WHO are going to be the silver buyers of the future?
1 billion people buying 10 ozs Ag.= 10 BILLION OUNCES
100 million people buying 100 ozs Ag = 10 BILLION OUNCES
10 million people buying 1000 ozs Ag = 10 BILLION OUNCES
1 million people buying 10,000 ozs Ag = 10 BILLION OUNCES
100,000 buyers of 100,000 ozs Ag = 10 BILLION OUNCES
You have to figure a lot of firms, funds, ultra high net worth types, pensions, etc will be buying even more than 100,000 ounces which is only $3.2M now LOL
I know I know, some wil question my assumptions and I will back them up. Will 1 billion people buy 10 ozers or silver? Possible that hundreds of millions of Chinese, Indians, and other Asians do so. I think over 100M people in North America will eventually pick up some silver, and its even more traditionally cherished in Latin American culture, although they don't have as many people with wealth. I'm pretty sure Euroland is going to have a gazillion people trying to get their hands on a little silver.
I think a lot of people in my 10 oz category will end up buying 100 or more ozs. Everybody wants to have at least a 100 oz bar in the collection, then you want to start stacking them. Think about it. 100 ounces costs about as much as a 10 year old Hyundai with 150k miles on it LOL.
Will 10 million people buy 1000 ozs? I think so. There are tens of millions of millionaires in the USSA alone! 1000 ozs only costs about as much as a Toyota Camry. Were not talking about big dollar numbers here.
You need to get at over 300,000 ounces of silver just to have 1 million dollars. I bet a lot of people have that as a "silver goal" to reach a "full position." If I had I had net wealth over $10 million I wouldn't think $1M in precious metals was nearly enough.
What happens when somebody big BESIDES Sprott starts offtaking large amounts of silver, for instance, Paulson or Soros enters the market and buys 100 million ozs? What's that going to do to price? LOL
If you thought silver wasn't cheap in the $20s and 50:1 ratio to gold I think you need to reassess your thinking.
15:1 - THIS IS THE HISTORICAL MONETARY RATIO FOR MILLINEA (except the recent central bank era). NOT COINCIDENTALLY, THE NATURAL GEOLOGIC RATIO IS ALSO ABOUT 15:1! If you think silver is much more abundant then answer this question: Why is silver mine output only 9 times more than gold mine output annually? LOL And why are retail investors as a group buying it at sometimes a 1:1 ratio or no more than 2:1 ratio yet price is over 50:1?
STRONG BUY PHYSICAL SILVER. If you can't touch it you don't own it.
Hope everyone's been smart enough to be buying silver this year at sale prices. And for those holding DUBIOUS paper vehicles like the basket of fake gold paper vehicles like many ETFs, certificates, pool accounts, etc. EVEN *ALLOCATED* GOLD IS NOT SAFE IN ANY FINANCIAL INSTITUTION AND SHOULD BE PROMPTY REMOVED!!! Safety deposit boxes are not a good idea either.
Just wait until people realize that the amount of silver that will be demanded is a factor of TENS greater than all available aboveground supply! FEW people truly understand the true silver story. But they are learning. People sense intrinsically that gold is far better than any paper "money" currently in circulation, but nobody knows just how FAR SUPERIOR silver's circumstances are even vs a great asset like gold, especially at an astonishly INCORRECT ratio like the current 52:1!
Thanks JP Morgan LOL!
STRONG BUY PHYSICAL SILVER. Dollars of downside. MULTIPLE TENS OF DOLLARS 1 year upside. $100-200 long term upside per oz
$5000 gold at 15:1 ratio = $333 silver
So YES silver is maybe STILL a tenbagger at current prices. I predict this WITHOUT hyperinflation. Just with standard STAGFLATION. With hyperinflation, silver will be priced like its gold, and other people will have little money, because they spent it all becauses prices were too high. PMs are going to not only maintain wealth, but add to it via mining share leverage and using its strong purchasing power to buy good assets for dimes on the dollar after the system falls apart.
Imagine if you had a bunch of gold you bought at $100-200 in the 70s and sold in 1980 for $850 and you bought 30 Year Treasuries yielding over 20% and held them for the next 32 years. That's the kind of thing that can happen to you if you own gold and especially silver. (Note: I am not saying that Treasuries will be the ideal asset to switch into when metals have their blowoff top!!! LOL! I haven't determined that yet. It may be equities if the ratio goes to 1:1 or 2:1 like it always does every 40 years or so! I doubt it will be bonds, BUT IT MIGHT BE if they back money with SILVER AND GOLD AGAIN!!!
Get over it people! Silver is the most undervalued commodity in the universe. It's been price supressed ever since LBJ took all the silver out of the coinage! He said THEN that industrial demand was TWICE what mine supply was BACK THEN. READ IT! There is a transcript! Guess what, silver demand has ALWAYS BEEN well above mine supply for the LAST FIFTY YEARS OR MORE! The once massive stockpiles of silver are GONE. They chewed thru those tens of billions of ounces - a couple hundred million ozs year after year after year. Now the amount of silver around is a JOKE compared to the amount of paper instruments and also a joke compared to gold (insane 52:1 ratio is FULL RETARD as I have explained over and over and over WHY this is the case on these boards for years, even while everyone was fretting about how bad the PMs were doing.
15:1 is the historical monetary ratio for millenia, its also the natural geologic ratio. This is not a coincidence. For most of human history, the amount of silver out there was FIFTEEN TIMES more than the amount of gold out there. NOW ITS FLIP FLOPPED!!!
There is only 9 times more silver than gold mined annually.
Investors seem to be showing they choose to buy silver almost on a 1:1 ratio!
If gold is $1590 that means at 15:1 silver should be $106! But we know gold is undervalued so silver is EVEN MORE UNDERVALUED! Since the market capitalization of all the gold in the world is only $10T (6 bil oz x $1700) and gold used to BACK ALL MONEY the true price of gold should be many thousands of dollars, even tens of thousands in using some metrics! So silver should be worth several hundred or even thousands and this might even happen WITHOUT HYPERINFLATION in which the price of gold and silver go to INFINITY!
The time to buy silver is RIGHT NOW!!! Not at 38.97 or 44.15 or $75 or $115! PHYSICAL ONLY! And if it drops $4 don't be a queer, buy more! Nobody should put so much money into one investment they can't afford to buy more if it drops in price! Physical silver isn't like using margin and you are ever forced to sell. You however CAN increase your silver position when margined #$%$ get whipsawed and pick up their discounted silver for cheap!