19 June 2012

Stupidest PM statement of the year?

I think this is a strong contender for stupidest statement by a precious metals blogger/commentator so far this year:

Jeffrey Lewis: "One of the main advantages of buying silver versus more costly precious metals like gold and platinum is that silver’s relative cheapness allows you to buy more metal for the money."

How does this make any sense as an investment rationale - buy it because you get more "stuff" to look at? On that basis copper is even better than silver.

I challenge anyone to find something more nonesensical or WTF (conspriacy theories excluded) in the precious metal blogosphere.

15 comments:

√Ądelmetallforum said...

Haha.

You can´t find a PM statement which beats that one.

Hilarious, and I am actually laughing.

Thanks.

Beer Holiday said...

Thanks for the laughs, and all the great stuff you've posted recently.

Here's a contender from the US MSM .

You may have seen it before, and I'm not sure falls within the last year. I get a laugh every time I watch it.

Beer Holiday said...

"gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold" - Charlie Munger on CNBC


"You can't eat gold" - Idiots everywhere

Beer Holiday said...

Just noticed this challenge was for comments "in the precious metals blogosphere". Oops

Bron Suchecki said...

Beer Holiday,

Those are all strong contenders (blogosphere I'm using generically).

The eat gold meets the nonsense given you can't each cash either. Those sort of statement really reveal an emotional hate of gold.

Anonymous said...

That's why I'm all-in on zinc.

Anonymous said...

If you can only post 'PUTDOWNS',
your eyes are so full of it,they are turning brown!.

Gold,Silver,Copper& Bronze have been used for millenia as armour,weapons,currency,coin and a store of value.

'Last one standing' wins!.
The debtor sells all!.

Tech advances in recent years have placed demand on silver & copper far in excess of ancient times.

PM's will continue to be a hedge against government fiscal and monetary imprudence.

Anonymous said...

I think he means with "relative cheapness" is the gold silver ratio should be at 15 to 1 as compared to what it is now about 55 to 1. Funny, Perth mint sells silver collectable coins at about 15 to 1

Anonymous said...

(using approx figures)_Florin @ 11.3 grams about 10.5 grams of silver.
24 pennies make a florin @ 10.5 grams of copper is 252 grams.
Silver copper ratio, 24:1

Copper relative to silver should be $1.25 per ounce. ($30/24)
Copper relatvie to gold 360:1 should be $4.44 per ounce. $1600/360)

Considering a 20 cent peice is 1/3 ounce of copper nickel bullion (with Nickel at considerable higher value than copper), the value of a 20 cent coin should be around the $0.42 compared to silver price now or $1.48 compared to the gold price now.

But the money manipulators, banks, traders, want to make their buck with the relative metal ratio movements, rather than have an honest gold, silver, copper money system.

By the way the 20 cent piece is hovering around the $0.14 bullion value. Not a bad bet as even if the bullion price drops like a lead balloon you will have the face value to protect it. Something that cant be said with a $100 face value on a one ounce gold coin.

Justin said...

How about?

Does Gold Keep up in Hyperinflation?
by Jeff Clark - Casey Research -

Justin said...

And haven't you heard Bron? Mr Lewis's theory is the latest permutation of the quantity theory of money - the more you have of it, the more its worth.

Bron Suchecki said...

Anon,

My post is no putdown for precious metals, just saying Lewis' statement is not a good justification.

Justin,

What was your issue with the Jeff Clark article. I didn't see anything stand out, might have read it too quickly.

Justin said...

Does gold keep up in hyperinflation Bron?

Beer Holiday said...

@Jeff, yes I'm as confused about this issue as you are. /sarcasm

Perhaps these Zimbabweans know the answer.

Beer Holiday said...

Edit, that's @Justin

I told you I was confused.