
Newton, when managed the Royal Mint, fixed the relation between gold and silver as 1:15 but now it is 1:66. That is, gold became relatively more valuable while silver got demonetized and became an industrial metal. Silver was China's currency till 1935, and absorbed all the silver mined in Potosi and Mexico. Upon receipt of a trade coin, the Chinese merchant would judge the weight and purity of the coin. If the coin was deemed acceptable, the merchant would add his chop – his unique mark of satisfaction – to the piece. An iron punch bearing the chop was used to mark each approved coin. In this way, a merchant invested not only his funds, but his reputation.
Since paper money fluctuates, the newly rich Chinese will crave, once more, their traditional store of wealth - silver. Silver has a fantastic potential to regain its former monetary position. I'll start to follow what happens to silver. Maybe I should buy sterling silver Shabbath candlesticks and Pessach plates.
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