Is the Libetad tied in with the legislation that has been floating around in the Mexican legislature for the last six months or so? The legislative bill, as I understand it, would establish silver as the legitimate support for Mexican currency.
<<<Mexico would be the ideal country to underpin its currency, the peso, with silver.>>
They already have started only it is not the Peso, It is the Libetad. It will replace the Peso over time as people lose faith in it. The Libetad will have a set value based on the PoS and can not be devalued by any government anywhere.
"Silver is in much shorter supply and has lots of industrial uses. What is lacking is the expectation that it is a storehouse of value. Being the SOLE underpinning of a significant currency could be a big boost toward making it more valuable commodity"
Mexico would be the ideal country to underpin its currency, the peso, with silver. The country is crawling with silver. Give people jobs looking for, and recovering, silver for coinage.
Let's see now, the exchange rate would be about 100 dollars to the peso.
I just read the constitution and silver was not our national money before gold.
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters
of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but
gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder,
ex post facto Law, or Law impairing the Obligation of Contracts, or grant any
Title of Nobility.
Silver was on a par with gold in this document. But throughout history gold has played a bigger role.
However, in a later post I think you hit another nail on the head by talking (I'm paraphrasing here and reading into it a bit)about enlarging its role.
Reading articles about silver they talk about $20 silver. The ETF and increased demand could cause this. But what moves it higher? What would justify the $50 to $100 we read about in some of the articles? You said it as others have--as did a poster about a month ago in a throw away line. What if some nation with silver mines decides to underpin its currency with silver? Some nations hold silver but it isn't the sole underpinning of their currency.
Gold has fewer industrial uses, is much more plentiful and yet sells for $550. Silver is in much shorter supply and has lots of industrial uses. What is lacking is the expectation that it is a storehouse of value. Being the SOLE underpinning of a significant currency could be a big boost toward making it more valuable commodity.
Well we can dream can't we?
I am aware of that and aware as somethingbig said about silver certificates. And of course we still have silver coins.
However, if you look back you will find that gold has played a more important role over time.
I don't want to get into a consittutional discussion--we had too much of that last weekend. However, many parts of the constitution have been changed by law (try the voting part). And the US relationship with both gold and silver has changed over time--a couple of times.
However, irrespective of the past I think all of us see a better future for silver than for gold in the sense that the gold/silver ratio will continue to drop.
It isn't a load of crap as you suggest. It is history. Gold historically is a storehouse of value and silver is not. Purely and simply.
I suggest you go read Jim Rogers book (the most recent one I think) or any other treatise on the history of gold and silver. There was a great one mentioned on this board about 4-6 weeks ago.
When the US decoupled its currency from gold (and by extension silver as they had set the ratio) the gold/silver ratio rose to 80-1. Granted the lies by the SUA greatly contributed to this but not entirely. Why did this happen? Because gold was the surrogate for currency when currency is seen as losing value. Silver never was that. Every time in history there was a flight from currency to a PM it was gold.
So before you tell someone they are a load of crap learn your history and your econ. This is basic econ or money and banking 101.
There won't be a lack of supply in a mild recession because the govts of Chindia are underwriting the mining.
Now if you wish to say the future will be different from the past that is a different discussion. Try starting it without an ad hominem attack.