Why the Future of Ireland may be Silver
CelticGold comment: This article was posted today on One World Chronicle.com - nicely done and thank you for the link. An excerpt of the article is below:
Ireland could become totally independent and wealthy if every of the 1.65 million households would just own 20 ounces of silver.
If the Irish people keep buying silver at this rate; it may be possible to reach this goal. Below we outline the historical purchasing power of silver, the Irish wealth and why Ireland could become the Silver Star.
The Historical purchasing power of Silver
When a paper-currency fails a new currency is born, with existing debt and savings “adjusted” to the new currency. It’s needless to say that during this phase bank savings and almost all investments are wiped out.
Observing the current movements there is a high chance that gold will (in full or in part) return into the monetary system. Historically gold and silver have always been used as money. Silver (and sometimes in smaller fractions copper) was the money in circulation in the natural ratio of 1:10. One ounce of gold equaled 10 ounces of silver.
Back to Roman Times
The average person in the Roman Empire earned 240 denarius per year. The denarius was a silver coin that weighed between 3.4 and 3.9 grams.
The Denarius Silver Coins from the Roman Empire
240 Denarius multiplied by 3.7 grams makes 888 grams of silver per year and per person to buy food, drink, shelter, and clothes; in short to make a living.
Let’s assume the average person worked 52 weeks per year, six days per week. That brings the average daily salary to 2.8 grams of silver. We can round it up a bit and say 1/10th oz of silver made you a basic living 2000 years ago. (1/10th oz = 3.11 grams)
That means in modern terms you would need 365 days times 1/10 oz silver = 36.5 oz of silver per year per person.
36.5oz of silver that was needed 2,000 years ago is in today’s term around 900 Euro. I would like to meet the person who manages to live, sit warm, and eat in Ireland for just 900 Euros per year. I would say the cost per person is closer to 9,000 Euro per person per year to make a basic living. We can see in this example that indeed silver – compared to the historic purchasing power – is extremely undervalued.
Undervalued because of
a) the historical purchasing power of silver to today’s price is around 1:10
b) the current gold/silver ratio with 1:56 shows a devaluation towards silver
In summary both the historical and current ratios confirm that silver is undervalued. It is alot of guesswork to speculate on how much silver will be worth in the future and if we will see gold and silver rising to the historical purchasing power or not.
According to the most respected traders such as Max Keiser – a true silver expert – silver may rise to $100 per ounce in the near future.
We believe Silver is currently one of the most undervalued investments in today’s markets. If you have read CelticGold's article “How to make safe investments” (click on text to read) than you know that investing money is safe when the investment compared to other goods, commodities, stocks, etc. is undervalued.
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