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Why the price of silver could skyrocket

Why the price of silver could skyrocket

By the mid-6th century BC, Darius the Great was ‘King of Kings’, ruling over the vast Achaemenid Empire.

By that time, gold and silver had already been in use by earlier civilizations for thousands of years.

There are cuneiform tablets that are nearly 4,000 years old from ancient Sumeria which record commercial transactions made in gold and silver.

And subsequent civilizations– the Babylonians, Egyptians, Lydians, etc. all used gold or silver in commerce.

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But Darius had a unique idea.

He borrowed the idea of minting gold and silver coins from the Lydians… but then established a fixed exchange rate between the two metals.

Darius decreed that one gold “daric” was worth 13.5 silver coins– one of the first examples in history of a fixed, bimetallic standard.

His idea caught on. And for thousands of years afterward, later civilizations established a fixed gold/silver ratio.

In ancient Greece during the age of Pericles, gold was valued at 14x silver. In ancient Rome, Julius Caesar valued gold at 12x silver.

It remained this way for centuries.

Even in the earliest days of the United States, eighteen centuries after Caesar, The Coinage Act of 1792 established a ratio of 15:1.

(According to the law, one US dollar is supposed to be 24.1 grams of silver, or 1.6 grams of gold. So those pieces of paper in your wallet are not dollars– they are technically “Federal Reserve Notes”.)

In modern times there is no longer a fixed ratio between gold and silver, though its long-term average over the last several decades has been between 50:1 and 80:1.

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What The Gold-Silver Ratio Says About The Future Silver Price

What The Gold-Silver Ratio Says About The Future Silver Price

In my recent youtube video, Amazing Silver Setup & Stock Market Update, I had a few comments stating the selloff of silver and rise in the stock market suggested that my analysis was incorrect.  I find this sort of short-term thinking quite interesting when I noted that the information in the video was presented to occur over the next 1-2 years.  Furthermore, in looking at my Youtube analytics of that video, the average watch time was about 10 minutes.  The video was 24 minutes long.

Unfortunately, the attention span of individuals today isn’t what it used to be.  So, even though the material is presented in detail, many people don’t even take the time to either read or watch it in its entirety.  Moreover, when someone replies that the silver price selling off since the video was produced doesn’t understand that markets trade over a LONG PERIOD OF TIME.  Anyone who is concerned with the silver or gold price on a daily basis (not including professional traders), needs to realize that TRENDS TAKE TIME.

Also, the naysayers that claim the precious metals analysts have been wrong since 2012 tend to overlook the massive money printing, the enormous increase in debt and the continued disintegration of the global oil industry.  If I am not getting my point across, let me provide the following chart that shows just how quickly things can fall apart when investors have been BAMBOOZLED by the Fed and Wall Street:

How did Bear Stearns go from nearly $90 a share down to $2 in a relatively short period?  How did the market not realize the big problems at Bear Stearns had taken place years prior to its selloff??  The market was oblivious due to the type of rubbish put out by Wall Street analyst CNBC’s Jim Cramer on March 8th, 2008 stating the following:

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Olduvai IV: Courage
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Olduvai II: Exodus
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