how the price of silver could surpass gold in the crisis unfolding

[Large Sarge]

http://networkedblogs.com/PvLHm

[Ponce]

Link alone does not work.........

V

[Large Sarge]

Link alone does not work.........

V

worked fine for me Ponce

[Large Sarge]

Before the US stopped minting silver coins, the worldwide supply of above-ground silver was approximately nine (9) billion ounces, thanks primarily to the Comstock Lode.
Since that time, silver has been consumed at a phenomenal rate (as you have covered exhaustively in countless articles) until today roughly one (1) billion ounces remain above ground. In contrast, virtually all gold ever mined still exists (approximately 175 metric tons).
So, let’s do the math: 175 metric tons equals 6.1 billion ounces. That means that gold is six times more available than silver, or in other words “SILVER IS SIX TIMES MORE RARE THAN GOLD” when you are talking about physical, hold-it-in-your-hand form – which is really how anything is valued by a marketplace or individual…especially in a crisis.
In the coming economic crisis, for a brief period Silver prices could possibly elevate until they are ON-PAR with Gold.

Sunshine Mint Rounds


By MarK Yarbro, Silver-Coin-Investor:

Please allow me to offer an alternative scenario, which I believe that you will really enjoy!

When projecting future silver & gold prices, everyone tends to look at two primary factors: 1.) historical norms for the silver/gold price ratio, and 2.) the naturally occurring underground ratio of silver to gold {15-1 or 12-1, depending on whom you ask}.

I wish to offer another, more practical perspective.

Before the US stopped minting silver coins, the worldwide supply of above-ground silver was approximately nine (9) billion ounces, thanks primarily to the Comstock Lode.

Since that time, silver has been consumed at a phenomenal rate (as you have covered exhaustively in countless articles) until today roughly one (1) billion ounces remain above ground. In contrast, virtually all gold ever mined still exists (approximately 175 metric tons).

So, let’s do the math: 175 metric tons equals 6.1 billion ounces. That means that gold is six times more available than silver, or in other words “SILVER IS SIX TIMES MORE RARE THAN GOLD” when you are talking about physical, hold-it-in-your-hand form – which is really how anything is valued by a marketplace or individual…especially in a crisis.

Everyone knows that, in a financial meltdown of any type, demand will skyrocket for precious metals as a temporary store of wealth. Prices are expected to skyrocket as the flight to safe haven investment vehicles intensifies.


MY PREDICTION is that, for a brief period Silver prices could possibly elevate until they are ON-PAR with Gold. Deep pocket drug companies and manufacturers of all sizes will maintain a constant demand for physical silver in order to keep their businesses operating…at a time when the supply has dried up due to the flight to safety by both institutional investors AND private individuals.

Of course, that would only be for a short time because the really sharp traders will sell in the peak and purchase revenue-generating real estate; and become fabulously wealthy in a very short time.

I feel the need to tell everyone who will listen to me (my employees, my adult children, my vendors, my church friends, even the folks behind the counter at the gas station and fast food restaurants) to heed the words of the Prophets (both divinely inspired and secular) and BUILD YOUR OWN ARK!!!!!

A flood of poverty will soon be upon us, and thanks to Bretton Woods it will affect every nation. Some will fare better than others, but those countries who have large gold reserves will fare better than others…and private individuals who have gold and silver reserves PLUS food storage and a means to protect their possessions, will survive.

[chad]

if silver ever gets to paar with gold, i'll can in and personally buy everyone here a ferarri.

[Hitch]

So, in 1964 there was 9 billion ounces of silver. 50 years later, today, there's only 1 billion ounces. Every 10 years we consume 1.6 billion ounces. With only 1 billion left, that means in 6 years we will be out of silver.

I like to be an optimist, but these numbers are hard to believe.

[chud]

So, in 1964 there was 9 billion ounces of silver. 50 years later, today, there's only 1 billion ounces. Every 10 years we consume 1.6 billion ounces. With only 1 billion left, that means in 6 years we will be out of silver.

I like to be an optimist, but these numbers are hard to believe.

It seems incredible, but boy if it was true prices would go to the moon.
Actually I bet the federal gov't would declare it a national emergency and demand that people turn over their silver, at a "fair" price, for the good of the country.

Anyway, too bad I lost all my silver in a boating accident, so none of this would apply to me.

[Ares]

if silver ever gets to paar with gold, i'll can in and personally buy everyone here a ferarri.


I'd like mine in black please. :)

I would definitely be doing well if Silver got up to par with Gold, if it wasn't for that damn boating accident a couple years ago. :(

[Hitch]

I would definitely be doing well if Silver got up to par with Gold, if it wasn't for that damn boating accident a couple years ago. :(

I'm currently working on designing the first ever, SFD. Silver Floatation Device. This will be the first to tackle the issue of boating accidents.

[Ponce]

Now I really don't know what I would do, at one time it was my "Silver Island" but now I am getting to old......probably make this house twice as big and get a Cuban cook, a maid and a good looking lady to take care of me.

V

[madfranks]

if silver ever gets to paar with gold, i'll can in and personally buy everyone here a ferarri.

I'll take one of these, thanks: http://www.ferrari.com/english/gt_sport%20cars/currentrange/Documents/f12berlinetta-brochure.PDF

I'd buy my own ferarri, but unfortunately I lost all my silver in a freak accident that involved a party yacht, pretty girls and lots of booze.

[gunDriller]

if silver ever gets to paar with gold, i'll can in and personally buy everyone here a ferarri.

i'd settle for a Ferrari hot wheel and a 1:1 scale Dodge Ram with the Cummins Diesel.

[Sparky]

Let's see if I have this straight: When there were 9 billion ounces of silver on the planet, the gold:silver price ratio was 15:1. Now that we're down to only 1 billion ounces of silver, the ratio is 60:1.

And if silver is six times rarer than gold now, why does there continue to be such a price disparity? Clearly the demand for gold is much, much higher. Why will that change if silver were to be 10 times rarer? Or 20 times rarer?

Now let's get to the math error in this article: There aren't 175 metric tons of gold on the planet; there's 175 THOUSAND metric tons.

And now for a reality check: I say there's no way there's only a billion ounce of marketable silver left on the plant. Does anybody really believe there will be no silver left on the planet in 6 years?

P.S. I don't mean to be a wet blanket on silver, cuz I'm a big fan. I just don't think we need to whip ourselves into a frenzy like this over the numbers. There are plenty of elements on earth that are a lot rarer than gold and silver, but without the value. There needs to be commensurate demand. I could see the gold:silver ratio getting down to 20:1 at some point. That would be good enough for my liking.

[mamboni]

Zarbuchen has analyzed historic silver mine production and estimates of consumption and concludes that there are about 20 billion ounces of silver above ground on earth extant. That includes private hordes, billions of coins in folk's safes and drawers, museums and art objects and sea wrecks.

[Norweger]

http://i314.photobucket.com/albums/ll432/louloumeli/bologna20sandwich20food20baloney-1.jpg

[messianicdruid]

...probably make this house twice as big and get a Cuban cook, a maid and a good looking lady to take care of me.

V

We'd assumed you had already done this.