$50 Bill / Silver

Silver broke $27 an oz today http://www.finviz.com/futures_charts.ashx?t=SI&p=d1

Silver has been around $17 an oz for pretty much all of 2010 before it broke out in late August. I was hammering my fist down and telling everyone to buy since it is cheap for under $20 an ounce.

A $50 bill in you left hand = 3 silver ounce coins in your right hand. Today, you can't even buy 2 coins for $50. By next spring, it will be even $50 for an ounce of silver.

This is a loss in purchasing power of the USD, yet the public would rather have the $50 bill as silver seems risky. Plus, since they still have that $50 bill, they do not perceive that they have lost purchasing power. Once the public wakes up, we will see shortages of physical bullion and parabolic prices in USD for silver and gold.

The fact is, when silver/gold goes up, it is really showing how much purchasing power the USD is losing.