“I don’t think we are in Kansas anymore Toto.”1
Is Silver Really Money?
Does It Matter?
I wish I had a troy ounce of silver for every time I have encountered those questions on the net! Newsflash, the prestigious ISO (International Organization for Standardization) has set the standards for international currencies. Silver and gold are listed by the ISO as currencies. A fascinating quick resource for information regarding currency ISO 4217 is Wikipedia of course. 사설토토
Silver’s currency code is a combination of X and its chemical symbol AG; hence its currency code is XAG. Following the same logic, gold’s currency code is XAU. Each currency is assigned a 3 digit numeric code. Silver is currency number 961. Its standard is set at one ounce of silver. Therefore, Silver is an internationally recognized currency and not just a figment in the fervid imaginations of suburban gold bugs. In fact, I have even traded the XAG/USD currency pair at European brokerage houses and the XAU/USD at Forex.com. Go to Forex.com and check it out. They are the only U.S. firm offering this incredible investment vehicle. It requires only about $200 per contract! But is silver money? Answer, NO. Rule of thumb, if you can’t buy a candy bar with it, it is not money.
I can’t just drop into my local Starbucks and buy a large cinnamon dulce latte (expensive brew) with 35 silver cents. My barista would look at me like I had been smoking some of Ben Bernanke’s newly printed federal reserve notes in my Hope Bong (unfortunately, both are super abundant now). Yes, a cup of Joe at Starbucks would only cost 35 silver cents ($4.35 for a latte divided by the price of one once of silver on April 9th, 2009 which was $12.35). In this crazy world of “regulated”2 fiat currencies (“legally” counterfeit monies), currently headed by red queen Ben Bernanke (off with all your heads dear readers), all currencies are volatile including silver. But silver has lost very little purchasing power relative to the toilet paper currencies (the founding fathers called it “rag money”) like the U.S. Dollar and the British Pound. Since 1913 when the U.S. Congress was manipulated into turning the Dollar over to the control of a private banking cartel, it has lost more than 95 percent of its value. We gave them a Dollar whose purchasing power had stayed fairly stable