Gold Shines But Silver Might Surprise You
Episode Stats
Words per Minute
139.30348
Summary
The silver to gold ratio has never been higher, can only go lower, and when it goes lower, then you can trade your silver back for gold. If you're so inclined to hold gold, that's a pretty good trade. 80 ounces for every ounce of gold.
Transcript
00:00:00.000
This chart suggests $600 to $800 US silver by the end of 2024 if you expand it out.
00:00:08.040
Like we just saw, in a proper fair and free market, properly adjusted for inflation at
00:00:15.620
the very least, we'd have a 15 to 1 ratio against gold, which would put silver into
00:00:19.800
the many hundreds of dollars an ounce, $250, $300 an ounce today.
00:00:23.720
But the fact is that silver is used and all the mine supply is used, and then some, and
00:00:38.200
It illustrates the silver to gold ratio, which for many hundreds of years hovered between
00:00:44.700
10 and 20, right up till sort of the turn of the century, World War I.
00:00:49.980
There's only been three times in this 338-year chart that the silver to gold ratio has been
00:01:05.860
The silver to gold ratio is still about 80 to 1, despite supply in the ground being 7 to
00:01:12.680
And again, all the silver mined is used, and then some, all the gold mined is not.
00:01:20.800
It is all still above ground and hanging around the necks of Indian women and various other
00:01:28.060
women from other nations, but also used as a reserve by a lot of the central banks in
00:01:35.520
It's now, you know, and many of you know this, a tier one asset.
00:01:38.460
And the banks treated as such, and the demand from central banks is growing, not shrinking.
00:01:51.060
The chart suggests that this deviation, this 2.6 standard deviation above its long-term historical
00:02:04.860
And we should see silver, the silver to gold ratio, which I believe in a fair market would
00:02:10.840
be about 10, but it should return back to its historical average, which is 29.
00:02:17.560
And you can see some of the other comments there.
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We have yet to see a decisive breakout above the two previous peaks.
00:02:22.380
Here's an important reminder that triple tops rarely hold.
00:02:25.600
So in my opinion, if you're sitting on a bunch of gold, and I've helped make this trade for
00:02:30.660
a number of people, gold for silver, if you have gold for silver, where you're sitting
00:02:38.060
on 80 ounces of silver for every ounce of gold, and I believe now is the time to make that
00:02:45.680
The silver to gold ratio has never been higher, can only go lower.
00:02:49.620
And when it goes lower, and it will to 50, 29, 10, 7, 3, perhaps par, I know people that
00:02:57.520
think silver should be trading higher than gold, then you can trade your silver back for
00:03:04.440
Not that it's going to be any less heavy, but if you're so inclined to hold gold, that's