It has been said that “Paper money hides the truth”. Unfortunately I agree. Paper money starts out as a convenience and is backed by gold. Then the central planners want to pump up the economy and bypass the normal contraction portion of the economic cycle. Interrupting this natural rhythm begins the path to destruction of the currency. We are in the midst of observing this destruction play out during our lifetimes.
“The increase we have seen in paper wealth is illusory both for individuals and for the world. But it suits the governments to fool their people. This gives them the best chance of being reelected and they also engage in theft through inflation.“ The U.S. Government is now under fire for its widespread use of monitoring telephone calls and emails of the entire population. What is the justification? Hidden agendas of those in charge will only be tolerated for so long by the masses whether it be manipulation of wealth or compromising civil liberties and basic rights. No matter how you look at it, we are heading for a major change.
The biggest personal challenge most of us have is the fact that we lived through a rather reliable time in history in the Western World. Several decades of stability have left us without any comparison to how drastic change can be. Unlike other countries who have had major upheavals, the Western Nations have been somewhat stable since WWII and most of that generation is now gone. They can no longer warn us of the alternatives. The fact is we think we are smarter than the previous generation but only destined to repeat the same mistakes again.
The Silver to Gold ratio has been 16 to 1 for most of history. Today it is 62 to 1. Since gold is in record demand which supports its current price (and higher prices), I believe silver is positioned to make a dramatic move upward. At the current gold price, silver should be $88 per ounce to bring it back in line, nearly a fourfold increase in price.
The question we must all ask ourselves: Which will go to zero value first- fiat currency or gold & silver?