Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21
Gold Price Big Picture Trend Forecast 2021 - 13th Jan 21
Are Covid Lockdowns Bullish or Bearish for Stocks? FTSE 100 in Focus - 13th Jan 21
CONgress "Insurrection" Is Just the Latest False Flag Event from the Globalists - 13th Jan 21
Reflation Trade Heating Up - 13th Jan 21
The Most Important Oil Find Of The Next Decade Could Be Here - 13th Jan 21
Work From Home £10,000 Office Tour – Workspace + Desk Setup 2021 Top Tips - 12th Jan 21
Collect a Bitcoin Dividend Without Owning the King of Cryptos - 12th Jan 21
The BAN Hotlist trade setups show incredible success at the start of 2021, learn how you can too! - 12th Jan 21
Stocks, Bitcoin, Gold – How Much Are They Worth? - 12th Jan 21
SPX Short-term Top Imminent - 12th Jan 21
Is This The Most Exciting Oil Play Of 2021? - 12th Jan 21
Why 2021 Will Be the Year Self-Driving Cars Go Mainstream - 11th Jan 21
Gold Began 2021 With a Bang, Only to Plunge - 11th Jan 21
How to Test Your GPU Temperatures - Running Too Hot - GTX 1650 - Overclockers UK - 11th Jan 21
Life Lesson - The Early Bird Catches the Worm - 11th Jan 21
Precious Metals rally early in 2021 - 11th Jan 21
The Most Exciting Oil Stock For 2021 - 11th Jan 21
Financial Market Forecasts 2021: Navigation in Uncharted Waters - 10th Jan 21
An Urgent Message to All Conservatives, Right-Wingers and Patriots - 10th Jan 21
Despite Signs to the Contrary, Gold Price at or Near Top - 10th Jan 21 -
Ultimate Guide On The 6 Basic Types Of Index Funds - 10th Jan 21
Getting Vaccinated at TESCO - Covid-19 Vaccinations at UK Supermarket Pharmacies and Chemists - 10th Jan 21
Cheers for the 2021 Stock Market and These "Great Expectations" - 9th Jan 21
How to Plan Your Child With Better Education - 9th Jan 21
How To Find The Best Casino - 9th Jan 21
Gold Is Still a Bargain Buy - 8th Jan 20
Gold Price Set to Soar as Hyperinflation Looms - 8th Jan 21
Have Big Dreams? Here's How to Pay for Them - 8th Jan 21
Will the Fed Support Gold Prices in 2021? - 8th Jan 21
Stocks trading strategies for beginners - 8th Jan 21
Who is Buying and Selling Stocks in 2021 - 8th Jan 21
Clap for NHS Heroes 2021 as Incompetent Government Loses Control of Virus Again! - 8th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Forecast, Silver Will Be Worth More Than Gold

Commodities / Gold and Silver 2011 Dec 31, 2010 - 03:22 AM GMT

By: Mac_Slavo

Commodities

Best Financial Markets Analysis ArticleIt’s shiny, it’s fairly rare, and it has been the world’s de facto reserve currency anytime the S has hit the fan historically. Though it has been prized by civilizations since before recorded history, it’s no secret that there is really no meaningful use for the precious metal gold in comparison to the widespread use of many other metals. Once it is mined it is essentially fabricated into gold bars, coins, jewelry or, at times, sprinkled onto exquisitely expensive desserts in five star Manhattan restaurants.


Gold, it seems, is another faith based unit of exchange. There is, of course, much more faith in gold’s ability to retain value than, say, a fiat paper currency printed out of thin air in the trillions, but in the end, there is no real purpose for it other than to store value based on the belief of others who either have it or want to acquire it.

Silver, on the other hand, is a completely different animal. As explained in the latest mini-documentary from Future Money Trends, silver has a long history of use in practical application. From health and medical related benefits to current uses in industrial application, silver is by far a more useful precious metal than its rarer counterpart.

Some interesting and critical things to understand about silver, and why it may very well become more valuable than gold in the near future are discussed in the video and summarized below:

•The majority of all silver mined is used for consumption, as opposed to use as an investment vehicle
•Since 1980, the above ground available gold stores are up 600%, while above ground available silver stores are down over 90%
•The historical silver-to-gold ratio is 15-to-1. The current silver-to-gold ratio is 50:1 meaning that it takes 50 ounces of silver to purchase one ounce of gold.
•Silver consumption continues to increase as the global population rises and more industrial applications are identified including, but not limited to, uses in medical applications, catalytic converters, solar cells, toll transponders, batteries, cell phones, computer chips, high tech weapons, and RFID chips.
•The silver production deficit will continue to rise. Total global production of silver in 2009 was 710 million ounces, while total demand was 889 million ounces, leaving a deficit of 179 million ounces.
•Since World War II, the US government has dumped over 5 billion ounces of silver into the open market. As of 2010, the US government reserve stores of silver are equal to zero.

For those who follow the silver markets, especially the specific production and consumption levels, it is becoming clear that, at current prices, there is simply not enough silver out there to meet the rising demands (both industrial and investment) from the global population. While we will stop short of predicting “peak silver,” the trend for this precious metals is clearly in the upward direction.

Based on just the supply/demand equations, the price of silver should continue to rise and approach its historical silver-to-gold ratio. Add to that the continued monetization of US debt and printing of US dollars to maintain the perception of an economic recovery, and the instability of global governments, and you can get a pretty good idea of what the long-term trend is going to be.

The 1980 high for silver was around $50 an ounce. We’re currently at about $30. In our view, silver is headed to at least $50 an ounce. Once reached, we believe, for a number of reasons, most of which are discussed in the above video, that silver is headed significantly higher.

As the “poor man’s gold” silver can be purchased in smaller denominations and it is likely to be much easier to transact with in the event of a catastrophic collapse of the US dollar or other currencies.

If you don’t have any silver yet, consider picking up some one ounce Silver Eagles, or “junk” silver denominations like pre-1970 half dollars and pre-1965 quarters.

Hat tip Daniel Visionvictory

By Mac Slavo
http://www.shtfplan.com/

Mac Slavo is a small business owner and independent investor focusing on global strategies to protect, preserve and increase wealth during times of economic distress and uncertainty. To read our commentary, news reports and strategies, please visit www.SHTFplan.com

© 2010 Copyright Mac Slavo - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Seth Barani
03 Jan 11, 03:45
On practical use of Silver

While I see that commodity prices may remain strong from weakening dollar, one point about silver seems to be missing in many silver-related articles, which is, its use in the industry. Silver was used in photographic films. In the past decade that use has significantly fallen owing to the arrival of digital cameras. Considering that, silver's present demand appears increasingly similar to gold as a commodity hedge rather than industry requirement.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules