Two Important Charts For Gold & Silver Investors

"...It is always interesting to look at historical comparisons. When the Roman Empire started to fall in the 3rd century, the Roman silver coin, the Denarius, reflected a massive bubble economy that was coming to an end. Over 100 years, the Denarius fell by around 97% as reflected by the lower silver content. Then in the late 4th century the silver content fell to zero, which means that the currency became worthless. For the next 200 years the silver content of the Denarius reflected a devaluation of around 99%.(see chart below).

In the last 100 years since the creation of the Fed in 1913, the dollar and most other currencies have fallen 97-99%. So we only have a 1-3% fall left to reach a total collapse of the current monetary system. That is likely to happen in the next few years.

For investors who are concerned that the gold price is not going up fast enough, I stress time and time again that gold will continue to reflect the accelerating money printing worldwide. Below I show a chart of the US Debt Ceiling (courtesy Nick Laird, sharelynx) vs. the gold price. The debt ceiling has increased around 150 times since 1917. It is absolutely guaranteed that it will continue to increase in the next few years in parallel with the increase in debt. This means that it is also guaranteed that the price of gold will go up in coming years.

Although gold (and silver) didn’t go up in the last couple of days, it is absolutely guaranteed that the continued destruction of paper money will lead to substantially higher prices in the precious metals. But remember you have to hold physical metals and store them outside the banking system..."

 

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