Sunday, June 5, 2011

What is Money & Why Silver is better than Gold

There are 8 primary characteristics of Money it has to be Identifiable, Portable, Divisible, Durable, Homogeneous, Stores Value, Scarce, and Hard to Reproduce , only precious metals and particularly Gold and silver meet all the requirements for being Money , this is true in stable times , but in unstable times anything goes as money as people more likely turn to barter .the reason fiat money is not true money is because it is not scare nor it is hard to reproduce , now they can create fiat currency in banks hard drives with a couple of computer key strokes . ETFs SLV and GLD are only a promise of money so do not confuse them with the real physical gold and silver , there is a 100 to 1 ratio between paper silver and gold to the physical . between gold and silver I prefer silver because silver is cheaper so you will get more silver ounces than gold ounces for the same price , the current silver to Gold ratio is way out of whack in that it should be below 30 to 1 , finally silver is consumed in industry while gold is hoarded therefore silver is disappearing in the land field and is essentially gone forever in relation to industry Silver has over ten thousand necessary uses from healthcare to electronics and the demand will not go away , while gold will preserve wealth in relation to currency that is decreasing in value silver will go up in value because it is both a commodity and an industrial metal , anyway you are better off with gold and silver than with fiat phony money currency

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

1 comment:

  1. Where do you see the silver trend in future?? Will it touch 40 in next few days from now...
    Twitter: @Nazhina