A Silver Parachute

While the election appears promising, much could go wrong. Democrats will make every effort to steal the election as they have in Cook County, Illinois and the state of Minnesota, et al.  We feel that another term of Democratic socialism would collapse the nation and we could turn into Venezuela in a heartbeat given our $20 trillion borrowings even though half of it is paper that would vanish in a collapse and likely ruin most of the people who deserve ruination.

The traditional safe port for wealth has been gold, but on analysis it is hard to justify as is has limited use other than in jewelry and coatings that are microscopically thin, thus very little is actually used.  The use of gold in high tech is limited with much of the high conductivity needs satisfied by silver which is more abundant and cheaper.  Gold actually has less real value than silver as it has so many applications.

One of the major uses of silver was in photography as silver salts are photo-active, changing from colorless crystals to black metal deposits after struck by light.  Digital photography hurt the price of silver two ways:  As it was not consumed, but recycled where there is no silver in a color print, unlike black and white pictures or films, the end of film put tons of silver back on the market reducing the price.  Nothing like that is foreseeable.

Silver is an excellent electrical conductor as it does not rust or corrode so the digital age has been good for silver, but it has also been subjected to much market manipulation, hoarding and dumping for trading schemes. Coinage once consumed large amounts but that use has diminished as has silver tableware, now mostly stainless steel.  Market manipulations have pushed the price of silver below mining and smelting costs, which are about $25 per ounce and rising as the veins deplete.  On July 22, 2016 the market silver bid closing price was $19.59 with traders saying it can only go up.

In 1792 the United States set the price of silver at 1/15th that of gold.  If that standard were enforced today silver would be at $88.14 per ounce as the gold bid price closing price was $1322.10 on July 22, 2016.  There is no chance silver will ever be legislated back to that ratio with gold, but the ratio says gold is ridiculously over-priced and could change catastrophically as it is only supported by emotion.  Silver support has basis in fact.  It has more value than luster.  The important point is that gold has a real downside potential while silver has an upside imperative.

If you were going to buy silver as an investment where is the best place to plant your paper?  Silver can be purchased in ingots, bars, rounds and coins.  Coins are an especially good choice as there is always a chance that in a very serious downturn, or collapse, the government it apt to outlaw owning precious metals in an effort to legitimize their paper currencies by cutting out precious metals.  Coins provide a clever way of ducking such Federal skullduggery.

Commemorative coins are legally classified as "works of art" and as such can be held by private parties regardless bans on precious metals.  There are several such gold coins, but all are one ounce in weight which is fine unless you are going to the grocery store.  What will you be offered in change, but a bunch of paper of dubious value in a calamity of the kind we could have.

Inflation is the "disease de rigueur" of great national calamities so the ideal coin to have is one of intrinsic, but small value.  Our choice in this class is the Columbian Exposition 1892-1893 half Dollar.  If silver were to go to $88 per ounce it would still be only $44 per coin and you could buy reasonable quantities of foodstuffs and personal supplies with a few in your pocket while the less well informed struggle with pockets full of Eternal President Obama Bucks.

There is a tradition and legal precedent for the "work of art" standard to prevail in any future calamity which makes all legally minted coins, and especially any more than 100 years old, "works of art" and not just currency while they can function as either.  This alone will probably double their street value in a collapse of the kind now happening in Venezuela.  That nation had far less excuse for the calamity they now suffer than do we!   They have the largest untapped oil reserve in the western hemisphere! There is a very real chance we will fail in the same way as the data Mr. Obama cites is all false, every last bit of it.

It has never been more important for you to think clearly, plan ahead, investigate thoroughly and take a fraction of your wealth and perhaps put it into a silver parachute.

Adrian Vance