Utah (and soon South Carolina) now allow silver and gold as legal currency.
For years the silver bugs have been screaming from the roof tops ( Max Keiser) that JPMorgan and other banking cartels have been naked short selling silver on the COMEX and SLV. Naked short selling means they are selling silver onto the market that doesn't exist. This drives the price of the metal (or anything) down. For the last three years the powers that be have been "investigating" this issue but have not come to any conclusions. They still can't figure things out even when they sell more paper silver in one hour then is produced world wide in a year. It's interesting that the SC state treasurer can come to the conclusion so quickly that they are suppressing the price of silver and gold.
A bubble is when everyone is buying something and the value isn't based on fundamentals. Examples of this would be the tech bubble when people were buying stocks of company's that weren't even making money and had no assets. People bought houses for more then what they would pay for renting them. This doesn't make sense. Is silver and gold in a bubble?
In the video the treasurer comes to the conclusion that silver and gold may be in a bubble because they have increased in value so much the last few years. What he fails to point out is that they are actually still lower then their inflation adjusted highs. Especially when you look at silver. http://www.goldline.com/historical-precious-metals-comparison Take into consideration what the world is like now vs.1980. Population growth, economic growth, industrial demand increase, government debt, and the king of all kings = the world wide money supply. There are TRILLIONS of more dollars in circulation and thousands of more uses for silver when compared to 1980 yet the price is DOWN 76% from its high... A bubble? I think not.
How many people do you know that owns ANY physical precious metal? Maybe 5% of my friends own any and it's only because I have convinced them to buy one ounce a month. They still don't fully understand why they are doing it. It's more just to shut me up. They will thank me later. Until we see lines at the bullion store and the cash for gold commercials go from buying silver/gold to selling silver/gold and we see a change in our monetary policy we don't have to worry about a bubble.
Don't take my word for it do your own due diligence. Come to your own conclusion, but here is what it comes down to. Since the creation of our debt based fiat currency we have lost 97% purchasing power. Historically gold and silver is the safest way to preserve your wealth. The "Federal" reserve has stated that they will devalue the dollar 2% a year. Do you want to keep your wealth in an IOU that loses 2% a year, or in a precious metal that has had an intrinsic and market value for thousands of years. Keep stacking. -MARS
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