The New Case for Gold (why not Silver)?
The foundation of all money systems can be visualized as an inverted pyramid with gold at the bottom. A better visualization might be the same inverted pyramid with silver at the bottom. Silver is usually the metal used to ‘define’ a currency. The American dollar was originally based upon grains of silver. The Spanish peso was based upon silver. The British pound was based upon silver. The Greek drachma was originally based upon silver (etc., etc.). Gold is usually the metal accumulated by Nations to settle a balance of trade issue but SILVER is the metal used to define most currencies (at the beginning). My sense is that silver will appreciate faster than gold once the algorithmic manipulation in our electronic futures markets is curtailed. This will not happen, however, until someone or the greater marketplace buys up all the silver and gold from our official warehouses. This could happen sometime in the near future!
This Central Banker understood the history of money. John Exter spoke at many Blanchard conferences which I attended back in the 1970’s. He popularized the ‘inverted pyramid’ concept!
At the bottom of this ‘inverted pyramid’ is Gold. Silver could also be visualized as silver is generally used to define a currency at the beginning! Silver (the cyber price) could explode if the algorithmic (uncovered shorts) trading were eliminated and/or if all the metal was accumulated and held off the general market for a period!
Gold and Silver are physical metals which form the foundation of money, currencies, and value! When our current ‘digital’ money system collapses (soon), than investors will rediscover these foundational metals as their ‘store’ of value! When the cyber price of gold and silver explode upwards, then the END of Keynesianism is at the door!
Paper currencies are necessary to increase the ‘velocity’ of money in our marketplace, but silver and gold are the foundation of our money systems. Today’s cyber money is imaginary and has no lasting relevance!
Global cyber currencies live within CYBERSPACE and this means that they are ‘imaginary’ (no lasting relevance)!
Those who understand money recognize that our cyber markets are soon destined for collapse/crash!
James Rickards covers why gold and silver could explode upward as the coming global economic collapse grows in intensity! Rickards also recognizes that our ‘cyber’ money disappears/vanishes as it has no lasting substance!
The above provides a strong rationale for buying some gold and especially silver now! The coming economic hurricane is ON THE HORIZON for those with discernment! Enjoy this day of revelation! I am: https://kingdomecon.wordpress.com.