The Discipline Of Silver

November 5, 2015

silver bullionConsider these round number costs in digital (dishonest) dollars:

1,000 ounce Silver Bar - $17,000, or Hillary Clinton speech - $300,000, or F-35 Flight helmet - $400,000, or F-35C Navy Fighter Jet - $300 Million, Silver mined globally each year - $15 Billion, or Annual expense for US food stamps (SNAP) - $80 Billion, or US deficit each year (rough average) - $500 Billion, or Iraq Wars - $3 Trillion, or  Official US National Debt - $18+ Trillion.

Silver – The real physical metal, not the paper stuff traded on the COMEX:

  • Requires massive effort and discipline to mine and refine.
  • Silver has been a store of value for over 3,000 years.
  • Would you prefer 30 pieces of silver or 30 pieces of colored paper?

Debt based paper and digital fiat currency:

  • Can be borrowed or printed into existence with minimal effort.
  • Has been deteriorating in value since it was introduced.
  • In 1913 a “dollar” purchased about two ounces of silver. A paper “dollar” today purchases about 0.05 ounces of silver.
  • In ten years a “dollar” probably will purchase less than 0.005 ounces of silver.
  • The value of paper and digital dollars, euros, yen, and pounds is dependent upon the honesty, integrity, and discipline of governments and central bankers. Be prepared!

The discipline of silver is real, like the metal.  It has value now and will have value regardless of what Presidents or Fed Chairpersons promise regarding such nonsense as:

  • “Quantitative Easing”
  • “Balancing the budget”
  • “Hope and Change”
  • “No foreign wars”
  • “Price stability”
  • “Strong dollar policy”
  • “Kinder and gentler government”
  • “Prosperity for all”
  • “A fair tax structure”
  • “Trickle down economics”
  • “Abenomics”

There is discipline in silver metal…but very little in fiat paper currencies.  The price of silver ( ) will rise as currencies devalue because silver is real, necessary for 1000’s of industrial uses, and because an increasing number of investors understand that silver is underpriced and retains value.  Read Steve St. Angelo )  .

Further, our debt based monetary system requires ever increasing debt, inflation, and expansion.  Think about the implications of $400,000 helmets and $85 Billion per month in QE.  The continued devaluation of all fiat currencies is a given, based on debt, government spending and central bank policies.  Hence silver and gold prices will rise substantially in upcoming years, partially because people want and need it, and mostly because fiat paper currencies are devaluing every day.

Not convinced?  Ask yourself which has more lasting value:

  • A Hillary Clinton speech or 20,000 ounces of silver?
  • An F-35 helmet or 25,000 ounces of silver?

The answers will not be the same for everyone but the questions are worth contemplation.

We at Deviant Investor believe that:

 Paper dies, silver thrives!


Gary Christenson

The Deviant Investor

GE ChristensonGary Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 – 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy and central banking.

Peru became the world’s largest producer of silver in 2012.