What does it mean by Silver as the new currency ?

[Robert]

Hi there

I've seen on many videos/websites where people say Silver could be the new currency ? What do they mean by this?

Does it mean people will use Silver as currency (I'm sure the answer to this is no), and drop all notes, coins etc

thanks

[osoab]

I will chime in Robert. I got to caught up in the SOTU last night. :D

For pie in the sky dreamers, silver will once again regain monetary status that it had for centuries.
Does the Pound Sterling ring any bells?

The way I take it silver will either be used to back a currency, used directly in transactions as currency, or will revert to barter status in a TSHTF world.

I don't believe that we will see silver used to back a currency, especially not the USofA there is too much debt, too many digital zeros, and not enough silver. Silver would have to be drastically revalued against the dollar or even the pound to get the desired monetary transaction level needed.

These ideas/dreams are where we get extrapolated numbers for the real value of silver. The pie in the sky numbers that we read from time to time (They also don't hurt to get headlines and readers). I have seen an extrapolation that silver would need to get to $186,000/oz to equal the debt (I'm just talking the US here) and its position in relation to gold. Meaning that there is more above ground gold than silver and silver is consumed.

Silver could very well be used as currency again. When I care to day dream, I like to roll some of these numbers around.
I don't think it will happen unless we end up with an economic system reset. If a reset occurs, I don't think the price of silver will be the topic we will be most concerned with.

[JohnQPublic]

Check out this article:

What Do Silver and Gold Buy? (http://gold-silver.us/what_silver_gold_buys.html)
By John Q. Public

[madfranks]

Silver already has everything going for it to be a currency except "legal tender" status and mass recognizability. Most people believe money is paper that the government prints and declares as money. Silver is money that the government doesn't have to declare to have value, it already has value because it's a precious metal. You can already use your silver as a currency to buy anything you want, you just have to change it to paper dollars before you buy. If the dollar collapses and disappears, your silver will still have value and may begin to act as a direct currency for things you want to trade it for.

If you want to learn more about real money (precious metal coins) versus government money (paper backed by nothing), look here: What has government done to our money? (http://mises.org/money.asp) There's also an audio book version on that site if you dig around for it.

[Robert]

Thankyou guys for expaining it to me, that made a lot of sense to a newbie