Should You Store Your Wealth In Silver?
By: Tom Chatham
There has been much talk in the past few years of how to store your excess wealth to preserve its value. Many people have advised that gold and silver are the best vehicles for doing so but there are many detractors in the mainstream that disagree.
If you look at the price of gold and silver over the years and compare the prices to crude oil you will see a good correlation. As crude oil has moved up and down the price of precious metals has moved in close lockstep with it over the years. That makes very good sense due to the fact that the world runs on energy and gold and silver are real money. No modern economy can have growth without using more energy.
In 1980 the average price of silver was $16.39 and the price of silver spiked to around $50 an ounce, the price of crude that year averaged about $37.42. Adjusted for inflation, in today’s dollars that would make oil about $106 a barrel. Does that number look familiar?
If you take 1980 prices and compare them to 2014 prices you can see that silver is vastly under priced compared to oil. With oil at $106 a barrel silver should be much higher than it is. It is much lower due to price manipulation by the banking cartel that wants to hide the devaluation of the dollar from unsuspecting rubes.
This undervaluation will not last forever. Once the price manipulation fails the price of gold and silver will rise substantially. Now is a good time to lock in some low prices and preserve your wealth for future use. This current undervaluation will even help to increase your purchasing power when the prices adjust.
Primary focus should be spent on supplies and equipment to provide food, shelter, energy security and transportation for your family in the future. Excess funds after that need to be stored in a form that will allow you to continue paying rent or mortgage, taxes, utilities, medical care and other expenses that cannot be prepaid long term. When the petrodollar collapses and the U.S. loses reserve currency status, prices will rise on just about everything people depend on to live. Those that are not prepared to maintain their standard of living will fall into poverty and likely remain there for the foreseeable future.
Jim Willie is predicting an 80% drop in the value of the dollar in the next three years. This will almost insure much higher prices for commodities in the future. Having the supplies you need so you do not have to trade in a system that is breaking down is only part of the solution to preserving your standard of living. The other part is to have a medium of exchange that will maintain its purchasing power throughout the turmoil that occurs. This will allow you to trade in the future for the things you cannot store.
What you do with your wealth is ultimately up to you to decide. In these troubling times it is important for you to do your own research and decide what is best for you. How you fare in the future is your responsibility and you cannot blame someone else for your failure to plan ahead.