Maybe it won't hit historic ratios, but silver has real value and has been used more often than gold for money. We also have strong manufacturing needs for it. Some geologists predicted it might be the first thing on the period table to go extinct. It's price will moon when investors lose their assign the stock market and bonds have negative yields. I'm gonna continue to buy.
Someone is spreading false facts about silver going extinct, imagine false news in this day and age, lol. We have to be more critical where we are getting our facts from, especially the Trumptards🤪
The argument that we just “assign it” intrinsic value is crazy. You can’t pay workers in chickens, and you can’t trust bankers to stop printing fiat. If we can’t transact with a medium of exchange, the global population would shrink very considerably, very quickly, and in spectacularly horrible fashion There’s only one answer. For millennia PMs were money and only one human life ago they were the standard globally. For people to think it’s “crazy” to return to a gold standard is... well... kinda crazy!
Even though gold is down right now, because the gold to silver ratio is so high, I’m only buying silver right now (but only when I can find very low premiums). I don’t think it will ever get back down to 15:1, but believe it will get back to 40:1 someday.
Thanks for sharing. I would tend to agree with you and I also think that 40 or 50 to one is where it should be but only time will tell. Thanks for stopping by and watching!
One of the reasons many people are quietly quitting or not going back to work is because currencies and credit just doesn't excite them as much anymore - due to they're ability to purchase less and less. Everyone sees this and until a medium of exchange arrives that motivates people enough to pursue it, I agree the Gold/Silver ratio will not tighten. BUT - when it becomes noticeable that people using HARD currencies are accessing things easier, others will feel compelled to "acquire" those same metal means, and the draw on Physical will be swift & unrelenting. Add to that all those stuck in ETFS & paper contracts - choosing to stand for delivery instead holding, and have you a 5× increase in Spot-prices in a short period of time. Don't know a lot of people that'll purchase $8500 Gold but I know a LOT of people that will purchase $89 Silver. And it is that affordability difference - per completed unit, that'll tighten the ratio imo.
Never say never. As fuel increases in price, how will it be mined at 20$ an ounce? Supply and demand will eventually be forced into a realty check. What a time to be alive 🍿
I do think that silver prices will go back up. It is being used more and more in industry every year, and more and more people are stacking in large amounts. The demand will catch up. Silver will always have value and people will always want more.
I agree Perth mint recently announced they had other record year of sales, last year. Selling 26 billion worth of precious metals coins and bars. That indicates strong demand. Plus with the push to use more renewable energy that will dramatically increase in industrial demand.
Please come out of your cave … you apparently know nothing about the macro economic conditions we are currently in… gold may not become money but that has zero bearing on our current situation
When gold and silver were monetary metals, 15 - 1 made sense, Now gold is regarded as treasure, or collateral. Silver is now regarded as a commodity which can cost more or less depending on demand. Silver and copper are more closely related now than silver used to be to gold. When I see my silver, I don't see the need to accumilate more, unless a particularly beautiful design becomes available to me. Gold on the other hand is treasure, and in my opinion, you cannot have too much treasure (unless your in a sinking ship).
For 6000 years gold and silver came out of the ground at 10 to 1, and both went into the vault. For the last 100 years gold continues to go into the vault, but silver has beencomming out of the vault going into the dump in non-recyclable products. Gold can still be found in streams, lakes and mines. Silver prospectors 100 years ago could enter the wilderness with a pick and shovel and fill his pockets. Today the shovel picks up several tons but extracts only the same pocket full of silver. New mines are not being found and developed. Oil price will make mining silver more expensive and impossible to extract. Using a pick and shovel will never return; so the question is how rare and valuable is it really? By the way the new mining ratio is 7 to 1.
We haven't even begun to understand the value of silver. It's natural properties are like no other metal. The problem in computing is removing heat. There is no better metal to transfer heat like silver. Even where water cooling is involved. There is one thing you guarantee is that FIAT money will always devalue, whereas long term silver will hold its ground.
Broski, The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun. Silver will always be currency.
Except that it’s not anymore. I mean, it’s verifiably not currently currency, which means it can’t “always be.” If you think it will again someday, that’s up for debate, but to say it “always will be” is just wrong.
@@trekkiejunk verifiably? Sooo why are countries still minting then as such? There is currency value on an American silver eagle and it cost more than your petrol dollar.
@@BackyardBullion not really. It was a question and you answered it. So here I go to rebuttal.. Are Silver Eagle coins legal tender? The American Silver Eagle coin has a tender value of $1. It is possible to use this coin as legal tender, but because the value of the silver greatly exceeds the face value of the coin, this is not recommended... soooo what did we learn? It is currency
What about the BRICS commodity currency that Russia and China clearly intend to introduce? The top 3 commodities in this are gold, oil/gas and silver. So silver will be the backing for this commodity currency. It will likely be digitised and on the blockchain with gold and silver giving the the digits real value. We see high levels of inflation - this is destroying the credibility of fiat. There has been a massive expansion of the money supply - this inflation kills the currency and this is what we are seeing. Confidence is being lost. Kinesis has its KAU and KAG 1 to 1 gold / silver backed tokens - they can now be spent on a Mastercard debit card. i heard this week that the KAU is now recognised as legal tender in Indonesia and last week it started to be traded on the Jakata Futures Exchange. So this isn't a theoretical pipe dream. Gold and silver are becoming recognised as money again through the advent of the blockchain.
The ratio it is extracted from the Earth has never and will never change, just how it's Valued in Fiat currencies and history shows us all Fiat currencies go to zero.
The only way we know what something is worth is through history. When fiat fails, and they all have failed given enough time, literally the only way to value anything is to go back to what came before being gold and silver. Currency has been around a long time, many have failed with the average lifespan being 120 years. When fiat fails it causes a massive upset, hyperinflation and panic. No one will trust the emergency procedures, be it CBDC’s or currency baskets with other countries. The problem nowadays is not one countries fiat losing value but all of them, meaning there will be no other currency to flee to. Governments don’t like a gold standard as it restricts the debt they can leave for their children to repay. But the people will vote and the masses will decide what they trust to save their wealth as. Countries are digging deeper into debt, printing the dollar until it collapses. America’s next round of printing will be 100 trillion and it won’t be enough. There’s no other way out of this system and when it breaks globally the public will force true money to come back. The new scams will be rejected, they only work when we trust them and people are going to be very doubtful soon. We only ever accepted fiat because it was once backed by gold. You have to revert back to basics to restore the trust again. Silvers ratio of 15 to 1 represents how common it is found and mined compared to gold, that seems a logical value. It may even go the other way as it’s rare to find a silver deposit, it’s mined as a byproduct of other metals which makes it hard to source if supply is strained. There aren’t big pure silver deposits left, price will have to improve or they won’t mine it making it rare. I easily see it getting back to 15 to 1 in the next decade.
We are at a very interesting point in time, everything is currently being revalued. I am also revaluing my time and its value, when someone brings me a job do i value what they think they should be paying and offering me above spending more time with my family? Everybodys bills are being revalued, what is the new labour to energy ratio? we wont have a clue for some time. But you have to have and own something to benefit from any revaluing, i own skills that are valuable, i own tools and i own silver and all three of them will fluctuate in this volatile period. Last week i carried out a major repair on a friends car, he bought all the parts needed and in return he took me for a night out, a curry and gave me a seriously nice bottle of whiskey, no money changed hands but my skills were valued and richly rewarded, value is relative and going forward silvers value will also be relative... to everything, to nothing, to whatever... we are creating new ratios, historical ones are gone, they were somebody elses truths. But going forward values are changing, if i had a mortgage would i value paying a massive increase in interest payments and working myself to death to afford the bills? Would i value a car that is not mine but paid for monthly for the sole purpose of getting somewhere i dont want to be to earn those payments? Are some assets really liabilities? Sorry i do go on lol, but my point being as we enter this uncertain time where it seems all anyone out there has is debt, those with the nicest houses and nicest cars probably owe the money and are in debt for those "assets" and under pressure to increase payments towards maintaining their percieved status, a small drop in investments on stocks and shares, cryptos, bonds or savings to maintain lifestyles will cause a huge shift in what people value. So what assets would people like to have when everythings up in the air and who woud you even sell silver to if everyone out there cannot afford to maintain the life they had become accustomed to? But what will the silver rato be towards other items? If a car becomes an unafordabe liability and drowning in debt and just have to get rid quickly so your not paying HP/insurance/tax, old silver face here might be in a position to take advantage and i have something real in my possession to weather any storms of my own, the amount of gold i can swap my silver for will pail into insignificance at silvers real potential in a very real and true financial crisis for a significant percentage of the population.
The natural ratio in the Earth’s crust is about 17.5 to 18 parts silver to 1 part gold. It maintained that basic ratio as a trading medium as well, for thousands of years, until like the last 100 years. The value as a trading medium will definitely return more towards the natural ratio, and its overwhelming usefulness as an industrial material makes it even more likely to go up. The only reason Palladium is trading at $2K right now and not $500 an Oz is directly related to its industrial uses in catalytic converters for cars. Once cars go electric Palladium will no longer be as needed industrially and the price will go down. To argue that silver will stay cheap because it will be more in demand as a manufacturing material going forward just doesn’t make sense.
I stack silver because I want to and I have most of my life. I have never sold any of my silver for less than I paid for it. Silver at this point in time is only coming out of the ground 7.4 ounces per 1 ounce of gold. At some point in the future the GSR will have to correct and when it does today's silver buyer's and holder's will be glad you bought silver when it was dirt cheap.
You rumbled me, yes I am a CIA Shill, makes total sense. Certainly more than me being a well grounded normal person rather than a conspiracy theory nutbag.
@@BackyardBullion wait, are you suggesting that anyone who even questions whether or not the various segments of the ruling class have been & still are colluding with one another in certain ways to oppress the common man while preserving and growing their power, wealth and control - is a nutbag?
What if gold drops down to even the ratio out? 🤔 The ratio is interesting but like you say doesn't apply very well to physical, particularly in the UK. I'm happier trying to preserve some purchasing power with gold personally especially when you consider premiums, costs and density of wealth 👍🏼
I don't think any thing you say makes sense. Where the demand comes from does not matter. The below ground ratio is now 7 to 1 which means that earth is running out. The price ratio is above 90 to 1 which means it is extremely corruptly manipulated. The above ground ratio is not known, though some say it is 1 oz. of silver to 2.5 oz. of gold, which means silver is worth more than useless gold.
The earth is nowhere close to running out of silver, it is not a rare metal by any account. You say that silver might be worth more than gold? Are you smoking something crazy? Sounds it.
I do not have any confidence in our fiat currency and banking system, hence I stack precious metals to preserve wealth. Just look at Zimbabwea, Argentina, Venezuela, need I say more?
You mean the whiny truck drivers who were pissed off for having to wear a mask and get vaccinated during a pandemic? Yeah, we got a bunch of weak snowflakes like that in the US as well, whining about how they are being oppressed for being asked to act responsibly during a global pandemic. Those right wing nuts are such fucking pussies.
Great and sobering video. I’ve only been collecting silver for 3 months. Seeing as I’ve been buying 1oz coins with a mark up of around 53% over spot price (exacerbated by VAT here in the UK) then the ratio would have to drop to around 60:1 before I could break even. I do love the feel and and look of the stuff though but for me it feels more of an indulgence rather than a shrewd money protecting decision at the moment. Hope I’m proved wrong.
Glad that you've got a level headed approach and are probably too Wiley to be suckered by the silver pumpers & grifters. Silver bullion is really no sort of investment & people can lose a lot of money on it if they get carried away. Premiums are always high but you can get around UK Vat on silver if you buy on the secondary market. More interesting though in my opinion is that bullion is often a gateway into the wonderful world of collecting and numismatics.
@@countryman5329 Thanks for the advice and tip. I was taking in by a couple of TH-cam videos that hinted silver prices might rise to a ridiculous $300 an oz. However I only have about 20oz so far. Is that the silver forum you’re talking about for 2nd hand bullion?
@@jacc88888 people get into silver for different reasons. I got into silver as a way to save money. I can sell my stack for a profit right now, but then again I started in 2018 and was excited about getting my first 10 ounces for around $143 and change
@@littleredpony6868 That’s good. I think there is much more potential for making some profit in the US as you don’t have 20% tax added to every silver purchase like here in the UK. I guess as the other comment mentioned - the 2nd hand market is probably the shrewdest way forward. PS $14.30 per Oz was an amazing deal!
Great topic! I like the way you view silver. I'm heavy on gold right now for just the same reason, I believe in the bad bad situations that gold will remain king! Thanks for the video!
I came close to purchasing several gold coins when the price hit $1696 USD the other day. But I noticed that once the price went below $1700, the cost of the coins did not continue to fall. They stayed the same, or even went up a little. So as the price fell, the dealer increased their premiums. Is this normal? Would dealers ask much bigger premiums if the price falls to $1600 or $1500?
Prices down - premiums up... to discorage the buyers from purchasing. This is the way the precious metals market always functioned. In essence, precious metals represent a real physical wealth and holders will not hand it to anyone easily. Once one parts with it, there is no ease way of getting it back. That's, in nutshell, how real wealth is accumilated, stored and retained.
I've always read (and agreed) that the price of gold and silver represents the cost of the equipment, energy, paperwork and the ingenuity to extract it out of difficult places that are normally hard to reach, along with "market forces" that would make all of that profitable. Here's one of my favorite quotes: Gold is money. Everything else is credit - J. P. Morgan EXACTLY...
@@BackyardBullion Gold AND SILVER are MONETARY METALS and ALWAYS have been. The same advantages one gets from owning gold also come from owning silver. Gold is the money of banks (and King's) while silver is the money of the people. I'd submit that while the gold to silver ratio is above 90 ounces of silver per ounce of gold, SILVER is what the smart people that truly understand gold and silver are buying. When that ratio subsides then start buying more gold because it will be an advantageous time to do that. Anyway SILVER is not credit, isn't even close and NEVER has been!!
I don't have any silver yet but if solar panel production increases every year as we get greener energy then there will be increased demand for silver in the years to come along with physical silver deposits declining.
I just realized why you feel the way you do. 5 years ago, you were clearly stating that you got into gold and silver as INVESTMENTS, with the expectation of ROI. That's the wrong way to approach the metals. It is absolutely practical and possible to return to gold/silver backed currency, especially within a digital blockchain model.
This is next level stacking content. Enjoyed the historical/ mideval commentary on wealth and the fact that the world was very different when gold was money. Very interesting.
I wonder. They are finding more gold all the time. Also many Country's like India Russia and China are going to Gold backed currency. Will that affect the ratio?
As silver is an industrial metal it is being "consumed". So supply and demand will continue to help maintain its value, and potential increase considerably over the long term. Also agree silver in circulation as currency is not likely.
Fiat currency is in a Free-Fall right now. We WILL go back to a "Currency" that is both tangible and everybody knows it has innate and REAL value. Printing money will be out soon enough, Gold and Silver will be back in the limelight - due to their "Tangible and Historical Value"
I think you are partially right. However what’s different this time is digital and physical will be used together. It’s easy and it will work when shit hits the fan. Good luck!
It makes virtually no difference to international spot price what's going on in the UK, it's all about America and the value of the dollar. The US economy is comparatively healthy compared to most of Europe and Asia at this time and the greenback is flying backed by well-timed fed interest rate hikes.
All gold mined is still available where as a lot of silver has been used up. Silver mining is around 9 to golds 1 so it’s more than likely with the move towards EVs and batteries ect that gold silver will revert back to historical average’s
As countries continue to manipulate their currencies, we may one day see a global gold standard for international trade. Even if we saw something along those lines, I don't know if that would help silver or platinum out. That will probably require more industrial demand.
@@BackyardBullion we had 3 industrial revolutions on a bimetallic standard, so the world certainly can cope. What you mean is world governments & investors will never voluntarily choose to return to gold & silver- unless they are forced to.
I appreciate your comments but in the end found them lacking - lots of assertions and no supporting rational. Why will the ration not reach 15:1? Why would it take moving silver to circulating money to reach 15:1? I happen to agree and was looking for supporting evidence - but found none here...
Thanks for the videos BB, I'm really enjoying your content, especially as you're coming from a UK perspective. I am thinking of buying my first piece of silver for investment purposes, and am hoping to get near spot (£1-£2 over). I think this is an ok premium to pay as my time horizon is 10+ years. Do you agree with this rationale?
I defy your statement that we won't use gold or silver as money, because Currencies die. If a currency is based on confidence, what happens when that confidence is shaken? They say Cash is King, because you prefer to be paid cash than with a promise. But Metal has intrinsic value, and the most valuable metals condense the most intrinsic value in the smallest packages. I don't believe society should ever go to a wholly electronic means of exchange, because of the abuses and technical problems associated with it. Money (physical, intrinsically valuable means of exchange) is too important, and precious metals are the most valuable form of money. I say, it is in fact very foolish to abandon silver and gold as money
You honestly think we will go back to using physical silver and gold as physical coins fit every day walks of life? No, not a chance in a modern world.
It's absolutely draining thinking how something like education could become so inflationary. The generation before me was paying 500 a year for college education. 🤔 And then you have health care and housing crises. The risk has grown higher and the upside has grown lower.
My antagonist response with respect if anyone is interested. Fiat Currency, yes it offers many exchange conveniences and can speed up trade etc. however it is anti-demand in nature. It skews true demand readings as a denomination. We are valuing everything in a currency that is overwhelmingly proven to not actually hold value over a static period of time. I see arguments shifting in the future on this. Generations past desired to see true demand and can only be closely done with the cheapest storage of value. There is nothing that is a perfect constant but gold is historically pretty close. The question is will we in the future value true demand reading, and also market stability. Might not be a bad thing. 🤠
The trouble with investing in an asset that is an industrial input is that these inputs have traditionally decreased in value as their demand has increased. I believe the best example is oil. As refining and manufacturing improve, the production process becomes cheaper. Industrial inputs become cheaper, not more expensive over time. The supply of (mined) silver is not fixed. Our earth is tremendously generous and people are quite industrious.
Oil was only $2.91 to $3.32 per barrel in the 1960’s. As they produced more through better methods the price actually went up instead of down. They produced more at a cheaper price, yet they were able to sell for more and more money. That’s why the oil rich nations were some of the wealthiest nations in the world per capita. Silver prices have gone up because it got harder and more expensive to mine and will continue to go up in value the more difficult it is to get out of the ground. And at the low cost it’s not worth the risk to keep trying to find more. Oil keeps going higher in value which encourages more production and risk taking.
Those deceased lived in a world built on and demanding of refinement of character. Where there is a measure of gold in every heart and the heat and pressure of the day can be applied in order to refine that gold.
Silver most conductive & reflective metal on earth! The best heat transfer metal also! Age of batteries, robots and space ships are upon us! I'd expect silver to be valued more than gold!
That's what gold and silver is now, an asset/commodity. You can always trade it in or sell it for currency. Nixon officially cut all ties to gold being money back in 1971, and then it became a valuable commodity. Then the free market decided what the value of gold was, it went from $35 to $700 in the 1970s. That is the power of gold.
$100 in 1964 and earlier US silver quarters, dimes and halves buys over $2,000 worth of goods today but $100 bill from 1964 buys $100 worth of goods today.
I'm focused on platinum and gold. I love silver too, but I don't own any. Unless you've BEEN stacking silver, I don't see the point in starting now. But I will buy some silver maples and have them melted down to make a nice cuban link and medallion piece 😉
Well, you are not and won't be either. Just saying there is a 0.001% chance of something happening doesn't make you right until proven wrong. The opposite applies, sorry!
I like collecting sets of coins, as these coins go up in value as they get older. As well as making stacking silver more enjoyable. I see it as each way bet as you not just relying on silver going up in value. Some of these coins are already worth good money. For example 1997 British Brittanna coin as it was only available in proof version and very low numbers. But I bet it will be worth a lot more in 20 years for example.
Hi, today is December 4th 2022 and I am in Australia just a few observations on “collectible silver coins” our government mint has been pumping out commemorative silver coins, coin sets etc for decades, these are usually in sterling silver at .925 or fine silver at 99.9 or .999 As with all commemorative things they are way overproduced and overpriced on release so very few ever go up in value and they are really only worth a bit over spot unless you find a “sucker”. As an example a 1 oz Brittanica, maple or krugerrand is currently around $45 to $60 Australian from bullion dealers (dearer on eBay) American Eagles though are crazy usually $60 to $70 dollars Au this is with the spot price at only $34.60 Au today. Like most stackers I have kilo bars. 500 gram bars, 10 oz bars but with smaller then 10 oz I used to buy rounds, I would have a few hundred or different sorts but for the last couple of year I have been buying older Australian government mint coin sets, I only buy the 4 or bigger sets as there the best value and these are all legal tender coins in denominations of $5 - $10 and $25 and as mentioned either ,925 sterling silver or 99.9: or .999 fine silver. I never buy sets unless the coins contain a minimum of 1 oz of silver and I purchased on eBay today ( auctions) 3 different mint sets of 4 coins each, all coins where .925 and weighed 36 + grams and each coin ended up owing me $42 Au a coin with postage. The coins are all in mint issued cases in acrylic capsules with authenticity documents etc, I now have several hundred of all different sorts and they are all from around the early 80’s to early 2000 year dates, I do have multiple sets of some as some designs I really like but these coins are all themed coins or restrikes of coins from early 1910 to 1960 when our currency was in pounds, so even though overproduced they are still relatively very small production numbers as they where never ia design in circulation. I’m actually now deciding wether to bust out some and “tarnish” them to give some more character. To me they are good value but still just bullion in the long run. So I don’t know about other countries but to me “collector” mint issued silver coins are a bad investment when released but great value when they go down to lower then generic bullion coins.
You have good take on the subject. I’m listening sir, ty!! I just want to give my very simple & humble opinion…Silver & God are God’s money, in that, it means probably more than I can comprehend. Have a great day, I appreciate ya!
Even if you look at websites they have this thing called a spread, that's how much they're willing to pay and how much they are willing to sell, because all businesses need to make profit so that they can remain in business, especially if somebody has to pay property taxes or rent in those will fluctuate in price because of politics
@@drip369 I get that they need to make profit and have expenses but gold and silver stores in America pay premiums on top of spot price for certain bars and coins, which in the UK they don't they just pay 97% of spot no matter what it is
@@BackyardBullion I thought that was it I guess there generous in America I've seen videos where they pay spot plus 5 dollars for 1 gram bars but here they just pay 97% of spot for anything. So it it best to sell privately unless your desperate and need it ASAP?
Technically we are all still on a gold and silver standard. Anyone in the world can exchange their local currency for either metal. In a way, currencies are just gold and silver substitutes.
I think finding more silver uses is likely to happen in industry in the future, and that would be great, but even more silver substitutes will be found, what does one think ? anybody.
I get your point and you're probably right in the west but the east thinks differently There are kiosks in public stores in Singapore but I think we will see the value skyrocket after the smoke clears
@@BackyardBullion cool! I was just wondering. When I first saw mine in the lcs it had a spot plus $100. After it not being sold for a while I got it for significantly less. Probably about 10% also. Thanks for the response. Love the info in the videos. Keep up the good work!!
it will go back to the mean of 40-60: 1 Never say never.... I remember in the early 2000s when there was chit-chat to reclassify silver to a base metal.
Last year I've completely severed my 20 year relationship with silver to capture the exorbitant premiums. Most of the proceeds have been allocated to platinum. Gold remains the bulk of my pm portfolio. Cheers everyone
I feel that silver is being held back the big tech industries and banks know how useful it is and is becoming, so to avoid people buying in huge volumes they keep it looking as an un important commodity, however I also believe that gold will be a great safety measure against the current and future inflation rates at least and a good long term investment as best. Best wishes 👍🏽😎
When the world announced the creation of automobiles, people back then still think that bull carts and horse carriage will still be the main transportation.
I mean, this analogy proves we cannot be stuck in the past and we will not regress back to archaic ways of doing things. The gold standard is a prime example of an archaic system.
PM's are valued for many reasons art, household items and jewelry not even factoring increased industrial and medical uses. As long as population continues to grow so will the value. That being said what if for some unforeseen reason say 1/3 of the World population dies of suddenly that might be a problem.
Gold and silver have value not because a person says it has value but because you do a lot with these metals! By the way these metals maintain their value!
You sound a lot like somebody that can be swindled with a "crypto currency", Young and believing "New is better" The ONLY value in digital ones and zeroes is their utility, if they don't do anything: ZERO value.
I believe that silver will one day separate from gold because gold is mostly a banks Ace card for their power. Silver is a more usable and needed metal of the future therefore can be bartered for a more unleashed price.
We have just finished an abundant cycle, never in history has so much stuff been available, however this is not likely to continue. People are starting to realise they can' t rely on power being available indefeinatly, which makes digital money obsolete. Gold and silver will always be used as money, it will become fashionable again as soceity crumbles and digits become worthless.
a treasure chest will be a treasure chest as long as people have eyes too see..up or down prices don't matter..if silver is 50 buks a oz a big Mac is 40 usd ...we must make it in the fiat world or we will be robbing gold to pay Paul anyway..undoubtedly the societal value on pm will rise but again it doesn't matter the long game and consistency of the quality of your life is all that matters..
Open your eyes gold and silver are returning to money all over the non western world. The reason the current gold silver ratio is 90/1 is simple. Rich ppl don’t use electronic or fiat currency they use gold, because rich ppl know gold is money. The reason silver is so under valued is common ppl believe electronic and fiat currency are money. When common ppl realize fiat and electronic aren’t actually real money the ratio will return. Looking at the ruble gold backed, the Moscow metals exchange, the brics commodity currency. It’s not much longer.
who cares whether or not it goes back to historical ratio... the metals will still enjoy a meteoric rise in value in the coming several years (and very likely, months). I'd be just fine with 40:1 - especially when gold hits $8K+ where it should be.
I’m not really sure I follow your argument. You say silver is an industrial metal now (I agree), but that doesn’t negate the wealth storage aspect of silver. It’s still kept as bullion even though it’s used in industry. You also say that with digital money, there’s no need to trade or barter with silver as money. With that argument, there’s also no need to store physical gold, since you can just store digital money. But people and central banks around the world are storing physical gold. And the scenario where that physical gold becomes very nice to have, is the same scenario that makes physical silver very nice to have. And that scenario, depending on the severity, likely WOULD result in silver once again being used as money. I have an open mind, but with gold running up in price and silver staying relatively stagnant, there’s more and more talk about how this is the new normal and the ratio will never revert back to the mean. But any argument against reversion to the mean must explain the constant and large scale price manipulation of silver that has taken place for decades. If you argue that the price manipulation will never end, then fine, but that would mean the ratio will just get bigger and bigger over time. It will soon be 100, then 150, then 200, etc. That just doesn’t seem realistic. I believe that this price manipulation has caused silver to be astronomically undervalued. I also believe the manipulation cannot last forever. And I believe that when fiat currencies collapse (as all eventually do), then silver spot manipulation will be irrelevant because physical supply and demand will set the price, and that will put the ratio at about 20:1 or even 15:1.
I think the gold to silver ratio would be 50 ounces to one 50-1. A silver British Britannia is 2 pounds, a gold Brittania is 100 pounds. A silver eage is $1.00 , a gold eagle is $50.00 .
Maybe it won't hit historic ratios, but silver has real value and has been used more often than gold for money. We also have strong manufacturing needs for it. Some geologists predicted it might be the first thing on the period table to go extinct.
It's price will moon when investors lose their assign the stock market and bonds have negative yields. I'm gonna continue to buy.
Thanks for sharing your thoughts. I don't disagree with what you are saying
Someone is spreading false facts about silver going extinct, imagine false news in this day and age, lol. We have to be more critical where we are getting our facts from, especially the Trumptards🤪
The argument that we just “assign it” intrinsic value is crazy. You can’t pay workers in chickens, and you can’t trust bankers to stop printing fiat. If we can’t transact with a medium of exchange, the global population would shrink very considerably, very quickly, and in spectacularly horrible fashion
There’s only one answer.
For millennia PMs were money and only one human life ago they were the standard globally. For people to think it’s “crazy” to return to a gold standard is... well... kinda crazy!
Even though gold is down right now, because the gold to silver ratio is so high, I’m only buying silver right now (but only when I can find very low premiums). I don’t think it will ever get back down to 15:1, but believe it will get back to 40:1 someday.
Thanks for sharing. I would tend to agree with you and I also think that 40 or 50 to one is where it should be but only time will tell. Thanks for stopping by and watching!
One of the reasons many people are quietly quitting or not going back to work is because currencies and credit just doesn't excite them as much anymore - due to they're ability to purchase less and less. Everyone sees this and until a medium of exchange arrives that motivates people enough to pursue it, I agree the Gold/Silver ratio will not tighten. BUT - when it becomes noticeable that people using HARD currencies are accessing things easier, others will feel compelled to "acquire" those same metal means, and the draw on Physical will be swift & unrelenting. Add to that all those stuck in ETFS & paper contracts - choosing to stand for delivery instead holding, and have you a 5× increase in Spot-prices in a short period of time. Don't know a lot of people that'll purchase $8500 Gold but I know a LOT of people that will purchase $89 Silver.
And it is that affordability difference - per completed unit, that'll tighten the ratio imo.
Never say never. As fuel increases in price, how will it be mined at 20$ an ounce? Supply and demand will eventually be forced into a realty check. What a time to be alive 🍿
Crazy time to be alive for sure
I do think that silver prices will go back up. It is being used more and more in industry every year, and more and more people are stacking in large amounts. The demand will catch up. Silver will always have value and people will always want more.
Undoubtedly silver prices will go back up, but will gold stay steady or go down too?
@@BackyardBullion I think the ratio will settle in around 80 and hold
Silver unrated. Only reason it's down now because silver easy to manipulate. So it's down so people freak out and sell .
I agree Perth mint recently announced they had other record year of sales, last year.
Selling 26 billion worth of precious metals coins and bars.
That indicates strong demand.
Plus with the push to use more renewable energy that will dramatically increase in industrial demand.
@@handduggraverdronline I think silver is very much underrated, has much uses and very malleable.
Gold is Money By constitutional Definition in the United States Of America. Article 1, Section 10..... it's literally money by legal definition. LOL
Yeah, but its not in practice though is it
By legal definition alcohol was also in the constitution and was outlawed but times change 🤔🤔
And silver “no state…shall make any Thing but gold and silver Coin a Tender in Payment of Debts.”
Please come out of your cave … you apparently know nothing about the macro economic conditions we are currently in… gold may not become money but that has zero bearing on our current situation
@@BackyardBullion by me it is.
When gold and silver were monetary metals, 15 - 1 made sense, Now gold is regarded as treasure, or collateral.
Silver is now regarded as a commodity which can cost more or less depending on demand.
Silver and copper are more closely related now than silver used to be to gold.
When I see my silver, I don't see the need to accumilate more, unless a particularly beautiful design becomes available to me.
Gold on the other hand is treasure, and in my opinion, you cannot have too much treasure (unless your in a sinking ship).
Thanks for sharing, exactly 💯 agree
Well said,well said.
Ewwl gold sucks
For 6000 years gold and silver came out of the ground at 10 to 1, and both went into the vault. For the last 100 years gold continues to go into the vault, but silver has beencomming out of the vault going into the dump in non-recyclable products. Gold can still be found in streams, lakes and mines. Silver prospectors 100 years ago could enter the wilderness with a pick and shovel and fill his pockets. Today the shovel picks up several tons but extracts only the same pocket full of silver. New mines are not being found and developed. Oil price will make mining silver more expensive and impossible to extract. Using a pick and shovel will never return; so the question is how rare and valuable is it really? By the way the new mining ratio is 7 to 1.
We haven't even begun to understand the value of silver. It's natural properties are like no other metal. The problem in computing is removing heat. There is no better metal to transfer heat like silver. Even where water cooling is involved.
There is one thing you guarantee is that FIAT money will always devalue, whereas long term silver will hold its ground.
Broski, The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.
Silver will always be currency.
Ok, but it literally isn't right now, so what is it, currency or not?
Except that it’s not anymore. I mean, it’s verifiably not currently currency, which means it can’t “always be.” If you think it will again someday, that’s up for debate, but to say it “always will be” is just wrong.
@@trekkiejunk verifiably? Sooo why are countries still minting then as such? There is currency value on an American silver eagle and it cost more than your petrol dollar.
They mint commemorative collectables, not circulation gold and silver! So your argument has fallen down already!
@@BackyardBullion not really. It was a question and you answered it. So here I go to rebuttal.. Are Silver Eagle coins legal tender? The American Silver Eagle coin has a tender value of $1. It is possible to use this coin as legal tender, but because the value of the silver greatly exceeds the face value of the coin, this is not recommended... soooo what did we learn? It is currency
If the gold standard disapeared, or will disapear, I wonder why central banks around the world currenty keep buying tons of gold every month...
There is a difference between this and it being a currency again, you surely must understand this basic concept?
What about the BRICS commodity currency that Russia and China clearly intend to introduce? The top 3 commodities in this are gold, oil/gas and silver. So silver will be the backing for this commodity currency. It will likely be digitised and on the blockchain with gold and silver giving the the digits real value. We see high levels of inflation - this is destroying the credibility of fiat. There has been a massive expansion of the money supply - this inflation kills the currency and this is what we are seeing. Confidence is being lost. Kinesis has its KAU and KAG 1 to 1 gold / silver backed tokens - they can now be spent on a Mastercard debit card. i heard this week that the KAU is now recognised as legal tender in Indonesia and last week it started to be traded on the Jakata Futures Exchange. So this isn't a theoretical pipe dream. Gold and silver are becoming recognised as money again through the advent of the blockchain.
Well this is certainly coming true .. have you got next weeks lottery numbers
The ratio it is extracted from the Earth has never and will never change, just how it's Valued in Fiat currencies and history shows us all Fiat currencies go to zero.
Yes, then new fiat currencies will replace them, modern world demands it.
The only way we know what something is worth is through history. When fiat fails, and they all have failed given enough time, literally the only way to value anything is to go back to what came before being gold and silver. Currency has been around a long time, many have failed with the average lifespan being 120 years. When fiat fails it causes a massive upset, hyperinflation and panic. No one will trust the emergency procedures, be it CBDC’s or currency baskets with other countries. The problem nowadays is not one countries fiat losing value but all of them, meaning there will be no other currency to flee to. Governments don’t like a gold standard as it restricts the debt they can leave for their children to repay. But the people will vote and the masses will decide what they trust to save their wealth as. Countries are digging deeper into debt, printing the dollar until it collapses. America’s next round of printing will be 100 trillion and it won’t be enough. There’s no other way out of this system and when it breaks globally the public will force true money to come back. The new scams will be rejected, they only work when we trust them and people are going to be very doubtful soon. We only ever accepted fiat because it was once backed by gold. You have to revert back to basics to restore the trust again. Silvers ratio of 15 to 1 represents how common it is found and mined compared to gold, that seems a logical value. It may even go the other way as it’s rare to find a silver deposit, it’s mined as a byproduct of other metals which makes it hard to source if supply is strained. There aren’t big pure silver deposits left, price will have to improve or they won’t mine it making it rare. I easily see it getting back to 15 to 1 in the next decade.
Sounds like you read “The creature from Jekyll Island.”
@Chatsworth Osborne, Jr. well, we are a small community. Most ppl have never heard of it.
We are at a very interesting point in time, everything is currently being revalued. I am also revaluing my time and its value, when someone brings me a job do i value what they think they should be paying and offering me above spending more time with my family? Everybodys bills are being revalued, what is the new labour to energy ratio? we wont have a clue for some time. But you have to have and own something to benefit from any revaluing, i own skills that are valuable, i own tools and i own silver and all three of them will fluctuate in this volatile period.
Last week i carried out a major repair on a friends car, he bought all the parts needed and in return he took me for a night out, a curry and gave me a seriously nice bottle of whiskey, no money changed hands but my skills were valued and richly rewarded, value is relative and going forward silvers value will also be relative... to everything, to nothing, to whatever... we are creating new ratios, historical ones are gone, they were somebody elses truths. But going forward values are changing, if i had a mortgage would i value paying a massive increase in interest payments and working myself to death to afford the bills? Would i value a car that is not mine but paid for monthly for the sole purpose of getting somewhere i dont want to be to earn those payments? Are some assets really liabilities?
Sorry i do go on lol, but my point being as we enter this uncertain time where it seems all anyone out there has is debt, those with the nicest houses and nicest cars probably owe the money and are in debt for those "assets" and under pressure to increase payments towards maintaining their percieved status, a small drop in investments on stocks and shares, cryptos, bonds or savings to maintain lifestyles will cause a huge shift in what people value. So what assets would people like to have when everythings up in the air and who woud you even sell silver to if everyone out there cannot afford to maintain the life they had become accustomed to? But what will the silver rato be towards other items? If a car becomes an unafordabe liability and drowning in debt and just have to get rid quickly so your not paying HP/insurance/tax, old silver face here might be in a position to take advantage and i have something real in my possession to weather any storms of my own, the amount of gold i can swap my silver for will pail into insignificance at silvers real potential in a very real and true financial crisis for a significant percentage of the population.
Thanks for the epic read!
The natural ratio in the Earth’s crust is about 17.5 to 18 parts silver to 1 part gold. It maintained that basic ratio as a trading medium as well, for thousands of years, until like the last 100 years. The value as a trading medium will definitely return more towards the natural ratio, and its overwhelming usefulness as an industrial material makes it even more likely to go up. The only reason Palladium is trading at $2K right now and not $500 an Oz is directly related to its industrial uses in catalytic converters for cars. Once cars go electric Palladium will no longer be as needed industrially and the price will go down. To argue that silver will stay cheap because it will be more in demand as a manufacturing material going forward just doesn’t make sense.
Thanks for sharing!
I stack silver because I want to and I have most of my life. I have never sold any of my silver for less than I paid for it. Silver at this point in time is only coming out of the ground 7.4 ounces per 1 ounce of gold. At some point in the future the GSR will have to correct and when it does today's silver buyer's and holder's will be glad you bought silver when it was dirt cheap.
We will see, I don't think the ratio will drop to those levels but I also think there is room for silver to shine.
I finally dipped my toe into precious metals for the first time because of how cheap it is. That and I have zero faith in the Bank of England.
Gold and silver have intrinsic value and is a currency where bitcon is a brainwash
Yeah, totally agree
Are you working for the banks, shadow governments and the elites?
You rumbled me, yes I am a CIA Shill, makes total sense. Certainly more than me being a well grounded normal person rather than a conspiracy theory nutbag.
@@BackyardBullion wait, are you suggesting that anyone who even questions whether or not the various segments of the ruling class have been & still are colluding with one another in certain ways to oppress the common man while preserving and growing their power, wealth and control - is a nutbag?
Um, yeah. Basically.
@@BackyardBullion fascinating
What if gold drops down to even the ratio out? 🤔 The ratio is interesting but like you say doesn't apply very well to physical, particularly in the UK. I'm happier trying to preserve some purchasing power with gold personally especially when you consider premiums, costs and density of wealth 👍🏼
It may very well fall back down, but not lower than 50-1 in my opinion
I don't think any thing you say makes sense. Where the demand comes from does not matter. The below ground ratio is now 7 to 1 which means that earth is running out. The price ratio is above 90 to 1 which means it is extremely corruptly manipulated. The above ground ratio is not known, though some say it is 1 oz. of silver to 2.5 oz. of gold, which means silver is worth more than useless gold.
Bingo!pure manipulation.When this ends which is soon,silver WILL SOAR!
The earth is nowhere close to running out of silver, it is not a rare metal by any account. You say that silver might be worth more than gold? Are you smoking something crazy? Sounds it.
I do not have any confidence in our fiat currency and banking system, hence I stack precious metals to preserve wealth.
Just look at Zimbabwea, Argentina, Venezuela, need I say more?
Yeah, I get it but those countries are really not the same as the US $ or £ collapsing!
@@BackyardBullion I don’t live in the US/UK. Having said that, anything is possible. Look at what Trudeau did to the truck drivers.
You mean the whiny truck drivers who were pissed off for having to wear a mask and get vaccinated during a pandemic? Yeah, we got a bunch of weak snowflakes like that in the US as well, whining about how they are being oppressed for being asked to act responsibly during a global pandemic. Those right wing nuts are such fucking pussies.
Great and sobering video. I’ve only been collecting silver for 3 months. Seeing as I’ve been buying 1oz coins with a mark up of around 53% over spot price (exacerbated by VAT here in the UK) then the ratio would have to drop to around 60:1 before I could break even. I do love the feel and and look of the stuff though but for me it feels more of an indulgence rather than a shrewd money protecting decision at the moment. Hope I’m proved wrong.
Glad to hear you agree. Thanks for stopping by and watching!
Glad that you've got a level headed approach and are probably too Wiley to be suckered by the silver pumpers & grifters. Silver bullion is really no sort of investment & people can lose a lot of money on it if they get carried away. Premiums are always high but you can get around UK Vat on silver if you buy on the secondary market. More interesting though in my opinion is that bullion is often a gateway into the wonderful world of collecting and numismatics.
@@countryman5329 Thanks for the advice and tip. I was taking in by a couple of TH-cam videos that hinted silver prices might rise to a ridiculous $300 an oz. However I only have about 20oz so far. Is that the silver forum you’re talking about for 2nd hand bullion?
@@jacc88888 people get into silver for different reasons. I got into silver as a way to save money. I can sell my stack for a profit right now, but then again I started in 2018 and was excited about getting my first 10 ounces for around $143 and change
@@littleredpony6868 That’s good. I think there is much more potential for making some profit in the US as you don’t have 20% tax added to every silver purchase like here in the UK. I guess as the other comment mentioned - the 2nd hand market is probably the shrewdest way forward.
PS $14.30 per Oz was an amazing deal!
Great topic! I like the way you view silver. I'm heavy on gold right now for just the same reason, I believe in the bad bad situations that gold will remain king! Thanks for the video!
Yeah it's wild in 2020 that it hit 121 and it should have never ever gone above 30
It's a wild old rollercoaster for sure!
Cbdc may (if linked to scs carbon credits etc) drive a black market economy. Most likely means of exchange that is non digital is silver (and gold).
Maybe, but that's not the same as a return of gold and silver as money and as such will have limited impact
I came close to purchasing several gold coins when the price hit $1696 USD the other day. But I noticed that once the price went below $1700, the cost of the coins did not continue to fall. They stayed the same, or even went up a little. So as the price fell, the dealer increased their premiums. Is this normal? Would dealers ask much bigger premiums if the price falls to $1600 or $1500?
I witnessed this also
Yeah, the dealers wanted to protect their speculation on the stock they had purchased already. It's very common
My LCS didn't change their premiums on gold. I didn't check silver as the premiums for that metal are way out of whack.
It's a normal today. My coin guy a few weeks ago had dimes for 3buck. Went in yesterday he had them priced at 8 bucks now
Prices down - premiums up... to discorage the buyers from purchasing. This is the way the precious metals market always functioned. In essence, precious metals represent a real physical wealth and holders will not hand it to anyone easily. Once one parts with it, there is no ease way of getting it back. That's, in nutshell, how real wealth is accumilated, stored and retained.
I've always read (and agreed) that the price of gold and silver represents the cost of the equipment, energy, paperwork and the ingenuity to extract it out of difficult places that are normally hard to reach, along with "market forces" that would make all of that profitable. Here's one of my favorite quotes:
Gold is money. Everything else is credit - J. P. Morgan
EXACTLY...
Silver is credit, it's not a good metal to have when compared to gold. Period.
@@BackyardBullion Gold AND SILVER are MONETARY METALS and ALWAYS have been. The same advantages one gets from owning gold also come from owning silver. Gold is the money of banks (and King's) while silver is the money of the people. I'd submit that while the gold to silver ratio is above 90 ounces of silver per ounce of gold, SILVER is what the smart people that truly understand gold and silver are buying. When that ratio subsides then start buying more gold because it will be an advantageous time to do that. Anyway SILVER is not credit, isn't even close and NEVER has been!!
@@chuxtuff If you stack silver to trade for gold why not just buy gold?
I don't have any silver yet but if solar panel production increases every year as we get greener energy then there will be increased demand for silver in the years to come along with physical silver deposits declining.
Yeah, I think that will play a role, but it won't skyrocket silver by any means
I just realized why you feel the way you do. 5 years ago, you were clearly stating that you got into gold and silver as INVESTMENTS, with the expectation of ROI. That's the wrong way to approach the metals.
It is absolutely practical and possible to return to gold/silver backed currency, especially within a digital blockchain model.
This is next level stacking content. Enjoyed the historical/ mideval commentary on wealth and the fact that the world was very different when gold was money. Very interesting.
Thanks my friend, appreciate the feedback! Thanks for watching - which was your favorite bar?
Finally a TH-cam channel that brings some honesty. Wow! I’m so tired of hearing 1:15.
I wonder. They are finding more gold all the time. Also many Country's like India Russia and China are going to Gold backed currency. Will that affect the ratio?
Not really in my opinion
looks like wer'e in for a busy week, financial reset and new uses for silver...i think i'll take a few days off haha. great vid as always.
Ha, yeah busy week ahead!
I wonder what the worth of gold/silver would be in a world wide social credit system linked to carbon credits?
commodity backed CBDCs may have the ability to bring old school real money in to modern times
How? How will a digital dollar do this?
I’d be down with that as long as it wasn’t in the private hands of a few individuals
As silver is an industrial metal it is being "consumed". So supply and demand will continue to help maintain its value, and potential increase considerably over the long term. Also agree silver in circulation as currency is not likely.
Thanks for sharing your thoughts, good to hear you agree with commonsense
Fiat currency is in a Free-Fall right now. We WILL go back to a "Currency" that is both tangible and everybody knows it has innate and REAL value. Printing money will be out soon enough, Gold and Silver will be back in the limelight - due to their "Tangible and Historical Value"
No, it just won't ever happen, sorry!
7:03 yes! agree with you... well said. More so wealth protection than a new, old monetary system
Very interesting 75:1 excluding the premium
Tough old world, gold and silver have a role to play, how much is yet to be determined
I think you are partially right. However what’s different this time is digital and physical will be used together. It’s easy and it will work when shit hits the fan. Good luck!
love that merkur bank silver bar with the scales stamped into it
It's beautiful isn't it!
These premiums are out of control.
Sure are, crazy times!
Are you going to call this series Surprise Saturdays? I did not expect the video today but I am grateful!
So, totally honest I made a mistake with the scheduling and put it on the wrong day. Now the cats out the bag you guys can just enjoy it! Whoopsie!
@@BackyardBullion so tomorrow at noon, Eastern Standard time, I should watch this surprised? I will do my best 🙃🙃😁
Lol
Good video, BYB. 🤜🤛
thanks buddy. lots of crazies out in the comments though, think I touched a few nerves
I really thought because of how bad our economy is currently doing and how high things have gone up it would have made gold and silver go up
You would have thought!
It makes virtually no difference to international spot price what's going on in the UK, it's all about America and the value of the dollar. The US economy is comparatively healthy compared to most of Europe and Asia at this time and the greenback is flying backed by well-timed fed interest rate hikes.
All gold mined is still available where as a lot of silver has been used up. Silver mining is around 9 to golds 1 so it’s more than likely with the move towards EVs and batteries ect that gold silver will revert back to historical average’s
As countries continue to manipulate their currencies, we may one day see a global gold standard for international trade. Even if we saw something along those lines, I don't know if that would help silver or platinum out. That will probably require more industrial demand.
I just cannot see it. The world cannot cope with that kind of monetary restriction
Don't we do it with Bit Coin? Why can't we do it with gold?
@@BackyardBullion we had 3 industrial revolutions on a bimetallic standard, so the world certainly can cope. What you mean is world governments & investors will never voluntarily choose to return to gold & silver- unless they are forced to.
I disagree, this modern digital world with 8 billion people is very very different
@@BackyardBullion why does a digital world necessitate fiat currency & government control of monetary policy?
first time i see this...what is the silver premium exactly...20oz spare...what does then mean? spot vs physical delivery ?,
...it is money, its tangible. Digital economics means ever expanding inflation. It's an illusion.
Eventually the ratio will have to come back to 15:1 if not better. There's more gold out there then silver
No, it won't. There is no way this happens! Period.
I appreciate your comments but in the end found them lacking - lots of assertions and no supporting rational. Why will the ration not reach 15:1? Why would it take moving silver to circulating money to reach 15:1? I happen to agree and was looking for supporting evidence - but found none here...
dont be silly. gold and silver can't be rations, no one can eat them. sheesh! it is your comments that are lacking.
Platinum was supposed to be the big metal of the future 😞😞😞
Yeah, not any more!
Thanks for the videos BB, I'm really enjoying your content, especially as you're coming from a UK perspective. I am thinking of buying my first piece of silver for investment purposes, and am hoping to get near spot (£1-£2 over). I think this is an ok premium to pay as my time horizon is 10+ years. Do you agree with this rationale?
Yes, except for you buying at £1- £2 over spot! If you find a dealer selling that cheap let me know!
To clarify, the premium is a £1-£2 premium per oz. My strategy is to buy 1kg+ in one transaction to bring down the premium.
I defy your statement that we won't use gold or silver as money, because Currencies die.
If a currency is based on confidence, what happens when that confidence is shaken?
They say Cash is King, because you prefer to be paid cash than with a promise. But Metal has intrinsic value, and the most valuable metals condense the most intrinsic value in the smallest packages.
I don't believe society should ever go to a wholly electronic means of exchange, because of the abuses and technical problems associated with it. Money (physical, intrinsically valuable means of exchange) is too important, and precious metals are the most valuable form of money.
I say, it is in fact very foolish to abandon silver and gold as money
You honestly think we will go back to using physical silver and gold as physical coins fit every day walks of life? No, not a chance in a modern world.
@@BackyardBullion And what is your alternative? CBDC?
So you're saying that "this time is different"? I've heard that before.
Very informative, thank you. 👍
It's absolutely draining thinking how something like education could become so inflationary. The generation before me was paying 500 a year for college education. 🤔 And then you have health care and housing crises. The risk has grown higher and the upside has grown lower.
Another great video! Please more about how to play the ratios to make money. Please more
My antagonist response with respect if anyone is interested. Fiat Currency, yes it offers many exchange conveniences and can speed up trade etc. however it is anti-demand in nature. It skews true demand readings as a denomination. We are valuing everything in a currency that is overwhelmingly proven to not actually hold value over a static period of time. I see arguments shifting in the future on this. Generations past desired to see true demand and can only be closely done with the cheapest storage of value. There is nothing that is a perfect constant but gold is historically pretty close. The question is will we in the future value true demand reading, and also market stability. Might not be a bad thing. 🤠
The trouble with investing in an asset that is an industrial input is that these inputs have traditionally decreased in value as their demand has increased. I believe the best example is oil. As refining and manufacturing improve, the production process becomes cheaper. Industrial inputs become cheaper, not more expensive over time. The supply of (mined) silver is not fixed. Our earth is tremendously generous and people are quite industrious.
Oil was only $2.91 to $3.32 per barrel in the 1960’s. As they produced more through better methods the price actually went up instead of down. They produced more at a cheaper price, yet they were able to sell for more and more money. That’s why the oil rich nations were some of the wealthiest nations in the world per capita. Silver prices have gone up because it got harder and more expensive to mine and will continue to go up in value the more difficult it is to get out of the ground. And at the low cost it’s not worth the risk to keep trying to find more. Oil keeps going higher in value which encourages more production and risk taking.
Where character is measured in carats. 110 years ago the typical individual probably exercised personal responsibility as a rule.
Thanks for sharing!
Those deceased lived in a world built on and demanding of refinement of character. Where there is a measure of gold in every heart and the heat and pressure of the day can be applied in order to refine that gold.
Silver most conductive & reflective metal on earth! The best heat transfer metal also! Age of batteries, robots and space ships are upon us! I'd expect silver to be valued more than gold!
i thought the brics countries worked on some cbdc backed by precious metals , oil, gas and other ressources
This won't change the gold and silver ratio
That's what gold and silver is now, an asset/commodity. You can always trade it in or sell it for currency. Nixon officially cut all ties to gold being money back in 1971, and then it became a valuable commodity. Then the free market decided what the value of gold was, it went from $35 to $700 in the 1970s. That is the power of gold.
$100 in 1964 and earlier US silver quarters, dimes and halves buys over $2,000 worth of goods today but $100 bill from 1964 buys $100 worth of goods today.
Invest $100 in the stock market in 1964 and that $100 is worth way more than gold and silver today. Just saying.
@@BackyardBullion Well we agree that the unpacked creation of money and credit by the central banks greatly devalues the currency.
Totally
I'm focused on platinum and gold. I love silver too, but I don't own any. Unless you've BEEN stacking silver, I don't see the point in starting now. But I will buy some silver maples and have them melted down to make a nice cuban link and medallion piece 😉
It certainly could go to 50 or 60 to 1 after the stock market crashes.
Time will tell
Hmmm... human nature to think something will never return to value when prices are down.. smart investors know this the time to buy!
What if you are wrong, have you considered this?
What if I'm right?
Well, you are not and won't be either. Just saying there is a 0.001% chance of something happening doesn't make you right until proven wrong. The opposite applies, sorry!
I like collecting sets of coins, as these coins go up in value as they get older.
As well as making stacking silver more enjoyable.
I see it as each way bet as you not just relying on silver going up in value.
Some of these coins are already worth good money.
For example 1997 British Brittanna coin as it was only available in proof version and very low numbers.
But I bet it will be worth a lot more in 20 years for example.
Thanks for stopping by and watching and sharing your thoughts!
Hi, today is December 4th 2022 and I am in Australia just a few observations on “collectible silver coins” our government mint has been pumping out commemorative silver coins, coin sets etc for decades, these are usually in sterling silver at .925 or fine silver at 99.9 or .999
As with all commemorative things they are way overproduced and overpriced on release so very few ever go up in value and they are really only worth a bit over spot unless you find a “sucker”.
As an example a 1 oz Brittanica, maple or krugerrand is currently around $45 to $60 Australian from bullion dealers (dearer on eBay) American Eagles though are crazy usually $60 to $70 dollars Au this is with the spot price at only $34.60 Au today.
Like most stackers I have kilo bars. 500 gram bars, 10 oz bars but with smaller then 10 oz I used to buy rounds, I would have a few hundred or different sorts but for the last couple of year I have been buying older Australian government mint coin sets, I only buy the 4 or bigger sets as there the best value and these are all legal tender coins in denominations of $5 - $10 and $25 and as mentioned either ,925 sterling silver or 99.9: or .999 fine silver.
I never buy sets unless the coins contain a minimum of 1 oz of silver and I purchased on eBay today ( auctions) 3 different mint sets of 4 coins each, all coins where .925 and weighed 36 + grams and each coin ended up owing me $42 Au a coin with postage.
The coins are all in mint issued cases in acrylic capsules with authenticity documents etc,
I now have several hundred of all different sorts and they are all from around the early 80’s to early 2000 year dates, I do have multiple sets of some as some designs I really like but these coins are all themed coins or restrikes of coins from early 1910 to 1960 when our currency was in pounds, so even though overproduced they are still relatively very small production numbers as they where never ia design in circulation.
I’m actually now deciding wether to bust out some and “tarnish” them to give some more character.
To me they are good value but still just bullion in the long run.
So I don’t know about other countries but to me “collector” mint issued silver coins are a bad investment when released but great value when they go down to lower then generic bullion coins.
Another awesome video
Thanks, but have you seen how many crazies are commenting on my video!?
Never say never, it will correct someday. We are in a different society, one that will be dissolved and the metals will be left.
You have good take on the subject. I’m listening sir, ty!!
I just want to give my very simple & humble opinion…Silver & God are God’s money, in that, it means probably more than I can comprehend.
Have a great day, I appreciate ya!
Why do UK bullion stores not pay premiums on 1 gram gold bars and certain coins when you sell them like they do in the US?
Because they are there to make as much money as they can. They buy from you for spot then sell it with +£15 on top for their own pockets.
Even if you look at websites they have this thing called a spread, that's how much they're willing to pay and how much they are willing to sell, because all businesses need to make profit so that they can remain in business, especially if somebody has to pay property taxes or rent in those will fluctuate in price because of politics
@@drip369 I get that they need to make profit and have expenses but gold and silver stores in America pay premiums on top of spot price for certain bars and coins, which in the UK they don't they just pay 97% of spot no matter what it is
Yeah, it's because there are very few dealers in the UK so there are no competition for the seller to seek out and get the best deal.
@@BackyardBullion I thought that was it I guess there generous in America I've seen videos where they pay spot plus 5 dollars for 1 gram bars but here they just pay 97% of spot for anything. So it it best to sell privately unless your desperate and need it ASAP?
The thing nobody talks about what if gold is over inflated and comes down to the ratio to silver
Could happen.
Technically we are all still on a gold and silver standard. Anyone in the world can exchange their local currency for either metal. In a way, currencies are just gold and silver substitutes.
I think finding more silver uses is likely to happen in industry in the future, and that would be great, but even more silver substitutes will be found, what does one think ? anybody.
Well, the nutbag conspiracy theory tinfoil hat brigade will likely have a lot to say about it, that's for sure.
Never say never.
Yeah, but this is never 😃👍
I get your point and you're probably right in the west but the east thinks differently
There are kiosks in public stores in Singapore but I think we will see the value skyrocket after the smoke clears
Never seen any one else with those star metals antique 10.43 ounce bars. I have 2. Do you remember what you paid for the premium?
I bought it from ebay like 5 years ago and paid maybe 10% over spot
@@BackyardBullion cool! I was just wondering. When I first saw mine in the lcs it had a spot plus $100. After it not being sold for a while I got it for significantly less. Probably about 10% also. Thanks for the response. Love the info in the videos. Keep up the good work!!
it will go back to the mean of 40-60: 1
Never say never.... I remember in the early 2000s when there was chit-chat to reclassify silver to a base metal.
My Cuban friend said plata means not just silver but money in Cuba
Last year I've completely severed my 20 year relationship with silver to capture the exorbitant premiums. Most of the proceeds have been allocated to platinum. Gold remains the bulk of my pm portfolio.
Cheers everyone
Amazing, great to hear. You sound like a smart chap!
But Thomas, platinum premiums are just as bad, are they not?
@@BackyardBullion Thank you!! Now that's I've sold you can expect silver to go over $100 😂
@@Marriage1stGod not nearly as bad as silver. You do recapture the premium on the sale side too from my experience
I feel that silver is being held back the big tech industries and banks know how useful it is and is becoming, so to avoid people buying in huge volumes they keep it looking as an un important commodity, however I also believe that gold will be a great safety measure against the current and future inflation rates at least and a good long term investment as best. Best wishes 👍🏽😎
When the world announced the creation of automobiles, people back then still think that bull carts and horse carriage will still be the main transportation.
I mean, this analogy proves we cannot be stuck in the past and we will not regress back to archaic ways of doing things. The gold standard is a prime example of an archaic system.
@@BackyardBullion do you think cbdc will be back ed by gold?
No, of course not
PM's are valued for many reasons art, household items and jewelry not even factoring increased industrial and medical uses. As long as population continues to grow so will the value. That being said what if for some unforeseen reason say 1/3 of the World population dies of suddenly that might be a problem.
Thanks for sharing your thoughts!
Gold and silver have value not because a person says it has value but because you do a lot with these metals! By the way these metals maintain their value!
You sound a lot like somebody that can be swindled with a "crypto currency", Young and believing "New is better" The ONLY value in digital ones and zeroes is their utility, if they don't do anything: ZERO value.
I believe that silver will one day separate from gold because gold is mostly a banks Ace card for their power. Silver is a more usable and needed metal of the future therefore can be bartered for a more unleashed price.
I'd said we the word should go back when the oldest use silver and gold as a real money. 💪💪💪💪
Just can't see that happening
We have just finished an abundant cycle, never in history has so much stuff been available, however this is not likely to continue. People are starting to realise they can' t rely on power being available indefeinatly, which makes digital money obsolete. Gold and silver will always be used as money, it will become fashionable again as soceity crumbles and digits become worthless.
Thanks for sharing. I don't think this will happen, it's just not how the world works.
It's not about where it's been. It's about where it is now and where it's going. I'm buying more silver than gold, but I like both.
In Nature, that is metal in the ground silver is 17 to 1.
Means nothing in a modern market built on speculation of what will or could be mined
a treasure chest will be a treasure chest as long as people have eyes too see..up or down prices don't matter..if silver is 50 buks a oz a big Mac is 40 usd ...we must make it in the fiat world or we will be robbing gold to pay Paul anyway..undoubtedly the societal value on pm will rise but again it doesn't matter the long game and consistency of the quality of your life is all that matters..
Thanks for your comment!
We can hypontificate about the future, present and past... but at the end of the day - NO ONE REALLY KNOWS.
No, nobody knows the future.
Open your eyes gold and silver are returning to money all over the non western world. The reason the current gold silver ratio is 90/1 is simple. Rich ppl don’t use electronic or fiat currency they use gold, because rich ppl know gold is money. The reason silver is so under valued is common ppl believe electronic and fiat currency are money. When common ppl realize fiat and electronic aren’t actually real money the ratio will return. Looking at the ruble gold backed, the Moscow metals exchange, the brics commodity currency. It’s not much longer.
Yeah, not going to happen. Modern world and you think people are going to lug around gold and silver coins to pay for every day things? Just no.
Silver is going below $10
and yet, still, no one will sell an ounce in any form for less than $22
I don't think it will go that low
15:1 wait til 1-1 how much silver is consumed vs gold?
who cares whether or not it goes back to historical ratio... the metals will still enjoy a meteoric rise in value in the coming several years (and very likely, months). I'd be just fine with 40:1 - especially when gold hits $8K+ where it should be.
Yeah, that is possible but unlikely
I’m not really sure I follow your argument. You say silver is an industrial metal now (I agree), but that doesn’t negate the wealth storage aspect of silver. It’s still kept as bullion even though it’s used in industry.
You also say that with digital money, there’s no need to trade or barter with silver as money. With that argument, there’s also no need to store physical gold, since you can just store digital money. But people and central banks around the world are storing physical gold.
And the scenario where that physical gold becomes very nice to have, is the same scenario that makes physical silver very nice to have. And that scenario, depending on the severity, likely WOULD result in silver once again being used as money.
I have an open mind, but with gold running up in price and silver staying relatively stagnant, there’s more and more talk about how this is the new normal and the ratio will never revert back to the mean. But any argument against reversion to the mean must explain the constant and large scale price manipulation of silver that has taken place for decades.
If you argue that the price manipulation will never end, then fine, but that would mean the ratio will just get bigger and bigger over time. It will soon be 100, then 150, then 200, etc. That just doesn’t seem realistic.
I believe that this price manipulation has caused silver to be astronomically undervalued. I also believe the manipulation cannot last forever. And I believe that when fiat currencies collapse (as all eventually do), then silver spot manipulation will be irrelevant because physical supply and demand will set the price, and that will put the ratio at about 20:1 or even 15:1.
I think the gold to silver ratio would be 50 ounces to one 50-1. A silver British Britannia is 2 pounds, a gold Brittania is 100 pounds. A silver eage is $1.00 , a gold eagle is $50.00 .
I look at silver and gold as wealth preservation.
They are exactly that.