Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22
UK House Prices Real Terms Sustainable Trend - 17th June 22
Why I’m buying the “new” value stocks… - 17th June 22
Optimize Benefits from R&D in Software Product Development with an R&D Tax Credit Software - 17th June 22
Want To Save On Your Business Energy? Here Are Some Helpful Tips - 17th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Caught Inside the Crisis

Commodities / Gold and Silver 2015 Jan 30, 2015 - 02:01 PM GMT

By: Dr_Jeff_Lewis

Commodities “If a little is great, and a lot is better, then way too much is just about right!”
-Mae West

A comment from my last essay, "Finding The Real Price Of Money", got me thinking about preparing for the eventual crisis.

That - and an experience I had in the ocean.

I wrote that:

"The four major monetary zones have collectively printed over $40 trillion currency units (call them dollars if you want) over the last 6-7 years.  Most agree that about 180,000 tons of gold exist above ground. At today’s price of around $1,250 per ounce that would be about $7,200,000,000,000.

The gold price would need to rise at least five and half times to back all of the $40 trillion in world fiat, or at least $7,000 per ounce of gold. At a 10:1 ratio, that would put silver at $700 per ounce.

The only way to pull this monetary fiasco together, without defaulting the entire edifice, is to revalue the metals up to that level. Would they do it? No way. Will it happen naturally? Perhaps, though not without disorder and confusion."

My friend and your fellow subscriber Chris wrote:

"Great article but I think your estimates might be way low. 

In the Weimar printing experiment, I believe the POG went up to 12 orders of magnitude. (It added 12 zeroes.)  Of course the scale, one country vs. the world’s reserve currency, is different.

And then there are so many other forms of money that might be counted since the old M1, M2, or M3 no longer make any sense.  Perhaps like all the other debt and like gazillions in derivatives?

It is near to impossible for any of us to imagine a totally worthless dollar and yet I fear it is assured, sadly, along with all the coming chaos, martial law, and worse".

My response:

I agree with you regarding the price estimates. I was trying to make it 'rational' – which, of course, has the effect of shrink-wrapping to satisfy our reptilian brains.

Your sentiment, “It is near to impossible for any of us to imagine a totally worthless dollar and yet I fear it is assured, sadly along with all the coming chaos, martial law, and worse”, is right on the ‘money’.

Lately, I've begun to notice that many who 'see' the silver or gold opportunity are not fully grasping that this is one part of preparedness. A preparedness that may indeed end up to be futile. That the time to sit back and ‘count the ounces’ may never be realized in the way many would like to imagine.

My hope is that new 'investors' will eventually embrace the opportunity as a slippery slope toward taking the whole picture into account, thinking and acting through the process of accepting reality and preparing  - like it has for me and many others.

Sadly, along with muted and volatile prices, that isn't very appetizing for the average man.

I was surfing (paddling mostly) in heavy surf conditions last week - some of the biggest, strongest and longest period swell I've experienced since my kids were born. Eventually, I caught one wave after 2 hours.

The entire first hour was spent paddling out. It was hell. I came close to giving up at least three times. When I got close to the main impact zone, a huge set of 10 waves unloaded right in front of me. I had to ditch my board (an 8'4" 'rhino-chaser') and swim under each one to maintain a position.  It was violent. I was in full-on "keep calm" mode, simultaneously acknowledging, yet trying to ignore, the visceral signs of panic.

Finally, I make it out and spent the next hour feeling like a squirrel on the freeway paddling for my life.

In the end, I found the courage to paddle for a 'small' one. I made it in.  The survival euphoria doesn't last very long.

Most people don't understand why I would even do it. My wife doesn't want to hear about it. I wouldn't recommend it for someone who is inexperienced.

I tell myself it's because I can and it's a practice. It makes me think of prepping for the coming collapse. The exhilarating practice. Whether at a pistol range, exercising, or the mental rehearsal of what things might look.

Maybe preparation can come in many forms? Or maybe safety and risk-aversion are overused terms?

I don't love that we need to be ready. It's depressing that things have gotten so out of hand. And that it's inevitable that they will unravel in epic proportion.

But I do see something in the thrill of the practice - stacking, accumulating assets, or developing skills and mindset that might come in handy.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in