and you feel the same about silver
during deflationary is there a
distinction between gold and silver you
were talking about gold is still stood
well the reason I good what gold will be
better at first during the deflationary
pour a point and that's the reason I
think the gold silver ratio will go from
where it is at about 75 to 100 possibly
I think that gold and silver will both
go down silver will go down more than
gold but then when they take off at
first gold will go up silver will lag
and then silver will make up all of its
time and then some and it'll as far as
performance I think you're probably
going to see the gold silver ratio hit
something like you know it went to 16 in
1980 it's at 70 gold silvers value is
175th of golds it was 1/16 of gold in
1980 I think that this time if you look
at the fundamentals half with gold only
about 5% of all the gold ever mined
throughout history five to ten percent
has been used up or lost with silver
it's more than 50% and silver the
supplies the ore bodies tend to occur a
little closer to the surface gold tends
to be deeper and so the mine above
supplies used to be about 12 times more
silver than gold in ancient times and so
when you dig it up there was about 12
times more silver than gold circulating
as money and so the free market was
doing something called the price
discovery mechanism figuring out the
rarity of these two items and setting
their exchange rate on the average for
the first 2,000 years at twelve to one
then government started manipulating
with the Bank of England setting fixed
exchange rates and so on and we had an
average of about fifteen to one for a
couple of hundred years and then it has
been extremely out of whack for the last
century since the late 1800s
the gold silver ratio has been as high
as a hundred but it hasn't been at this
natural ratio for a long time
in the mean time we used up all the
silver the my novel supplies one of the
heads of a mining company when I used to
do the silver summit up in Idaho he
thought that the miner Bowl supplies
might be an 8 to 1 ratio now instead of
12 because these surface deposits of
silver get worked out and also most
silver comes as a by-product from mining
other metals well you saw what's
happening to copper and what's happening
to the CRB index and as the world
economy slows down we're not going to
dig up as much copper and zinc and the
things that we dig up where this where
most of the silver comes from as a
by-product there's going to be less
plumbing pipe demand in China there's
going to be less zinc castings created
for automobiles
stuff like that so as the mining of
those metals goes down so does that
silver supply just at a time when
everybody wants silver for monetary
demand so the price should be explosive
I'm expecting that we will go to a
higher value for silver than 1/16 I
think we'll probably go to 1/10 of
gold's price 1/5 who knows I mean you
just have to look at all the data and
try and use logic to come to a
conclusion and you know I might be wrong
on all of these things but I'm using as
as much evidence as I can to build my
case as possible and what I see you know
there's no possibility that the that the
fiat currency game can go forever
especially the way they're abusing it
now it would be an impossibility that
this is a coincidence the only reason
the stock market is up is because of
this gift to Wall Street that Ben
Bernanke created
the coming charts here they should scare
the hell out of anybody that is not a
precious metals investor we are in the
Bernanke bubble and it's going to be
followed by the Bernanke bust and Janet
Yellen has left to do the cleanup work
after this bust is over