Silver Could Explode Within Weeks

Daily Reckoning ^ | 10-31-2020 | James Rickards

[blam]

Do you have a flashlight, spare batteries and some duct tape stashed away for home emergencies like power outages or hurricanes? Of course you do. How about 100 ounces of silver coins? If not, you should.

In an extreme social or infrastructure breakdown — where banks, ATMs and store scanners are offline — silver coins might be the only way to buy groceries for your family. This is one of many reasons why sales of silver coins and bullion are set to skyrocket.

The upcoming election and its aftermath could witness social unrest that would make this summer’s chaos look downright tame. We might not even know the winners for several weeks after the election. Things could get very ugly.

If that happens, shortages will appear and the price of silver could soar to $60 per ounce or higher from current levels of about $25 per ounce.

As you know, I write and speak frequently on the role of gold in the monetary system. Yet, I rarely discuss silver. Some assume I dislike silver as a hard asset for your portfolio. That’s not true.

In fact, in an extreme crisis, silver may be more practical than gold as a medium of exchange. A gold coin is too valuable to exchange for a basket of groceries, but a silver coin or two is just about right.

Silver is more difficult to analyze than gold because gold has almost no uses except as money. (Gold is widely used in jewelry, but I consider gold jewelry a hard asset, what I call “wearable wealth.”)

Silver, on the other hand, has many industrial applications. Silver is both a true commodity and a form of money.

This means that the price of silver may rise or fall based on industrial utilization and the business cycle, independent of monetary factors such as inflation, deflation, and interest rates.

Nevertheless, silver is a form of money (along with gold, dollars, bitcoin, and euros), and always has been.

“The Once and Future Money”

My expectation is that as savers and investors lose confidence in central bank money, they will increasingly turn to physical money (gold and silver) and non-central bank digital money (bitcoin and other crypto currencies) as stores of wealth and a medium of exchange.

This is why I call silver “the once and future money,” because silver’s role as money in the future is simply a return to silver’s traditional role as money throughout history.

(snip)

[Sawdring]

I would like to see a thousand ounce bar.

[bert]

Gas is purchased with a plastic card representing electronic ledger entries

Silver is “stuff”

Another valuable piece of stuff is Luck’s Pinto beans with onions or spam or high on the hog, corned beef.

All three are worth more than copper and lead

[CodeToad]

This has nothing to do with commodity pricing.

This has EVERYTHING to do with catching all the illegal naked short sellers red handed with no physical silver to buy.