/biz/ - Business & Finance

One of the consequences of the liberties afforded by fractional reserve banking is a suppression in the silver spot price [relative to fiat]. Modern silver markets are buyers markets, probably because over 50% of the yearly demand is industrial (whereas for gold it is sub 8%), so the majority shareholder’s preferences are reflected (those of industrial buyers).

On the civilisational scale, our desire for cheap stuff has overridden our ability to value our own labour.

Whereas 1 ounce of silver could have got you 4 cows in the Viking age, you’d need about 45 ounces of silver for just one cow today! Ouch!