Since Silver is so (criminally) undervalued currently, it would be a better idea to buy up as much of it as you can now while you still can, wait for the Ratio to correct itself, then trade your excess Silver for Gold as you need it. Rather than buying Gold now.
I also consider the silver scarcity issue. In the face of mine supply trending lower, industrial use of silver in ways that make recycling expensive are ramping up. For example, the COP28 summit in Dubai recently made state regimes agree to triple photovoltaic production. paid with fiat currency. Competition for the remaining physical silver is hotting up while physical supply is used in non retrievable ways eg, photovoltaic, electronic. A physical tightening that isn't happening with gold.
The term I use is "silver burned". My education was in classical photography, that is silver based imaging. Silver recycling was just starting and only kept going with X-Ray film reclamation. But during the period 1900-2000, most of the silver used was indeed burned. Due to the negative/positive process, fully 50% of the silver went down the drain and lost forever. The silver/gold ratio in nature is 9:1 and the ratio these days is 85:1, which clearly indicates market distortion. As far as gold tightening goes, I recall Andy Schectman (Miles Franklin PM dealer) stating a few months ago that he was seeing kilo bars of gold flying out of the vaults. This consumption was the from wealthy class who had an extra $65,000 rattling around in their pockets. If the truth was more widely known, there wouldn't be a speck of gold or silver to be had at any price, just as Rafi has told us. I try my best to educate everyone imperiled by the rapidly approaching end of the dollar, but my words fall on deaf ears. I have even gifted a few friends, each with a gold sovereign to pique their interest and try to get them to convert some of their paper wealth into real money. No luck so far!
And that’s when chaos ensues! If their plastic cards and internet electronic transfer stop working- people will loose their minds, logic, common sense & civility very very quickly
The simple answer Harvey is we are talking about the Gold to Silver Ratio not the Gold to Dollar Ratio. If the Dollar to Gold ratio had changes to 362.85 to 1oz in favor of the dollar from todays ratio of 2000 to 1oz than your ratio example would be relevant to the discussion in an indirect way. I would say Apples & Oranges but in this case its more like Pork & Asparagus
gold will continue to rise in fiat terms, at some point silver will rise faster and further, thus collapsing the ratio, gold is likely to reach $8000+ and silver 15:1 of that.
in a world where the majority of consumers use plastic cards and electronic transfer to pay for “ everything “ i would like to know “ How “ and what brings about , all that long term in bedded habitual convenience to given up for trading goods and services for silver coins. our entire consumerism system is based on tap and go, paypal, electronic transfer, CC, debit card bla bla bla... i cant envisage everyone downing their cards, phones and laptops and running to silver.... Someone Please Explain.
The people who are hooked on electronic payments amaze me. Network outages and hacking are a fact of life; even for someone oblivious to bank failures, loss of purchasing power and/or confidence in the currency. Yet, they rely on banker fugazi's !
***“I stack gold for after the End Game, and I stack silver for use during the End Game itself.”***
My knee jerk reaction to your idea is for me to buy an extra box of silver, so I can trade it for gold “during the end game” at 15 to 1.
I like your pic at the top, and a few of us over at Rons Basement are thinking about holding our first silver convention in 2024, in St Louis Missouri!!!
I have always enjoyed your content Rafi, happy to support your work, your videos always leave me with a smile.
I converted the bulk of my fiat assets into silver & gold from 2017 to 2020. Now when too much fiat piles up, I always buy silver. I hope/expect the ratio to reach 20:1, and a 15:1 ratio would be a dream come true. My 20:1 metric is easier for my elderly brain to calculate. Based of a 20:1 ratio, an ounce of silver should be $100, if gold is $2000 or the reverse, silver at $25 implies a gold price of $500. That said, I agree that silver is a compelling buy at these prices.
"That said, I agree that silver is a compelling buy at these prices."
Silver is the way to go. Gold for the banks, and silver for the people. I think the best value right now is in the mining stocks. They are the best value investment I see out there, and they've been absolutely crushed over the last few covid years.
But they are the best seats in the show, WHEN the train begins to move. And one day the conductor's going to suddenly yell, "All Aboard", and by the time the crowd turns their head to see what all the commotion is about, the train will have left the station.
You are a monetary systems genus! Also, I joined your group as a paid membership through Seeking Alpha but was not sure how to sign in. You likely sent instructions but I didn’t see it.
Thanks for the insight! I viewed an episode on youtube today where you said that "Bitcoin is a gold derivative". Not sure if I understand your logic but my understanding of bitcoin is that it's a decentralized money on blockchain and has nothing to do with the dollar even though there's a fiat price tag such as the dollar. Am I missing something here?
Silver is the gold standard of money
The dollar is the gold standard of fiat.
Since Silver is so (criminally) undervalued currently, it would be a better idea to buy up as much of it as you can now while you still can, wait for the Ratio to correct itself, then trade your excess Silver for Gold as you need it. Rather than buying Gold now.
I rarely comment on anything, but this is simply excellent work.
thanks
I also consider the silver scarcity issue. In the face of mine supply trending lower, industrial use of silver in ways that make recycling expensive are ramping up. For example, the COP28 summit in Dubai recently made state regimes agree to triple photovoltaic production. paid with fiat currency. Competition for the remaining physical silver is hotting up while physical supply is used in non retrievable ways eg, photovoltaic, electronic. A physical tightening that isn't happening with gold.
The term I use is "silver burned". My education was in classical photography, that is silver based imaging. Silver recycling was just starting and only kept going with X-Ray film reclamation. But during the period 1900-2000, most of the silver used was indeed burned. Due to the negative/positive process, fully 50% of the silver went down the drain and lost forever. The silver/gold ratio in nature is 9:1 and the ratio these days is 85:1, which clearly indicates market distortion. As far as gold tightening goes, I recall Andy Schectman (Miles Franklin PM dealer) stating a few months ago that he was seeing kilo bars of gold flying out of the vaults. This consumption was the from wealthy class who had an extra $65,000 rattling around in their pockets. If the truth was more widely known, there wouldn't be a speck of gold or silver to be had at any price, just as Rafi has told us. I try my best to educate everyone imperiled by the rapidly approaching end of the dollar, but my words fall on deaf ears. I have even gifted a few friends, each with a gold sovereign to pique their interest and try to get them to convert some of their paper wealth into real money. No luck so far!
And that’s when chaos ensues! If their plastic cards and internet electronic transfer stop working- people will loose their minds, logic, common sense & civility very very quickly
Why do you all assume that SILVER will rise to 15:1 or $138.40?
Why do you not assume GOLD will drop to 15:1 or $362.85?
It is still 15:1 ratio, but in a different direction!
The simple answer Harvey is we are talking about the Gold to Silver Ratio not the Gold to Dollar Ratio. If the Dollar to Gold ratio had changes to 362.85 to 1oz in favor of the dollar from todays ratio of 2000 to 1oz than your ratio example would be relevant to the discussion in an indirect way. I would say Apples & Oranges but in this case its more like Pork & Asparagus
gold will continue to rise in fiat terms, at some point silver will rise faster and further, thus collapsing the ratio, gold is likely to reach $8000+ and silver 15:1 of that.
Inevitable truth based on historic fact! Thanks for sharing.
As always, I learn a great deal from you Prof Rafi! Thank you
The cause of death will be “convenience”
in a world where the majority of consumers use plastic cards and electronic transfer to pay for “ everything “ i would like to know “ How “ and what brings about , all that long term in bedded habitual convenience to given up for trading goods and services for silver coins. our entire consumerism system is based on tap and go, paypal, electronic transfer, CC, debit card bla bla bla... i cant envisage everyone downing their cards, phones and laptops and running to silver.... Someone Please Explain.
when the plastic cards no longer work
The people who are hooked on electronic payments amaze me. Network outages and hacking are a fact of life; even for someone oblivious to bank failures, loss of purchasing power and/or confidence in the currency. Yet, they rely on banker fugazi's !
With gold at $20.67, and silver at $1.2929, that's a 16:1 ratio. And that's 1933.
After gold was raised to $35 in 1934 without changing silver because it remained in circulation, the GSR went to 27:1.
***“I stack gold for after the End Game, and I stack silver for use during the End Game itself.”***
My knee jerk reaction to your idea is for me to buy an extra box of silver, so I can trade it for gold “during the end game” at 15 to 1.
I like your pic at the top, and a few of us over at Rons Basement are thinking about holding our first silver convention in 2024, in St Louis Missouri!!!
I have always enjoyed your content Rafi, happy to support your work, your videos always leave me with a smile.
I converted the bulk of my fiat assets into silver & gold from 2017 to 2020. Now when too much fiat piles up, I always buy silver. I hope/expect the ratio to reach 20:1, and a 15:1 ratio would be a dream come true. My 20:1 metric is easier for my elderly brain to calculate. Based of a 20:1 ratio, an ounce of silver should be $100, if gold is $2000 or the reverse, silver at $25 implies a gold price of $500. That said, I agree that silver is a compelling buy at these prices.
"That said, I agree that silver is a compelling buy at these prices."
Silver is the way to go. Gold for the banks, and silver for the people. I think the best value right now is in the mining stocks. They are the best value investment I see out there, and they've been absolutely crushed over the last few covid years.
But they are the best seats in the show, WHEN the train begins to move. And one day the conductor's going to suddenly yell, "All Aboard", and by the time the crowd turns their head to see what all the commotion is about, the train will have left the station.
I have faith in math!!!
Hi Rafi,
You are a monetary systems genus! Also, I joined your group as a paid membership through Seeking Alpha but was not sure how to sign in. You likely sent instructions but I didn’t see it.
Thanks, Gary
You’re a dood Rafi and I really appreciate you. Thanks for the education you’re giving me 👍
Thanks for the insight! I viewed an episode on youtube today where you said that "Bitcoin is a gold derivative". Not sure if I understand your logic but my understanding of bitcoin is that it's a decentralized money on blockchain and has nothing to do with the dollar even though there's a fiat price tag such as the dollar. Am I missing something here?