What is the Real Value of an Oz of Silver? $27 or $46?

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(Edited)

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Price Charts Can Be Manipulated

Where do we get these charts from anyway? Silver prices are determined by PAPER representations of metal that isn't backed by any physical metal, causing prices to be undervalued. If everyone cashed in their paper, they would be shocked to discover "If you don't hold it, you don't own it."

An Official looking Price Chart
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Physical Trades Tell the Real Story

If you go to a pawn shop, or purchase physical silver online, you will find most silver bullion will sell between $35 - $40 including premium. Anything less than this is a good source! When the metal is physically unavailable and there is demand, prices go up. Even when the "official chart" under-reports the value.

The Silver Eagle has always had a generous premium (7 - 10%), but never quite like this. If we are to believe silver is under $28/oz, that's a 42% premium!

eBay Prices
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SD Bullion and Moneymetals
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What I think Is Going to Happen

Here is my non-expert opinion and is not financial advice.

What is happening now (and has been) is that every time the spot price of silver spikes up (like during the recent "silver squeeze"), holders of the digital silver sell off, dropping the price significantly. But this can only go on for so long. Eventually the supply will get so low, with everyone holding on to their physical metal, that the value cannot be suppressed.

We're already seeing it now: You can buy promissory silver at $28 (spot price), while physical silver is more like $35 - $40. Over time, this gap will continue to grow and the game will be up. The promissory silver owners will begin cashing in their notes demanding their physical silver to sell at a profit. Ut-oh. How many ounces will it take before they realize "if they don't hold it, they don't own it."

Redeem Paper Silver, Sell Physical Silver at a Profit

At some point someone will be left holding the bag. Paper (or digital) promissory notes for physical silver that are already in the hands of other people, will adjust to it's actual value. The physical metal will also adjust to it's actual value.

Rigged systems can only be maintained for a time.

First time a person redeeming their silver note for physical is told "no", the house of cards is going to topple down. Word spreads fast, scams get exposed quickly and they will discover that their bag is EMPTY.

The STACKERS possess the content of their fantasy money bag.

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Scarcity Always Wins

Making empty promises of bullion, tricking people to believe their number on the screen or piece of paper is the same value as physical metal, should be criminal. It allows for the manipulation of value, keeping people in the dark of the true value of an asset.

When talk began about a "silver squeeze" there was panic, because it could (and I think has already) caused a domino effect that cannot be undone. Even though after the price spiked, the spot immediately dropped afterwards and (some) people looked the other way - but there is only so much physical to go around. At some point, suppliers will run out of sources. The bank vaults will open and eventually be cleaned out.

Then what? Game Stop X1000 with no drop in sight.

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If This Happens...

Economic emergency, of course! In the United States, we'll be looted. Given the massive number of EO's lately, how difficult would it be for the current executive administration to pull a FDR on us? Think the gov' wants your promissory notes? No, they will want your physical shiny shiny. It's for National Security, patriot.

They'll be happy to give you lots of THEIR promissory notes in exchange for the SURRENDERING for your stack. (wear a mask)

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Good and Bad: Endgame

Sadly, the strongest authoritarian governments of the world are also the biggest holders of gold and silver in the world - if/when this scenario happens, it will be a massive wealth transfer in the wrong direction.

The only counter will be to get out of FIAT and into something with intrinsic wealth.

Like currently undervalued gold and silver, for example. Otherwise:

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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!


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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.

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"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."

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3 comments
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I don't think I can wait for my next quarter PMs Purchase before the LBMA's thin Non-allocated silver inventory will run out and the printing of IOUs begin as they pretend nothing is wrong.
I'll buy a half roll instead of a full one will be my next purchase.

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Thanks for the interesting report, @ironshield. China has been encourAGing their citizens to buy Gold and Silver for years.

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