Silver: Understanding the Characteristics of Money
Inspired, InSpirit Publications
ERIN N. SIMON
November 11, 2020
Money has to have specific critical characteristic to be functional in society. There are 5 main functions (there are more, but let's focus on these). Let's view these across the US Dollar, Silver, and Gold to broaden our understanding of their value.
Durability - This means the money needs to be able to be used over and over again, over a long period of time. Gold and Silver don't decay and have been in use for over 6000 years. As precious metals, they have low oxidation and maintain their brilliance easily. While the US Dollar is also quite durable, it still has be to destroyed and replaced by new dollars.
Portability - This is the ability to carry the money around. Gold is especially more portable than silver. 1 ounce of gold is worth over $1900 currently, while 1 ounce of silver is only $25 dollars. This means I would have 76 ounces of silver to my one ounce of gold. To extrapolate on this idea, 76 ounces of gold would be equal to 144,400 ounces of silver, thus making gold extremely more portable than silver. Dollars are extremely portable. The notes are paper and compact and not as heavy to tote about. You can even store money digitally. Please keep in mind Dollars have no intrinsic value.
Divisibility - This is the ability to divide the money in smaller denominations. Gold is a poor choice when it comes to the ability to break down into smaller amounts. Again, one ounce is over $1900. It's difficult to liquidate if your purchaser doesn't have the amount in fiat that you are seeking to liquidate. Silver is a great choice and has better ability to be divisible. You can liquidate it for smaller amounts if necessary as again, it's affordable to most purchasers. Dollars are great for divisibility as the bills come in multiple denominations and is the medium of exchange for all goods and services.
Uniformity - This is the standardization of your money. This means the money is recognizable everywhere. Everyone recognizes Gold, Silver, and US Dollars, this includes Internationally. The US Dollar is the world reserve currency. Most of the world's debt needs to be settled in US Dollars. They are equal in this function across the board.
Scarcity - Money is only valuable if it's limited in supply. Let me say this louder for the people in the back. Money...is only valuable...if it's scarce in supply. The US Dollar is ABUNDANT in supply. They keep printing it! 22 percent of all dollars printed in the history of printing happened in 2020. The US Dollar lacks scarcity. The US Dollar fails to have the most important aspect to function as money, (Money needs to be a store of value, and a store of purchasing power). It lacks this considerably. The way the US Dollar was designed was to not have this very special function. Gold and Silver are especially scarce in supply. Silver will be the first element to be removed from the periodic table on or about 2025, due to extinction. With J.P Morgan Chase being the largest holder of silver in the world and its high industrial use, this will only set to exponentially increase the value of your silver inventory. Gold is also scarce due to China and Russia being the largest holders of gold.
Understanding how money functions will offer you better strategic moves in how you use or invest your money. You want to use this comparison chart to understand why you want to lower your exposure to the dollar. Converting your fiat currency into a hard asset is one of the best decisions to make at this time of uncertainty. Silver, being the most affordable hard asset to invest in, will offer you exponential growth on your investment due to its scarcity.
This is the best time ever to begin establishing a silver portfolio. like any portfolio, you want to diversify your silver. Start with purchasing at least one ounce of silver per month, more if you are able to. From constitutional silver, to bars, plates, bullions, silver rounds, and Numismatic MS 70/PR 70/PS 70 Coins (The Highest Asset Classes of Silver) you can begin to accrue and build your wealth now, one ounce at a time. Need assistance, I am just a comment away...
ERIN N. SIMON is a writer, blogger, and visionary in raising the conscious level regarding wealth within her Community. One of her passions is to raise the level of Wealth Awareness with as many people as possible. In 2013, She and her husband started Inspired, In-Spirit Transformation. They have recently started a Publishing Company called Inspired, In-Spirit Publishing which have multiple published books on their shelves, four of which are Erin's; Interruption: Shae's Search, Interruption: Interlude & The Series Finale Interruption: Alter Ego, & Undercover & Under The Covers: Starring Detective Aja Anderson. Her husband has a company known as GS Investments in which financial freedom is gained one investment at a time. She currently resides in Mexico City with her husband and four handsome sons...