idea might be to open a Foreign Bank Account in a country with no information exchange agreement with the U.S. and with a bank that has no U.S. presence or holdings denominated in Pesos. Then you could cross the border into Mexico with nothing other than the clothes on your back and have funds wired to where ever you land. They can't confiscate what you don't have on your person during a crossing (that's assuming they will allow anyone to leave as this crisis unfolds to critical levels). The downside is that the IRS still requires that you, as a US Citizen, report any foreign bank accounts annually on your tax return. I'm not sure, though, whether that would be a huge hinderance if the bank you have an account with has no U.S. ties. What are your thoughts?
Oh, make sure you bring some coinage to bride the crossing guards at the border...you know they will be looking for it as things turn to crap.
1) It is not that people owning silver will get ahead but everyone else will sink, making the silver holder the new wealthy.
2) The average person will not get ahead because he has no gold or silver.
3) The commodity side of silver will replace the investment side of silver as gold tops out and silver will hold its value as a commodity used mainly for solar, electronics and germ fighting.
4) the price will go to $500 by 2016 and be 10 to one with $5000 gold.
First Mexico is not certain that they are going to monetize silver; it is a plan proposed by Hugo Salinas Price and it is far from a done deal.
Second the monetization is an odd plan. The silver libertad is the ONLY silver monetize and it will (and does not not) have a peso value minted on the coin itself. The value of the liberad would be announced daily by the Mexican central bank. The oddest part of the plan is that the value of a libertad (in paper pesos can NEVER go down only UP. If there is a spike and a Libertad is momentarily worth $1000 paper pesos (about $80 USD currently) then silver plunges to $20, if you go to the bank to sell or buy more libertades you will get or pay $1000mn. That is great if you already HAVE the libertades and silver is selling for $20 - you would get $800 paper mexican pesos. But if you want to purchase silver why would someone pay $80 toz if they could get it for $20 at a US Coin store.
I would be careful crossing any currency (this is how money including gold in silver is defined by both countries) into Mexico or into the united states but would not be freaked out about it. I recently illegally crossed 2 full bags of junk silver into Mexico with no poblems. The Mexicans are looking for drugs Homeland security is looking for drugs. I don't expect a time of crisis so am so familiar crossing the border that it's nothing to me; I'm going today to buy more libertades in fact.
PLEASE BE AWARE THAT THERE IS *NO* PLAN TO BACK THE PAPER PESOS WITH SILVER. THE PLAN IS TO CHANGE THE RATE OF LIBERTADES UP WHEN SILVER GOES UP AND LEAVE IT AT IT'S HIGHEST ATTAINED VALUE. SO DON'T BRING BACK PAPER PESOS OR YOU WILL LOSE YOUR MONEY; IT'S A WORSE FIAT THAN THE US$ BRING BACK (OR BUY IN THE US LIBERTADES.
Salinas Prices plan is somewhat difficult to wrap one's head around but is NOT backing paper pesos with silver..
Further, If someone is going to Mexico why not just buy Cenenarios? They are much more beautiful, compact value *1..027 toz pure gold.
I do think the GSR will be at least 10:1 at some point. The metals have been manipulated so heavily for so long that an overcorrection makes sense. I think the ratio will eventually settle at its historic average of approx. 16:1 after the overcorrection.
I like your predictions!
thanks Animal, that does clarify things; looks like I need to do some reading :)
strengthens the argument viewing silver as 2nd to gold from a wealth preservation perspective.
Buying gold is a beneficial investment for anyone who is seeking anything a modest various that the traditional buy and retain onto dwindling stocks wisdom. [url=http://buygoldguide.com/]Buy gold online[/url] Gold has often held its location within the market inside way of genuine monetary value, and as long as you know how to buy gold, you possibly can easily reap the benefits of this precious metal.
There are quite a few several sorts of gold out there, and you'll need to understand every a single prior to you're fully prepared to purchase your personal gold investment. The very first and most significant note is that when it comes to buying gold for numerous investment purposes, gold jewelry isn't what we are talking about. Though gold jewelry can be beautiful and valuable, it truly is quite subjective in putting a significance on.
I think its a stretch, but would welcome it should it ever come to pass.
Perhaps the best way to capitalize on such moves is to reduce your exposure to the escalated costs of other goods. I mean if gas is 20 bucks a gallon but you don't buy gas then why should I give a rats arse what others are forking over for it ? Yeah I know it haunts in other ways but the point is to reduce your exposure to it.
So the question asked is where do you burn your salary and how can you reduce it ?
We started growing citrus, lemons and limes and a new orange tree this summer. It won't be a game breaker but it does reduce our exposure to the cost of them. Plus they shade the yard and reduce our AC bill.
I regularly grow my own basil and tomatoes. Its not enough to keep me in tomato sauce all year long but its a worthy goal. I actually came close to buying a very small parcel of land and putting up a green house but the math made me conclude its better off spent on PM or energy investments.
We sold our car too. Good riddance ! Saved on gas, insurance, parking. If we really need a car we can borrow a friends and fill up the tank that once a month we stock up on things.
anyway off rambling but the point is made
reduce your exposure to the costs of inflation and maximize your returns on PM as a result. I prefer to trade my PM for an distressed investment property than pissing it into the wind of Exxon's coffers so I can drive on down to the convenience store.
I don't want to speculate on the GSR. If it moves in silver's favor all the better. If it moves past 25:1 I will be doing backflips and at that point will slowly begin an averaging move into gold. If it doesn't at least I will have preserved what I have.
15:1 ? wow
10:1 ? great
1:2 ? sign me up !
10:1 & 16:1 are more of the historical ratio ever since these metals were started to be pulled from the ground. It's said that silver is being depleted way faster from the ground than gold and will be extinct (gone) within 10 yrs time. Add to that the fact that silver is consumed (and not easily recoverable) and virtually every ounce of gold ever mined still exists today. Based on the above I can easily see how silver will be "worth" more than gold in the future - just like platinum today...
I'm thinking something like this: Travel across the International Border at San Ysidro. Exchange some FRN's, either from an ATM, or from actual FRN's, for Peso's. Come on back to US with the Pesos. Hold the Peso's in the safe rather than the FRN's. When TSHTF, cross border back to Mexico and exchange Peso's for physical silver. Paper would be easier to transport across the border than silver, plus it seems that there is no requirement to declare possession of Peso's vs. FRN's. Am I just being looney on this?
Do you really think they will exchange a paper Peso for a silver Peso? If it does happen, there will be a re-evaluation made and it may cost you 100 paper Paso's for one silver Peso.
James Dines says on KWN today (7/8):
When asked about London Whistleblower Maguire’s comments about the tremendous amount of silver that will be taken out of the physical silver market to start the Pan Asia Exchange Dines replied, “Where will it (the silver) come from? There are very few independent silver mines in the world, most of it is byproduct from lead and zinc, sometimes gold.
What’s going to happen to the price of silver is it’s going to go up, way up. All you had to do was close your eyes and hold it and shut your panicked membrane to all of the fools who say it’s too high. I tell you now that the price of silver is going far higher than anybody realizes. it’s going far higher than $50, it’s going to test the $100 an ounce level, and beyond that somewhere between $300 and $500 an ounce. Believe the unbelievable or not.”
$75
Per ounce.
That's [Seventy-five] USD
In 2020
:)
I think you have to consider in the 1800's money was backed by gold and the amount of silver in stock and annual production compared to it's (industrial, jewelry, investment etc.) demand in the 1800's. Then compare it to now, unbacked currency, increased industrial and investment demand with decreasing supplies. Some experts say there is a 10 year lag from starting a new mine to silver entering the market. Just things to think about.
Trend lines gives me gold = low $4250, medium $7000, and high $10000 by 2020 so silver could be
1. if GSR 30:1 = low $141, medium $233, high $333 per oz silver
2. if GSR 16:1 =$265, $437, 625
3. if GSR 10:1 =$425, $700, $1000
If we take world total money stock $60T divide by 987 million oz of central bank gold = $60790/oz of gold. 100% of world money backed by gold according Chris Martinson. Now if we use 40% ( read this % somewhere not sure) as was used in Bretton Woods then $24316/oz of gold. At 16:1 silver would be $1520/oz. If you go by Eric Sprott, current stock of gold and silver bullion is GSR of 1:0.5 you get low at $8500, medium $14000 and high $20000/oz of silver.
In GSR 1= 1 oz of gold
And by Eric Sprott, GSR 1= 1 oz of gold and 0.5 oz of silver.
Sorry about the confusion I should have 1 for gold ounces before the the number of silver ounces.
At minimum the price of one ounce of silver will be far in excess of ONE HUNDRED TRILLION DOLLARS. here is proof.
can someone explain how to get this to print up. thanks
this is part of my tactical planning
I have a 10 year fixed mortgage rate at low Japanese prices and continue to dollar cost average into PM (mostly silver)
If there is a spike I can cash out some of the returns and pay off a significant portion of the loan or I can continue to pay my fiat salary towards the mortgage and wait for the GSR to move south of 25:1.
If the timing works out well I can go into the bank having cashed out 10-20% of my PM core position and roll the fixed rate mortgage over for another 10 years.
Like many here I am already way in the money even if silver were to fall back to say 28...
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