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All I Really Need To Know About Money, I Learned From A Silver Dime
by Vincent Bressler
December 18, 2009
I was born in 1964. That was the last year that the USA coined real money for general circulation. Now imagine that you have two dimes in front of you, one of them is from 1964, one of them much younger. But the 1964 coin looks young, barely worn. That's because those coins went out of circulation starting in 1965. People held on to them. The metal was worth more than 10 cents.
Look carefully at the two dimes. It's easy to tell the difference between real silver money and the metal tokens that we use today. The silver coin is brighter. Its luster is almost creamy. The metal token has a harsh sheen and is not lustrous, as if the shine is painted on. Nicks and scratches stand out in stark relief to the hard shiny surface of the metal token, not so on the silver coin. Topple the coins over on a granite or tile surface. The metal token makes a dull sound, the silver coin rings.
Our monetary system today is in an advanced state of decay. If actions are taken during the next few years to re-establish a link between gold and the dollar, then the price of gold will stabilize somewhere between 5 and 10 thousand dollars per ounce. If not, any price is possible. Under most scenarios, the price of silver will likely reach better than 1/2 the price of gold before declining. I wrote an article about this a few years ago [link1 link2]. Today the price of silver is 1/65th the price of gold. I expect a long-term average price ratio between gold and silver to go back to its historical (in ground / constitutionally mandated) average of between 1/10th and 1/20th the price of gold.
This means that there is a tremendous opportunity in silver.
The bottom line is that our currency system is corrupt and rewards bankers at the expense of productive people. We are within a few years of the end of this system. We will see massive reduction of debt that can no longer be serviced. The fiat currencies (currencies by government decree) that we use today will be repudiated. Real money will once again arise. It is instructive to think in terms of the historical value of gold and silver in ages when there was no other money:
The Roman denarius contained about 3 grams of silver (the pre 1965 silver dime contains 2.2 grams of silver). The denarius was about 1 day's pay for a craftsman. Think of it as the equivalent of $300 today. That's about $100 per gram or $3000 per ounce. The ratio of the price of silver to gold in ancient times was 1/10th. That means gold was the equivalent of $30,000 per ounce. This sort of gold to silver ratio and gold price was also the case in Renaissance Italy, 1500 years later. However, since that time, debt based money has evolved and the value of gold and silver has gone down, down, down, until now.
We are living in a time of historic change that has been 500 years in the making. There are tremendous opportunities. You will profit a great deal if you think deeply about this, study it and take action. Everything you need to know is waiting for you on the Internet.