Esteban du Plantier said:
TTUArmy said:
Silver to gold is mined at a 7:1 ratio. Last year there was 820 million oz of silver mined. Last year there was 1.2 billion oz of silver consumed. In 2024, it is projected to be 1.4 billion oz of silver consumed.
Since there is an obvious deficit, why isn't silver priced much higher? Gold is currently at $2170.25. At a 7:1 ratio, silver should be trading at a minimum of $310 per oz.
Feel free to add your thoughts on this weirdness.
Silver is the most shorted asset on earth. Several times more silver is held short than there is on the surface of the earth.
This holds the price down.
I can appreciate the paper markets doing what they do. There are some people in the precious metals space that are trying to get silver categorized as a critical element, primarily due to it's heavy industrial use. The low cost of silver definitely makes our cars, electronics, and military munitions cheaper to produce.
I dare to think what a new phone or car would cost if silver were in the $200-300 per oz range. More importantly, what government action might be taken if silver were categorized as a critical resource. Would they take it off the retail market? Would they try to confiscate people's silver stacks -Come and Take it- style? I like to think we're sitting on a treasure chest and not a powder keg.
