Above Ground Silver More Rare Than Gold...
You read that right. I remember the first time I heard that I was in disbelief. I simply thought that silver was less money per ounce than gold because it was simply less rare. And although that is true, it’s only accurate when comparing it to naturally occurring silver in the Earth versus that of gold. When digging through the Earth for this precious metal, it is about 17 times more common than gold. BUT when we actually look at how much is pulled out of the ground, you’re looking at about 1 gram of silver for around every 27,000 pounds of Earth. Yeah, 1 gram. Another thing worth mentioning is that the precious metal platinum is 40 times more rare than gold, yet about $800 cheaper per ounce as I write this. So perhaps then maybe it isn’t as much about scarcity as it is about manipulation in the comex markets.
Another little factoid worth mentioning is that silver is far more useful than gold from an industrial perspective. In today’s world, gold is primarily used as a store of value with a very small percentage used in anything industrial. Yes, it’s a conductor of electricity but silver surpasses it. Silver is used far more rapidly today than just about every other metal out there, and we’re starting to run very low. With all of the green energy bills coming through and the government kickbacks people are getting for using renewable energy, nobody is taking into account how much silver those things require. Looking to have new solar panels installed on your home? Those require silver. Have you been eyeballing that new Tesla? There’s a lot of silver involved in making that vehicle and it’s batteries. There’s also military applications, tons of it to be found on tech hardware and mainboards, water purification modules, medical utensils, and photography. Silver is quite the amazing metal, it also doesn’t corrode or have bacteria able to stick to it.
However because the price of silver is sitting at about $27 an ounce (along with crazy premiums for purchase) miners in general don’t go after the stuff. It costs more money to mine silver than to sell it into the markets. Ergo the majority of mining companies end up retaining silver when they’re actually looking for something else more valuable in fiat currency. So silver is essentially mined as a by product of something else, usually gold or the like. The Comex also does it’s part to keep the price of silver down by manipulating futures contracts (JP Morgan Chase is the primary bank behind that) so that the industry can continue to attain silver cheaply, even though it is in very finite supply right now. Again, there is more gold than silver topside at the moment.
I believe whether the market manipulators want to or not, eventually the price of silver will be reflective of it’s actual rarity and usage in it’s many industries. The rare metals markets really don’t make sense at the moment. It is my belief that due to it’s price, silver is the best deal in locking in and storing your own wealth from the dollar cost ratio of ownership. You can either do this at home or have a custodian of your choice keep it in their highly secure vaults for a monthly fee. Myself being a crypto guy along with precious metals, I’m not big on the whole custodial side of things if it’s someone else holding my coins & bars. We let the federal reserve hold our gold and that had devastating consequences. We lost 97% of the value of our money.
So if you’re looking at the current metal markets today wondering what the heck is going on, well the people have had enough. If you venture over to Wall Street Silver on reddit there are over 70,000+ people over there right now buying up a whole lot of metal every single month. They even post pictures of their buys along with researching some due diligence for the group letting them know where the comex stands on silver delivery and where the shortages are popping up. They’re also running a massive campaign right now with actual billboards all over the world (yes THE WORLD, not just the US) telling people to invest in silver to protect themselves from inflation. They’ve pooled thousands and thousands of their own dollars to tell you about it.
And that’s really it, I can talk for hours about this subject but we don’t want to make things too long winded around here. I figure I only have about 2-3 minutes of anyone’s attention at any given time. I already wrote a book you can download and read at your leisure, linked right on this site, but rest assured we will always be discussing more and more things here about crypto and precious metals. These are by far my favorite investments right now.
See you back here on the next one!