What to do when Silver Corrects?

One of the problems with silver reaching it's true value is division - I believe a day is coming when our 10 oz bars are going to be worth $10,000. If we want to use these to trade with, we have to use some precision cutting and weighing. Who's going to pick up all the silver shavings off the floor?

Please note: this is my opinion, not financial advice.

That's why I believe that small rounds and constitutional dimes and quarters are a perfect tradable asset. If silver pops to $1000/ozt each one of these tiny rounds will be $100 each. Of course by that time, inflation may be out of control and the actual sellable value will be many times that. $1000.00 / round? $5000.00 / round? $100,000,000,000.00 / round?

$1000/ozt Silver? Where do you get that number?

Spot prices have no bearing on actual supply and demand of physical silver. It does convince both buyer and seller of it's value, but that illusion is beginning to fade.

According to Bloomburg, the silver market was $5 TRILLION back in 2014. It's likely to be much more today.

According to JMbullion, there is an estimated 3 - 3.5 Billion ozt tradable as bullion worldwide.

Estimated Silver production annually is about 1 billion ozt.

How can world supply of silver bullion be 3B, but annual production of silver is 1B?

Because most produced silver is used in industry, silverware, jewelry, etc and only a fraction (about 22%) is used for bullion. That means that silver is not nearly as physically abundant as we have been led to believe. It seems abundant, it seems low valued (under $30/oz), but the reality is that silver is scarce. Very scarce. Like 68% of everything mined is "used up" in industries where it's difficult to recover.

Silver BULLION production is about 200 million ozt per year.

Silver Supply and Demand

If silver is at $30/ozt and 215,800,000 ozt bullion are produced annually, that's $6.5 Billion of new silver BULLION annually. Add in Jewelry and Silverware, that's $13.7 Billion new silver annually.

How then do we have a $5,000 Billion ($5T) silver market?

Take Out the VAPORSILVER to See the Real Value

The vaporsilver causes silver bullion to be traded as if it were much more abundant than it really is. A $5 TRILLION silver market with only 200 BILLION new silver bullion added to supply, means most silver being traded isn't real bullion at all.

For every $1 of real silver, there is $23K VAPORSILVER. That value has to go somewhere, where else would it go except to PHYSICAL SILVER.

Woe to everyone holding on to worthless vaporsilver, thinking they can cash in at the local pawn shop someday for some impressive BRRRRR. Nope, sorry, not going to happen.

A Fictional (But Possibly True) Future Scenario

Once it becomes known that pawn shops will pay $100's per ounce (at first) while "spot price" is only $50 - $60, they're going to cash in their digital silver for physical silver. How long will it take before they (the vapor-silver holders) are informed they cannot redeem their digital (vapor) silver for physical silver?

They are going to try to sell off their vaporsilver so fast. When word gets out that they're IRREDEEMABLE for physical silver, there will be very few buyers. The "spot price" will tank, while the street price will continue to rise.

At some point "spot price" will become a joke ($10 - $12) while the demand for physical silver and street value becomes known. Starting around 3x spot, then 10x spot, then 25x spot.... 100x spot.

Yes, $1000 /oz

Before long, it will be difficult to afford a 10oz bar. Difficult to sell, also.

Please note: this is my opinion, not financial advice.

The Gig will be Up

These 1/10th silver rounds will be very useful for in-person trading, especially if there is an occurrence like the scenario above.

I know most people reading this are stackers and are well aware of the value (and scarcity) of silver. I hope this encourages you to keep staking while the staking is affordable. :-)

---

Benjamin Turner: God fearer. Rooted in Messiah. Husband of @lturner. Father of FIVE wonderful children. The guy behind the camera. Blockchain enthusiast.

Bless the Most High!

Teach Your Children Liberty from Sin

We encourage parents to teach their children principles of Godliness, beginning with the Word and an understanding who God is and what His Son has done to form a relationship with us.

No one can lay a foundation other than the one already laid, which is Jesus Christ. If anyone builds on this foundation using gold, silver, precious stones, wood, hay, or straw, his workmanship will be evident, because the Day will bring it to light. It will be revealed with fire, and the fire will prove the quality of each man’s work. 1 Corinthians 3:11-13

Teach Your children Liberty from Tyranny

Second to this is the principle of self-determination and freedom, lest we loose the ability to teach our children the first principle in future generations. Our children read the Tuttle Twin books, specifically to learn libertarian principles, which most people learn later in life. These books are useful for our family, and yours, to teach children concepts that seem complicated, but are made simple in these books.

For a limited time, use coupon code FORTY for 40% off your purchase! Check out the books here.

"SMART PEOPLE today are figuring out how to trade without the creature being able to control them - using things like gold and silver products, garden co-ops, online bartering and digital currencies such as Bitcoin."

If you like my content, please consider a generous upvote and SHARE

I appreciate my readers and do my best to read and respond to your comments. Thank you for your support, it's what keeps the lights on!

sir, i upvote you for your upvote i thank you dear

Posted Using LeoFinance ^Beta