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iShares Silver Trust Message Board

  • idealcarpentry idealcarpentry Feb 14, 2013 12:23 PM Flag

    Food for thought.

    All Mined silver in the world TOTAL is 1,750 Million oz. Gold is 165,000 oz... Of coarse depending on what site you visit the numbers might change a bit but still very close. So What I am showing you is the Ratio of each as it has been mined out of the ground is Roughly 10 to 1... This is also Going lower as the years pass . All one has to do is look at the year charts of mining and you will see Ratio of 9 to 1 and 8 to 1.... Now here is what everyone should be looking at.. Two points. Look at the ratios of Gold to silver as for Industrial Demand and Monetary demand. Most of silver is being used for Industrial were as Gold is mostly going to Monetary... Now the second one is more interesting because if you look at the ratio of which these metals are being bought up Seems that Silver eagles are selling at a ratio of 50 to 1 to gold.. Not just the price ratio but the actual amount of coins being sold... Meaning for every one gold coin 50 silver coins are being sold....

    Seems to me more investors are wanting silver. And with a ratio of mining of only 10 to 1 and Industrial usage being Much greater in silver then in gold .. Well doesn't take a rocket scientist to understand something is going to change in the future. Available silver is Disappearing ... Much silver that is being used today wont be recycled and most of it will be stored for decades like the usage of solar panels and windows . Even Jewelry stores the metal for decades... You dont hear people buying jewelry right away and then going in and selling it for scrap right away... It gets used / Passed on to kids and so forth. Only when people get DESPERATE does Jewelry get sold for scrap...

    But now our Industrial usage is going Bonkers for the metal... With over 10,000 Usages of silver the demand is growing... AT THE SAME TIME Monetary purchase of the metal is. We are seeing 33 mil Oz of silver eagles alone .. Not counting the bars and the all the other coinage....

    Not only are mines ore grades depleting but the over all usage of the metal is growing and most wont ever be recycled or if it does not for centuries to come.. Things like silver in our clothes to prevent STANK.... The cost to recycle such a small amount will never be cost effective. Certainly not at the prices today...

    So Say what you want but soon We will see an EXPLOSION In Price because Other countries Such as China and India Want what AMERICA has been Enjoying for oh so long... And with a population 5 times that of America ... Well Again you dont have to be a Rocket Scientist to understand the demand amount thats coming down the pipe line....

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    • Yes, I totally agree with your fundamental analysis. Great post!

      In fact the current $30 or so price of silver is inconsistent, with it's rarity and value. Industrially one could argue it is more valuable than gold.
      I am like a hawk flying above looking for the juiciest prey (best price to buy) then loading up the truck and taking an investing vacation, waiting for it to approach a 20:1 ratio to gold before looking at it again. (which would bring it to $80/oz given current gold levels, but as gold raises as well, this could easily be $160/oz)
      It is all a matter of time, doesn't matter what the world events are except if there is a sudden replacement for silver in both investment and industrial applications - don't see that happening barring a huge silver asteroid hitting earth.

    • Im Sorry. Metric TONS Not OZ.

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