Silver Prices Hitting the Roof

[gmerkt]

Then, everyone we owe will want their money in the new WRC, whatever that may be.

They usually don't get it under given circumstances. Argentina is a good example of what happens when a currency fails. Several times. Yet it's still a country, still issues fiat money, lenders will still extend them credit. In some of these scenarios, economies start substituting the fiat currency of another, more stable country for commerce.

The Pound Sterling is a past failed currency. It's also a past reserve currency. Yet Britain is still a functional country, definitely living under a more restrained standard of living. The Pound is still a thing even in straitened circumstances. Britain may be a model for the future US. That is, a functional country forced to live at lower standards. Which has been living beyond its means for decades.

 

[sobo]

They usually don't get it under given circumstances. Argentina is a good example of what happens when a currency fails. Several times. Yet it's still a country, still issues fiat money, lenders will still extend them credit. In some of these scenarios, economies start substituting the fiat currency of another, more stable country for commerce.

Yes, but they lose any First World Country status they might ever have had. I'd rather not live in a formerly FWC on SWC means. PMs would allow one to live a more comfortable life in a higher standard of living bracket. That's where I'm aiming...

The Pound Sterling is a past failed currency. It's also a past reserve currency. Yet Britain is still a functional country, definitely living under a more restrained standard of living. The Pound is still a thing even in straitened circumstances. Britain may be a model for the future US. That is, a functional country forced to live at lower standards. Which has been living beyond its means for decades.

All true. And as I said above, I'd rather not live at that lower standard. So I'll hedge my bets with something that has intrinsic value, rather than paper money.

 

[Bolt_308]

FYI that Apmex has a 45% off premium on their John Wick silver coins!! I picked up 4, because I am basically John Wick . . . ;-)

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I also picked up one of these. Ya Savvy? ;-)

https://www.apmex.com/product/102497/100-gram-hand-poured-silver-round-plata-muerta

 

[Alexx1401]

While what you say may be true, it has long been the CW that all fiat currencies always fail. General timeline from going off a PM standard to fiat is about 50 years to monetary failure. Nixon took the US off the gold standard in 1974. As you can see, the clock has run its course now. Sure, we may be able to lurch along for a few extra years from now, but the USD will ultimately fail. All fiat currencies do.

Personally, I expect USD failure within the next 5-10 years, if not sooner. The USD is on its way to losing its world reserve currency status (which is the only reason people/economies want the USD right now). Then, everyone we owe will want their money in the new WRC, whatever that may be. Our debt will be called. And we will be in a shiit-pot full of trouble then, because no one will accept payment of our debts in our "money". So, if all one has when that obtains is paper money, they'll be in a world of hurt...

The amount of debt we have racked up is shocking to me daily. That so many act like its nothing and just want to spend more tells me we have a lot of people who really have no clue or care I guess. Long hoped I would be underground when / if it all crashes down of course. If not it will be interesting times to say the least. Suspect at that point the lead I have stored will be worth FAR more than the silver

 

[gmerkt]

I'd rather not live at that lower standard.

Completely agree. Over the years, my interest in PM has been centered on the emergent qualities that it might have. Being an alternate store of wealth is a major quality of PM. In a case of slow erosion of standard of living, that will just be a nuance of that quality.

Saying it another way, when I first started saving PM, failure of the USD wasn't much on the horizon. The US national debt was "only" a bit over 900 Billion dollars in 1980. What is it now, 37 Trillion?? A great big, who knew. My thoughts about the usefulness of PM were more along the lines of greater failures than simply maintaining a standard of living.

 

[gmerkt]

it will be interesting times to say the least.

We are in a time that will be long remembered by those who don't have their heads up where it's dark. This is one of those historic, secular events that come along but seldom.

 

[Alexx1401]

We are in a time that will be long remembered by those who don't have their heads up where it's dark. This is one of those historic, secular events that come along but seldom.

What's that old line about may you live in interesting times or such.
Often at work I meet people who are at the century mark and are still sharp. I often look at them and think what this world must look like to them. The things they have seen must seem amazing to them. At my age I sure as hell don't want to live through a massive crash but, if it happens it happens I guess. If I die I guess I can say I had a good run

 

[gmerkt]

I often look at them and think what this world must look like to them.

Like everyone with their nose in a smart phone, wherever they go or whatever they do. They can't even take a relaxing dump without the companionship of a phone. Couples sit a two-top in a restaurant, each in their own digital world, staring at a phone, ignoring each other. I see people eating while working a smart phone. Recently, I saw a guy riding an electric bike, looking down at his phone. This is not a life that I live.

 

[Cavedweller]

While what you say may be true, it has long been the CW that all fiat currencies always fail. General timeline from going off a PM standard to fiat is about 50 years to monetary failure. Nixon took the US off the gold standard in 1974. As you can see, the clock has run its course now. Sure, we may be able to lurch along for a few extra years from now, but the USD will ultimately fail. All fiat currencies do.

Personally, I expect USD failure within the next 5-10 years, if not sooner. The USD is on its way to losing its world reserve currency status (which is the only reason people/economies want the USD right now). Then, everyone we owe will want their money in the new WRC, whatever that may be. Our debt will be called. And we will be in a shiit-pot full of trouble then, because no one will accept payment of our debts in our "money". So, if all one has when that obtains is paper money, they'll be in a world of hurt...

Could be. I was speaking strictly of the reason for the current uptick in PM prices, not the long term view.

 

[Mono1]

Personally, I expect USD failure within the next 5-10 years, if not sooner.

Ultimately, yes. But in the meantime, there are major nations that will default before we do.

Keep your eyes on Japan, followed by Germany.

The US Dollar is the cleanest dirty shirt in the hamper.

 

[Ura-Ki]

The main reason the U.S. dollar hasn't failed YET is Treasury notes, combined with the residuals of lend lease, plus the new version with Ukraine, we still have long ways to fall before the dollar tanks for good!

As to Treasury notes, there are a few different types, some ARE backed in gold, others backed by fiat currencies, but those currencies have an exchange value based on the date they were purchased, as a long term investment, they are as sure as physical metals, they do not loose value below their purchases price! You can trade in currencies same as gold and silver, which is how a lot of these investment programs actually work, instead of sending you a hand full of gold, they send you a certificate ( Treasury note) that is in theory, the same as the actual metal, the I only problem is finding an exchange to convert your wealth, here in the states, that's pretty easy, outside the states, you might have to look around!

 

[Alexx1401]

Like everyone with their nose in a smart phone, wherever they go or whatever they do. They can't even take a relaxing dump without the companionship of a phone. Couples sit a two-top in a restaurant, each in their own digital world, staring at a phone, ignoring each other. I see people eating while working a smart phone. Recently, I saw a guy riding an electric bike, looking down at his phone. This is not a life that I live.

Those damn things turn many into walking zombies. It is amazing at times to watch people walking along staring at that damn phone oblivious to everything going on around them. I am still amazed at what my phone can do. That I am walking around with a full blown computer in my pocket but thank god I have never turned into one of those people going through life with that thing in front of my face.

 

[Cavedweller]

As to Treasury notes, there are a few different types, some ARE backed in gold

I cannot find any reference that says gold backed treasuries are available now. The most recent I have found (Aug '25) says only that the concept has been proposed. Do you have a source?

Trump's Gold-Backed Treasury Plan: Economic Reset Coming?

Discover how potential Trump-issued gold-backed treasuries could reshape the US economy, debt crisis, and global finances.

discoveryalert.com.au

others backed by fiat currencies, but those currencies have an exchange value based on the date they were purchased, as a long term investment, they are as sure as physical metals, they do not loose value below their purchases price!

Their face value may remain constant, but their market value will fluctuate with market interest rates. If interest rates rise, the market value of a T-note will decline, regardless of face value, and visa versa. Also, a constant dollar face value (purchase price) is no guarantee of wealth preservation if the dollar declines in value relative to other assets.

 

[Alexx1401]

I cannot find any reference that says gold backed treasuries are available now. The most recent I have found (Aug '25) says only that the concept has been proposed. Do you have a source?

Trump's Gold-Backed Treasury Plan: Economic Reset Coming?

Discover how potential Trump-issued gold-backed treasuries could reshape the US economy, debt crisis, and global finances.

discoveryalert.com.au

Their face value may remain constant, but their market value will fluctuate with market interest rates. If interest rates rise, the market value of a T-note will decline, regardless of face value, and visa versa. Also, a constant dollar face value (purchase price) is no guarantee of wealth preservation if the dollar declines in value relative to other assets.

YEP! That was was got me to dabble in metal to begin with. Money I was putting in my 401 was going down. Got to where I did not want to eve look at it for a while but, figured what else was I going to do. Hell I make a 6 figure income now days and I sure as hell do not live like I could have 20 years ago making this kind of money.

 

[Mono1]

thank god I have never turned into one of those people going through life with that thing in front of my face.

The Opioid of The Masses.

 

[Medic!]

I'm sorry. I wasn't listening.



Phone .Phone. Phone. Phone. Phone.

 

[Mono1]

I'm sorry. I wasn't listening.



Phone .Phone. Phone. Phone. Phone.

There are two kinds of People in the world.

1) People who want to Control You.
2) People who don't.

The People who want to Control you always Call Or FaceTime.

The People who don't, text you, or Email.

I have my phone set to not ring, buzz, jiggle, or any such nonsense. I am not an EMT so if anything that critical is happening they should call 9-1-1. If they don't leave a message, then it obviously wasn't important anyway.

 

[arakboss]

I wish I had bought a metric ton of Nividia in 2021.

 

[CrackPipe]

YEP! That was was got me to dabble in metal to begin with. Money I was putting in my 401 was going down. Got to where I did not want to eve look at it for a while but, figured what else was I going to do. Hell I make a 6 figure income now days and I sure as hell do not live like I could have 20 years ago making this kind of money.

That article talks about revaluing the value of gold in the treasury's note (pasted below) which Bessent has hinted at. The last time this was done in the 1930's the value of the dollar effectively dropped about 50% overnight. That would effectively cut our debt in half. While that might not be the impact this time, my current understanding is that it would make the deficit and debt appear to be lower but would also effectively transfer a massive amount of wealth from the working/middle class and the poor to the ultra wealthy. Yes the debt is a huge issue, but if you take even a quick glance at the wealth disparity trend in this country, it's clear that trajectory is not sustainable. Even those of us with solid 6 figure incomes are feeling the squeeze.

On another note regarding ETF's - I am a fan of holding the physical asset as it's more difficult for the powers that be to remove from my possession. (See Executive Order 6102 in 1933)

"Gold Revaluation and Its Economic Implications
A critical component would involve gold revaluation:

• Current Official Price: Gold remains officially valued at $42.22 per ounce on government books, despite historic gold highs above $3,000
• Revaluation Mechanism: The Treasury's Gold Revaluation Account would need to recognize market-based pricing
• Balance Sheet Impact: Significant gold revaluation would substantially increase Treasury assets
• Currency Effects: Gold revaluation would likely impact the dollar's exchange rate against other currencies"
  ...
  

 

[Alexx1401]

That article talks about revaluing the value of gold in the treasury's note (pasted below) which Bessent has hinted at. The last time this was done in the 1930's the value of the dollar effectively dropped about 50% overnight. That would effectively cut our debt in half. While that might not be the impact this time, my current understanding is that it would make the deficit and debt appear to be lower but would also effectively transfer a massive amount of wealth from the working/middle class and the poor to the ultra wealthy. Yes the debt is a huge issue, but if you take even a quick glance at the wealth disparity trend in this country, it's clear that trajectory is not sustainable. Even those of us with solid 6 figure incomes are feeling the squeeze.

On another note regarding ETF's - I am a fan of holding the physical asset as it's more difficult for the powers that be to remove from my possession. (See Executive Order 6102 in 1933)

"Gold Revaluation and Its Economic Implications
A critical component would involve gold revaluation:

• Current Official Price: Gold remains officially valued at $42.22 per ounce on government books, despite historic gold highs above $3,000
• Revaluation Mechanism: The Treasury's Gold Revaluation Account would need to recognize market-based pricing
• Balance Sheet Impact: Significant gold revaluation would substantially increase Treasury assets
• Currency Effects: Gold revaluation would likely impact the dollar's exchange rate against other currencies"
  ...

Damn, I had no idea the gold the US holds is valued like that. Depending on how much we still have what the hell is it really worth now days ?