Silver Positioned to Outperform Gold in 2022. Reckoning for the Manipulators
The purpose of this article is to keep the enthusiasm surrounding silver building. People like to discuss value but many believe that dollars are not the appropriate measures of silver's worth. This gets very philosophical and complicated so I'm going to shift to some methodologies and you all can draw your own conclusions. Crunch your own numbers to arrive at the most legitimate Gold to Silver ratio but first a quick backstory for beginners.
Legitimacy of Gold / Silver as Legitimate and Stable Currency.
Gold & Silver have been used as stable currencies for a minimum of 5,000 years. Throughout the past 5,000 years there has been some altering factors going into valuations. In the purest since the degree of scarcity is the inverse of the degree of "how precious" the metal is.
There are other factors too. For instance, the quality of ore coming from the earth.
Example, in the 1930's some miners with picks and shovels in Idaho could mine over 40 ounces of silver per ton and today a good number is about 3.8 ounces per ton. When you talk about "recovery" this is everything.
Think of farming. If you have to farm more acres to yield the same amount (bales of hay,) then the cost per "hay bale unit" goes up because you are increasing more effort to obtain the net desired amount ( farming more land means there is more cost of land, farming equipment, labor, energy, water) This is the same with grapes, oil, gold, clay bricks, silver, copper. Everything in our economy.
Scarcity drives value. Amount of Gold and Silver available Above the Ground.
The most basic/logical Gold to Silver ratio is based on supply in the world of each respective metal and with current data that puts 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 Silver is in the World compared to Gold? 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 is yields a 9-1 Gold to Silver ratio. SOURCE - https://www.usmoneyreserve.com/blog/how-much-silver-is-in-the-world/ Historical Wages.
An ounce of Gold was once considered a year of work.
An ounce of Silver was considered a month of work. This simple ratio thus was a 12-1 Gold to Silver ratio.
Very basic, 12 months in a calendar year. Averaging the 3 above. 4-1, 9-1, 12-1 = Average of 8.33 to 1 Gold to Silver ratio. Other comparisons to consider - Mining supply as % of Global GDP.
Some estimate silver 1% of Global GDP. At 1 billion ounces produced each year, that's $950/oz CALL TO ACTION
Join the movement on reddit. Wall Street Silver will organize close to a million people in next 9 months. Each member will stack as much physical silver as possible to do 3 things: 1.) Improve the life for the investors. The core belief is that fiat currency is a failed experiment because TheFed has printed trillions of dollars and the value of US dollar has gone down about 98% since exiting the Gold Standard in the 1971. 2.) Hold the Bankers feet to the fire. Throughout history Silver has been manipulated. This author believes it has been manipulated downward because if silver were to raise in value it would destroy the confidence in the dollar and The Fed and Central Banks want to control money. He who controls money _______________ fill in the blank 3.) The average WSS reddit ape holds about 1,000 ounces of physical silver. If you multiply 250,000 Apes x 1000 ounces of silver you can see how this will create more scarcity and inflict pain on the large banks who have "shorted" silver. The movement is approaching a year anniversary but there is more good news that follows on top of this grassroots retail squeeze.
When silver breaks through the 200 day moving average and institutional money follows it is predicted that buying physical silver may be next to impossible.
In the next article we will discuss what I mean by institutional money backing silver by pulling quotes from Rick Rule of Rule Investment Media.
in recent history when there were similar market forces (such as super inflation) here is what silver did.
$100 dollar investment in silver yielded $3,105.00
r/wallstreetsilver Apes have stormed our press desk. Here are a couple of profound sound bites:
r/wallstreetsilver , handle u/Pleasant_Judgment_96 writes:
"Silver has no price brother, silver is the price! When the fiat system collapses, we will know the price. You will be able to take care of yourself and family, whats the price of that?"
r/wallstreetsilver , handle u/etherist_activist999 weighs in with a poignant metaphor regarding the economic system and TheFed:
"Yes, let 2022 be the year the clown show has its' farewell and final episode. The series has sucked, the plot is too predictable, the actors are weak at best and the reruns and make-overs of old show ideas rehashed is plain stupid.
תגובות