Silver...Historically

Discussion in 'Silver' started by adze67, Feb 21, 2021.

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Is silver undervalued?

  1. Yes

    30 vote(s)
    73.2%
  2. About right

    7 vote(s)
    17.1%
  3. No

    3 vote(s)
    7.3%
  4. It's a barbarous relic, bitcoin is the future

    1 vote(s)
    2.4%
  1. adze67

    adze67 Well-Known Member Silver Stacker

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    Combined geological, aggregate mining data, and verifiable historical record show that about 190,000 metric tonnes of gold and some 1.6 million tonnes of silver have been mined physically throughout history.

    Historic Mining Chart.PNG

    Now, that's ~8.4:1 average, total...in 2016 it was 8.5:1, and apart from a couple of peaks in 1835, 1890 and 1920 (all much lower than the current ~65:1 ratio "price") it's been around the 8:1 ratio for nearly 200 years o_O it's real value? :cool:
    https://sdbullion.com/blog/how-much-silver-gold-is-there
     
  2. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    And to think that this rare and strategic metal is still cheaper now than what it was in 1979!

    If anyone else can think of another as useful commodity that is cheaper now than it was back then I sure would like to know about it.

    The dark side has done a wonderful job convincing the masses that silver is an old-world relic and not money with their printing presses
    and shameless paper spot price manipulation since then.

    But that is about to change in an unimaginable big way soon.

    Hope everyone is loaded up and ready for the show to begin soon, and if not then you only have yourself to blame, as silver has been on sale dirt cheap for so long.

    Silver has been dirt cheap for so long that the masses have been conditioned and programmed to believe that silver is plentiful and common,
    but that is only true of the paper type as everyone will find out soon enough.;)
     
    Last edited: Feb 21, 2021
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  3. CAPITALISTPIG

    CAPITALISTPIG Member

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    Interesting chart. Good demonstration that SUPPLY is not the only factor that determines price. Silver as MONEY is silver that is SAVED and not consumed in industrial use (value added products). CAPIITALISM per definition is the act of SAVING or STORING. Consider the words capacity capacitance capacitor. All are about storing (energy, money, etc.). So to be a functional store of value, we need a durable SURPLUS that can be saved. Perhaps 80% of gold mined annually is surplus beyond industrial demand. This is sold as capacitance (coins, jewelry, bars). Industrial silver usage is somewhat higher leaving less available for jewelry, coins, bars, silverware. It would be interesting to see a chart of the ratio of gold/silver surplus. For example (using 8:1) if half of 8 tons of silver is available for CAPITAL and 80% of 1 ton of gold is available, then the ratio would be 4 tons to 0.8 tons or 5 TO 1 !! Another interesting chart is 1TO Ag / the minimum wage. These two followed each other fairly well last century.
    Now silver is higher and labor is cheap? Is this an effect of technology? Or are we just getting paid less?
     
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  4. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    It's the American dollar that has been devalued. The price of silver has risen to partially offset the devaluation of the dollar. With wages relatively stagnant, or rising much more slowly, an effect of globalisation and outsourcing, the purchasing power of American wages has fallen even against silver, which itself has lagged inflation as compared to real estate and stocks.
     
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  5. CAPITALISTPIG

    CAPITALISTPIG Member

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    Anything measured against the devalued dollar has gained. Measuring with the dollar is problematic, as it has variable value. So the ratios may have more meaning. Silver and Labor also have some variable value. But we can measure the ratio between the two and the Ag / Labor ratio has risen from stable parity to 3:1.
     
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  6. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    In real terms, just for starters:
    Copper
    Zinc
    Lead
    Tin
    Nickel
    Aluminium
    Oil
     
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  7. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    ^^^^^
    Ha Ha mad one, if you think that all those are as useful as silver then you must be a great fan and collector of Chinese counterfeit coins,
    as I am sure you know they have some amounts of all that junk in them except perhaps the last one.:rolleyes:
     
    Last edited: Feb 22, 2021
  8. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    They are useless in relation to what we do on this forum and that is stack precious metals ( or at least a few of us do so anyway ).

    If you and your mad friend wish to use that argument then it could be argued that sand is also a more useful and valuable commodity than silver
    as you cant build a house or building without it.

    Psst wanna buy some cheap beach sand? ready to do a special price for you and wrcmad.
     
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  9. adze67

    adze67 Well-Known Member Silver Stacker

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    You could also argue that silver has been valuable for a lot longer than the other commodities, and that there are still many uses for silver far beyond it's financial and industrial roots in the scary "post-Covid" world it's anti-bacterial properties may be even more desirable...safe money again?
     
  10. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    An emp event will boost silver. All the fried electronics and electrical gadgets would need replaced. silver will also be useful for emf cladding.
     
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  11. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Recently, I've been watching GE stock, it got a boost by the texas vortex. You would have thought the frozen wind turbines would hit GE, but no.

    For every action there is a long list of unintended consequence. Who would have thought that the virus would cause the climate to go haywire and create storm and floods that would strip away top soil and turn billions of acres of farmland to wasteland?
     
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  12. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    In your case I wouldn't have thought that even possible.
     
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  13. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Education was cheaper in '79 than now. Looks like you missed that boat.
    Drugs are cheaper now than they were in '79...... Looks like you are hitting them too hard.
     
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  14. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Nice segue to change the context of your question.
    Got plenty of beach sand where I live.
    Could do with some of your shit-for-brains to fertilise my lawn though. ;)
     
  15. mmm....shiney!

    mmm....shiney! Moderator Silver Stacker

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    I don't know whether silver is overvalued, the right price or undervalued. Value is subjective and it is set by the market. It's price has been steadily rising so you'd have to say there's rising demand for it but it's not crazy. I ended up voting "No".
     
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  16. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I voted about right, I think silver is fairly valued at $25-$30. Below $20 is clearly undervalued. if the supply continues to drop and even with demand remains the same, silver should increase 5% a year without being overvalued. Of course silver can rise to $100 in a supply squeeze and become overvalued.

    What is undervalued? I think gold, platinum, some energy and commercial REITs are undervalued.
     
  17. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Oh gaaawwwwd.
    Another sook who likes to provoke, then play the victim card when people bite.
    Did you learn that from your mate Dan?
     
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  18. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    'ken oaf. ;)

    hardknocks.png
     
  19. ppier

    ppier Active Member Silver Stacker

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    I know this is a silver stackers bulletin board but this exchange has been pure comedy gold.
    Well worth the admittance fee should be more of it, would normally get moderated into oblivion on other boards.
     
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  20. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Yup.
    Big sook.

    I'm still here - no need for subs.
    Flattered to know I'm in your "too hard basket". :p
     
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