Silver Is Money

By Jason Hommel / February 20, 2012 / silverstockreport.com / Article Link

I was very pleased today to read Eric Sprott write about how and why silver will return to use as a currency! I AGREE!http://silverdoctors.blogspot.com/2012/02/eric-sprott-silver-will-become-currency.htmlThis process will start slowly, but can proceed very rapidly, once it starts. Fundamentally, it should start out with people first using silver as a form of savings. Our customers do this when they place orders for silver from us, at www.jhmint.com. Next, people will use silver as a unit of account (as we do in our business as a bullion dealer). If we are not growing ounces, I'm losing money in business. After all, I can get capital gains in dollar form in the silver by letting it sit and do nothing, and watching the price increase. The bullion trade, actually taking a risk, and doing work, should result in increased ounces of silver. If I let myself be deceived by "increased dollars" in the pile of bullion as the price rises, I might actually be taking losses in silver ounces, and not know it, if I'm not careful. Thus, I must account in terms of ounces of silver, and use silver as a "unit of account".Finally, and this is the last step, people will use silver as a unit of exchange, or as a currency.The process of silver being used as money is accelerating now, as Eric Sprott notes that a few mining companies are using Sprott's silver ETF, PSLV (which I respect and have recommended for a few years now) as a form of savings. Notably, Endeavor Silver and First Majestic, two great silver mining companies that have the right management perspective on their own product! Eric notes the excellent investment fundamentals of silver vs. gold in the USA, most notably, that investors are pouring about equal amounts of money into silver as gold. Or actually, investors are buying slightly more dollars of silver than gold! Thus, investors are buying about 50 times as much silver ounces as gold! (In the USA). And yet, the world only mines about 11 times as much silver ounces as gold. This means that as the US dollar fails, and as US investors continue this trend of buying the precious metals in nearly equal dollar ratios, and begin to actually buy their "fair share" of the silver and gold markets, and then, finally, more than their fair share as the dollar continues to inflate, that silver prices will go up much faster than gold prices.Here is an excellent article I wrote a few years ago on this topic, of why silver is money, even though no nation is currently using it as a medium of exchange, or currency. Please read it as a great review of the fundamentals of why you need to buy, hold, and save, in terms of silver!Why Silver Is Money(Phoenix Silver Summit Workshop Speech)http://silverstockreport.com/2009/Phoenix-workshop.html=====I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.JH MINT & Coin Shop13241 Grass Valley AveGrass Valley, CA 95945(530) 273-8175www.jhmint.comMinimum telephone order $5000 for free shipping, USA shipping only.Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank holidays. (Also Closed from Dec. 25th to Jan 1st)Kerri handles internet phone orders:kerri.jhmint@yaoo.com(530) 273-8822NEW Location in Auburn, CA!JH MINT Silver & Gold1760 Highway 49 A140Auburn, CA 95603(530) 889-1086www.jhmint.comYou can also buy silver from my mom at www.momssilvershop.comMom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces. 3510 Auburn Blvd #12Sacramento, CA 95821I hereby endorse Ron Paul for President.http://www.ronpaul2012.com/

Sincerely,

Jason Hommel www.silverstockreport.com www.bibleprophesy.org

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