Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

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

© 2005-2022 - 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