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Silver trades to $50 an ounce

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Re: Silver trades to $50 an ounce

#71

Post by vdqtp3 »

simonsarris wrote: post #68
mikewarot wrote: post #66

I carry a real United States Dollar, minted in New Orleans in 1901, as an example of hard currency, aka real assets. It takes between 38 and 39 paper Reserve Notes to equal its value. If Trump isn't removed, I expect it to be 100:1 before the midterms.

I mean, you can't use it in any meaningful way as currency without involving the "fake" dollars, whys it the real one? It's hard to even talk about it without mentioning those other dollars! Have to imagine someone carrying around a real book of laws (maybe they have Leviticus, or the Code Napoleon, or they've got a nice re-chisel Hammurabi's tablets) - unlike the paper law of today

It's more "real" because it has value that doesn't decrease arbitrarily when the people in power decide to print a couple trillion to deal with the latest hot topic.

Re: Silver trades to $50 an ounce

#72

Post by resters »

AnimalMuppet wrote: post #62
Workaccount2 wrote: post #6

Earlier quoted context omitted.

Inflation is being priced in. Globally faith in the USD is being lost, and anyone paying attention knows one of Trump's main economic goals is to weaken the dollar. He also clearly wants to tamper with the fed and economic data, which just ads fuel to the fire. Meanwhile there isn't really a solid alternate to the dollar, so precious metals are default.

Yeah. I remember my mother asking me "If inflation is here, why isn't gold going up?" But I think that the answer is "pricing in". When there's a month of inflation after 15 years of none, you price in a one-month blip of inflation. When you look at a year or two of inflation, plus the deficit with no end in sight, you price in inflation forever. Those lead to two very different prices.

gold has gone up more than most stocks in the last year, FYI. If you price the S&P in gold, it has declined steadily since 2000. Chinese industrials have increased priced in gold since 2000, incidentally.

Re: Silver trades to $50 an ounce

#73

Post by mikewarot »

datadrivenangel wrote: post #4

Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?

Because the numerator in all those fractions is the dollar, which is rapidly losing the worlds trust, as a store of value. Eventually we'll see what happens when you try to divide by zero.

Re: Silver trades to $50 an ounce

#74

Post by simonsarris »

vdqtp3 wrote: post #71
simonsarris wrote: post #68

Earlier quoted context omitted.

I mean, you can't use it in any meaningful way as currency without involving the "fake" dollars, whys it the real one? It's hard to even talk about it without mentioning those other dollars! Have to imagine someone carrying around a real book of laws (maybe they have Leviticus, or the Code Napoleon, or they've got a nice re-chisel Hammurabi's tablets) - unlike the paper law of today

It's more "real" because it has value that doesn't decrease arbitrarily when the people in power decide to print a couple trillion to deal with the latest hot topic.

The value of silver has also been decreasing arbitrarily as traders trade it! Just like real live dollar bills! That's literally what the article is about, Silver is finally making it back to prices (in real dollar bill terms) not seen for 14 years.

Re: Silver trades to $50 an ounce

#75

Post by throwaway_5753 »

red_hare wrote: post #69

Something cool about Silver and Gold is that we have such a long history of how they translate to labor. https://people.duke.edu/~charvey/Media/2013/Hurriyet_May_2_2... > In the era of Emperor Augustus (27 B.C. to 14 A.D.), a Roman centurion was paid 15,000 sestertii. Given that one gold aureus equaled 1,000 sestertii and given there was eight grams of gold in an aureus, the pay comes to 38.58 ounces of gold Today, 3…

How do we get to 38oz of gold? 15k sestertii at 8g per 1k would be 120g of gold (aka 4.25oz), right? Also, where do the silver numbers come from?

Interesting approach!

Re: Silver trades to $50 an ounce

#76

Post by supertrope »

mothballed wrote: post #58
cowboyscott wrote: post #37

Earlier quoted context omitted.

Wealth is becoming more and more concentrated at the top end of the distribution. Folks at the high end have a lower marginal propensity to consume, and thus invest more in assets. This increase in demand causes all assets to rise.

Generally agree but I'd note politically influential rich should generally prefer productive assets, while people expecting to have to shove the most valuable thing they can find up their ass while running past machine gunners at the border will generally prefer gold. Gold is totally irrational if you think you'll have the reigns of the country, since you will always win having land and factories under that scenario.…

At the governmental level non-Western aligned governments are reacting to freezing of Bank of Russia assets. Freezing of foreign currency reserves was really unexpected. Russia was forced into default because they could not access their USD/EUR.

Re: Silver trades to $50 an ounce

#77

Post by WheelsAtLarge »

The dollar index has fallen 11% this year and it doesn't seem to slow. It's great for assets, Gold being a prime example, and people with assets but bad for consumers. It's hard to see how this will not turn into inflation since we import so much and those good are only getting more expensive.

We don't have an asset bubble the prices are just adjusting to the lower dollar.

I bet the FED will have to increase interest rates next year and that's when we'll see a collapse of asset values and since markets tend to over correct, it's going to be painful for all holders. Be ready...

Re: Silver trades to $50 an ounce

#78

Post by mikewarot »

gen220 wrote: post #44

When people are talking about inflation, what inflation statistic are they referring to? CPI has been below 3% since May 2024. Precious metals (silver, gold, platinum, palladium) have out-paced Bitcoin. USD:EUR hasn't gotten worse than 5-year lows, same with USD:GBP. I don't think these statistics support "money is fleeing the U.S." or "tariffs are causing runaway inflation", unless I'm missing something? You could p…

Grocery prices, utility bills, gas prices, insurance premiums, property taxes or rents all are part of the real coat of living.

The political fairy tale that is the CPI stays low to avoid having to increase government payments for social security and the like.

Re: Silver trades to $50 an ounce

#79

Post by panarky »

throwaway_5753 wrote: post #75
red_hare wrote: post #69

Something cool about Silver and Gold is that we have such a long history of how they translate to labor. https://people.duke.edu/~charvey/Media/2013/Hurriyet_May_2_2... > In the era of Emperor Augustus (27 B.C. to 14 A.D.), a Roman centurion was paid 15,000 sestertii. Given that one gold aureus equaled 1,000 sestertii and given there was eight grams of gold in an aureus, the pay comes to 38.58 ounces of gold Today, 3…

How do we get to 38oz of gold? 15k sestertii at 8g per 1k would be 120g of gold (aka 4.25oz), right? Also, where do the silver numbers come from? Interesting approach!

In the Augustean system, 1 aureus = 25 denarii = 100 sestertii (not 1000 sestertii as stated above).

But at 8 grams of gold per aureus, the ~40 troy ounces of gold annual salary is about right.

Re: Silver trades to $50 an ounce

#80

Post by foxyv »

throwaway_5753 wrote: post #75
red_hare wrote: post #69

Something cool about Silver and Gold is that we have such a long history of how they translate to labor. https://people.duke.edu/~charvey/Media/2013/Hurriyet_May_2_2... > In the era of Emperor Augustus (27 B.C. to 14 A.D.), a Roman centurion was paid 15,000 sestertii. Given that one gold aureus equaled 1,000 sestertii and given there was eight grams of gold in an aureus, the pay comes to 38.58 ounces of gold Today, 3…

How do we get to 38oz of gold? 15k sestertii at 8g per 1k would be 120g of gold (aka 4.25oz), right? Also, where do the silver numbers come from? Interesting approach!

Also, this may have been the brass sestertii at 25 grams.

> In or about 23 BC, with the coinage reform of Augustus, the sestertius was reintroduced as a large brass denomination,

That's 375kg of brass which would fetch about $1700 in today's dollars at scrap prices.

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