Silver Coin Ownership for Everyday People part 1

Topic: Silver coin ownership for everyday people.

Between 1923 and 1933, 9000 banks closed their doors in the U.S.                                                          

At least 114 banks have failed since 2005.

Source. fdic.gov, September 2009.

Silver Coins:

* are a durable natural resource.

* are of limited quantity

* are recognized worldwide as currency.

Paper money:

* is not durable,

* is of increasing quantity,

* is not universally recognized.

Paper money or fiat money is not backed by precious metals. Historically all nations that have used paper money not backed by precious metals have and will experience economic collapse. Germany, Argentina, and Zimbabwe are nations that have experienced massive hyperinflation over the last 100 years. Each of these nations printed “money” that was not backed up by precious metals.

As a historical footnote one glaring example of hyperinflation was Germany after the world wars. Money was so devalued that private citizens commonly transported it in wheel barrels. This was an illustration of the eroded purchasing power of the German dollar, the duetschmark.

Argentina suffered financial collapse from 1999 to 2004. Bank accounts were frozen and the currency - the peso - was devalued, ending a decade-long fixed link with the US dollar. Argentina then made history with the largest -ever sovereign- debt default of more than $80 billion dollars.

Thousands of people saw their life savings disappear. Poverty expanded to half the population as work hours were cut. The middle class was wiped out. 

Source: BBC News. “The Day Argentina Hit Rock Bottom”, December 19, 2005.

In Zimbabwe, analysts measured the inflation rate at 165,000 percent. In early 2006, the official Zimbabwean dollar exchange rate had been frozen at Z$101,196 per U.S. dollar since early 2006. As of 27 July 2006 the parallel ( black market ) rate was Z$550,000 per U.S. dollar. This was a 500 percent increase. By comparison, 10 years earlier, the rate of exchange was on Z$9.13 per U.S. dollar.

Source: Wikipedia. Economy of Zimbabwe, October 2008.

Preparation for you and your family before SHTF (s*** hits the fan) in our country. If you want to prepare for disater then the best way is to be silver rich. If you want to prepare for disater then the best way is to be silver rich. The inverse ratio of gold prices to silver is changing to reflect actual stockpiles.

* Stay informed, watch, and be aware of economic trends. Don’t ever become complacent and think, “…it can’t happen to me, it can’t happen here….”

* If you do have stocks and other “paper” investments, consider tangible assets. Your risk level shoud be balanced.

* Remember, a tangible asset is what one person will accept from another when an exchange is needed. Again, silver coins.

* Invest systematically. What you spend on non-essential consumer items can easily be redirected towards your plan to acquire durable wealth.

* Hold on to what you acquire. Economic and political realities influence the value of your tangible silver assets over time.

* Realize that recessions and depressions don’t just happen. Recessions and depressions can be manipulated. The academic term is scientific recession. Study history.

* Owning silver coins is an effective buffer to the declining value of the dollar. You can offset the misery of food shortages (if not outright famine), inadequate shelter, and expensive health care problems.

As paper “money” becomes less and less valuable, then inflation increases the price of everyday consumer items. Paper money can be created out of thin air by the federal banking system. Fiat money, or money based upon false confidence, is what backs the current American dollar bill.

Our dollars were once considered Federal Reserve notes. These notes were used to exchange for silver on demand. What we have now are basically IOUs enforced by the federal and state governments.

Ronald Roberts has a lifelong interest in economics and business. A former military officer and MPA graduate, his favorite quote is: Never despise a humble beginning.

Please leave a comment in the comment box below. Let me know what you think about this article. Thank you. 

The coming silver price explosion