Tuesday, March 6, 2012

Doing the numbers on Silver Aussie Style

Some stats for my Aussie readers. I was doing some research today for my fellow analyst at ABC Bullion, Brett le Brocque, and thought I would share some of my findings. Oh for those who don't speak English, Petrol in this case = Unleaded Regular Gasoline, ie Gas (even though it is a liquid, understand?).

Silver price AUD:

2012 - $32

2007 - $16.70

2002 - $8.80

Australian Petrol price per litre in AUD:

2012 - $1.38

2007 - $1.15

2002 - 80c

Australian full time weekly earnings in AUD:

Nov 11 - $1333

Nov 07 - $1112

Nov 02 - $888

Litres of Petrol / oz

2012 - 23 L

2007 - 14.5 L

2002 - 11 L

Silver Oz equiv. per week worked (based on avg weekly full time earnings)

2012 - 41.6 oz

2007 - 66.6 oz

2002 - 100 oz

Now would you rather save in polymer fiat notes or in Silver?



Let's start with the basics. I have some characteristics that no other matter on Earth has...

I cannot be:
  • Printed (ask a miner how long it takes to find me and dig me up)
  • Counterfeited (you can try, but a scale will catch it every time)
  • Mistaken (how many metals are bright yellow, other iron pyrite?) 
I cannot be destroyed by:
  • Fire (it takes heat at least 1945.4° F to melt me)
  • Water (I don't rust or tarnish)
  • Time (my coins remain recognizable after a thousand years)
I don't need:
  • Feeding (like cattle)
  • Fertilizer (like corn)
  • Maintenance (like printing presses)
I don't have:
  • Industrial Dependence (keeps my volatility lower) 
  • Counterparty Risk (remember MF Global?)
  • Shelf life (I never expire)
As a metal, I am uniquely:
  • Malleable (I spread without cracking)
  • Ductile (I stretch without breaking)
  • Beautiful (just ask a bride)
As money, I am:
  • Liquid (easily convertible to cash worldwide)
  • Portable (you can conveniently hold $50,000 in one hand)
  • Divisible (you can use me in tiny fractions)
  • Consistent (I am the same in any quantity, at any place)
  • Private (no one has to know you own me

For lovers of round numbers

Greece Govt Bond 1Year Yield hits 1000%

Chart from Bloomberg

Currently trading at: 1,006.661%

Ned Naylor-Leyland discusses PAGE, Silver and True Price Discovery

Ned Naylor-Leyland discusses silver and the non start of PAGE on the TF Metal Report. Listen here

Egon von Greyerz on the recent action in Gold and SIlver

Egon von Greyerz discusses the recent move in Gold and Silver and reminds us of the continuing up trend. He contends that the paper games can't last forever and that the physical market will trump the paperbugs. Listen to the interview with Eric King of King World News here

Karl Denninger on the freedom not to trade

kdenninger on Mar 4, 2012