The demand for silver has increased considerably for many reasons over the years, and this has resulted in the almost total elimination of reserves of this precious metal on the surface. In fact, if things continue as they currently are, there is a good chance that there will be a shortage of silver in the coming years. Using the same estimates, there are approximately 7.5 trillion kg of silver in the Earth's entire crust. To date, about 1.4 billion kg of silver have been mined throughout human history.
However, silver corrodes and just under half of that silver no longer exists as a metal. From what has been extracted, there are only 777 million kg. The possibility of a hyperinflationary collapse becomes more real and if the US dollar collapsed, we could see the price of silver rise to an infinite price in dollars. Why? There are only 3 billion ounces of silver in the world.
That means that there is less than half an ounce available for every human being on the planet. That would make the asset extremely rare and valuable. Under these conditions, you would have to value silver in terms of what you could buy. For example, an ounce of silver may be enough to purchase a motor vehicle during a meltdown.
The following 100-year chart shows that the ratio between gold and silver shows that it moved below 20 three times in the past century. Like many investors, I've been following Silver (SLV) for a long time and was considering buying a mining company. The best-known precious metals are, of course, gold and silver, which have become currency and art objects since before recorded history began. A bit of hunting has brought to light some historical cases in which silver seems to have been worth the same as gold.
Neumeyer expects a triple-digit price of silver, partly because he believes that the current market cycle compares with that of the year 2000, when investors were on the edge of the dotcom bubble and the mining sector was on the downside. If you want to participate in a possible bull run in the silver market, consider buying physical silver. And of course, for those who prefer a more tangible investment, buying physical silver ingots in the form of ingots and coins is also an option. Rate cuts are usually good for the physical prices of silver and gold bars, because when rates are lower, it is more profitable to invest in precious metals than in products that can generate interest.
With the money, I can imagine how there will be news that new locations are being found and money is being invested. For example, 5,900 British shilling coins contain only 1000 ounces of pure silver, but are worth 6,929 shillings at the market price of 77 pence for British silver bars. About a quarter of all silver is used for jewelry, 30% for coins and ingots and the rest for industrial uses. There are also silver-exchange traded funds that offer extensive exposure to silver companies and to the metal itself, while more experienced traders may be interested in silver futures.
Of course, this doesn't mean that silver is more valuable than gold, just a silver dollar or a shilling is worth more than a gold dollar or a shilling. The author maintains that miners will extract less silver from the ground in the coming years and that this should bode well for the metal.