The Discipline of Silver November 27 2015

Consider these round number costs in digital (dishonest) dollars: 

1,000 ounce Silver Bar                                                                   $17,000

or         Hillary Clinton speech                                              $300,000
or         F-35 Flight helmet                                                     $400,000
or         F-35C Navy Fighter Jet                                        $300 Million 

 

Silver mined globally each year                                                 $15 Billion

or         Annual expense for US food stamps (SNAP)      $80 Billion
or         US deficit each year (rough average)                 $500 Billion
or         Iraq Wars                                                                   $3 Trillion
or         Official US National Debt                                    $18+ Trillion

         

 Silver - The real physical metal, not the paper stuff traded on the COMEX: 

  1. Requires massive effort and discipline to mine and refine.
  2. Silver has been a store of value for over 3,000 years.
  3. Would you prefer 30 pieces of silver or 30 pieces of colored paper? 

Debt based paper and digital fiat currency: 

  1. Can be borrowed or printed into existence with minimal effort.
  2. Has been deteriorating in value since it was introduced.
  3. In 1913 a “dollar” purchased about two ounces of silver. A paper “dollar” today purchases about 0.05 ounces of silver.
  4. In ten years a “dollar” probably will purchase less than 0.005 ounces of silver.
  5. The value of paper and digital dollars, euros, yen, and pounds is dependent upon the honesty, integrity, and discipline of governments and central bankers. Be prepared!

 The discipline of silver is real, like the metal.  It has value now and will have value regardless of what Presidents or Fed Chairpersons promise regarding such nonsense as: 

“Quantitative Easing”
“Balancing the budget”
“Hope and Change”
“No foreign wars”
“Price stability”
“Strong dollar policy”
“Kinder and gentler government”
“Prosperity for all”
“A fair tax structure”
“Trickle down economics”
“Abenomics”

 

 There is discipline in silver metal but very little in fiat paper currencies.  The price of silver will rise as currencies devalue because silver is real, necessary for 1000’s of industrial uses, and because an increasing number of investors understand that silver is underpriced and retains value.  Read Steve St. Angelo.

 Further, our debt based monetary system requires ever increasing debt, inflation, and expansion.  Think about the implications of $400,000 helmets and $85 Billion per month in QE.  The continued devaluation of all fiat currencies is a given, based on debt, government spending and central bank policies.  Hence silver and gold prices will rise substantially in upcoming years, partially because people want and need it, and mostly because fiat paper currencies are devaluing every day.

 Not convinced?  Ask yourself which has more lasting value:

  •  A Hillary Clinton speech or 20,000 ounces of silver?
  • An F-35 helmet or 25,000 ounces of silver?

The answers will not be the same for everyone but the questions are worth contemplation. 

We at Deviant Investor believe that: 
Paper dies, silver thrives!
 

Gary Christenson

The Deviant Investor