Will an ounce of silver be exchangeable for 10 one hundred dollar bills at your local coin shop?
Is this a ludicrous amount? Silver barely got over $50 on the last run it did.
We all know that the silver price (Comex) is rigged, so what is its actual value?
Will silver ever be freely traded? In our lifetimes?
Silver is the commodity with the second most uses after oil. Why is silver so unloved?
The current state of silver
Silver is treated like a red headed step child.
Although it is a very much in demand manufacturing input.
All the electronics need silver. In the layers in the chips. In the solder. In the tiny traces that make an LCD screen work. Every piece of electronics wouldn't work without silver.
Everywhere you need the best conductor of heat or electricity, you see silver being used.
By some calculations, we are using more silver than we mine each year. or at least with monetary and jewellery uses we are definitely using more silver than is mined each year. So, where is all that extra silver coming from? Why hasn't the price increased because of demand being higher than what we mined?
Why is silver so unloved when it has all of this going for it?
The economy, and the price of silver
The economy isn't doing very well. The cost of fuel and food has gone way up, and silver has just sat there trading sideways.
Wasn't silver supposed to be a hedge against inflation?
Surely if it was, silver would be over $50 and ounce right now.
The problem is that silver is highly manipulated. Each day, more silver is traded on the comex than is mined in a year. And most of this is bots that trade back and forth with each other. This keeps the price of silver where the manipulators want it.
However, with the economy crashing, and the banks crashing, and the monetary system crashing, we will most likely see silver break out from its manipulation. And if not that, then when the real users of silver start feeling pinched, they may start buying silver directly from the miners. This will cause silver to actually find its real value.
The problem is, is the price reflective of how much silver is worth, or how little the dollar is?
New uses for silver
Let us say that new, just like Back To the Future, hoverboard is actually developed. But it needs an ounce of silver to make. Well, that is a lot of demand, that people will want to pay for.
What about flying cars? If they required an ounce of silver, the price of silver wouldn't matter, just get it, cause i want to buy it.
There are new technologies coming, and they need silver.
Not sure about the flying cars, they may be doable with copper.
But new electronic devices, circuit board level stuff that will completely change how we create electronics, and these things will require silver. Something really revolutionary, like a current flow control device as efficient as a mosfet.
The technology is breaking free. We are going to see it coming into the market and demand for silver is going to go way up.
This stuff is going to make silver very sought after. Very valuable.
$1000 silver
I feel certain that we will see $1000 silver within this decade. My trouble is whether this is due to inflation, or due to value increasing / breaking free of manipulation.
I can definitely imagine $1000 silver, while a bag of groceries also costs $1000. Well, at least silver went up a little in value. But inflation really ate us. But, will this be reality? Groceries at $1000 means most people can't afford them at all. Salaries rarely keep up with inflation (lags behind, at minimum) So, i feel things would really break down before this level.
So lets take another tact.
What is the actual value of silver right now. If we got rid of all the manipulation. Like, the miners and manufacturers got together on a block chain to work out delivery and price. (this is coming) My guess is the price of silver would be about $150. I base this on the way the price was moving back at $50. If they didn't smack it down on the comex, there was still a lot of room for it to run. So, if it was $150 back then, and we add the actual inflation (was about 12% a year) then we would have somewhere around $300 - $500 silver now.
And if the price of silver was up at those levels, more people would be buying it. Typical fomo. So, the price would be even higher. (and why the manipulators keep smacking the price down)
So, you add that with new MUST HAVE uses for silver, than $1000 is an easy goal for silver.
My only caveat is if the dollar dies first. Without a dollar, we can't have $1000 silver. 😝