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2+2 now equals 11 ?

Thomas Jefferson invented the moon, and a pound is much
heavier than a ton, in Cuba on Tuesdays and Fridays.
All the above are absurd thoughts . And so is the currect spot price of
Silver. Earlier this year, silver was at $ 21 oz, now it's about $ 10.50 .
We lost 50 % of it's value . Now , in order for that to happen, AND be logical,
one of two things should have happened. First, the amount of physical silver
above ground here on earth is double what it was 6 months ago .
I don't think that is true. So, the only other logical explanation , since we are
basing the price on U.S. dollars, is that the dollar is twice as strong as it was
6 months ago. In other words , half of our national debt has been paid off in full
this year. That's great news. Trillions of dollars of our national debt has been paid off !
That's such a big story, I would have thought CNN CNBC ABC CBS NBC etc. would have covered
that story. Hell, that's big enough to make Walter Cronkite come out of retirement , just so he can break the
story and tell us "and that's the way it is " one last time.
There is not enough physical paper money to cover 50% of the debt (or even 10 %)
but man this is great news. We have never seen bigger mirrors or thicker smoke .

Lewis

Comments

  • or someone dumped alot of paper PROMISING to deliver a bunch of silver in the future.
  • 500Bay500Bay Posts: 1,106 ✭✭✭


    << <i>So, the only other logical explanation , since we are basing the price on U.S. dollars, is that the dollar is twice as strong as it was 6 months ago. In other words , half of our national debt has been paid off in full this year. >>



    Since currencies such as the US Dollar are free floating - there is not necessarily a direct correlation between US Debt and relative value to other currencies and/or metals.
    Finem Respice
  • DeepCoinDeepCoin Posts: 2,781 ✭✭✭
    There is a logical flaw to the argument regarding inventory of silver and prices. The price volatility had nothing to do with inventory. Look back to when silver was $8 and oz, about 3 years ago. What has happened since then to change the value to 21? or 10.5 where we are today. How much silver came out of the ground and how much was comsumed by usage, consumed not stored or hoarded.

    While I dont pretend to understand all the possible ways there are to manipulate the price of PMs, it is certainly not inventory related. The economy is not in the greatest shape in the past 3 years, but PMs and other commodities have moved to the beat of a different drummer.

    It is my my hope that we reach an equilibrium that is not being manipulated by traders (I am an optimist) and that I can go back to buying classic gold at more reasonable levels.
    Retired United States Mint guy, now working on an Everyman Type Set.
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