• "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

Silver hasn’t been this cheap in 5,000 years of human history

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
31,682
Likes
44,565
#1
Silver hasn’t been this cheap in 5,000 years of human history
Simon Black




More than 4,000 years ago, the city of Kanesh was quickly becoming an important commercial trading hub within the ancient Assyrian Empire.


Kanesh was located in the dead center of modern day Turkey, so it was perfectly situated on the route between the Mediterranean and the Black Sea, and between Europe and Asia Minor.


As a result, Kanesh became a popular trading post. And merchants, scribes, and moneylenders from all over the Assyrian Empire traveled there to profit from the boom in copper, tin, and textiles.


What’s extraordinary about this period of history is how many records remain from those day-to-day transactions.


Did you know? You can receive all our actionable articles straight to your email inbox... Click here to signup for our Notes from the Field newsletter.


The Assyrians borrowed the writing system from ancient Mesopotamia and routinely chiseled their commercial trades on clay ‘cuneiform’ tablets.


Tens of thousands of these tablets have been discovered by modern archaeologists, so we have an incredible amount of detail about ancient financial transactions.


For example, one tablet on display at the Met in New York City documents the terms of a loan that originated in Kanesh some time in the 19th century BC.


According to the table, an Assyrian merchant named Ashur-idi loaned 3kg of silver to two traders, with 1/3 of the amount to be repaid in one year’s time.


This was fairly common back then: gold and silver were both used as a medium of exchange in ancient times. But this was before coins existed, so transactions would be settled based on weight.


In ancient Babylonia, for instance (which rose to power after the Assyrian Empire faded), the cuneiform tablets from that era tell us that the price of barley averaged about 17 grams of silver per 100 quarts.


And merchants would use elaborate scales to weigh gold and silver when exchanging their goods.


Gold and silver were also exchangeable for each other. Another tablet from ancient Babylonia during the time of Nebuchadnezzer states that 5 shekels of silver were worth ½ shekel of gold.


(A shekel in ancient times was a unit of weight, equivalent to about 8.33 grams.)


This implies a 10:1 ratio between silver and gold.


We’ve discussed this ratio several times; the gold/silver ratio has existed for thousands of years, and up until the 20th century, it remained within that ancient range of between 10 to 20 units of silver per unit of gold.


In modern times, gold and silver are no longer used as a medium of exchange. But there’s still been a long-standing ratio that has persisted for decades.


One ounce of gold has typically been valued at 50 to 80 ounces of silver. Rarely does the ratio go higher (or lower). And when it has, prices have always corrected.


As of this morning the ratio is 112, meaning it now takes 112 ounces of silver to buy one ounce of gold; and today’s level is spitting distance from the ratio’s all-time high of 120, which it reached last month.


And when I say “all-time high,” I mean it. Ancient cuneiform tablets prove that silver has never been so cheap relative to gold in literally thousands of years of human history.


If history is any guide, this means that the ratio should eventually narrow, i.e. the price of silver should rise and/or the price of gold should fall, bringing the ratio back to its more normal range.


And there are plenty of ways to potentially make money from this.


The Chicago Mercantile Exchange, for example, offers a financially-settled futures contract for traders to speculate on the Gold/Silver ratio.


But the CME’s gold/silver ratio contract is very thinly traded and difficult to purchase, so it might not be the best approach.


In theory, one way to speculate that the gold/silver ratio will return to historic norms would be to ‘short’ gold contracts and go ‘long’ silver contracts, i.e. speculate that the price of gold will fall while the price of silver will rise.


But, personally, there’s no chance I would bet against gold right now.


I’ve written for the past several weeks that I approach this entire pandemic from a position of ignorance and uncertainty.


EVERY possible scenario is on the table, and no one can say for sure what’s going to happen next.


There are very few things that are clear. But in my view, one thing that has become clear is that western governments will print as much money as it takes to bail everyone out.


According to the Congressional Budget Office, the US federal government will post a $3.6 TRILLION deficit this Fiscal Year due to all the bailouts. Plus the Federal Reserve has already printed $2 trillion.


Frankly I think they’re just getting started.


With this incomprehensible tsunami of government debt and paper money flooding the system, real assets are a historically great bet.


We’ve talked about this before: real assets are things that cannot be engineered by politicians and central banks– assets like productive land, well-managed businesses, and yes, precious metals.


And they all tend to do very well when central banks print tons of money.


Farmland, for example, was one of the best performing assets during the stagflation of the 1970s.


And financial data over the past several decades shows that whenever they print lots of money, the price of gold tends to increase.


Right now, in fact, the price of gold is relatively cheap compared to the current money supply.


And the price of silver is ridiculously cheap compared to gold. Again, silver has never been cheaper in 5,000 years.


This is why I’d rather just own physical silver. I’m not interested in betting against gold because I expect they’ll continue to print money. In fact I’m happy to buy more gold.


And while we cannot be certain about anything, there’s a strong case to be made that the price of silver could soar.


And to continue learning how to ensure you thrive no matter what happens next in the world , I encourage you to download our free Perfect Plan B Guide.

Because... If you live, work, bank, invest, own a business, and hold your assets all in just one country, you are putting all of your eggs in one basket.

You’re making a high-stakes bet that everything is going to be ok in that one country — forever.

All it would take is for the economy to tank, a natural disaster to hit, or the political system to go into turmoil and you could lose everything—your money, your assets, and possibly even your freedom.

Luckily, there are a number of simple, logical steps you can take to protect yourself from these obvious risks:
No Brainer Strategies to Ensure You Thrive No Matter What Happens Next

  • Invest outside the mainstream and make 12% with minimal risk

  • Protect your assets and become invincible to financial crisis and frivolous lawsuits

  • Legally slash your tax bill up to $1.2 million each year

  • Obtain a valuable second passport… for free

Learn about these and many more strategies in our free Perfect Plan B Guide.


Hi. I’m Simon Black– founder of Sovereign Man, international entrepreneur, investor, permanent traveler, and a free man.



On average, I travel to over 40 countries per year…doing business, investing, exploring emerging markets, and establishing and maintaining important relationships.


Just to give you a brief snapshot, some of the things I’ve done recently include…


Starting my own private investment bank
Negotiating an eight figure financing deal with one of the largest financial institutions in the world
Meeting with the former President of Colombia at his home
Leading an investor group to take a controlling stake in a public company
And speaking on stage to thousands of people alongside Rich Dad, Poor Dad author, Robert Kiyosaki
Everything I learn from these valuable experiences is passed on to readers of Sovereign Man in our free newsletter, Notes from the Field, and in our highly actionable and educational premium products.



http://www.silverbearcafe.com/private/05.20/cheapsilver.html
 

dacrunch

Platinum Bling
Platinum Bling
Joined
Apr 9, 2010
Messages
5,323
Likes
4,796
#2
The price of PHYSICAL depends on INDUSTRIAL DEMAND predominantly. So "industry" has to be "in full swing" - and then "supply" is found very often as a "by-product" of copper mining to fill the "need"...
If demand for copper drops, so will the availability of physical silver, due to less mining.
Just a thought.
 

Bottom Feeder

Hypophthalmichthys molitrix
Midas Member
Midas Supporter ++
Joined
Mar 31, 2010
Messages
10,823
Likes
20,625
Location
Plague world — again
#4
a little back of the napkin calculations —

100 dry quarts = 3.125 bushels

17 grams of silver = $7.92
(@ $15/oz)

barley contemporary price = 4.68/bu

three bushels = $14.04

100 quarts would now cost about thirty ounces GRAMS of silver.
 
Last edited:

dacrunch

Platinum Bling
Platinum Bling
Joined
Apr 9, 2010
Messages
5,323
Likes
4,796
#5
Where are you going to store $200k worth of silver?
That's why I switched to gold "fractionals" apart from 100oz of silver in 10oz bars & 2 rolls of Maples...
 

FthePolice

Silver Miner
Joined
Jan 10, 2016
Messages
619
Likes
643
#6
Too bad there really isn't a way to take advantage of Silver Prices right now on the physical side. My dealer is selling rounds for $20 and Silver Eagles at $24 with silver spot under $15. I'm buying fractional gold and 1oz platinum right now.
 

dacrunch

Platinum Bling
Platinum Bling
Joined
Apr 9, 2010
Messages
5,323
Likes
4,796
#7
Too bad there really isn't a way to take advantage of Silver Prices right now on the physical side. My dealer is selling rounds for $20 and Silver Eagles at $24 with silver spot under $15. I'm buying fractional gold and 1oz platinum right now.
Like somebody suggested... risk buying the Silver ETF's @ today's SPOT price, wait for the "volatility" (high premiums) to settle down to where physical price is closer to spot price, sell the ETFs & buy Physical... Just an option...
 

dacrunch

Platinum Bling
Platinum Bling
Joined
Apr 9, 2010
Messages
5,323
Likes
4,796
#8
Speaking of PM pricing... Platinum is now LESS THAN HALF the price of Gold (like 40%)... Don't know if I've ever seen that before... (Maybe a Banksters' ploy against Russia, one of the largest producers if I'm not mistaken?) Could be some $$ to be made there...

Edit= (& when volatility settles down along with premiums, platinum coins are VERY "discrete" in a change purse... look like any other "shiny white metal coin" at TSA...)
 
Last edited:

Roger Ramjet

Lost in a Time Warp
Joined
Mar 30, 2020
Messages
129
Likes
205
Location
The Deep South
#9
Too bad there really isn't a way to take advantage of Silver Prices right now on the physical side. My dealer is selling rounds for $20 and Silver Eagles at $24 with silver spot under $15. I'm buying fractional gold and 1oz platinum right now.
just got 2 Maple 1/10s delivered from JM today. Silver is on hold till crazy premiums sort themselves out but I'm not hopeful the real world price of phiz will drop until the major mints start passing on the spot price to the dealers...

RR
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,364
Likes
19,465
#10
The price of PHYSICAL depends on INDUSTRIAL DEMAND predominantly.
Not necessarily, If the nations of the world keep running their money printers and digital creations the value of what is already in circulation loses value with the running.
Remember a 5 cent Hersey bar or a 6 ounce Coke in the sixties ? Money had backing through that decade.
Once Nixon removed the silver backing USDs, prices began to rise much faster.
Those days silver had little demand outside of film manufacturing, Cameras and X-ray equipment, and maybe some flatware for the upper middle class and higher.
 
Last edited:

pimples

Gold Member
Gold Chaser
Joined
Mar 31, 2010
Messages
85
Likes
84
#11
It doesn't really matter what the fiat is called, the metals are assets like land . . Not financial markers.
 

Mr Paradise

Midas Member
Midas Member
Joined
Dec 3, 2011
Messages
9,089
Likes
10,165
Location
Lake Superior
#12
A year from now an ounce of silver will get you 2 cases of MRE’s 3 gallons of water and 30 minutes with a woman.
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,364
Likes
19,465
#14
FRESH, and supports my view of US financial history:
 

smilershouse

Gold Member
Gold Chaser
Joined
Apr 1, 2010
Messages
2,437
Likes
1,296
Location
Australia
#15
GSR excessively high, almost insane ratio given the cessation of many mines due to COVID. The traders of the world dictate the spot price with the futures, until this system collapses with people demanding delivery, this game of ridiculous GSR will continue until there is no more physical available. Then, and only then, might the dog find her true price discovery with a total free market mechanism. When this happens and physical Ag starts to price discover, expect a deluge of scrap from tea sets, wedding plates etc to flood the market.

Until then, the show goes on.

SH
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,364
Likes
19,465
#16
CLYDE LEWIS - GROUNDZEROMEDIA.ORG - IS DISCUSSING BLOCK CHAIN, CASHLESS SOCIETY, BLACK MARKETS, NO PAPER FIAT.

CoasttoCoastAM - First half "FINANCIAL RECKONING" :
"First Half: Economist Chuck Coppes will discuss how the massive bailouts, growing debt and lingering unemployment will have catastrophic consequences for the US economy, and how there is a growing consensus that we're drawing close to a financial reckoning day. "....
 
Last edited:

FthePolice

Silver Miner
Joined
Jan 10, 2016
Messages
619
Likes
643
#17
CLYDE LEWIS - GROUNDZEROMEDIA.ORG - THIS DISCUSSING BLOCK CHAIN, CASHLESS SOCIETY, BLACK MARKETS, NO PAPER FIAT.

CoasttoCoastAM - First half "FINANCIAL RECKONING" :
"First Half: Economist Chuck Coppes will discuss how the massive bailouts, growing debt and lingering unemployment will have catastrophic consequences for the US economy, and how there is a growing consensus that we're drawing close to a financial reckoning day. "....
I'm a long time listener of Ground Zero. Great show.
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,364
Likes
19,465
#18
I'm a long time listener of Ground Zero. Great show.
Clyde's hours were cut from Five to Three. So he goes off and C2CAM comes on. Here in Central KY.
 

FthePolice

Silver Miner
Joined
Jan 10, 2016
Messages
619
Likes
643
#19
Clyde's hours were cut from Five to Three. So he goes off and C2CAM comes on. Here in Central KY.
Yeah, I know it's sad. The show is struggling financially because of all that's goin on. That and there was a security issue with on of the producers getting mugged. His show will survive. I donated 75 bucks for the operational costs of the show.
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,364
Likes
19,465
#20
Yeah, I know it's sad. The show is struggling financially because of all that's goin on. That and there was a security issue with on of the producers getting mugged. His show will survive. I donated 75 bucks for the operational costs of the show.
I thought it was over COVID Laws in Oregon, and Transportation issues.
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
14,364
Likes
19,465
#22
I can listen to Groundzero either locally through WLAP AM or internet. When I listen to him over the internet I go to KXL's website and listen to him from there.
After an entire evening of politics radio I'd much rather get away for some alternative news and commentary. Clyde and George are my shows for escape.