Sun, Aug 7, 2011 - 12:32am
What Happens to Silver when the world undergoes a massive currency reset?
According to Jim Sinclair the downgrading of US debt on Friday is the final lynch-pin that will herald this event, and the new virtual world reserve currency will be at least partially backed by Gold. FOFOA has also argued that Gold, not Silver, is the ultimate safe haven precious metal. Even Max Keiser has quietly started talking the Gold book, despite his SLA/Crash JPM campaign.
When this currency reset happens, what is the fate of Silver? Certainly all paper, digital and other unallocated forms of virtual Silver (and Gold) will become worthless, and physical Gold with skyrocket to the moon. But will physical Silver necessarily go along for the ride?
I ask this because when Rome collapsed roughly 2000 years ago Gold retained its store of value, but Silver disappeared from coinage for most of the next 300 years.
Once the currency reset happens, the economic system as we know it will have collapsed. Trillions and trillions of $$$ in paper and digital wealth will simply vanish. That said, all arguments for the industrial uses of Silver will be greatly weakened because the demand for physical Silver for electronics and industry will literally go off a cliff.
Any thoughts out there?
Edited by: John Galt on Nov 8, 2014 - 5:09am