looking at gold and silver long term.
I am by no means an expert, just looking at history and trying to apply some common sence.
first there are realy only 5 things of real value recognised
world wide . food, water,your labor, and gold and silver
the first two are self explanitory. The third is obvious.
Gold and silver have been valued for at least 10,000 years, why ?
they are fairly rare. they are shiney and bright, they are easy to work with and recognised by every one instantly.
The value of gold remains fairly constant. yes I did say that. The value of gold pretty much stays the same, it is currency, paper money that changes, not gold.
When the Nights Templar developed banking (checks, and paper representations of gold) they did it to prevent robbers from stealing physical gold from travelers visiting the middle east in the 1100 s.
eventually this cought on arround the world and currencys were established based on gold standards and silver standards, i.e. the british pound ect.
The Romans established a gold coin that was basiclly 1 troy ounce, this coin in those days would buy a complete fine set of cloths, toga sandles and all the trimmings. arround 40 of them would buy the best horse and cheriot. today one gold coin will still buy you a fine set of cloths with all the trimmings, and 40 will still buy a Corvett.
once the gold standard resatriction was removed frrom currency as a value guage. paper money became what is called fiat currency, the value was no longer backed by gold but by the productivity of the people of a perticular country. since the late 1800 American currency was valued world wie because of the productivity and stability of the American work force, and the fact that the Dollar was backed by physical gold. 360 Japinese dollars (yen) 20 Pesos to the dollar ect. in the 70s the gold standard was removed allowing Banksters to move the dollar up and down in relation to gold and silver by simply turning on the printing presses. simply put what is the value of a dollar to you if you have 100 of them and what is the value if you have one trillion of them. By the same token if you have a pound of gold today it has about the same purchasing power as it did 100 years ago. the point of all of this is, the only stable currency in the world today is gold and silver just as it was 10,000 years ago. so when you gamble on the price of gold and silver, it is not the price of gold and silver you are gambling on, it is the price of the dollar in relation to gold and silver. when the fiat money markets crash, and they will, sooner or later, (no paper money has ever survived value for more then 250 years) the real world values will still be food ,water, your labor gold and silver.
jericopapers.blogspot.com & wearerealists.blogspot.com
just my .02
