Informed readers understand that the mainstream media, owned by a handful of gigantic corporations , is constantly bombarding us with propaganda, mythology, and disinformation. Some of this brainwashing is easily noted because it is very recent and/or plainly absurd. However, most of us will have absorbed large quantities of this mythology unknowingly, simply because we have been bombarded with this brainwashing (literally) every day of our lives.
One important aspect of this brainwashing is the mythology surrounding the concepts of price and value. For most people, these words are synonymous, even though they refer to two, distinct concepts. Price is the simpler of the two concepts. It merely refers to what a particular vendor or service-provider charges for their good/service.
Value is an entirely distinct concept. Value is the metric we use to compute what something is actually worth. At this point, most readers will begin to glean the difference between these two concepts. Just because a merchant charges $50 as the price for a particular good does not mean that this good has a value of $50. As consumers, we understand that it is not uncommon for merchants to over-charge for their goods, meaning that the price exceeds the value.
Conversely (although much less common) we also encounter situations where the price of a particular good is less than its actual value. Perhaps the merchant is distressed, i.e. going out of business, or is simply having a “sale” on their merchandise. In such situations where value exceeds price, we classify such transactions as “a bargain” – we obtained more purchasing power than we expected from the fiat currency in our wallets.
Now that we have clearly distinguished the concepts of price and value we can address the brainwashing. How and why have the bankers (and their media mouthpieces) managed to get most people to equate price with value, most of the time? The “how” is the easier dimension to address. In perfectly functioning free-and-open markets (something which has never existed in the real world) price does equal value.
In perfect markets, no merchant can over-charge for their products because in “perfect markets” consumers have perfect information. If one merchant charges excessively for his/her products, consumers with perfect information simply move on to a shop which prices its products fairly (i.e. price = value). Similarly, in perfect markets where merchants also have perfect information, they would never under-price their products, so once again price = value. (Note that in our “perfect markets” we assume that merchants never seek to undercut each other by discounting their goods.)
Here we see the origins of the mythology. In theory, price could/should/does equal value. The bankers and their media sycophants simply pretend that we have perfect markets – even though such markets could never exist in the real world – and thus is born the myth that price = value.
Why do the bankers consider it so important to brainwash us with this mythology? Here we have multiple motives at work. At the top of the list is market manipulation. Informed readers know that the bankers manipulate most of our markets most of the time. Indeed, the Big Banks have already been caught and/or convicted of conspiring to serially manipulate many of our most-important markets – with gold and silver markets being two of the most-obvious examples.
However, in a world where the Sheep have been brainwashed to believe that price = value, the concept of price manipulation cannot even exist. If price supposedly equals value, then no matter how high or low the price, manipulation cannot exist. Where price is assumed to equal value, any price is deemed to be a correct/legitimate price. Thus we see one, prime motive for this branch of brainwashing: to cover up the serial price/market manipulations of the One Bank .
Arguably, there is an even bigger motive for indoctrinating us with the mythology that price = value. It is found in the worthless, fiat currencies we carry in our wallets. Why is it vitally important to the One Bank that the Sheep accept the mythology that price = value with respect to our paper fiat currencies?
Very simply, if the Sheep automatically assume that price = value then those Sheep will never ponder the question “what is the actual value of this fiat currency?” The Sheep never ask this question, because they assume they already know the answer: the value of the currency is the same as its price (i.e. exchange rate). It is only in a world where the Sheep understand that price and value are separate concepts where the bankers would have to worry about those Sheep even beginning to ponder the worthlessness of these fiat currencies.
Putting this all together, we now see why price/value brainwashing has been a top priority of the One Bank, for more than a century. It is only through reinforcing this delusion that the One Bank can continue to perpetrate its serial manipulation of our markets. If we properly understood the concept of value, we would automatically see through the manipulation of most markets, because we would notice the discrepancy between price and value.
If we properly understood the concept of value, we would long ago have rejected the fraudulent fiat currencies foisted upon us by our corrupt central banks because we would immediately comprehend that these fiat currencies have no value. In a world which clearly understood the distinction between price and value, the One Bank could not continue to exist .
The constant, massive crimes it commits in manipulating our markets would become transparent. The fraud that the central banks and Big Banks perpetrate in conning us into using their worthless paper currencies would become transparent. Of all the lies which have been drilled into our minds, the mythology that price = value may be the single, most-important myth to the banking crime syndicate.
Now that we have established that there is no inherent connection between price and value, and now that we have established how/why we have been programmed with this brainwashing, we can finally address the title to this piece. What is the real value of precious metals?
It is a very simple question, yet thanks to the One Bank, it is now almost impossible to answer that question. For more than a hundred years; we have absorbed the mythology that price = value. For more than a hundred years; our markets have been constantly manipulated – perverting the relative price levels of virtually all the goods and services in our economies to historic extremes.
A century ago; answering the question “what is the value of precious metals?” would have still been an elementary proposition, because the differential between price and value had not yet been skewed to absurd extremes. For example, little more than a century ago the gold/silver price ratio was still at a rational level – approximately 20:1.
We know that number was relatively legitimate because the gold/silver price ratio is the most-established, most well-known price relationship in the history of our species: 15:1. The legitimacy of this price ratio is beyond any possible argument for two reasons. To begin with, the gold/silver price ratio