Human Nature, Inflation, and Silver Prices

Several millennia ago in, a different life, I sat in an economics class in college while we discussed the planned economy of Russia. Our professor told a story about the nail industry. The central planning committe set a goal for that industry to produce a set number of nails by year's end. Well, the industry leaders knew not to argue their point, even though the raw materials allocated for the task were not adequate. They simply complied. At first everyone was happy, until they tried to hammer the nails. Every time carpenters tried to drive the nails, they broke. The problem? The nails were too thin! The nail industry sacrificed quality in favor of numbers. That was human nature in action. Governments can make rules and pass laws, but they cannot dictate human nature.

In recent years governments around the world have try to incentivize a lagging economy with an unprecedented infusion of good old money, wads and wads of money, heaps and piles of the greasy grimey green stuff, that is, speaking of dollars. World economies have been awash in extra printed notes. Has anyone refused to be "incentivized"? Of cours not! That's human nature. Stimulus money always works, but only as long as the tap is turned to the On position. Pay unemployment benefits, and out of work folks have money to spend, which keeps the wheels of industry moving, but only for a while. The problem is, few people on unemployment go back to work because they are being paid not to work! That's human nature. Banks love the stimulus money, not so they can lend it out, but so they can hoard it with the hope that when the economy turns around they will be in a favorable position to lend again. Again, that's human nature. They also love the money so they can continue to pay high wages to people at the top. Talented leaders demand big paychecks because they are paid to make decisions that are designed to increase the bottom line. Stimulus money works only until the money, or more correctly, the borrowing power of nations lasts. At some point those countries, like China and Germany, get tired of footing the bill for everyone else, then the tap begins to turn in the opposite direction. When that happens, look for prices to knock through the roof and shoot for the stars.

So what does all this have to do with the silver market? Human nature has created a truly unversal currency. It isn't sanctioned by any government, and no government on earth can stop its use. We call that currency, precious metals. Because silver has value that everyone recognizes, it is a true indicator of inflationary pressures. The more money is pumped into an economy, the higher the price of silver. Silver is a true hedge against inflation. People who own significant amounts of silver remain mostly unaffected by prices of regular commodities that everone buys. They simply convert some silver into ready cash when prices are high, and buy more silver when silver prices drop. They recognize the value of always keeping some bullion on hand. In normal times and in times of inflation, your silver will protect your buying power. Silver is always in demand and is easily converted, that is if you get your silver from a reputable dealer. Silver bullion rounds from Quality Silver Bullion are universally recognized. Buy your silver from a trusted friend.

-by Tim Murdock

Do you have silver to sell? WE ARE BUYING. Would you like your .999 silver converted to our popular rounds to make it easier to convert to cash? Call us 8 to 5, MST, at 1-866-334-4279

What If...

Have you ever played the What If game? You know,
What If I weighed less (or more)?
What If I made more money than I could spend?
What If my spouse loved me, like my dog does, even when I do stupid things?
What If politicians had to take a truth serum so they would talk like Jim Carey in Liar Liar?
What If people saw only the real person inside me, like a Bay Watch babe or an Arnold Schwarzenegger action figure?
Or, What If I had had the foresight to put, say, 5% of my income into silver when it was only $5.00 an ounce, and buy it on a regular basis for twenty years?
Here's a What If that might go on your list. What if you could find a way to insure that your investments or your savings or your purchases never lost their value? What Ifs are usually something of a wish, a pipe dream. But not this one. This What If is easily achieved. Just invest in silver. Silver never loses it's luster. It will be worth as much in the foreseeable future as it is today. Prices may rise and fall, but an investment in silver can stabilize your buying power. Why? because precious metals have intrinsic value; they are always easy to sell; and they are much more stable than other investments. For everything you buy at the store or for almost every investment you make, someone down the line had to create a market. That means that the value of most commodities last only as long as advertising agencies keep pumping out good ads. Not so with precious metals. Silver has real value, like milk or eggs or bread. Those are always in demand. Of course I wouldn't recommend putting those commodities in your safe deposit box!

The super salesman that created the silver market didn't look like you and me. He probably wore an animal skin, had a scraggly beard, walked slightly stooped over, and had a vocabulary of about five hundred words, including such literary treasures as, "Me hungry," and "Me wantum wife! and "Me no like-a you" - Crunch! - It all happened a long time ago before recorded history.

Personally I was chagrined when coins went from silver to some other scientific concoction of metals. There was no luster to the coins, and many people saw that event as the beginning of the end of stability in the currency markets. I would love to see silver coins back in circulation. Unfortunately, because of inflation, a quarter might be the size of a dime, and a dime might have as much silver in it as the metal in a paper clip! So let the paper money flow, but why not have a little note on each paper bill that would make it redeemable in silver bullion? Can you say, s-t-a-b-i-l-i-t-y, boys and girls? Until then, you are free to purchase your silver from Quality Silver Bullion and thus stabilize your own currency.


by Tim Murdock
Staff Writer, QSB

More FREE Silver!! Silver Giveaway #5

We are giving away more silver! Watch the video below for details and submit your entry into the drawing HERE!

Ends 09/26/2010

Good News: The Government Never Ended the Gold Standard!

Suppose you are running some errands one afternoon, and you see your favorite movie as you pass the local dollar theatre (Maybe you don't have a dollar theater in your town, but we in Orem, Utah still do!). You get up to the ticket booth and search in your pocket for a paper dollar bill. Nothing. No problem, you say to yourself, I still have my lucky silver dollar. You reach deep into your other pocket, past the Snickers candy bar wrapper, past the wadded up grocery list your wife gave you this morning, and walla! You feel the familiar coin you've carried around for years. It feels good to have something of real value in your pocket. You take it out and turn it over in your hand. It's scratched up, no longer shiny, and the grooves on the side are worn down a bit. But there she is on the front: Miss Liberty still taking her long stride. You could plunk it down for a couple of hours of entertainment, but instead you make an excuse to the ticket vendor, put your silver piece back in your pocket, and continue your errands.

Does it sound improbable that people might still keep silver coins in their pants pocket or in their sock drawer or in a safe deposit box? Not really. Ask your local convenience store clerk the next time you stroll over for an evening beverage. Chances are he or she has seen silver coins pass across the counter when someone who was out of paper money, needed that pack of cigarettes, or something to drink late at night. Now ask him what he did with it, and you'll probably hear, "Are you kidding? I put some change into the till, took the silver coins home, and dropped them in the jar with my other silver."

Silver is worth just as much today on the open market as it ever was. For example, you can still purchase silver coins from the U.S. Mint, but only at the going rate for the silver itself. And if you were foolish enough, you could shove a newly minted silver dollar across the sales counter and buy anything you want. The catch is that a silver dollar at the store is only worth as much as a paper dollar bill. The real value is not in the coin; it is in the silver.

So why own silver? Because silver, like gold, never loses its value. Suppose you bought a supply of silver rounds from us, Quality Silver Bullion, and kept them in a safe place. At any time, should you need extra money, you can readily convert your silver into cash. Silver is a liquid asset. Silver can also be used as leverage on loans or for other business deals.

Here's another advantage of owning silver. Many economists are saying that present inflationary pressures are bound to drive up prices throughout the open market. And maybe soon. In that case, governments will do what they do best: print more dollars so they can pay their debts in worth-less currency (don't you wish you could do that!). In an inflationary cycle more dollars are needed to pay for the commodities we need, so governments must print more money to keep up with rising prices. Inflation also drives up the price of precious metals, so your stock of silver now brings you more dollars (or euros or pounds, etc.). If you watch the market carefully, a wise investment in silver today could bring you some unexpected profits in the future, maybe sooner than you think. If you had the foresight to buy a silver round when silver was five dollars an ounce and sold it at twenty, your would have a 300 percent profit!

"But," you might ask, "what if the economy returns to normal, after an inflationary cycle, so the price of silver retreats to previous levels? Won't I lose money?" Not likely. Remember, silver and gold have intrinsic value because they are always rare and always desirable. In times of deflation the value of your silver remains unchanged. If silver prices go down, prices over all will drop, from the Lexus in the showroom to the bacon at the meat counter. So your buying power remains unchanged. Your liquid asset of silver is a great hedge against both inflation and deflation.

Governments can legislate the gold standard out of existence, but they cannot legislate human nature, nor can they dictate market forces that affect prices. The gold standard has never ceased to exist because the desire for precious metals has never ceased to exist. The real gold standard is a product of people's values, not the edict of any government. The old silver coins people still carry around in their pockets will continue to assure that things of intrinsic value never lose their shine.

by Tim Murdock
QSB Staff Writer