ZeroHedge doesn't believe silver is money

chimpanchu said:
donpaulo said:
Jim Rickards mentioned that after WW2 the euro powers exchanged fiat earned from their positive trade balance into gold.

But the Chinese only have dollars and no metals in exchange for their trade balance

This leads me to believe that the Chinese will accept anything of monetary value in exchange for renminbi err fiat

I buy silver because I believe the ratio is tweaked

but I have some gold too :)

never believed silver was money, only a way to possibly make some money or perhaps preserve what wealth I have
Click to expand...

Are you going to swap silver for gold when the ratio is right at some point in the future?
Click to expand...

thats the plan right now

swapping for another PM, or land or other asset

when I saw the current ratio levels and took a look at things historically I started buying AG

my exit strategy is such that I do not need my PM holdings so I am prepared to hold until something gives. I am fairly certain that things will go boom at some point, its just a question of hard the landing will be
 
donpaulo said:
thats the plan right now

swapping for another PM, or land or other asset

when I saw the current ratio levels and took a look at things historically I started buying AG

my exit strategy is such that I do not need my PM holdings so I am prepared to hold until something gives. I am fairly certain that things will go boom at some point, its just a question of hard the landing will be
Click to expand...

My plan is to swap my silver into gold once I'm happy with the GSR.

The problem with this is, we may not be able to get the gold. By then the mania probably widespread amongst the populace, gold will be in huge shortage.

I will then swap by gold for properties when the price rock bottomed.
 
donpaulo said:
J

thats the plan right now

swapping for another PM, or land or other asset

when I saw the current ratio levels and took a look at things historically I started buying AG

my exit strategy is such that I do not need my PM holdings so I am prepared to hold until something gives. I am fairly certain that things will go boom at some point, its just a question of hard the landing will be
Click to expand...

That is my plan too. When the gold-real estate ratio reaches a bottoming area, I hope that I will have some places picked out. I know the area I want to be in and the type of place I would like to have. Getting there will be the hard part. If we are correct about the future pm prices, I should have the money to buy what I want.
 
Just a thought. We all heard stories of Great depression and Weimar Germany where people can purchase a home with a single gold coin.

I was wondering if the same home can be purchased with a kilo or two silver bars? Or only gold is currency in hyperinflation situation?
 
Probably been posted elsewhere though http://www.marketoracle.co.uk/Article9232.html seems to suggest that silver as an investment leading up to a hyper-inflationary economy like during the Weimar hyperinflation was a solid investment option with the GSR moving to historical 16:1 ratios, though once the population decided to flee, gold's value to mass meant that wealth was easier to transport and therefore caused the GSR to increase significantly (160:1). With Silver prices reaching 544 billion mark in November 30 1923. http://www.bullionmark.com.au/gold-...62-weimar-gold-a-silver-prices-1919-1923.html.

So if history is anything to go by I would say that silver would be almost as good as gold during a weimar/zimbabwe style hyperinflation scenario.
 
chimpanchu said:
Just a thought. We all heard stories of Great depression and Weimar Germany where people can purchase a home with a single gold coin.

I was wondering if the same home can be purchased with a kilo or two silver bars? Or only gold is currency in hyperinflation situation?
Click to expand...

I have my 1oz.

161_p1010365.jpg


If people want it for their house... let's talk?
 
From my reading it seems anything of value that isn't paper is money. You could buy a house with a bag of groceries at the right time in the right place.

Interesting thought writing this. Since we have all purchased piles of consumer goods, will the trade be in those? Swap my plasma for your tin of tomatoes etc.
 
JulieW said:
From my reading it seems anything of value that isn't paper is money. You could buy a house with a bag of groceries at the right time in the right place.

Interesting thought writing this. Since we have all purchased piles of consumer goods, will the trade be in those? Swap my plasma for your tin of tomatoes etc.
Click to expand...

I'm not sure that people will exchange precious food products for consumer electronics. In economic collapse situation, anything entertainment will fare the worst.
 
chimpanchu said:
chimpanchu said:
If the shit is REALLY bad in USA, American will start moving to Canada or Mexico.
Click to expand...

edit - goldpelican stuffed this post up with an accidental edit
Click to expand...

I know a Dutchman who now lives in Iowa and he reckons it's fantastic.

He loves it there and will never move back The Netherlands. So it cant be too bad.

Mexico - try living in the midst of a full blown narco war.
 
Ditto. What I posted before I realised I stuffed up that post was "I can't foresee any circumstances that would cause folks from the US want to move to Mexico to "escape" the USA.

On the ground, things here aren't 1/10th as bad as most would believe from watching YouTube."
 
The problem with moving to poor/ developing countries is that you immediately become the 'rich foreigner'.

Which is all good when everybody is happy that you are buying pirate dvd's, t-shirts and handbags and staying in hotels.

The friendly disposition of locals towards westerners in cheap holiday destinations is purely financially driven. Have no doubt they are envious and often resentful and once you stop handing out the easy dollars, this seemingly happy relationship breaks down.

You got it and they need it, if you stop buying they will look to other ways of acquiring your wealth.

Unless you got big teeth at some stage you are going to get bit.
 
goldpelican said:
Ditto. What I posted before I realised I stuffed up that post was "I can't foresee any circumstances that would cause folks from the US want to move to Mexico to "escape" the USA.

On the ground, things here aren't 1/10th as bad as most would believe from watching YouTube."
Click to expand...

Alot of Americans already moved to South America. Because they can't find a job or they lost their home or simply they got sick of the crap (the banksters) happening in their country.
 
But back to the point.
I too read a few articles on ZeroHedge, and that one about silver not being a currency, was baffling.

Not being an economist by trade, i skimmed through the mind twisting examples of why it wouldn't be. By the end of the article, i was tempted to be agreeing with him. Not because I got what he was saying, but more so, that i didn't get it, but it sounded right.

Then, reading the comments, i got more understanding from them. And finally came to the conclusion, that yes, his scenarios could make silver a non-currency, but at the same time, another scenario would make it stay as a currency.

So, his article was true, if A happens. But if B happens, then it's not so.

And then there's C, D and E, to name but a few options we have before us.

And he's missing the point.

We're just swapping some worthless pieces of paper for some PM. Seems the obvious thing to do now. Wouldn't matter if it was silver, palladium or water melons. It's something tradeable. And if the scenario is "barter", then it's easier to swap a blob of silver or palladium, or gold than it is to swap 500 watermelons.

And just because we go to barter, (if we do, i doubt it, we're more intelligent than 1000 year ago, well, maybe not, but ... ) there's no way humans are just gonna say "ah no, silver aint worth anything" ... or "that palladium, that's shit" ... about as much chance that happening as us saying "that gold, can't eat it, don't want it" ... yeah sure.

We've thought silver was valuable since we can remember, and nobodies gonna be able to convince us otherwise (not overnight, anyway).... we'll just suspect they want it all to themselves. That'll make us even more determined to hoard it and value it.

So, I think silvers still good to have. Poor mans gold maybe, but that's okay. I'd rather have some pennies than no pennies. Still going to be worth more than paper or plastic or numbers on a screen.
 
lakesentrance said:
But back to the point.
I too read a few articles on ZeroHedge, and that one about silver not being a currency, was baffling.

Not being an economist by trade, i skimmed through the mind twisting examples of why it wouldn't be. By the end of the article, i was tempted to be agreeing with him. Not because I got what he was saying, but more so, that i didn't get it, but it sounded right.

Then, reading the comments, i got more understanding from them. And finally came to the conclusion, that yes, his scenarios could make silver a non-currency, but at the same time, another scenario would make it stay as a currency.

So, his article was true, if A happens. But if B happens, then it's not so.

And then there's C, D and E, to name but a few options we have before us.

And he's missing the point.

We're just swapping some worthless pieces of paper for some PM. Seems the obvious thing to do now. Wouldn't matter if it was silver, palladium or water melons. It's something tradeable. And if the scenario is "barter", then it's easier to swap a blob of silver or palladium, or gold than it is to swap 500 watermelons.

And just because we go to barter, (if we do, i doubt it, we're more intelligent than 1000 year ago, well, maybe not, but ... ) there's no way humans are just gonna say "ah no, silver aint worth anything" ... or "that palladium, that's shit" ... about as much chance that happening as us saying "that gold, can't eat it, don't want it" ... yeah sure.

We've thought silver was valuable since we can remember, and nobodies gonna be able to convince us otherwise (not overnight, anyway).... we'll just suspect they want it all to themselves. That'll make us even more determined to hoard it and value it.

So, I think silvers still good to have. Poor mans gold maybe, but that's okay. I'd rather have some pennies than no pennies. Still going to be worth more than paper or plastic or numbers on a screen.
Click to expand...

ZeroHedge never said because Silver is NOT money therefore it has no value... Lead and Zinc are not monetary metals but they have value.

The point Zerohedge trying to make is. People should think Silver as industrial metal just as Copper, Lead, Zinc, Titanium, Uranium, etc... Meaning silver should be put in Industrial metal basket rather than in Money basket together with Gold.

If the public perception is Silver is NOT money and only Gold is. They will only accept silver as much as they will accept a hunk of Lead in barter situation!
 
Just to clear this up; FOFOA is making this statement, nit ZH.

On top of that, I don't think there is any real argument that silver is monetary. It was used as money previously, and could be used that way again. Neither of these indicate that silver is monetary in nature.

Silver may still be a good speculative investment, and I believe it is. It may still be usable as a currency in a time of great stress / hyperinflation. But it is not a store of wealth, nor monetary, and the difference should be noted.
 
You must log in or register to reply here.
Back
Top