Sunday, August 21, 2011

The History of Gold Silver Ratio by Jeff Neilson

Jeff Neilson does a really good job explaining the current issues in this market and how to make use of the gold/silver ratio as a means to optimize your precious metals portfolio.





A brief history of the gold:silver ratio:
Notice the dates: fixed for many years, then it floated over 40:1 when silver demonetized
Roaring 20s brought it down to 16:1
Great Depression, ratio went to 100:1, no significant industrial use
After the post WW2 boom, it went way down, industrial use and electronics
Early 1970s, US off gold standard and individuals could own gold - look how it went up
Hunt Brothers event bottoming it out at 9:1
Then it went back up, over 90:1 during the recession of the 1990s
Dot-com boom sent it under 60:1
Panic of 2008 sent it over 80:1 - deflation, less industry use
Recent stimulus sent it to 60:1




Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

Gold and Silver for wealth preservation

Preservation of Wealth is all about the accumulation of assets against the dangers of fiat currency, inflation , Gold is for Real Wealth Preservation , how difficult economic calculation is when the unit of account is unstable and the price of money, interest rates, are distorted and centrally planned, not reflecting real free market supply and demand.

If we consider that a gold coin is worth around $2,000 or so today. Then we can get an idea of how it could work again to carry gold/silver. Lets say gold is valued at $10,000 someday. That would mean that small fractional coins would be very easy to carry and worth a great deal of purchasing power. Instead of carrying around $100 or $1,000 notes we could carry a couple small coins. Each merchant has a scale or scanner to verify the gold. Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

Buy Silver and Gold Wholesale

Buy Silver and Gold Wholesale : http://www.WealthPreservationClub.com We have been collectively hoodwinked into believing that our paper currencies are 'as good as gold'. Nothing could be further from the truth. Originally, our paper currency was a receipt for gold or silver held on deposit. But since 1971, all world currencies have been fiat -backed by nothing of physical value. Take a $10 bill from your wallet. Do you really think that the paper is worth $10? Welcome to the Matrix...
DAILY NEWS ON BOOZE