New World Currency Backed By Gold Or Silver?
History has proven that 100% of fiat currencies have failed the test of time. The average life span of a fiat currency is 40-50 years. With the US dollar now in it’s 44th year it makes you wonder if the end of the greenback is near.
The only money that has held the test of time has been asset-backed currencies using gold. Or through owning gold and silver bullion.
But without getting into the details to save us all time let’s take a quick look at what gold and silver are doing.
Both gold and silver have been dropping in value for 4 years with investors keeping their eye and capital tied up in the equities market. QE1, QE2, Operation Twist, and QE3 have helped to take investors capital out of metals and into equities (US Dollar-based investments) and will be left holding the bag when the dollar is devalued and stocks plummet 70% or more.
The manipulation in gold and silver pricing the past few years which continues to drag prices lower to this day gives the sinking feeling of hopelessness for investors of physical metals scaring them out of the market. The reality of it in my opinion is that this is the great buying opportunity in our lifetime before the global economic crash.
These hard assets being gold and silver will likely be used as the asset to back the coming world currency, after the global economic crash. The ensuing worldwide chaos it could cause when currencies fail, trade fails, and people struggle for quality food is something I hope is avoided.
While I do not think there is not enough gold to support a currency maybe silver will be the next asset to back a currency?
Something big is going to be happening with silver I feel. After a 16 month period of “dormancy” from the silver giant JP Morgan have returned with a vengeance to take delivery of record amounts of physical silver in the Comex vaults yet again.
In the first two weeks, April of 2015 alone JP Morgan purchased a whopping 8,300,000 ounces of silver.
JP Morgan currently holds over 55,690,000 ounces of silver and that number continues to grow.
What does this mean? No one knows for sure, but my guess it’s going to support something new, big and important down the road and I think riding their coat tails it not a bad idea.
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I had read one article in late eighties in some magazine about new currency, called phoenix which will be introduced in somewhere 2034 would you shade some light on that, whether it is still valid and might be backed with silver cause slver is in abundance while gold supply is limited, given size of the future economies.