and gold today will likely be better than buying Microsoft or Apple stock way
back when they first came out, and this article addresses the fundamental
ask, "What good is silver or gold if I can't spend it?"
exactly why we all should buy it!
Low monetary demand means silver and gold are still cheap and
undervalued liquid assets that investors should crave.
And crave it,
they do. But 99% of silver
investors are duped into buying the wrong kind of "silver", the
kind that is not silver at all.
have "bought" up to 200 billion "dollars" worth of
"silver" in "accounts", which would be 15-20 years of
annual mine supply. Clearly, that
silver was never bought by the "brokers" who "sold" that
much "silver" in "accounts" to
Every word in
quotes above needs clarification and/or translation. Each word is quoted to highlight the
fact that while I'm trying to tell the story in the silver market, it's
difficult to do, because there so much fraud all over the place that if I
stopped to define each word as I went, it would be so distracting that I
could hardly write a single sentence.
Here's how those lines should read, if the discussion were a bit more
greedy gamblers" have "gambled on the paper currency value" of
up to 200 billion "units of paper currency" worth of "paper
promises of silver" in "computers", which if it were actually
what it was supposed to be, would be 15-20 years of annual mine supply. Clearly, that silver was never bought
by the "broker / casino operator / thieves" who "took money
for" that much "paper promises of silver" in
"computers" for "the gamblers".
Getting back to
the point of why people should want real physical silver (outside of
brokerage accounts) especially when you can't spend it.
The point is
that without monetary demand, gold and silver are cheaper than they otherwise
Also, as long
as 15-20 years worth of mine supply worth of
investor demand is siphoned away from the real silver market into
"computer" accounts, then silver prices will not go up as fast as
means a lower value. Investors
know that they want to buy things that have a low value, knowing that the
value will likely go up. But
investors are still not understanding what silver
is, since they continue to be satisfied with "paper silver", or
perhaps "computer silver".
So, here's the
fundamental reasons why gold and silver will continue to gain in value. Gold and silver are true money, even
if they can't be used to buy groceries yet.
What makes gold
and silver good at being money?
Many people are
beginning to re-learn why gold and silver are the
best money, and have been money for thousands of years. They seem to be able to recognize some
of the self-evident and obvious truths that those metals have certain unique
features making them essential and especially good at being money.
But these need
to be listed, because sometimes people have funny ideas about money, because
we live in a society that must convince us that paper is the best money.
There is a lot
more here than I can remember all at once. I need a list I can refer back to and
update, and you just can't find the truth about this stuff anywhere
else. So you might want to keep
this for future reference, too.
None of this is "news", but it will be news to some, because
they just don't teach this stuff anywhere.
I have a
Harvard Textbook, "Principles of Economics", 4th ed., that defines the three functions of money, the medium
of exchange, the unit of account, and the store of value.
It has a 5 star
rating! So, it must be one of the
best. But how can it be, when it
is filled with so many lies?!
encourages the reader to "examine" the three functions of money on
page 643, (and that's also the only page that mentions the gold standard!),
but the book just defines the terms -- but they don't even explain what makes
an item good at being one of the three functions of money; the medium of
exchange, the unit of account, or the store of value. Furthermore, the textbook is full of
lies, misinformation, and false innuendo about money.
of the State. Propaganda works
best if you have to pay to learn it.
Nobody would believe it if they strapped you to a chair, tied you
down, and shouted at you, "believe our lies about the usefulness of
paper money and the stupidity of gold, or else!" No, it only works when they make the
kids have to pay to learn their propaganda, and then reward those who have
the best memories for the lies, with high paying wall street jobs whereby
they fleece the rest of the public.
"Harvard" textbook actually suggests in two ways that only
criminals have a large need for cash, because bank deposits leave a
"paper trail", and because cash does not earn interest.
But paper is
not the only form of "cash".
There is also gold. Is all
the gold owned by criminals, too?
Nonsense. And why does
gold have to earn 1% interest, when gold and silver have been going up in
value by 15-30% per year for the last ten years? Interest on gold is nonsense.
are a great store of value:
To be a store of
* It should be long
lasting, durable, it must not be perishable or
subject to decay. Gold does not decay, not even in seawater. Silver may tarnish and react with
sulfur, but the tarnish is very thin and acts as a protective patina that
prevents further decay. This is
why food items, expensive spices, or even fine silks or oriental rugs, are
not generally suitable as money.
* It should have a stable
value. Gold and silver values do
fluctuate, but their value has never gone to zero value, like paper money
* It should be difficult
to counterfeit, and the genuine must be easily recognizable. Paper money is rather easily
counterfeited, and good counterfeits are very hard to detect.
are a great unit of account:
To be a unit of
* It should be divisible
into small units without destroying its value; precious metals can be coined
from bars, or melted down into bars again, with a low percentage cost. Actually, gold gets more valuable when
made into smaller tenth ounce coins, which carry a higher premium,
or price percentage over spot.
Furthermore, gold, when distributed to the people, creates monetary
demand, and a higher value for the remaining gold in the world. Animal skins, or live animals, are not
suitable as money, because they are not easily divisible, nor can they be put
back together when taken apart.
If an item can be divisible, it can be fungible, which is the next
* It should be fungible:
that is, one unit or piece must be equivalent to another, which is why
diamonds, works of art, or real estate are not suitable as money. If an item is fungible, then it can be
countable, which is the next point.
* It must be a specific weight,
or measure, or size to be verifiably countable. You must be able to weigh,
measure, and count, your unit of account! And this is why paper dollars are not
suitable as money any longer.
What are you counting?
What are you measuring?
Dollars are nothing but promises to pay in more dollars.
are a great medium of exchange:
To be a medium
* It should be cheaply and
easily tradeable, with a low spread between the
prices to buy and sell, in other words, a low transaction cost, and be able
to be quickly and easily bought and sold anywhere in the world. Land is not transportable. Even US cash is not accepted
everywhere in the world anymore.
* It should have a high
value to weight ratio, and thus be easily transportable, and cheap to store
away. Precious metals have a high
value to weight and size ratio. This is why oil, coal, or water are not suitable as money even though they are
valuable. It's why real estate is
not money, it's not portable at all. It's why copper is not money, nor is
wheat, nor balloons. While even
air is valuable and necessary to live more than 5 minutes, and while air can
also fungible, air is neither rare nor valuable enough by any significantly
measurable units to be useful -- unless perhaps you are a scuba diver under
$300 of gold is
.15 of an oz., and can be easily hiding in any wallet.
$300 of silver
is just under 10 oz., and such a bar easily fits
into your back pocket.
$300 of copper
is 33 pounds, which is a major strain to lift.
$300 of oil is
3 large barrels, and is too heavy to be lifted by a person's own strength.
* It should be
durable. Gold does not
decay. Silver tarnishes a bit,
but it's negligible. Coins
are often mixed with 10% copper to improve hardness and durability, and coins
are made with ridges around the rim to prevent coin shaving or
debasement. Paper money,
surprisingly, is actually expensive as money, because paper wears out
quickly, and it costs money to have to re-print the paper.
fundamental reasons why silver and gold are true money, help to answer the
top ten excuses why our friends have not bought silver and gold, which are
EXCUSE IN CAPS,
followed by my answer/rebuttal.
NOW. No, Gold and silver can
never be valued "too high" against paper money. Paper money is by nature fraud, and
always will be. It's interesting
that people thought gold was "too high" at $1000/oz. back in Dec.
2009. Clearly, with gold at a
stable $1600 just over two years later, we can see more clearly that they
were all wrong who called gold "too high" a few years ago.
SELL? Gold and silver are easier to
sell than US "dollars", which are not accepted in many nations
BUGS: No, we who understand gold
are not crazy. People who pay
hundreds of thousands of dollars to go to Harvard to be taught lies might be
I'M CLUE LESS ABOUT
GOLD: Well, if you went to
Harvard, I can see why. And I
hope this article helped to change that for you and your friends.
SHUT UP: Well, this is written, not oral.
CHANGES: As you can see, it's paper money that is changing in value, far more than
gold and silver, but silver and gold will continue to gain value during this
FIX: As you can see, government
cannot change a single fundamental nature or property or feature of silver
and gold. Gold and silver expose
the lies of excess paper money printing by governments.
SILENCE: Yes, I know, the nay sayers are once again speechless. Hey, gold also doesn't talk, but that
does not mean gold and the nay sayers are
useless. Gold, if you examine it,
reveals its properties to you.
Similarly, by examining the arguments, or silence, of the nay sayers, we can see we are on the right track.
I'M BROKE: Hey, gold is not for every man. It's really just for those who would
BROKERS: Now you can see why the brokers,
and their lackeys, the "financial advisors", talk people out of
gold and silver. They would go
bankrupt if people bought the real things, because their short positions are
15-20 years of mine supply.
Furthermore, brokers don't earn commissions on gold that you hold in
your own possession and keep in your own vault, and neither do we. We only earn our commission one time,
when you buy it from us.
Getting back to
the fundamentals. Gold is easily
transportable. This means that
the brokers really have no excuse to not send it to you when you buy it. Assays are free. Shipping and insurance for the
shipping costs are less than 1% of the value. Thus, the only reason to not send you
your gold or silver when you buy it, is because the
sellers are running a scam, or are bankrupt.
And there you
have it. You now know more about
the essential nature of gold than 99.9% of people in the world.
Ron Paul is the only presidential candidate who appreciates the unique
features of gold. He was a part
owner of a bullion dealership years ago.
Ron Paul is getting thousands of people at every speech.
Mitt Romney is lucky to get over 100.
I'll be at our new Auburn Store today and tomorrow, Thursday and
Friday, 4-26 and 4-27. Call and
ask for Jason. It's
slow today, and we'd love to take your order or answer any questions you
1760 Highway 49 A140
Auburn, CA 95603
I strongly advise you to take possession of real gold and silver, at
anywhere near today's prices, while you still can. The fundamentals indicate rising
prices for decades to come, and a major price spike can happen at any time.
JH MINT & Coin Shop
13241 Grass Valley Ave
Grass Valley, CA 95945
Minimum telephone order $5000 for free shipping, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and
bank holidays. (Also Closed from
Dec. 25th to Jan 1st)
Kerri handles internet phone orders:
NEW Location in Auburn, CA!
JH MINT Silver & Gold
1760 Highway 49 A140
Auburn, CA 95603
You can also buy silver from my mom, or my brother Randy who is now
Mom's will ship overseas, even large orders up to $300,000 or larger,
and also in lots of more or less than 100 ounces.
3510 Auburn Blvd #12
Sacramento, CA 95821