This page has been archived and commenting is disabled.
Legal Tender Coins Shed Clues On Bullion Racket, Part II
........Submitted by Bullion Bulls Canada - Written by Jeff Nielson
Part I of this series provided what (for some) is a revelation: the absurd, $5 (Canada Maple) face-value on our legal tender, minted silver coins is not some totally arbitrary anomaly. Rather, it was a part of the strategy of the One Bank to pretend that its fraudulent paper currencies were not (and are not) losing value at a catastrophic rate.
The banksters did this in a multi-pronged approach. They selected the approximate price for silver which existed at the time that Paul Volcker assassinated the gold standard, and used that number ($5 Canada Maple) as their nominal face-value for our coins. Then they attempted to freeze-forever the market price for silver at that $5-level. It was never a viable long-term strategy; but being psychopaths, that didn’t stop the banksters from pursuing it.
While our mystery is solved with respect to our silver coins, what about our gold coins? Here we can be unequivocal: the face-value on our legal tender gold coins is entirely arbitrary – in absolute terms. At no time since Volcker assassinated the gold standard has the price for gold been lower than $200/oz, and for most of that time it was above $300/oz, many multiples of the ridiculous $50 face-value.
Those playing Devil’s Advocate could argue that the reason our coins currently have a $50 face-value in both Canada and the U.S. was because Canada originally chose that face-value when it began minting Gold Maples in 1979. The rebuttal to that line of reasoning is simple: when has the United States ever considered itself bound by any “standards” set by another nation(s)?
The One Bank has consciously chosen to have the U.S. act as a “rogue regime” in virtually every sphere of international relations. It regularly initiates unilateral acts of war, and while it regularly signs various treaties with other nations (i.e. trade pacts and arms-limitation agreements), it finds it impossible to abide by the terms of these international agreements for any length of time.
Clearly if the U.S. government (meaning the One Bank) would have preferred a different, arbitrary face-value for its own minted coins, it would have chosen that number – and then pressured Canada’s government/mint to accede to the American “standard”. We must therefore conclude that the nominal $50 face-value on these minted gold coins was a deliberate choice, and not merely some ‘accident of history’.
With the $50 face-value having absolutely no significance in absolute terms, we must look for relevance in relative terms, i.e. in relation to the nominal face-value of our silver coins. It is here where we gain further insight, in the form of the price ratio, 10:1.
Historically, over literally thousands of years, the gold/silver price ratio remained relatively constant, near 15:1. This price ratio is a natural reflection of the supply ratio of the two metals (within the Earth’s crust), 17:1. Yet we are told via the propaganda of the Corporate media that the “normal” price ratio for silver to gold is supposedly in the range of 50:1 to 70:1 – the perverted extremes which are/were the direct product of the One Bank’s serial suppression of the price of silver.
Even as the physical (supply) ratio between these two metals has steadily narrowed due to the destruction of silver stockpiles, the Corporate media has maintained this ludicrous fiction regarding the price ratio. Yet here we get a rare glimpse into the actual thinking of these banksters regarding the pricing of these metals.
They consciously chose $5/oz (Canada Maple) as their “correct price” for silver, and then consciously chose what we must assume was their “correct price” for gold in relation to the price of silver: $50/oz – a 10:1 ratio. Knowing that the erosion of silver stockpiles had already begun accelerating by the mid-1980’s; the natural presumption is that the chosen price ratio in the mid-1980’s reflected the actual (above-ground) supply ratio of the two metals. But the majority of the decimation of silver stockpiles took place after the mid-1980’s, after the banksters had taken the price of silver to a 600-year low (in real dollars).
Why manipulate the price of silver to absurd ratios of 50:1 or 70:1, when the banksters themselves knew that a rational/appropriate price-ratio for the two metals (as of the mid-1980’s) was 10:1? Simple. This relates directly back to what was said in Part I: it is silver which is the more-important of these two monetary metals (in the crimes of the One Bank). It was/is silver which these Criminals are obsessed with keeping out of the hands of the Average Person.
How best to accomplish this? (Attempt to) hoard that silver, and the silver still exists – and is subject to the risk that the banksters’ own greed would cause them to disgorge that silver onto the market, at some point. But destroy all that silver, by having it “consumed” (i.e. strewn amongst the landfills of the world), and you keep the Peoples’ Money out of the peoples’ hands, forever.
The 10:1 gold/silver price ratio which the One Bank chose as the legal/nominal price ratio, and the (approximate) 60:1 market price ratio it has imposed upon us tells us several things. It provides a metric to show the much more extreme level of silver-manipulation versus gold-manipulation, as shown (empirically) through the more-extreme level of silver-shorting.
[chart courtesy of Nick Laird, Sharelynx.com]
However, the extreme degree in which the banksters have skewed the (market) price ratio from a rational/fundamentals-based price ratio reveals the intentions and motivations of this crime syndicate. It wanted to simply “manage” (i.e. permanently suppress) the gold market, since gold is not merely the “money of nations”, it’s also the “money of the wealthy”. But the wealthiest-of-the-wealthy, the criminal proprietors of the One Bank chose to destroy the silver market, clearly a strategy of psychopaths.
It is a “psychopathic” strategy because it lacks any end-game. What do the banksters do after they have finished destroying this market (and sector)? The world needs silver. Final “destruction” of the market directly implies some sort of default event, at which point silver will be re-priced. The final point which needs to be made here, and question to be answered is: how will silver be re-priced?
The 10:1 physical ratio of the two metals (in above-ground stockpiles) implied by the nominal prices the banksters chose in the mid-1980’s no longer exists. It was shortly after that when the real destruction of silver stockpiles began, as demonstrated in a familiar chart.
If 10:1 was the actual supply ratio of the two metals, as of the mid-1980’s, this provides further ammunition for those commentators arguing that the actual above-ground ratio of the two metals is now roughly equal. In turn; this supplies much more emphatic support for the conclusions of a recent commentary: $1000/Oz For Silver (Today), A Starting Point.
The long-term, historic price ratio (15:1) mirrors the actual supply-ratio of the two metals in the Earth’s crust: 17:1. This means that humanity has always had an equal preference for the two metals, subject to their level of availability. When silver was available in 17:1 quantities; it was (historically) always priced that way.
Now, with existing stockpiles for the two metals roughly parallel today; this dictates parallel prices today. Indeed, with silver being so vitally important in numerous commercial/industrial applications; this strongly suggests that it should now be priced at some premium in relation to the price of gold.
It should be highly interesting to silver investors (in particular) and anyone interested in preserving their wealth (in general) that a $1,000/oz starting price for the price of silver – today – has been produced through two, totally separate avenues of analysis. Meanwhile, as just explained; the suicidal race-to-implosion by the banksters themselves in this market must be close to its ultimate, inevitable end, no matter what “secret stockpile” of silver they have amassed previously, or what crimes they commit in this market.
The re-pricing of silver is an imminent, inevitable event, one that the One Bank is pushing us towards, at an accelerating rate. The fact that such re-pricing must be a “radical” move higher in the current, phony price is simply a function of the extreme level of price-perversion in these markets – as evidenced by the difference between our legal price ratio between gold and silver, versus the (manipulated) market price ratio.
........Submitted by Bullion Bulls Canada - Written by Jeff Nielson
- advertisements -



This is a deeply paranoid, not to say weird, article.
Not that I disagree with it.
The problem I have is that when the SHTF and the ATMs don't work, life (the 10% that will still be alive) will be consumed with bartering. Gold will be too expensive, but unless there is a non-governmental refinery in your area that will exchange for the new fiat, credits or whatever, silver won't be worth much at all. The key to stacking is to wait out the time it takes to get back to some sort of normal commerce when the industrial properties of silver will be in great demand. BTW, I have always maintained that at some point, silver will be worth more than gold, especially since accessible silver that can be profitably mined will disappear from the planet within a decade. We can live without gold, but not without silver.
Not following some of your logic here. If TPTB want to steer people away from silver wouldn't the ratio be something less than 10:1? At the current approximate 60:1 ration isn't silver the much more attaractive hedge?
Also, does it really matter what face value is assigned to gold or silver 1 ounce mint coins? The value is always pegged in comparison to some sort of paper currency regardless of the face value. One can cash in their coins at spot whch may be aove or below the spot making the face value only a government guaranteed liquidation point if used as legal tender. Even if the government confiscates them it will still likely be at some value above face.
Manipulation of the markets of course has a much bigger impact that any arbitrary face value used.
http://goldnews.bullionvault.com/files/gold-silver-ratio-1882.png
I consider T-bills and US (or any government) bonds, the metals (Gold, etc.) to be 'mattress money'.
I concur that there is downward price resistance in coined gold and silver. I try to primarily buy coin that is minted before the creation of the Federal Reserve so as to be able legally to stay away from the present day manipulated scam on gold and silver, but even this coin does follow the market trends.
Slabed coin is the very best, but there is an investment in getting coin into a graded slab, $75 for gold. Usually the 90% gold coin has at least 20% value beyond the metal value and that value cam be higher as the denomination gets smaller. Of course there is scarcity, image value and condition that can lead to astronomical prices. Example is just about anything minted in Carson City (the CC's).
Right now eBay is showing a 'hard bottom' to these coins around $1300 for a 90% gold coin troy oz. Do realize that trading them in to get dollars is not as easy as going to the bank. The mom and pop coin dealers will attempt to give you half value, especially on silver. They will send you walking. This stuff is best for trades with trusted friends (insurance where you expect to get it back), as I expect will be the policy in the BRICK Banks. Remember to diversify even in the metals, hold palladium, platinum also.
Good point about the utility limits to any medium of exchange, HC.
" This stuff is best for trades with trusted friends"
When good will exits transaction, the only currency will be hot lead.
Coming soon to a theater near you...
Melt an oz down and stamp whatever value you want on it. It's not the shape or image, it's the weight. And that cannot be manipulated.
The US has a go to jail law that if you declare it a form of legal tender outside of an 'area of use' (an entity that does 500 hours of work with such traded metal, - Dodd-Frank 2008) and after certain holdings one must declare such and at anytime the government can 'redem' your precious metals for those nasty dollars.
True that, but they have done an A+ bang up job manipulating the price for all time.
The new Canadian beaver coin has a face value of $50 for a half ounce coin. Is the mint admitting to at least $100 an ounce silver?
z
Chart really means nothing to me when it includes etf's
The author is just thinking too much about something irrelevant. There is no US Dollar any more, only private FRN's with some UST coins in circulaion that are made of almost worthless metal. The $ denomination on bullion is just another layer of the onion to step away from the true original definitions of a United States dollar. They are just another mask on top of a mask on top of a mask, so that children have almost no way to discover what things used to be without intentional and dedicated self education. Go read Edwin Vieira's, What is a dollar, or better yet, read his entire book, Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution.
http://fee.org/freeman/detail/what-is-a-dollar
http://www.amazon.com/Pieces-Eight-Monetary-Disabilities-Constitution/dp...
Get Monster Boxes or die try’in!
This place sells monster boxes the cheapest; http://buygoldandsilversafely.com/prices-html/
Disclosure; I own it.
The article talks about gold silver ratios that are outdated. If you look at the history since we went off the gold standard in 1971 it's averaged much higher. I did an analysis of it in January 2013; http://buygoldandsilversafely.com/gold/sell-gold-to-buy-silver-in-your-ira/
Buy silver over gold till we get this ratio down some and switch to gold. Another way to put it is; what will double faster, silver to $32 from current leveles of under $16 or gold to all time highs of over $2,000? My bet is on silver tripling or more before gold doubles. But unfortunately we are destined to lower lows over the short term. Next year us Cubs fans say!
Put in in the ground with an anti-tank mine over it.. make silver bullets. LoL Safe deposit boxes are all known to the government.
With the dollar so high on the index right now, I bought a number of these coins at less than face value (in USD). The shipping was free.
Eventually, the USD will be at par or lower than the CD. And there is the silver content as well.
To me, it's a win-win (until the USD index falls).
When I travel, I pick up Yuan and Rubles, same theory.
Why would I want billions when I could have millions?
I like gold, but I love silver.
@#$% fat finger. Posted twice.
Gold is the wife, silver the mistress, wild and crazy.
Silver is an element on the periodic table (AG). The amount of silver in the earths crust whether above/below ground (or landfills) is irreverent. An element cannot be destroyed unless you've shipped it off interstellar. The AG element in landfills has not vaporised, therefore the amount of silver has grown proportionally (as it cannot disappear. It may be fused into an alloy and uneconomical to recover but that's not the topic). I'm a PM guy but the basic physics here is a bit, well...nonexistent.
"The amount of silver in the earths crust whether above/below ground (or landfills) is irreverent."
There is so much one could make of this if one wanted to... but I'm off for a soak in the mineral pools.
ha ha clearly meant to say "irrelevant". I would blame my smart phone but I actually can't in this case.
Not sure how the comment got junked. Do people not understand that silver cannot be destroyed?
I may have a 100 0z of gold on my acreage, but if I cannot put it into 1 nugget/ dust of pure gold, It doesnt exist!
I remember reading that there is a monster box of silver in every tomahawk missle, don't know if it's true tho.
urban myth
Gold is money.
A different read has to due with compensating the public in case of a universal confiscation. Since the respective Treasuries mint the coins, then essentially, they are the property of the government. If push came to shove, they could force people to turn in their government minted coins and compensate them at face value.
That is a reason to buy rounds.
Money is gold, and nothing else. (not credit and not silver, as uppity urchins like William Jennings Bryan argued at the time).
Money is gold, and nothing else.
TOTAL BULLSHIT!!! Silver has been used as real money since before the Roman Empire. Get your facts straight!
The issue was the CORRECT quote from JP Morgan himself, and it's CORRECT context, which the hedge tards and pm pimps around here seem to constantly fuck up.
Whether JP Morgan was correct, contextually correct, or wrong is a different issue.
The word for 'silver' and 'money' are the same in half the world's languages.
So was salt and sea shells and round flat rocks. I'm stocking up on these.
Money can be worthless.. you can't eat it. Paper, gold are anything else is only worth what the other guy is will to give you for it... There has to be faith in the trade.
What we are really talking about is the over faith in trading with dollars, witch I believe needs to be cut back, but not shredded (the faith). We need that 1-2% inflation rate to make the economy work properly. There was inflation even in Roman times and believe it or not, it is defined even in trust law (the 2-4% expectation of earnings from assets by the trustee).
Point is that the system is not working properly.
Debt saturation and demographics.
Through most of US history we enjoyed deflation from productivity gains.
"inflation" is an increase in the supply of money, which is necessary in a debt-based system because more money has to be created to pay interest.
You don't have or 'need' inflation in a sound money system: prices decline in spite of the naturally rising supply of money (through mining).
Yeah but throughout history only kings had gold. Nobles used silver, and the rest of us peasants used copper. I think it's probably prudent to shoot for at least a little of the top two.
Reading this was a real struggle, so for those who would rather just read the comments, I am happy to divulge the point of the convoluted mass of verbage above:
"Silver prices will go up. A Lot."
Yeah, I can't slog through these long winded articles that say "gold and silver prices are manipulated" and "once the financial world figures out a way to fuck everyone even more by allowing prices to rise they will do just that".
Right. Silver is 60% industrial. Gold is only 10% industrial. Thus, they have more incentive to suppress silver prices.