In the financial side of things how is everyone doing?
Once again it is difficult to know whether things are getting better or not.
People on the streets of America share information by very some very basic markers.
How much is gas today? How much did you pay for lunch?
And the latest fun focal point, how much are eggs?
Across a state, across the country or even just across town we can check and see who is selling what at what price.
The egg thing cracks me up, because now that Easter is passed, eggs are plentiful because everyone stocked up, or have found alternatives and no one is buying.
A new type of Passover.
My daily check in is on the price of Gold and Silver.
This lends to a wider gauging to see if the markets or bankers have given up the game yet.
We can see by the latest number that the game is still afoot.
We are seeing improvements but inaccuracies have not been resolved yet.
While gas prices were going up, Gold did as well.
Unlike at the pump, seeing Gold hit an all time high is exciting news.
As we watch Gold climb, we should be silver climb right along side it and this is where things get weird.
Silver is high for silver but it is not keeping pace with its counterpart, gold, as it should be in the ratio realm.
What is the ratio realm one might ask?
Very simple actually.
The ratio is how many oz of silver it takes to buy an oz of gold.
The current price of Gold divided by the current price of silver gives the comparison ratio.
A current rate of $3331Au divided by 33.64 Ag as of Sunday April 27th is a ratio of 99:1 (Au is gold and Ag is silver)
This is so far off the mark that alarms should be blaring in some trade commissioners office somewhere.
It isn’t rocket science. It is the billboard in neon lights flashing like a Las Vegas casino.
The standard ratio should stand around 15:1.
That is the historical reference point that my coin appraiser always gives me for comparison.
This reference point was from the coin act of 1792. More on that below.
Other sources will state the historical rate is 40 to 80.
That is a current historical reference which doesn’t go back very far.
Even at that vast difference in reference points one can see that a 99 number is simply unbelievable.
And it is unbelievable.
The price of gold, which varies greatly right now from country to country, fluctuates rapidly day to day in each market.
Let’s use the price in the USA last week as it hit an all time high of $3500.05 on April 22.
On that day the price of silver was at 32.61.
Already you can see something is not right.
The math tells us on that day the ratio was 107.33 (107, really?)
If you google the current ratio the AI generated answer reports the ratio is at 79.
With the price of gold at 3500 and with a ratio of 79, silver should be priced at $44.30.
But that never happened.
What does that mean?
Your guess is as good as mine. It basically reminds us of what we already know.
The metals market is rigged beyond belief.
But ratios fluctuate as the markets do so ultimately the ratio is just a tool.
But what is this tool for and how do we use it?
The gold / silver ratio is used by analysts to gauge the markets.
The wider the ratio, the more undervalued silver is, the narrower the ratio. The undervalue lies with gold.
When making an investment and you can’t decide which metal to invest in, look at the ratios.
At current market trends if the ratio reaches 40 or less it’s a great time to look at gold.
I haven’t seen that low of a ratio for years.
The Coin Act of 1792 was a regulation passed by Congress on April 2 1792.
Does that date ring any bells? April 2 this year? Liberation Day?
This act established the United States mint and laid out the foundation for modern currency.
It established the US dollar as the nation’s standard unit of currency.
It also established the dollar as a basic unit of currency reflecting its value against gold..
And it fixed the price of gold and silver at a ratio 15:1.
Dollars as units were valued incrementally as coins in a decimal system giving us gold, silver and copper coins.
As gold coin dollars, they were minted as $10, $5 and $2.50.
A silver coin as one dollar and further increments down the line.
Copper was one cent or a half cent.
Our dollar was asset backed.
Beyond the ratio standard there are two other things that the Act established that I found very interesting.
One is that for quality control, the Mints act, as it was also referred to, that all coins must be made of the proper weight and quality of its equivalent metal.
This is called assaying of coins.
The law also stated that debasement of gold or silver was a penalty of d***h.
This meant if you messed with the quantity or quality of gold or silver making up the units of exchange, i.e. the coins as dollars or cents, you could be e******d.
The assaying of coins regulation remained in effect until 1980 When the US Assay commission was abolished.
I am not sure of dates, but didn’t our coin minting get manipulated prior to that?
In my perspective, abolishing the commission was a debasing of our currency.
We have long known the value of our coins has diminished.
And now we know how they circumvent the system in order to do it.
Imagine a penalty of d***h for doing what ‘they’ have done.
As far as I can see the Coin Act of 1792 is still in effect.
Sans the abolishment of the assaying of coins, the gold to silver ratio should still be in the ballpark of 15 to 1 as my coin appraiser gleefully quotes but never explains.
Apparently it is dangerous to point out the criminal actions of the controllers.
Let’s do some more math shall we.
Gold at an all time high $3500 oz t at 15:1.
This puts the current legitimate value of silver at about $233.33 oz t.
Oz t or t Oz is a troy ounce.
Imagine if Gold had an actual value and not just a manipulated value.
You know how they devalue property in order to buy large tracts of desirable land.
Like they do with bringing natural disasters to regions with a potential motherlode of rare earth or other local desirable items.
Obviously they are manipulating silver.
We will have other market factors that come into play. Mining, recovery rates and costs of mining, manufacturing demands, trade values, etc.
Establishing values is in constant fluctuation.
But the US dollar was backed by assets when it was established.
And it would appear it still should be.
So let’s see how this volatile market plays out from here.
In the meantime I have heard that Washington State wants to tax the purchase of Metals.
Metals as a form of unit of exchange as minted currency?
Can that be taxed?
I think there are some legislators in this state that need to take a history class.
An ethics class wouldn’t hurt either.
How is it even possible to tax an exchange of what should be considered ‘equivalent’ legal tender?
That is like saying every time you go to the bank and withdraw your own money you have to pay a tax to get it back.
The exchange should be considered no different than trading 4 quarters for a one dollar bill.
Trading US dollars for Mint coinage is not buying,
It is Exchanging at current market value.
Therefore, in my opinion, not taxable.
There are still a few things we need to get figured out.
April 2 is starting to take its place in the rear view mirror.
What happened that we still don’t know about?
I can appreciate the reference that it made.
Maybe it was about us getting informed about what the rules were.
And still are!
Maybe ‘He’ was checking to see if we were paying attention.
So now, let’s see some action in real time at the gas pump, in the market and at the table.
We need relief in the pocket book soon.
The upside down markets that are messing with our lives and livelihood are coming to a crescendo.
Hang on. Folks, it’s going to get bumpy.
The people who gave themselves permission to debase our money are not wanting to give up their control.
And apparently are trying harder than ever to take what we do have.
We are onto them like flies on a light bulb.
Neon lights are blinking loud and clear, Asset backed Change is in the air.
Don’t forget to have some fun along the way.
Everyday is an opportunity to enrich our lives in multiple forms of currency.
Now, who likes horse racing?
