How to win the silver argument against doubters, haters, spouses, and friends
Silver doesn't need to be hyped and here is why?
Global mine supply is in a downtrend.
Global industrial demand is in an uptrend.
Inflation is raging globally.
Silver is the only metal that's trading at a 50% discount to it's all time high.
Silver has historically been money since the dawn of civilization.
Silver should not be valued in US dollars
It is a fact that governments, corporations and individuals together have created insurmountable debt. The US reached $30 Trillion dollar debt.
$30 Trillion is roughly the same value as the economies of China, Japan, Germany and UK combined.
The $30 Trillion dollar debt does not even capture the whopping $164.25 Trillion of US Unfunded liabilities (unfunded Social Security and unfunded Medicare liabilities)
The US dollar has lost 98% of its' value in a relative short period of time. Or, stated differently, the purchasing power of the dollar has deteriorated drastically.
If you agree that we are experiencing insurmountable debt and that the powers in charge can not contain currency debasement, than we can not evaluate silver in dollar terms because the dollar is becoming worthless.
Here is an example of how incorrect thinking has led to false valuations. By using the "status quo" metrics from any source you get $1,832.00 / oz gold and $23.26 / oz silver.
1,832 divided by 23.26 = 78.76.
Really, a gold to silver ration of 79 (rounded to nearest whole number)
-Supply in the World, gold to silver ratio, 4.25 to 1
The most basic/logical Gold to Silver ratio is based on supply in the world of each respective metal and with current data places the Gold to Silver ratio at 4.25 to 1.
Gold supply - Total Above Ground supply of Gold, 201 metric tonnes https://www.mining.com/web/chart-how-much-gold-is-in-the-world/
Silver Supply - Total Above Ground Supply of Silver , 850.5 metric tonnes https://www.gainesvillecoins.com/blog/how-much-silver-in-the-world
- How much mined over time? gold to silver ratio at 9-1
198,000 metric tonnes of gold have been mined over time according to the World Gold Council. Estimates state that during this same time about 1.74 million metric tonnes of silver have been mined.
Reducing to simplest terms, the ratio between these two figures yields a 9-1 gold to silver ratio. SOURCE - https://www.usmoneyreserve.com/blog/how-much-silver-is-in-the-world/
-Current mining activity, 9-1 gold to silver ratio
For every ounce of gold mined there are nine ounces of silver mined.
-Comex vault levels , 10-1 gold to silver ratio
Current vault inventory totals indicate there are 353,197,702 ounces of silver and that there are 33,725,849 ounces of gold. Dividing the two yields a ratio of 10.472611417
graphic credit - twitter @mikesay98 & wall street silver user /silvertomars
What are these 4 averages? ... an 8-1 gold to silver ratio
Supply in world 4.25 to 1
Mined over time 9 to 1
Current mining activity 9-1
Comex vault levels 10-1
In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1 which many believe was rigged in favor of gold because the bankers held the gold while everyday farmers, workers, citizens traded in silver.
So who is cheating with current silver valuations ? - Institutional banks, yes
- Farmers, no - Governments, yes - Politicians, yes - Truck drivers, no
- Central Bankers like ECB and TheFed, yes Cheaters have to practice cheating because for the cheater their sneakiness must be hard to detect.
Watch the video below carefully. The Chinese skater (red shoulders) reaches down, over the other Canadian, grabs one of the border markers, then tosses it into the skater in front, causing that skater to fall. Legendary Jim Rome's most famous line is, "If you're not cheating you're not trying," but he intended this to be a lesson against cheating not in support of cheating.
The reddit user below has the correct grasp of the concept.