Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Is Silver Money? (Revisited)

Commodities / Gold & Silver 2009 Jun 12, 2009 - 09:59 AM GMT

By: David_Morgan

Commodities

Best Financial Markets Analysis ArticleI just returned from the Cambridge House Investment Conference in Vancouver, BC, and found this to be one of the best precious metals gatherings ever, not so much from the perspective of a number of attendees, but from the quality of the people who did attend.


Many mainline speakers and workshops were made available and it did not take very long for me to “hear through the grapevine” that a well-known personality in the precious metals space had deemed that “silver is NOT money, it is an industrial metal.”

Since this is hearsay to me, I want to be careful in that perhaps I don’t have the exact statement, but I did get a barrage of people coming to me and reporting essentially the same information.

First, let us be clear: silver is an industrial metal and used in industry it most certainly is. However, a better label might be high technology metal, because silver conducts electricity better than any element; it is crucial to so many applications, our way of life would cease without silver.

The industrial use of silver continues to grow, although admittedly it might slow down during this year due to recessionary pressures, but we cannot be sure of that yet. In any event, silver used to comprise about 35% of the total demand a decade ago, and now, according to the Silver Institute, industrial use is 54%. Clearly, silver is an industrial metal and makes up over half of the total demand. No argument from this writer, but what about silver’s role as money?

“The major monetary metal in history is silver, not gold.” – Noble Laureate Milton Friedman in an interview with James U. Blanchard III for the 20th Anniversary New Orleans Investment Conference, November 7, 1993.

“To 250 million persons in 51 countries the word for money is the same as the word for silver and silver literally means money.” Silver Profits in the 80’s, by Jerome F. Smith and Barbara Kelly Smith, copyright © 1982, ERC Publishing Company, page 43.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Money and Wealth in the New Millennium, by Norm Franz, copyright © 2001, Whitestonepress, page 154.

The three above quotes might help put the silver-as-money debate into perspective, yet they do not really prove that silver is money. For absolute proof we need to know how the law defines money. As I was doing research for this missive, I asked Google if “Silver is Money” and the first article to pop up was one written by me in 2001.

From that article…

“I took out my Black's Law Dictionary and looked up money. Interesting when we look at the legal aspects of things. I will admit I have an old version, 1968 to be exact. The reason is bias on my part. It seems the definition of things keeps changing as we move forward in time. To quote Black’s Law Dictionary, ‘In usual and ordinary acceptation it means gold, silver, or paper money used as circulating medium of exchange, and does not embrace notes, bonds, evidence of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W. 2d 74, 79, 81.’”

Reading further we find:

“In its strict technical sense ‘money’ means coined metal, usually gold or silver, upon which the government stamp has been impressed to indicate its value. In its more popular sense, ‘money’ means any currency, tokens, bank-notes, or other circulation medium in general use as the representative of value.” Then under that several more sites are named.

In my view we are all entitled to our opinions, and, to my thinking, the Free Market of Ideas is most valuable to a free society. However, none of us is entitled to make up our own facts, and saying that black is white, under the current Orwellian conditions, does not change reality although a great number of debt burdened can see it that way.

According to the Law of the Land (United States)

“Article I, Section 10, Clause 1. No State shall...coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debt.”

We again see silver clearly defined. In fact let me digress slightly and ask, Have any citizens committed fraud by paying a debt with a debt? In other words, all the circulating currency is loaned into existence . . . are you breaking the law by passing this on as money? Alas, I’m being facetious but could not resist.

Okay, so almost everyone knows about the Constitution and how little respect it receives by all those representatives of the people (debt slaves?), from the President on down, who take an oath to uphold it against all enemies foreign and domestic. Yet, we live in a world that is currently making up the rules as we go along.

And what is the current rule (law) about silver as money? I think the U.S. Mint might make a case that we can establish as to the current status, and this is what is clearly stated on their Web site.

“American Eagle Silver Bullion Coins are affordable investments, beautiful collectibles, thoughtful gifts and memorable incentives or rewards. Above all, as legal tender, they’re the only silver bullion coins whose weight and purity are guaranteed by the United States Government. They're also the only silver coins allowed in an IRA.” [Emphasis mine.]

So you can pay your heating bill, water, trash, rent, etc., with silver; by law, it is still money. Regardless of what anyone states, like it or not, the law is clear—you can use Silver Eagles to pay for goods and services within the U.S., and therefore silver is indeed money. I do not, however, advise this at all, because you would need to pay in “legal” terms, meaning “One Dollar” per one-ounce silver coin. As we all know (most of us anyway), the face value is far different from the market price. As this is written, it takes about 15 pieces of paper labeled ONE DOLLAR to buy a coin that says ONE DOLLAR. Interesting?

It is an honor to be.

Sincerely,

David Morgan

Mr. Morgan has followed the silver market for more than thirty years. He wrote the book, Get the Skinny on Silver Investing. Much of his Web site, Silver-Investor.com, is devoted to education about the precious metals, it is both a free site and does have a members only section. To receive full access to The Morgan Report click the hyperlink.

Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.

David Morgan Archive

© 2005-2019 http://www.MarketOracle.co.uk - 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