By Mike Johnson
I’m not a certified or licensed financial advisor.
I’m much smarter than that.
I’m self-educated out here in the real world.
But don’t take this as financial advice, because I do not have a credential to lawfully give it.
Take it as an interesting topic that deserves doing some more self-research.
Internet chatter is high about a possible revaluation of the dollar price of gold.
This may be required to jigger the books to make the USA look more solvent than it actually is.
Today, the US government values its (claimed) gold reserves at just $42 an ounce on its books.
For every $4,000 they increase the price of gold, they gain a trillion dollars of new "money."
If they revalue gold to $144,000 an ounce, they can pay off their entire debt of $36 trillion dollars.
Desperate, but tempting.
As I write, gold outside the government books is valued at $2,930 per ounce.
In 1971, gold cost $35 per ounce.
This increase does not reflect an increase in the value of gold.
It reflects the massive drop in the purchase power of the US dollar.
In 1971, it only took 35 dollars to buy an ounce of gold.
In 2025, it takes 2,930 dollars.
That’s how much less your US dollar buys today.
It actually costs even more to get a physical ounce of gold in your hand because coin shops add a premium to the price.
This puts the REAL street price of gold at more than $3,000 per ounce.
In the real world, there is 10-15 times more silver in the ground than gold.
So silver should cost 1/10th to 1/15th the price of gold.
This means that today, a physical ounce of silver should cost $195 to $300.
But as I write this, silver costs $33 on paper and $40 on the street.
Hmmmm.
More interesting, is that about half of all silver mined, is used in tiny amounts in electronics, film and solar panels.
So it gets thrown away, too small to recycle.
But almost all gold ever mined is still in existence.
This means that above-ground, silver is far more rare than gold.
Something more rare, usually costs more than something less rare.
But in the case of silver, it does not.
Hmmmm.
If the gold price is suddenly revalued higher, it seems likely the silver price will be too.
What is already greatly underpriced, might instantly be readjusted to its true value.
Hmmmm.
If you have debt, it is fixed at a certain dollar amount, despite any increase in inflation.
If you save dollars to pay that debt, you are repaying that debt dollar-for-dollar.
But if you save silver to pay that debt, and silver adjusts to its true value, you could repay your debt at 1 cents to 13 cents on the dollar.
Hmmmm.
These are type of thoughts that never enter the minds of most credentialed people.
Conventional wisdom purposely operates within such a narrow bandwidth to keep people discouraged, dependent and destitute.
Instead, with just the smallest amount of self-research, you find much better information, to make much better decisions, that lead to much better results.
Silver is just one example that exposes conventional wisdom as walking backwards.
Yes, silver is a silver bullet that can defeat destitution.
But the REAL silver bullet, that defeats every earthly challenge, is self-education.
When it comes to you and your life, you're fully capable of becoming your own best expert on ANYTHING.
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More:
Advice From Zimbabwe's Hyperinflation
Silver Lining to Financial Hurricanes
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