You see, it doesn’t really matter if we back fiat money with gold. The REAL ISSUE has always been ENERGY. The massive increase in debt and derivatives are a symptom of the Falling EROI (Energy Returned On Investment) of oil. Basically, while gold may solve certain issues in regards to “Confidence” in money, it doesn’t fix our energy problems.
I touched on this briefly in my newest video,Why Silver Is Better Than Gold. However, most of the video explains new charts that show fundamental factors on why silver is a better investment than gold as well as some key price levels for the short term.
These official sources estimate there are about 2.4 billion ounces of gold and 2.45 billion ounces of silver held in public and private vaults, including central bank holdings. Yes, there is likely a great deal of physical gold and silver held by investors at home or in secret vaults that are not included in those figures. But, these amounts still wouldn’t change the values of these metals all that much.
Unfortunately, a significant percentage of my precious metals followers don’t pay much attention to my energy articles and videos. But, I have also found that most of the individuals in the energy industry that I communicate with, don’t really care about precious metals. And worse yet… the Financial people could give a rats ass about energy or precious metals.
Independent researcher Steve St. Angelo (SRSrocco) started to invest in precious metals in 2002. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.
Steve considers studying the impacts of EROI one of the most important aspects of his energy research. For the past several years, he has written scholarly articles in some of the top precious metals and financial websites.
You can find many of Steve’s articles on noteworthy sites, such as GoldSeek-SilverSeek.com