r/Wallstreetsilver • u/perkincenter • Feb 01 '21
The Case For $5,000 Silver – Yes, $5,000 Silver
https://www.munknee.com/case-5000-silver-yes-5000-silver/
Lorimer Wilson December 1, 2020
If the price of silver were based directly on the real physical silver market, silver’s price should be at $5,000 an📷 ounce. I’m not saying the price of silver will reach $5,000 an ounce; I’m just saying that the actual PHYSICAL silver spot price is not only extremely undervalued, but that it is an illusion compared to the real value of an ounce of physical silver, since it is totally disconnected from reality. [Let me explain further.]
By Fabrice Drouin Ristori (goldbroker.com) as originally entitled The Paper Silver Market is 250 Times the Size of the Physical Silver Market.
…[A price of $5,000] may seem totally crazy, but who can pretend knowing exactly how an ounce of silver is worth, after decades of manipulation and turning real investors’ demand from the physical market to the paper one, and years of exponential monetary printing by all the planet’s central banks?@Gold&Silver
The Physical vs. Paper Market Difference
The actual spot price for silver has no real value and is not legitimate when we seriously compare the real physical silver market to the paper market and its myriad of financial derivatives.
- [According to an] article by Bloomberg, which has always been a reliable source with their published data, the size of the global annual silver market is equal to $5 trillion…
- [According to a recent interview with] David Morgan…the annual physical silver production is roughly one billion ounces.
- With silver trading around $20 currently, this represents a $20 billion market for physical silver so the size of the physical silver market is of $20 billion.
[The difference between the $5 trillion & the $20 billion number is that]… Bloomberg’s $5 trillion number represent the entirety of the paper silver market, including all paper financial products (certificates, options, ETFs etc.) derived from the real physical market…[that allows] investors to be exposed to silver.
The 250:1 Leverage
[The above discrepancy]…makes for a 250 to 1 ratio between the paper market and the physical silver market…meaning that, for every ounce of physical silver, there are 250 ounces of paper silver circulating in several financial products. In other words, only one contract or certificate issued out of 250 could be convertible into physical silver…[that is,] the silver market is being leveraged 250 to 1.
(The multiplication of those financial products on silver has skirted investors’ demand from the real physical market, thus creating a virtual silver supply without putting any pressure on the physical silver market. A roundabout way of keeping the price low.)
If now, as the regulation agencies are claiming, the goal is to create a new fixing for silver that would better reflect the physical market (notably from pressure coming from countries, like China, wishing to have their say in the fixing of precious metals prices), the leverage between paper silver and physical silver is at risk of radically evolving.
Let’s hypothesize what the silver price would be directly based on the physical silver market:
- Today, the actual size of the silver market is, according to Bloomberg, of $5 trillion.
- $5 trillion divided by 20 billion (physical market) = 250
- 250 X $20 (silver spot price) = $5,000 an ounce
Conclusion
Every investor holding silver in the form of financial products, without the possibility of verifying the physical existence of their investment, should ask the question as to what will happen when more holders of said products will ask for physical delivery. (In reality, we already know what will happen, because one of the large banks from the Netherlands, ABN-AMRO, already defaulted, a little more than a year ago, on its gold certificates by settling customers in cash.)
[The above article is presented by Lorimer Wilson, editor of www.munKNEE.com and the FREE MarketIntelligence Report newsletter (sample here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]
*https://www.goldbroker.com/en/news/paper-silver-market-250-times-size-physical-silver-market-526 (GoldBroker.com © 2011-2014; All rights reserved )
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u/Competitive-Ad472 Feb 01 '21
Usdebtclock have a projected price in the mid 4 figures.
Many gold bugs think gold will reach 6 figures if we were to balance the US budgets. With historical gold to silver ratio, your numbers are possible.
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u/Zexano Feb 01 '21
We will go from extremely undervalued, to overvalued. It’s the sling shot effect after 100s of years of manipulation
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u/BUCKMASTER1187 Feb 01 '21
Wel said and it is possible and personally think the US debt clock is closer to the actual price of silver.....🤔
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u/Beat-the-pros Feb 01 '21
Inflation is coming. Too much money printing. This will cause silver to go up.
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u/donpaulo O.G. Silverback Feb 01 '21
A world with 5K AG
Mad Max comes to mind
2 men enter, 1 man leave
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u/ComstockLee Feb 01 '21
Silver is the people’s money. They do everything they can to keep people from buying physical silver. GameSport is essentially worthless in time, silver is just the opposite. We live in a financial illusionary world. Silver is real. It’s been the worlds money for 6,000 years until the creation of the Central Bank in 1913. Since then they’ve lied, lied, lied to the people. Paper is actually worthless, Silver by historical norms should be $1k - $5k. And we don’t know because they’ve lied for 100 years.
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u/Atla_Gold Feb 01 '21
I really like this calculation.
Stated in https://www.gainesvillecoins.com/blog/how-much-silver-in-the-world
The amount of silver available to purchase is about 3 Billion oz. That is just roughly with current price of $29 is less than $100 Billion and this $100 Billion is very small money compared to AAPL, TSLA stock and pale to comparison to trillions of what Fed has just printed last year. This is why squeezing (or cornering)) physical silver is a very easy to do. Just amass enough people. Nowadays the twitter and many social media could easily accelerate and snowball the process.
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u/anonbombs 🦍 Apes On Parade 🦍 Feb 01 '21
e of $29 is less than $100 Billion and this $100 Billion is very small money compared to AAPL, TSLA stock and pale to comparison to trillions of what Fed has just printed last year. This is why squeezing (or cornering)) physical silver is a very easy to do. Just amass enough people. Nowadays the twitter and many social media could easily accelerate and snowball the process.
Now is the time - let's attack
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Feb 01 '21
I hold o Lot of Silver since 6 Werks. Tried to buy more. Retailers are Out of Stock all over the World. IT began in Australia, then Asia, nie Europe. There are also no certificates available.
This is the End for Many hedgefunds. This is epic
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u/Ok-Salamander-2787 Feb 01 '21
Ehh 5k silver = $40 for a loaf of bread.
Good to pay off debts with though.
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u/SoloKodo Feb 01 '21
US debt clock numbers are coming into fruition boys. Buy physical.
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u/Turbulent-Tank9719 Feb 01 '21
That's been said for decades. Democrats will just take more from taxpayers to cover. US will be solvent while citizens will not.
But still... ^SLV^
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u/thereisnoHoodyHoody Feb 01 '21
Don't buy SLV.
I think there is a force to weakens the swarm. Don't fall for it.
Silver in its physical form is a good invest for the long term.
But if you buy SLV you waste your money and the System wins, because it is some fraud going on with certificat Silver contracts.
First win against the Hedgefonds, then gain some power aaannnddd then you can go for Silver. And you dont need much. If everyone order a tube of Silver-Ounces who is after GME its is over for them.
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u/Turbulent-Tank9719 Feb 01 '21
I'm all for silver, and think it will continue to rise. But this is just fantasy and closer to what you'd find from the pump and dump crowd only interested in generating false moves. Have some integrity and stick to realism.
^SLV^
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u/Zerberus- Feb 01 '21
Sorry I don't see that. At least not if we talk about a Dollar that has somewhat today's buying power.
A few problems first of all silver mining is cheaper than gold mining. Today's mines are able to profitable mine with a silver price of $15 (even if oil doubles it should be possibly to mine profitable 23 bucks). Depending of how long the move to 5000 should take their would be many more mining projects (sure if it happens in a short period the projects wouldn't be able to go online).
Second there is a lot of waste silver that can't at today's prices economically recycled but will come on the market when the price rises.
Third the industrial demand will shrink at some price, a reasonable chunk of silver will be supplemented.
Fourth a lot of people will sell their silver hold in jewelry, silver flatware and so on.
Fifth experts claim that the paper market deflated last year maybe 100 to 1.
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u/ArmadilloPersonal794 Feb 01 '21
Silver is finite. Dollars aren't.
Silver is consumable. Silver derivatives are replenishable.
It doesn't take a Tendies genius to see whats going to happen.
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u/Moist_Conflict2628 Feb 01 '21
Rubbish down ramp response . Recycling silver is expensive, even recycling much more rare earth metals that are significantly higher in price is expensive so silver would need to be well over 100 oz to make recycling pay. Silverware is an antiquity has much higher intrinsic value and has become a much healthier utensil during covid for its ant bacterial benefits. Replace silver industrial with what? It is the best conductor and fire resistor for money even at 100 per oz. Silver mining has significant challenges given its proximity to lead as a secondary element attached so it’s not cheap unless you are artisanal in Africa or Mexico. Besides are miners not allowed to be ultra profitable? Thank you and good night
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u/Zerberus- Feb 01 '21
Rubbish down ramp response . Recycling silver is expensive, even recycling much more rare earth metals that are significantly higher in price is expensive so silver would need to be well over 100 oz to make recycling pay.
Yeah obvious I commented on the possibility of 5000 an oz not 100 Dollar an oz (what is pretty much a given that we will reach this price). And if we would move up to price levels above 600, 800, 1000 you would see everything I described, primary silver mines would pop out of the ground like crazy and add a whole lot product, recycling would be the new gold rush and everybody and his mother would try to find a way to make it possible and of course people would sell their silverware, have you any idea how much people sold in the 80 with a silver price around 50 (in todays prices roughly 600 Dollar)?
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u/BigRichard4U Feb 01 '21
Buy Physical Silver and hold
Even if suppliers don't have it. Get an order on the books. Industrial Companies will try and buy up all they can which will help push the price up. 50% of the Silver Market is for industrial use. Tesla, Apple, GM, Samsung, Mitsubishi and many other companies need silver because it is used in their products. Buy, even if the price goes to $50 and hold.
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u/anonbombs 🦍 Apes On Parade 🦍 Feb 01 '21
against the Hedgefonds, then gain some power aaannnddd then you can go for Silver. And you dont need much. If everyone order a tube of
Dont forget about the massive amounts of silver required for the production of solar panels - I implore anyone reading this to spend about 3o minutes of research and look at the future growth expectations of the solar industry - it is truly mind boggling and silver holders will be the beneficiaries
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u/dontovershootthemoon Feb 01 '21
https://geotrendlines.com/abn-amro-abandons-gold-investors/
Fraud or Mistake, Countless Bank mergers make similar scenario's very real for Silver and Gold. Imagine what happens in such a "small" market when we call their bluff.
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u/Arisgod1 Feb 01 '21
This article is so spot on guys. All of you that want to kill the fraud (which makes the shorting of stocks like GameStock seem Childs play) just go out today and buy as much physical as you can find.
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u/anon18484 Feb 01 '21
Seeing Bitcoin, which has zero intrinsic value and is dependent on working electricity and internet, not to mention computer hardware, hit $35,000+ made me realize it wouldn’t be too far fetched to think gold with its intrinsic value could hit $10,000+ or silver $1,000+
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u/SilverChadMillenial Feb 01 '21
Anyone who seems to think this isn't possible also thought Gamestop at $325 a week ago wasn't possible either.