Posted on 05/26/2023 6:16:11 AM PDT by NewJerseyJoe
Time to once again consult the great hive mind that is my fellow FReepers...
I am a relatively new (about 6 months) silver stacker (and gold, when I can afford it). One thing I've been hearing for a long time is "Silver is undervalued."
I know silver is used for a zillion industrial uses -- solar, electronics, medical, etc. I know there is a huge deficit between "paper" silver and actual physical silver to back that paper. I know demand has been through the roof for many months -- not just in the U.S. but around the world -- and not just for individual consumers, but for corporations and governments also. Here's what I don't understand: how can silver be "undervalued"? -- if this commodity is in such great demand, AND there's not as much available as is needed for all its uses, then how can the price be kept artificially low? I truly can't figure this out.
When you answer, please refer to the Michael Scott image below. đ
Simple, the people who are saying silver is undervalued are those who are trying to convince you to buy their silver at a price that is higher than is justified. (It’s a con.)
Silver is just a commodity, and the replacement of film by digital took a big chunk out of industrial demand. The American west (not even considering the rest of the world) is floating on silver deposits that will never be mined out - the demand will never be enough to exceed supply.
It is something you buy cheap and sit on, until a wacky Democrat gets elected - which you then sell off to the panicked.
The argument goes like this:
Silver is rarely mined by itself. It is usually a by product of other mining. So, production is related to economic conditions.
The traditional ratio for silver to gold is 15%. Itâs currently in the 80:1 area. For the past 20 years or so, it was in the 60:1 area. So, there is one room there.
Silver is primarily an industrial metal. It is heavily used in high tech applications like computers, phones, and solar panels. As the world goes more high tech, it will consume more silver.
There are a whole bunch of conspiracy theories about how and why there will be shortages. Most of them are crap, so Iâm not going to go into that.
Finally, silver is a precious metal. Many of us recall using silver coins to buy stuff. Many silver investors will tell you that it will be a good form of exchange in a high inflation or SHtF scenario. I always thought if we are living in âbartertownâ and using 1957 dimesâŚwe will have bigger problems.
As a PM it should move as a hedge to inflation.
Those are the basic points people use for holding precious metals.
Unless you want to make something from it ( gun handles, knife handles, musical instruments) i wouldn’t bother. I have dozens of pounds and it hasn’t even kept up with inflation.
Markets are manipulated.
Does that mean they are “rigged”?
Most likely.
If a presidential election can be rigged, then markets are no different.
The Hunt brothers failed to corner the silver market decades ago.
Today it might be a different story.
Somehow, someway somebody appeared to corner the market on eggs.
I’ve seen the “reasons” for soaring egg prices but nowhere does it say fake news doesn’t apply to eggs.
Bought some eggs on Wednesday and prices are starting to come back to Earth.
I have some silver ... and some paper silver.
Because we can't foresee the future, I think it's prudent to hedge a little in a lot of ways.
It’s not that silver is undervalued, it’s that gold is OVERvalued. I think due to certain sovereign buyers like China and Russia.
Steve Quayle has been a precious metals dealer for nearly 30 years. He understands how the market works. The program runs 60 minutes. I run it at playback speed 1.5X.
It’s been posted that if we get to a point of bartering, using silver/gold that lead would be the most precious metal. Why not have all? Also said small bottles of liquor are good to have on hand for bartering.
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