Something Weimar this way comes?
There is almost no doubt in my mind that we will see these prices for gold and silver. I am just not sure exactly how we will get there, and when. But I expect the unexpected, or at least that which is not expected by the many.
The gold / silver ratio between those prices is 17, which is close to the historically important ratio of about 16. The legal ratio of gold to silver set in France in 1803 was 15.5, and this was emulated in England and later in the US.
Obviously I am thinking of a return to a world bi-metallic 'weak standard' through the inclusion of both gold and silver in the basket of currencies that will be replacing the dollar as a unit of value in international trade. There are also several movements in the developing world to adopt silver for domestic use as a store of value. I think they will gain some traction as the currency wars intensify.
The current ratio is about 67. I cannot help but feel that silver is going to be simply amazing when its time comes, in part due to the decades of price suppression by US banking institutions.
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