“Two kindred spirits talking about reality” – SGT
“What caused me to almost fall off my chair when I read that article (San Francisco Fed President John Williams gave a speech in which he stated that he Fed would raise interest rates 3-5 times in 2016 and asserted that the economy “is in good shape”) was when he said the economy was doing fine. I’m not really sure what data he’s looking at or if he’s being completely disingenuous for the sake of being a cheerleader on the economy…We would have to sit down with him in private and show him the data and say, “what are you really looking at here, John, because your statement makes you look like a complete idiot to everyone out there who knows the truth.”
“Anyone who wants to buy precious metals now and they understand the reason why and they want to convert their fiat currency into precious metals – buy as much silver as can…silver is extraordinarily cheap outright and its extraordinarily cheap vs. gold.”
No doubt silver is incredibly cheap compared to gold, but gold is also incredibly cheap, meaning there is double upside, here, for silver.
Alistair Macleod wrote a compelling analysis this week showing that gold today has only been lower, in 1934 dollar terms, once before, when Nixon broke the dollar’s gold fix – $3.25 now vs. $3.13 then. Even more incredible, in 1934 the price was $33.00, after the Roosevelt devaluation.
If we assume that gold will revert back toward the 1934 price equivalent, the potential upside is enormous. If silver reverts back near it’s historical ratio to gold the upside gain is even more so – a potential gain of 40 times vs. 10.