Really? It's standard knowledge actually. How do you think they arrived at that ratio in the beginning when it was used as currency? There's a couple caveats to this though that are worth mentioning. 1 - There's no denying the continue destruction of Silver is creating an inbalance in this ratio, to the point where it's now no longer relevent. 2 - The low lying fruit in the ground has already been scrubbed clean. As energy costs soar to recover deeper deposits, this will naturally be reflected in prices. We can continue to mine about 1-2% of the gold reserves per year to add to the stack, but even then, the money printing is racing ahead of this now at an exponential rate. Just to account for all the fiat out there today, the gold on the planet's surface would have to be revalued to over $100,000 USD per ounce. But silver, silver is like oil - once it's gone, it's gone. The further we have to dig, the more expensive it gets. People make the rational connection on depleting oil reserves pushing up prices inevitably, but not silver?
Some interesting side notes - Sir Isaac Newton recommended the gold silver ratio in English currency to be about 15.5:1 in 1717 - a couple of hundred years after the mainly Spanish influx of silver from the New World. On of the issues this ratio was trying to tackle was to make silver more attractive to English merchants, because at the time the face value of gold being minted was THIRTY TIMES that of silver coinage, and the silver was flowing straight out of the mint down to the docks onto ships bound for the far east, where India was still on a silver standard. So 15.5:1 has some origins in an attempt to artificially jack up the price of silver in relation to gold, in order to keep silver coinage on English shores! It's not the only origin of the number, but it's perhaps the biggest impact on the stability of the ratio over the subsequent centuries - a historic attempt to lower the price of gold for currency management. Interestingly, the flipside of this is that silver should be more valuable than gold, as the ratio is artificially low - but this dates from a time when silver was a monetised metal. Today it's not a reserve metal. This is a major factor IMO that may limit the decline in the GSR if we expect silver to appreciate for wealth reasons, but won't matter so much in affecting the price of silver for industrial/peak reasons.
And thats why i believe the mining companies are gearing up and dont want a super profits tax imposed on a sure thing
The super profits tax is aimed primarily at iron, which is probably worth 1000 times the silver industry in this country. We produce hundreds of millions of tons of iron at $150+ per ton, whereas we only produce a few million ounces of silver at $30 per ounce. Foreign mining companies don't want to pay more tax because they believe they are entitled to our resources for their own benefit.
I was just thinking about a shtf scenario and realized that my wife and I are taking a working holiday in New Zealand later this year. What is the consensus about having a little bit of silver coinage in either Australian or New Zealand pre decimal, while we're down there, just in case? I'd like to have enough to get us back to North America. hmm ... or would it be better to just stay in New Zealand.
http://www.sovereignman.com/correspondents/six-or-eight-best-places-in-the-world/ suggests NZ as a good place to plant a second flag and he has a number of posts about the benefits. I've always liked NZ and I'd definitely consider it as a destination. If I was in USA I'd consider his suggestion of Chile. I think that USA is heading for very fascist and unsettled future and I'd make plans to leave quickly if the signs were there.
heading there? we're already there. Mussolini described fascism as the marriage between corporations and the state, and that is what we have! I'll read about that chile comment. but my question remains... if in that place, would it be best to have some silver minted in that country?
I'd still prefer Australia to anywhere else. We're run by corrupt morons and convicts, but the nation is rich in natural resources, sparse and mostly pristine. It's still safe here with very low crime rates in all areas except the city and if the worst comes to the worst, we're unlikely to see riots or war here. There's a lot that really pisses me off about this country, but everywhere has similar issues nowadays so I'm content to kick back, relax and enjoy this country for what it is. One of the best aspects of this country is that we're the arse end of the world. Apart from our wealth in resources, we're a threat to no one and most countries like us enough to leave us alone. If it all goes to hell, being ignored in the arse end of the world sounds about perfect to me.
samboyellowsub I'd put some gold coins in my change. If the world collapses whilst you're away you'll have a stake in the New World and at present you'll be able to slip a few ounces into your purse without a blink from the airport scanners.
Yep, if shit does go down, we have the best moat in the world. Even has sharks and crocodiles in it.......now where are those lasers.
What would be the harm in just putting them in my carry on bag? Just wondering. Would customs have something to say about it?
Well capital controls are racing forward in USA so you'll have issues I would think. Coins in container used for carrying coins will be much less noticeable than a bag of coins in a rucksack. Also they'll look like dimes and quarters to the x ray machines and draw much less attention than ingots or a collection of metal in your carry-on.
Which are you more likely to lose or have stolen from you? Your wallet in your pocket or your bag on your shoulder (then overhead locker)?
