So this is little more than a random epiphany I had while watching Parks and Rec, but it actually got me pondering and I realized there was a "slight" problem with the future economic system we all assume is going to happen. Here's the background, on the show Parks and Rec there's a character who's basically a parody archetype of a libertarian, Ron Swanson. Buff, slightly overweight, hates the government and will do anything to even slightly inconvenience the bureaucracy, etc. etc. And of course, he has a literal dragon's horde of hidden gold and silver that's he's acquired over 50-ish years of being in the work force and spending most of his income on gold and silver bullion/coins.
I was watching an episode where he was being coerced into writing his will and while they never outright said it, it was heavily implied he had at least a few thousand pounds, not ounces, POUNDS, of gold and silver hidden away. That got me thinking, as much as his character is meant to parody libertarians, there actually ARE people like that IRL that have spent 50+ years hording as much gold and silver as they can get their hands on and probably legitimately have a horde in the 2,000+ pound range to their name. Especially silver, since it's only $20-ish an ounce depending on the day.
So what happens when we go back to the gold standard, and all of the artificial suppression methods used to keep gold and silver "cheap" are done away with? For those that don't know, silver is THE single most heavily shorted asset on the planet. I remember reading a report once (about a year ago I believe) that said it's estimated that there's roughly 15 Quadrillion or Quintillion (Can't remember which) dollars worth of silver being naked shorted at any given moment if you account for every single metals market on the planet.
For those that don't know, Quadrillion is the number after the trillions, and quintillion comes after the quadrillions. So yeah, we're talking about absurd numbers that only the cabal are capable of orchestrating considering that's several thousand times more silver than is currently in existence.
Now I, like most on here, firmly believe that we'll be heading back to a Gold Standard USD post-cabal, which will result in mass hyper deflation. In other words, our dollars will be worth more, and go further, but there will be a lower supply of dollars, thus resulting in lower wages, net worths, etc.
Basically, it'll be like going back to somewhere between 1900-1930 in terms of buying power and economic circumstances.
I still believe this, but as previously mentioned, I had an epiphany while watching Parks and Rec. What happens with all the horders?
Gold and Silver, Silver especially, have been artificially suppressed since the 70s. People will talk about how "an ounce of gold is still worth roughly the same as in 1900". And that's true to an extent. Gold has lost quite a bit of buying power because of the artificial suppression, but it's still holding up pretty well. It won't quite buy you "a nice suit" as I've heard many people say, but it will still buy you a "pretty decent suit".
Silver on the other hand, is horrendously underpriced. Not only is there now a smaller supply of silver than gold, meaning it should have more value than it does if for no other reason than the laws of supply and demand, but it also has more intrinsic value than gold since silver has far more industrial usage since the advent of modern technology (most modern tech uses at least a little bit of silver in the circuitry and other bits that make your tech work).
Combine that with the naked shorting, and Silver is horrendously underpriced. I remember asking on here a while back about what people thought the real price of Gold and Silver (about a year ago), and if I remember correctly, the general consensus was that Gold will be in the $20-50K range and silver will be in the $2,500-5K range per ounce.
Now that didn't account for what I've mentioned in this post about how silver should, by all measures, be more valuable than gold at this point, but let's just assume those numbers are accurate.
Someone like what I described earlier in the post, with say 2K pounds of silver accrued throughout 50 years or so, is currently sitting on a pile currently worth around $40K-ish. Assuming the $5K true value is accurate, that turns into $10 Million overnight.
Assuming silver equals the hypothetical value of gold most seem to agree on, $50K, that's $100 Million.
So yeah, this is where the possible problem comes in. Assuming any of this is remotely accurate, there's at least a few thousand people who will basically win the mega millions or powerball overnight.
I suppose that wouldn't be all bad, after all, it's not like everyone with a handful of silver half dollars or bars becomes Daddy Warbucks overnight and essentially has an infinite money cheat on, thus allowing them to wreak havoc on the newly established economy.
But at the same time, that kind of just boggled my mind. There are probably some people out there that are going to go from middle class, to 1%ers overnight because of the suppressed value of silver and gold.
The only problem I see with this, is that it's possible some kind of adjustment will have to be made due to the hyper deflation. For example that massive $100 Million example I gave assuming silver hits $50K an ounce after all the cabal shenanigans are ended? Well accounting for hyper deflation to the same level of the 1930 USD, you would only end up with $3.3 Million dollars.
I suppose that's not really a problem when the average middle class family in 1930 made a little under $5K a year, so that's basically still the same buying power.
This is probably more of a rant than I intended for it to be, but it's just something that came to me that I figured I might as well share and let people discuss since it appears we're finally nearing the endgame with all the talk of gold and silver backed currencies and all the "actors" getting more and more blunt on the stage they're being forced to play on.
Feel free to discuss below.
Very interesting. Thanks for posting.
Question: why would it be so wrong for a small number of stackers to suddenly be super wealthy?
Also, do you think debts will be wiped away? Fixed rate mortgage? Student loans? Or will those be adjusted downward for deflation?
I wasn't saying it was, so long as it's a proportionally small percentage. A few new millionaires (and maybe a few billionaires) won't do much, especially when you consider that most of our current billionaires are going to be executed for crimes against humanity, ergo they'll basically just be filling the vacuum that the likes of zuckerberg, gates, etc. leave.
I was just pointing out that there would have to be some kind of correction, since keeping current values of money, AND having hyper deflation would be unfeasible.
As for the debt, no earthly idea. But if I were to hazard a guess, I'd say it depends? For example, take Bear Stearns, the fourth largest investment bank in the world that collapsed during the 2008 financial collapse.
The debt that all those people who had their mortgage and other debts to the bank didn't just disappear, they were rolled over to the new owner that bout out Bear Sterns, JP Morgan.
But what happens when NO ONE can buy out the debts of all these credit card companies and super banks?
Well that's never happened before, but assuming it happens, I'd assume that the debts just "poof", since there's no one to collect on them.
Thanks, again.
Praying for the "poof" !
I believe there will be a timing element to all of this. The way I envision it happening is that we see them continue to print money in a relatively stealthily manner until the crash of the stock market (I personally believe they’re printing money to float the stock market until after the 2024 election - people have already started to cash out and none of the current valuations make sense).
Once the market crashes, there will be a sudden run on physical cash and bullion as people are hit over the head with the realization that paper assets are near worthless. Physical cash will see a spike because it will allow people to meet their immediate financial obligations and purchase necessities, and bullion for those with assets and no debt who see what is happening and are looking to preserve their wealth. This is the point in which deflation kicks in. As all of the credit is sucked out of the economy, businesses and people will be going bankrupt left and right. People will sell pretty much anything they have for whatever they can get for it as they try to buy food and preserve core assets. I wouldn’t be surprised if we see people sell things like electronics, vehicles, recreational real estate, jet skis, etc for 20 cents on the dollar. In the absence of credit, this desperate rush for cash will be the first step.
In the midst of this shitstorm, there will be enormous pressure on the government to print more cash. They will have no choice other than to overtly turn on the printing presses and run them at full speed. As this tidal wave of cash now hits the economy it will lead to triple digit plus inflation, and the devaluation of cash with the price of goods changing daily. Remember, production will be at a low because of the collapse, so there will be fierce competition for food and other essential items. This is when the government will overtly push for a communist system. Those responsible enough to save and prepare will be painted as the villains who have taken everything and are holding out while their fellow citizens suffer, and the “only solution” will be a woke government that can equalize everything. At this point the gloves are off, and if there is a plan, presumably the white hats will play their cards.
Today's fiat "dollar" has roughly the buying power of a single penny from the decades before Franklin "Internment Camps" Roosevelt took American's gold coins (because the FED had been counterfeiting, er, expanding the money supply since 1913 -- and letting foreign nations exchange US dollars for American gold at $20/oz was no longer sustainable).
A quick look at prices from a century (and more) ago will confirm that. Variations exist for different sectors of the market, but lopping off two zeros from your bank account gives a reasonable estimate of what your buying power is in terms of "real" American dollars (where a $20 bill could be exchanged at any bank or hardware store for a one-oz gold coin). Also: as I type this, gold is $1934.30, per the Kitco widget at 321gold.com -- so again, today's dollar is roughly equal to yesterday's penny. But the "official" gold price is based on there being a shit-ton of "paper gold" that doesn't exist in the real world, so . . . when the music stops, I expect the buying power of gold to skyrocket.
And you're right, cathole953 -- silver is far below its historical average relative to the price of gold; thus, it has even more upside.
Interesting well-known factoid:
In ancient Rome, an ounce of gold would outfit a man with a decent set of clothes -- and it still does. Gold has held its value for longer than that, actually. But the modern world has distortions never before seen (high technology, massively higher population, centuries of mining having reduced the amount of easily-obtained ore, economic fraud at never-before-seen levels due to electronic fiat central banking, CDOs, and much more). Gold may or may not go up in value as I expect, but it damn sure isn't going to zero. The market for jewelry alone is enough to keep the price fairly high regardless.
Will there be a massive reset of the value / buying power of gold and silver?
Probably.
How will it be handled? How long will disruptions last? Where will things settle down, in terms of value for both the metals and whatever paper and digital money is in use?
Unknown, but some people will do better in this transition than others.
Will owning metals be beneficial during this time?
Probably.
Air, water and food are #s 1, 2 and 3 in necessary for life. Always will be and presently only 1 of them is almost free. [THEY] are endeavoring to control everything under the Sun. If [THEY] succeed in this endeavor, it will inevitably not be enough... enslaving everything under the Sun would not be enough. Think hard on that goal and it will lead you to understand that [THEY] will then endeavor to control the Sun, then the Galaxy, then the Universe and ultimately the Creator. Bold plan huh?
So this short term value of all other commodities is just as fluid as air and water. So long as I draw breath I will not be paying for it. And I am willing to "pay" for water to be delivered to my space so as to facilitate my continued existence as I will also do for food to power this body I inhabit. After the top 3 I suppose the debate begins to widen, but I think weapons and ammunition could be 4th at any given time in our story here on Earth. Might make right and right is somewhat one man's opinion much of the time. Natural resources are only valuable until circumstances change. Silver historically is the common folks form of exchange for resources, goods and productivity. That being said, historically the exchange rate for silver to gold has been around 17 to 1. It currently is stuck somewhere in the 80 to 1 range. If supply of one of the other suddenly were to change the scarcer of the 2 will be push towards it being more valued. Both are very useful for more than just exchange for trade as they both have industrial usages that affect perceived value. Everything of use or desire has driving forces that affect every trade everywhere. The paper in your pocket or the numbers in your accounts are just representations of wealth and to base that on the many symbols used with other symbols to define your wealth is by and large nonsense. If no one or thing wants what you are selling you are bankrupt to all but yourself I suppose. A mountain of gold might not be worth of a breath of air in the end.
A total collapse of society will make all commodities but the top handful after the first 3 necessities worthless. No matter what comes of the current state of things, it will all come to an end and start over again. So it is written, so it will be until the Creator deigns for it to end.
You may have already thought of this, but the silver used for industrial purposes is effectively gone. For example, the amount of silver in a motherboard is relatively small on a per unit basis and it's very expensive to extract the silver once the motherboard lands in a landfill. So, the only remaining silver is in the ground or in the hands of folks that have physical bullion. Needless to say, all of the silver that exists on paper only, never existed in the first place even though multiple people think they own it.
I didn't actually since I assumed that what even though it's used in small amounts, the silver in electronics was recoverable. If that's true, then that just further proves my point about why it should be so much more valuable than it currently is, and why when all the factors artificially suppressing it are gone, the value/price will skyrocket.
Not only do I agree, but I'm banking on it. No pun intended. However, recycling old electronic equipment will likely become a profitable business venture if the price of silver goes up enough to offset the cost.
My question is what will happen to plumbing for regular copper water lines? No more silver solder joints? Just sharkbite fittings or run PEX?
No earthly idea to be honest with you. My best guess for things like that and the small amounts used in tech products, is that we'll probably see a market for "recyclable silver", similar to steel and asphalt. When you have to buy new stuff, turn in your old stuff and get X% off the new product, or something along those lines.
there is no large gold stockpiles left, its all been used in our cellphones and computers.
The historical ratio between gold and silver was always about 15:1.
In medieval times the ratio was 12:1, and 10:1 in China. (Which is what made the trade route so profitable; you could take 12 tons (or more) of silver to China and return with 1 ton of gold and 2 tons of silver worth of tea/spices/silk.
The prices you mention of $50k/ounce for gold is for EXISTING dollars.
There will have to be a new gold-backed currency issued.
Who knows what the new currency will be valued at; but I'm hoping it is $20.67/ounce of gold.
The people who have gold/property paid off will be the only ones not completely wiped out. Some stock holders might see their stocks return back to decent levels within a year.
What if gold and silver can be replicated by advanced technology we don't know about yet?
Doubt it since Q specifically said Gold would destroy the fed, IE, we're going to a gold backed currency. So it can't be replicated or invalidated.
Disinformation is necessary
These minerals get their worth from what humans put on it. What if hidden technology makes them not needed?
Computers cars phone etc