The Historic Dow Jones-Silver Ratio Points To $300 Silver

That’s correct.  Going by the historic Dow Jones-Silver ratio, it points to $300 silver.  This may seem outlandish or a play on hype, but it isn’t.  While many precious metals analysts have forecasted high three-digit silver prices, I didn’t pay much attention to them.  However, after I looked over all the data, $300 silver is not a crazy figure at all.

Let me explain.  The U.S. economy suffered a fatal blow in the 1970’s as its domestic oil production peaked and inflation soared.  To protect against the ravages of inflation, investors moved into gold and silver in a big way.  Yes, it’s true that the Hunt’s bought a lot of silver during the 1970’s, but who was buying gold to push its price to $850 in 1980 versus $35 in 1970.  Furthermore, who was buying oil to push its price up to $36 in 1980 from $1.80 in 1970??

As U.S. oil production and the EROI- Energy Returned On Invested continued to decline in the following decades, the American economy transitioned away from a high-paying manufacturing economy to what I call a LEECH & SPEND SERVICE ECONOMY.  Thus, each new decade brought about a new bubble to keep the facade of a growing economy alive.

We had the Department of Defense Military spending Bubble in the 1980’s, the Tech Bubble of the 1990’s, the Housing Bubble of the 2000’s and now we have the Auto, Housing, College, HealthCare, Stock Market, Retirement and U.S. Treasury Bubble.  The present highly-leveraged bubble will end all bubbles.

Short Term Silver Market Analysts Can’t See The Forest For The Trees

I wrote about this in my recent article, Precious Metals Investor:  Must See Important Charts & Data,

Unfortunately, Mr. Weiner’s gold-silver basis charting analysis wont put food on the table when the complex supply chain system disintegrates due to the collapse of U.S. energy production. However, owning physical gold and silver at this time could help considerably.

Mr Keith Weiner and Dan Norcini both view the precious metals with blinders on.  I would imagine both of these trading analysts have no idea of the future negative impacts of the energy market or the ramifications of the Falling EROI – Energy Returned On Invested.  Thus, they continue to make short-term forecasts as if the world will continue to grow for the next century.

Unfortunately, most Americans have their wealth tied into financial products that have no future.  Furthermore, the Auto & Real Estate Market will crash to a level that will take the breath away from even the most bearish analysts.  Thus, there will be very few worthy physical assets to own at this time.  The two physical assets I value the most are gold and silver.

The Historic Dow Jones-Silver Ratio Points To $300 Silver

If we look at the the Dow Jones-Silver chart, we can see we are no where close to the 25/1 ratio of 1980:

Dow-Silver-Ratio-1980-2016

You really can’t see the 25/1 Dow Jones-Silver ratio in 1980 as it is a small blip on the bottom left-hand portion of the chart.  In Feb 1980, the Dow Jones traded at 865 points while silver traded at $35.  Can you imagine that??? The Dow Jones Industrials trading at 865 points?

Then when silver reached a high of $49 in April 2011, the Dow Jones-Silver ratio fell to 250/1 from a high of 2,500/1 in June 2001.  Note:  I am using round numbers here showing the Dow Jones-Silver ratio.  So, from 1980 to 2001, the Dow Jones-Silver ratio increased 100 times from 25/1 to 2,500/1.  Then it fell 10 times to 250/1 in 2011.  Currently, the Dow Jones-Silver ratio is 1,015/1.

We all know the broader markets are being propped up by the Fed and U.S. Government Plunge Protection Team.  However, at some point the markets will finally resume their crash lower.  If we assume that Dow Jones falls to 7,000 points, a 25/1 Dow Jones-Silver ratio would suggest a $300 silver price (rounded figure).

Unfortunately, I don’t believe the Dow Jones Index will stop at 7,000.  It will likely fall much lower.

Now, why would the value of silver rise as the Dow Jones falls in value?  This has to do with the massive amount of debt in the system.  Here is a chart of total U.S. debt from my article linked above:

Total-U.S.-Debt

You will notice the debt remained flat in the early 1970’s, but started to move up in the latter part of the decade.  In the first quarter of 1980, total U.S. debt stood at $863 billion when the price of silver traded at $35.  Today, the current U.S. debt is $19.2 trillion while the price of silver is less than half at $17.30.  The total amount of U.S. Debt has increased 22 times while the value of silver is less than half.

Now, I labeled the chart as ENERGY DEBT because it takes the burning of energy to create “PROFITABLE” economic activity to pay back the debt.  Investors need to understand it takes “Profitable” economic activity to pay back debt.  We really haven’t had profitable economic activity for at least the past decade as U.S. debt would have been declining.  We must remember, profitable economic activity allows debt to be repaid.

So, the Fed and U.S. Government have continued the official policy of printing money and increasing debt to continue business as usual.  This has given the ILLUSION of growth and an increase in the Dow Jones Index.  However, if we take a look at the Dow Jones Index below, we can see something is seriously wrong:

Dow-Jones-Index-1980-2016

The Dow Jones Index has been rising since the crash in 2009 on lower trading volume.  Furthermore, the reason the Dow Jones Index has increased from 865 points in Q1 1980 to 17,663 recently was due to the massive increase of U.S. Debt from $863 billion to $19.2 trillion during the same time period.  The Dow Jones Index increased 21 times while total U.S. Debt increased 22 times.

THIS IS NO COINCIDENCE!!!

Now, let’s take a look at the silver price chart over the same time period:

Silver-Price-1980-2016

Not only has the current silver price fallen in half from its high in 1980, its trading volume continues to trend higher.  What has happened here is this, the U.S. Government and Wall Street funneled American’s funds into financial instruments such as Stocks, Bonds and Retirement Accounts over the past 3-4 decades.  These supposed financial products are nothing more than debts masquerading as assets.

Let me present the next chart on the increase in U.S. Retirement Assets:

U.S.-Retirement-Market-1974-2014-New

When the price of silver traded at $35 in 1980, total U.S. Retirement assets equaled $991 billion.  By the end of 2014, the total U.S. Retirement market increased 25 times to $24.5 trillion.  Thus, during the time period when total U.S. debt increased 22 times, the Dow Jones Index jumped 21 times and the U.S Retirement Market ballooned 25 times.

Unfortunately, the majority of Americans are holding onto financial assets that are backed by U.S. debt that is 22 times higher than it was in 1980.  There lies the RUB.

So, why will the price of silver jump as financial instruments implode?  Because investors will move into physical silver in a big way as is not backed by debt.  This is the same as saying, “silver doesn’t have any counter-party risk.”  The counter-party risk in most financial assets is the massive debt.  Here is a chart comparing a (1 oz) silver coin versus the U.S. Retirement Market:

Silver-Coin-vs-Paper-Assets

The economic energy value of a physical one ounce silver coin is stored in it, whereas the value of the U.S. Retirement Market is based on a massive amount of ENERGY DEBT.  Unfortunately, we will not have the cheap and available energy supply in the future to pay back this ENERGY DEBT.

Thus, the collapse of financial assets will occur as the value of gold and silver rise to unimaginable levels.  Why?  Because gold and silver will be the only few liquid stores of economic energy in the entire market.

I conclusion, I don’t know what the Dow Jones-Silver ratio will fall to.  However, I can tell you it will likely fall lower than the 25/1 ratio set in 1980.

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59 Comments on "The Historic Dow Jones-Silver Ratio Points To $300 Silver"

  1. Nice work Steve!

    • Nicholas Robinson | May 6, 2016 at 12:52 am | Reply

      The problem your not factoring in is that in 1971 a new currency had just been created when we were taken off the gold standard. All other precious metals booms before this where genuine because the currency was capped by the amount of gold so they could not do financial gymnastics like they do now.

      This time, if a currency is bottoming out, they won’t re-restrain themselves by going back to any standard (which would stabilise a currency but restrict the government spending and wipe out overpriced assets), no they will make their lives even easier by removing more restrictions. So they removed the gold standard because it was a restriction and a threat and now they will remove paper because its not only a threat but they can obtain more tax by knowing when money has exchanged hands.

      All these articles yours and all the others are starting from the wrong position. (With great respect), you are assuming that the central banks are trying to sort a mess out but are doing a bad job…..wrong. They are doing a great job at purposefully robbing us to enrich the status quo. The smoke and mirrors is that they tell people they are trying to fix the problem yet they are doing the opposite. The problem we have as currency slaves is the greatest opportunity the status quo have ever had. They jave an enslaved people all over the world nar a few nations which they will go to war with before bringing in the digital currency so to have world domination. American troops are already fighting Russian troops in Syria. Remember what their saying is? “Competition is sin” in otherwords remove all competitors.

      We are going digital and when we do there will be no opportunity in precious metals. Going off old charts is telling us nothing about the future because the game the old charts were part of has and is ending.

      • Silvrwillwin | May 6, 2016 at 11:57 am | Reply

        I have two words …Black Market.

      • NR, ‘going digital’ is a last desperate attempt to control something that can’t be controlled.

      • “We are going digital and when we do there will be no opportunity in precios metals” , so going digital will make bonds look better, going digital will give people the purchasing power to push real-estate prices higher, going digital will take away the all time high debt levels companies have today, going digital will prevent the marketvalue from bonds to go down when the rates go up, it will prevent the the stock and real-estate markets to go down. I don’t think so. What will happen is that every criminal and every corrupt person is going to know every detail about a persons life. Even the smallest detail .Your digital world will destroy this world. Because you murder global privacy. And do you realy think you can do that without any consequences.

      • Silvrwillwin | May 6, 2016 at 7:21 pm | Reply

        Physical gold and silver will get around anything digital and credit controlled. Guaranteed !! Why ? Because once people realize that they’ve been had and that credit control is a force to keep them in line they will be overjoyed to plug into the Black Market.

      • I dunno if you are a Believer…
        you forgot a thing: going digital with a chip
        Your scenario brought me here, “End Times”: few years ago, some prophecies i got in touch with depivted the very same things you identify as possibilities.
        Addin a hint:if; u wont be able to sustain yourself in the near future (ownin farmlands) to avoid being chipped to be part of the satanic NWO, owning pms will help a lot. not for profit

        Ive never posted a reply on here, i know it sounds weird but i really needed to send my 2 cents 😉

        Thanks St.Angelo
        Ive not a true economic formation, but all the EROI arguments you used in recent times
        gave me a concrete, solid reason to be a staker apart these prophecies
        Sadly, no one realizes how important it is

        May God Bless us All

        Cicero, Italy

      • Nicholas Robinson

        Remember that old saying, “Those who are ignorant of past history are doomed to repeat its mistakes”.

        Note:

        Bretton Woods: An Attack On Gold:

        “The game began at an international meeting of financiers, politicians, and theoreticians held in July of 1944 at the Mount Washington Hotel in Bretton Woods, New Hampshire. Officially, it was called the United Nations Monetary and Financial Conference, but is generally referred to today as simply the Bretton Woods Conference”

        What was the purpose of this meeting?

        “It was to terminate the use of gold as the basis of international currency exchange and replace it with a politically manipulated paper standard. In other words, it was to allow governments to escape the discipline of gold so they could create money out of nothing without paying the penalty of having their currencies drop in value on world markets.”

        Griffin, G Edward (1994-07-04). The Creature from Jekyll Island: A Second Look at the Federal Reserve (Kindle Locations 1718-1720). American Media, Inc.. Kindle Edition.

        Can I finish by saying this “Their GAME (Or Monetary Model) is FAULTY!!

        TPTB do not know how to fix it. It is broken. It was broken from the day it first started. Why? Because it was FAULTY from the very beginning.

      • I think that regardless of what replacement we see for currency, that gold and silver will always have a place in the black market. What most people do not realize is that when the economy fails, all credibility the government possesses will dissipate in the following chaos. A middle age period will follow during which a new civilization will be painstakingly constructed. Meanwhile what remains of government will be oppressive, whether it be a society run by warlords as it was during the two previous middle ages, or an oppressive police state run by the big money interests, as in the communist states, or the current theocratic states. Remember that during the Middle Ages, western Europe was ruled by an oppressive theocracy, which is why this period persisted more than twice as long as the so-called “Greek Middle Ages” which was over in about five centuries. What is the difference between ISIS and the way the Cathars were treated during the early 13th century. Their only crime was in trying to create a new, just civilization for all.
        The problem with our species is that we continue to make the same stupid mistakes time after time, while continuing to pat ourselves on the back for our supposed intelligence.

        • I want to correct an error I made in my previous note.
          I did not intend to create a parallel between the Cathars and Isis, but rather
          to compare the way that the Cathars were treated by comparison to the people in Syria and other places in the Middle East who are being killed and driven out by an oppressive, theocratic dictatorship. For about 50 years the Cathars were murdered, ,all in the name of religion. All they did
          was to establish a slightly different sect of Christianity, which was not even as different from the established religion as Lutheranism or the Church of England. I wish you could add this to my previous comment to avoid misunderstanding. My sincere apologies for the ambiguity in the original comment.

  2. The question is; would you sell at $300,-?

    I won’t. With silver at $300,-, the final gasp of paper ‘wealth effects’ will overthrow the ability of reasoning in the blue pill environment.

    • silverfreaky | May 5, 2016 at 2:38 pm | Reply

      Never be in love with an investment.When silver hits 300$ you can change it for example in an house or ground.

      Or when stocks are down, you can buy coca cola or BASF.That is not the worst idea.

      • I’m not in love.

        Try buying a house with 300 ounces silver. The blue pill environment wants you to exchange it in $ first.

        The medium of exchange is the motherf*cker between your ears.

        • Try finding a house for sale that has a clear title in the name of the resident. THAT person doesn’t need banks and might want your silver.

      • I am looking at that as I am renting now. Depending on timing I might trade some out for a house at some point. I won’t ever sell it all but I won’t part this world with a big stack. I figure at some point they will put a wealth tax on it. I just hope the folks in DC aren’t overly tax happy at the time. Wishful thinking.

  3. big question is WHEN!!!????

  4. goosehammer | May 5, 2016 at 3:03 pm | Reply

    houtskool gets it.
    It’s not an investment, it’s preservation. What one might think now would be a good exchange for some of the value of your ” wealth preservation” when/if silver should reach such a level might(probably will) be something totally unthinkable now. Houses and land are not very portable and highly taxable, subject to confiscation when one cannot afford the taxes. But, who knows?

  5. Silvrwillwin | May 5, 2016 at 4:20 pm | Reply

    When silver gets to a $ 300 figure change it over to some physical gold.

  6. With silver at $300

    There won’t be any physical gold available

    Who run bartertown?

    • There will be gold available if one is trading silver for it [enough to satisfy the gold seller].

      • That’s true David. What i meant is that the world probably is a dangerous place with silver at 300. And people have other things on their minds, but we’ll see.

    • Gold went from 30-ish (early 70ies) to 800 (1980) back down to 250 and up to 1900… and was always available… silver went from 4 or 5 bucks to 50 and was available, and it will be available at 300… some or many will sell way before that and the banks will gobble it up and sell it to you at 300… Availability is always a question of price… …time will tell how this will unfold, as fireworks are guaranteed.

  7. You are all forgetting confiscation, possibly via super tax, know when to get in and out, after all we don’t live forever.

    • There will be such a huge black market if they “outlaw” or tax PM to high level or even try and push all digital currency. I dont know the time line, but it simply will not last. People will eventually only go along with honest money. Hang tight.

  8. Well done Steve, honest and thoughtful. Just waiting and bidding my time.

  9. If Silver was to hit $300, I’d sell some and buy a motor home and drive to the mountains! That’s after I filled it up with enough supplies for about 6 months. LOL!

    But, I’m sure that the controllers will already have a plan for that scenario and will make sure that no matter the price, you and I will not profit from it.

    • Silvrwillwin | May 6, 2016 at 6:40 am | Reply

      Take to the water , learn how to sail. A 45 ft. yawl or ketch is looking better each day. Time to cut line , slip away in the night. What’s not to like the Caribbean ?
      Just be sure to carry while underway.

      • If you do, just make sure your anti-piracy training and equipment is up to date and ready to roll.

  10. StUdio Musivick | May 5, 2016 at 7:47 pm | Reply

    $300 dollar silver will be a wash….. gas will be $20 gal., bread $40 a loaf, hamburger at $60 lb in depreciated dollars… the 300 buck figure is just sensationalism
    what will $300 FRNs be in terms of gold backed Yuan ? PEANUTS in the derogative sense not in the commodities sense as peanuts will sell at the price of Saffron or Ginger…in the real economy

    • Silvrwillwin | May 6, 2016 at 6:44 am | Reply

      I believe that Steve R. is referring to $ 300.00 in today’s terms.
      Correct me if I’m wrong Steve.

      • Silvrwillwin,

        Yes, $300 in today’s terms. I am not sure how we get to the high level silver price, but it’s coming due to the huge misallocation of funds to completely worthless financial instruments. ENRON was worth a lot of money at one time. However, it was built upon PONZI FINANCE. This is the same thing for Gold & Silver, but in the opposite direction. While ENRON’s value plummeted when the truth came out, the Precious Metals will skyrocket when the financial truth gets out.

        steve

    • StUdio Musivick,

      There is no way of knowing how the eventual collapse of the U.S. Dollar will impact the value of goods and services. Yes, we could see $300 silver and $20 for a gallon of gas. But, I’d rather have the $300 in silver value then $300 in the bank before the revaluation takes place.

      That being said, we may see a dislocation of the precious metals to the value of most other goods and services. The value of Gold and Silver could shoot up much higher than most other commodities because of their excellent STORE OF VALUE PROPERTIES. Investors have been siphoned into financial instruments that are way overvalued.

      It will be interesting to see how this unfolds, but at least with owning physical precious metals people will be protected by skyrocketing goods and services inflation. However, those who held onto their fiat money, will lose a great deal of its worth.

      steve

  11. OutLookingIn | May 5, 2016 at 7:56 pm | Reply

    An excellent analysis Steve. Well grounded in historic statistics and valuation comparisons based on those same sets of stats, with compariters of unquestioned stores of value. Kudos.

    Your $300 level may be on the conservative side.

    • OutLookingin,

      I think you may be correct. We have no idea what a movement out of financial instruments that incorporate (90%) of the wealth in the world will do as they try to move into physical gold and silver. I say 90% to be conservative. That figure could be higher, but I am attributing say 8% to Real Estate holdings and 2% to other physical assets such as precious metals, fine art and diamonds.

      steve

      • OutLookingIn | May 6, 2016 at 11:23 am | Reply

        Anything of tangible value.
        I follow the auctions markets. When someone buys a 1965 Shelby Mustang for $120,000 or a 1972 Porche for $87,500 and a blue diamond going for $42 million, the tangible wealth inflation of (valuation) sought after objects has already started to skyrocket.

  12. The 2015 price for silver I had calculated at $164.00. Gold I had it calculated at $9000.00. 55/1

    The western monetary system is faulty. It benefits those born in 1935, 1945, 1955, and 1965 using 10 year intervals. It disadvantages those born in 1975, 1985, 1995 and 2005.

    If this monetary model is to continue; profits from investments made by this latter group will not be sufficient to pay for their retirement in 20, 30 or 40 years time.

    If this monetary model collapses (and I think it will) it will disadvantage those in the first group.

    Markets in my opinion are driven more by fear and greed in times of uncertainty than management. We are living in an historic moment. Chaos is once again upon us and fear and greed will soon follow. It is not a question of how to make money anymore; its a question of how you are going to keep what you already have.

    Gold and silver seem obvious to me. If any one has a better “store of value” please let me know.

    I think FEAR and GREED will drive Gold and SILVER to silly values. That is when you SELL !!

  13. About 2003 I had a dream that was very real. The Holy Spirit showed me gold and said buy gold is like wining the LOTTO. Then He showed me a thin wallet and said this is what paper is……0!

  14. Congress (twelve/Thirteen members) met on Christmas Eve 1913 to vote in the fractional reserve banking system and he IRS .

    Earlier in the week senator Meeks had asked Senator Henry Cabot Lodge if he was going to support this bill. Senator Lodge stated, “I had hoped to vote for this bill but now consider this bill highly inflationary and detrimental to the American People”.

    Our Founders made a BIG Mistake. Knowing that the love of money could/would corrupt our politicians our Founders should have added to the Constitution that ANY changes to our Monetary system have to go to Public Referendum…Do any of you think that having our income taxed at various levels would have passed this referendum? I think not.

    What did Jefferson tell us, NOT to let the Banksters CONTROL the monetary system. What did we do? We ignored our Founders……..

    May God help us…..

  15. The Direction of the Dow

    Steve makes some fine points and has good analysis. He even did not mention his previous work on why the Dow will fall, that being profits plunge and the valuing of said companies into the future.

    However let’s take a look at the Martin Armstrong argument for a moment re the Dow. He states pm’s will rocket same as Steve, yet believes the Dow will take off due to destruction of govt Bonds, as investors abandon public investments and go private. Note how interest rates have plummetted making bonds very profitable all the way down for the last 30 years – ie investors primarily in govt investments. So Martin suggests companies irrespective of p/e, will be favoured (alongside other non-govt assets) in part for the liquidity to park there, if only to avoid NIRP.

    Maybe people will invest in Dow based on productivity and not profits – just like the dot tech bubble, the possibility of profits.

    Hence what is the silver position in a high Dow scenario?

    Maybe not much difference to what outlined by Steve anyway. Except solvency issues of companies with regard to EROI.

    • If you use the low price of the DOW back in 1932 and apply a logarithmic scale, you will find the DOW doubled itself every 8 years up until 1999. That logarithmic value in 2016 (84 years later) is down to doubling itself every 9.5 years. When this logarithmic average value drops below 10 years you will start seeing people jump out of windows.

      When I was a teenager the aim was to purchase your first home by the time you reached thirty (In Australia) and if that house doubled in value every ten years it was considered fair value. Well the DOW implies we have done much better than that for the last 84 years.

      Think of this; Had the DOW increased logarithmically (doubled) every 20 years (instead of 10 years) the DOW would be at a value of 675Pts today using the low in 1932 as the starting point.

      And It could drop back to that value.

      Martin Armstrong assumes the government will not repudiate its debt. I am not that trustful. To get the value of the DOW to where it is since 2008 has cost an awful lot of currency, printed currency at that. To get it any higher is getting nigh on impossible IMHO.

      I reckon the odds are in my favour the markets will drop amid absolute chaos or we will have WW111.

      The only other alternative is to introduce a fairer and more honest monetary system.

      Either way I reckon Steve is on the money 🙂

      • Well the declining interest rates for 30 years were not only good for bonds, but house buyers as well, especially the leveraged. What have new home buyers got to look forward to now – higher interest rates and negative equity through declining house prices. Can the same be said of the dow? The bond bubble is huge, and bigger than all investment markets – it cannot be ignored – and it is the cornerstone to pm price manipulation, the declining interest rates till backwardisation and no bid on pm. Therefore we should be talking EROI then Bonds then everything else.

        Thanks Steve for your site.

        • CounterFiat,

          Thanks for the kudos and continued input on the sites via your comments. I can honestly state, “I Don’t know exactly how things will unfold in the future”, however, I do see the value of the precious metals rising to levels unimaginable due to the huge misallocation of funds into soon to be (increasingly) worthless financial instruments.

          Investors need to realize the HIGH EROI of energy allowed “Economies of Scale” to be utilized as the production of larger amounts of products brought down their unit price. However, when the Falling EROI is now destroying that model. The Falling EROI will make Economies of Scale go the other way. Thus, the unit price of things will become more expensive. Very few understand this.

          steve

          • Counterfiat | May 6, 2016 at 9:03 pm |

            One of the destroyers of Economies of Scale is Economies of Scale in factory equipment. For example, Soft drink manufacturers destroyed the locally produced model, and now the cost of bottling equip etc has plummeted, so that small business has a chance to produce profitably once again after many decades. And big (concentrated) media is being challenged by Tech. Etc.

            So are you saying that economies of scale model will become harder because of distribution costs (transport) from centralised manufacturing? Otherwise unit costs going up will be the same for EVERYONE. Exciting times to think of local food markets and production moving away from corporate centralised dominance.

            Given the p2p decentralisation inherent in blockchain tech, ie cutting out middlemen such as the banking system, the intermediaries of last century are in trouble hence why they want control of blockchain – the tech behind bitcoin.

  16. We have an energy debt that could easily be paid by declassifying the free energy devices that the military-industrial complex mega-corporations have hidden, as well as the Department of Defense and the US Patent Office. Stop the energy suppression, as well as the precious metal suppression, and we won’t need debt to survive.

  17. EVENTUALLY, whenever that is, there will surely be a tremendous increase in the purchasing power of gold and silver. We may still have other “phases” to get through before this happens, but their properties will win out. People are really not that dumb, just deceived, and at some point the realization sinks in that only real assets have/store value. With the amount of economic activity that we have and are accustomed to compared to the amounts of PM that actually exist (seemingly, at least), there would need to be a serious adjustment in the price or value of the metals if they were once again seen as money, or even a significant portion of the money supply.

    Debt will not last nor will any fully digital currency. It may be implemented to some extent, but it will not last as it would be a fraud and no fraud will ever last.

    We are in the midst of (another) awakening or realization of what a scam unbacked, particularly debt based, currencies really are.

    Now if we can just realize the importance of real property ownership and the right to keep what we earn and use it where we see fit, we might have some decent societies.

  18. silverfreaky | May 6, 2016 at 11:03 am | Reply

    The proof is here.Money printing makes no jobs.It was totally wrong to turn down the BRICS.The only countries who generated growth.

    Instead of make competiton with the oil countries it would have been better to support them.
    “Mein ist die Rache sprach der Herr.”

  19. It’s pointless to discuss what the silver price will be when the system crashes and what the Dow-to-silver ratio will be, because when this happens, silver and gold will be of little help anyway. People will be worried about basic survival things like food, water and shelter. We are living in End Times. This should be obvious to anybody paying attention to what’s going on. The-powers-that-be are psychopaths bent on destroying all human life on this planet and will not stop at ANYTHING to achieve this. This is a religious thing for them.

    I’m not saying gold and silver will be useless. No, it’s good to have some provided you have the survival basics in place. But discussing the Dow-to-silver ratio is pointless. There will be no Dow or the stock market. There will be nobody to sell your silver to.

    See Ezekiel 7:19 : ‘They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to rescue them in the day of the wrath of the LORD: they shall not satisfy their cravings of their animal nature, neither fill their bowels: because it is the stumbling block of their iniquity.’

    • I agree. I just added my comment too. I think first of all we need God’s protection and guidance.

  20. silverfreaky | May 7, 2016 at 8:37 am | Reply

    The best is to be a farmer and independent from energy.
    A litlle story from second world war shows this.As the rich women with her gold chain asked the farmer for 1 kg potatoes the women took the potataoes and the farmer the gold chain.
    They estimated 100 000 DM for 1kg potatoes.But the women was happy.

    • this is a good example…. I heard stories like this from relatives, anything like food or wine or clothes or cigarettes or medicine was very valuable

  21. Totally doubt the market will EV ER take that kind of a “hit” { By normal economic standards, it SHOULD } This is because the CORRUPTION, AND CONTROL/MANIPULATION That the GOV has over it. If the market fails, so does the cozy lifestyles of the Banksters, Elitests, and Sociopath Politicians!

  22. I would much rather have15 ounces of silver than $300 current FRN’s, if for mid or long-term savings.
    For financial disaster, tiny denomination of pre-1965 90% dime in rolls is the thing to have. As was demonstrated during hurricane Sandy, silver is not what ‘mercans understand. The dot-gov still exists, so $20 FRN’s are the best initial currency, then people will understand gold, then silver. Long-term, the question for FRN’s will be “can I buy gas with my paycheck?” then, “Can I buy food with my paycheck?”. As long as the answer is YES, THIS IS A TEMPORARY DISRUPTION UNTIL FEMA RESTORES ORDER AND SUPPLIES, then paper money has some confidence/hope associated with it. If the answer is no, look out!

  23. Another day where the comex shows and sings its own glory, as commercials will rule AGAIN.
    Russia and China are decades away to have even the right to open their mouth !

  24. My grandfather was farmer in Germany and told me, he had always something to eat and drink and to live with also in very bad times of 2 ww’s and devaluations of money. In such times food was most
    desirable and easy to trade. As money can become worthless, maybe even silver and gold which will not be in demand, but may hold value until dust settled and eventually be very useful as a new currency.
    If we watch was it going on in the world of politics, for example the rising power of China; the growing world population, the world pollution, the unrest and tendency to revolution etc. we have to
    get a better picture what possibly could challenge us.
    We have to know how to pray and act wisely and watch our own heart.

  25. addition:
    the pressure of China and Russia is growing … this is undeniable

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