As for silver, not only is production inexorably declining, but in addition to its long-standing usage as MONEY, silver is the second most utilized commodity on Earth, trailing only crude oil. Silver is indispensible to countless industrial processes due to unique properties such as strength, malleability, and ductility, and is rapidly emerging as a key component to the inelastic medical industry. Thus, unlike gold, silver is consumed.
Consequently, less than a billion ounces of above-ground silver remain on Earth, worth less than what the Federal Reserve prints every few hours. The U.S. Geologic Service (USGS) forecasts silver to be the first extinct element due to its gaping supply/demand gap, but do not account for monetary demand, which in my view will ultimately dwarf industrial demand by a factor of 1,000 or more. As for attempting to calculate silver’s “monetary value,” simply utilize the money supply metrics above and take your best guess.
At a bare minimum, I expect gold to reach $15,000-$20,000/ounce, and the gold/silver ratio to fall to between 5:1 and 15:1 (yielding a silver price projection of $1,000-$4,000/oz), in TODAY’S (non-hyper-inflated) dollars, pounds, Euros, Yen, and Yuan, of course.
MORE
No comments:
Post a Comment