Silver - Is It Time To Buy?
I'm not suggesting that the monetary system was perfect back then - far from it.
Government still printed money, and withdrew money, when it needed to regardless of the amount of gold held in reserve.
Since the amount of gold in reserve is fixed at any particular point in time, the ratio of dollars to gold changes when paper money is increased or decreased.
This causes the value of the dollar to increase or decrease accordingly.
Still, it was comforting to know that paper money was backed by a tangible asset.
You have heard the words money and currency and probably think they are interchangeable.
Indeed, they are similar, so let's take a look at each of them.
My dictionary defines currency this way: "1.
that which is used as a medium of exchange; money.
2.
The fact or quality of being widely accepted and circulated from person to person.
3.
General acceptance; prevalence; vogue.
4.
A time or period during which something is widely accepted or circulated.
" So far so good, right? Here is how money is defined: "1.
Gold, silver or other metal in pieces of convenient form stamped by public authority and issued as a medium of exchange and measure of value.
" There are many more entries that are more in accordance with the definition of currency.
Since the first listed definitions are the most commonly used and accepted, let's examine them.
Currency is a medium of exchange and is considered money, but the first definition of money says that it is gold or silver, that it is a medium of exchange, and that it is a measure of value.
In 1971, the Nixon administration took the dollar off the gold standard, so what is the measure of value for the dollar? The forth definition of currency is even more alarming: a time or period of use and acceptance! Uh Oh.
So here we are with a currency backed by nothing more than the good faith and credit of the U.
S.
Government that will be generally accepted until people no longer have faith in the intangibles that back it.
Are you concerned yet? Let's look at some other "good" news.
Currencies always trend toward zero.
After the Revolutionary War, our fledgling nation had to borrow money from other countries because we financed the war with currency which was, or nearly was, worthless.
Post WWI Germany had currency that lost value so fast that employees were paid every few hours.
Around the world today the value of currencies are plummeting.
Are we all doomed? Is there nothing we can do to protect ourselves from financial ruin? Yes, there is something we can do.
The first definition of money equates it to gold or silver.
Most of us would say that these would be good investments for preserving or even growing our own personal wealth, but that there may even be other, better investments.
Investments like stocks and bonds, real estate, building a business, or even education and other personal skills developed through experience often, but not always increase in value.
Silver and gold are no different.
What determines the best investment is the behavior evident in an economy at a given point in time.
When the value of real estate rises, it is not because the intrinsic value of the property rises, but because it takes more dollars of lower value to purchase the real estate.
Even in biblical times in Israel, the value of land sold decreased with time relative to the Jubilee Year, when all land was supposed to be returned to its original owner.
Silver and gold generally fluctuate in value relative to the confidence people have in the value of the currency.
Economies consist of many segments competing for available money.
While we all need to have food, clothing and shelter, we also need to take steps to improve our economic condition in both the near and long term.
Today, government regulation extends into nearly all facets of life, with the net effect being a reduction in our freedom to do what we please with the assets we own.
The result is that the value of the assets (investments) decreases.
The level of debt today and the apparent desire of government to increase it even more have resulted in a decrease in confidence in U.
S.
currency.
Possession of gold or silver today is more important than mere ownership.
Silver, while becoming more scarce than gold, in part, due to its many industrial uses, is still far more affordable to the average investor.
Many people, today, also believe that we are in the "Last Days" and ripe for conditions that will make all world currencies worthless.
Silver is, by far, the most affordable hedge in such times.
"Hi Ho Silver, away!" Linda Tygenhof
Government still printed money, and withdrew money, when it needed to regardless of the amount of gold held in reserve.
Since the amount of gold in reserve is fixed at any particular point in time, the ratio of dollars to gold changes when paper money is increased or decreased.
This causes the value of the dollar to increase or decrease accordingly.
Still, it was comforting to know that paper money was backed by a tangible asset.
You have heard the words money and currency and probably think they are interchangeable.
Indeed, they are similar, so let's take a look at each of them.
My dictionary defines currency this way: "1.
that which is used as a medium of exchange; money.
2.
The fact or quality of being widely accepted and circulated from person to person.
3.
General acceptance; prevalence; vogue.
4.
A time or period during which something is widely accepted or circulated.
" So far so good, right? Here is how money is defined: "1.
Gold, silver or other metal in pieces of convenient form stamped by public authority and issued as a medium of exchange and measure of value.
" There are many more entries that are more in accordance with the definition of currency.
Since the first listed definitions are the most commonly used and accepted, let's examine them.
Currency is a medium of exchange and is considered money, but the first definition of money says that it is gold or silver, that it is a medium of exchange, and that it is a measure of value.
In 1971, the Nixon administration took the dollar off the gold standard, so what is the measure of value for the dollar? The forth definition of currency is even more alarming: a time or period of use and acceptance! Uh Oh.
So here we are with a currency backed by nothing more than the good faith and credit of the U.
S.
Government that will be generally accepted until people no longer have faith in the intangibles that back it.
Are you concerned yet? Let's look at some other "good" news.
Currencies always trend toward zero.
After the Revolutionary War, our fledgling nation had to borrow money from other countries because we financed the war with currency which was, or nearly was, worthless.
Post WWI Germany had currency that lost value so fast that employees were paid every few hours.
Around the world today the value of currencies are plummeting.
Are we all doomed? Is there nothing we can do to protect ourselves from financial ruin? Yes, there is something we can do.
The first definition of money equates it to gold or silver.
Most of us would say that these would be good investments for preserving or even growing our own personal wealth, but that there may even be other, better investments.
Investments like stocks and bonds, real estate, building a business, or even education and other personal skills developed through experience often, but not always increase in value.
Silver and gold are no different.
What determines the best investment is the behavior evident in an economy at a given point in time.
When the value of real estate rises, it is not because the intrinsic value of the property rises, but because it takes more dollars of lower value to purchase the real estate.
Even in biblical times in Israel, the value of land sold decreased with time relative to the Jubilee Year, when all land was supposed to be returned to its original owner.
Silver and gold generally fluctuate in value relative to the confidence people have in the value of the currency.
Economies consist of many segments competing for available money.
While we all need to have food, clothing and shelter, we also need to take steps to improve our economic condition in both the near and long term.
Today, government regulation extends into nearly all facets of life, with the net effect being a reduction in our freedom to do what we please with the assets we own.
The result is that the value of the assets (investments) decreases.
The level of debt today and the apparent desire of government to increase it even more have resulted in a decrease in confidence in U.
S.
currency.
Possession of gold or silver today is more important than mere ownership.
Silver, while becoming more scarce than gold, in part, due to its many industrial uses, is still far more affordable to the average investor.
Many people, today, also believe that we are in the "Last Days" and ripe for conditions that will make all world currencies worthless.
Silver is, by far, the most affordable hedge in such times.
"Hi Ho Silver, away!" Linda Tygenhof
