belated HB Si
Random sustained thought:
- Silver / Gold ratio recently hit a 5,000 year high ~130:1... a 5,000 year high!
- Gold is ~$1,750/oz and <$100 USD from all time high. Price is suppressed by COMEX markets
- Silver currently at $17/oz
- Conservative targets put gold at $5,000 in the event of a dollar collapse / inflation event
- Historic normal for Silver / Gold ratio is 15:1, but that may not apply anymore due to industrial usage, that silver is a byproduct of mining Gold / Tin / Copper, and that very few mining companies dig a hole specifically to mine silver.
- Miners may begin mining for silver specifically if the price were to rise, as it currently stands it is perhaps only profitable to mine Copper / Gold and hope some silver turns up.
- Gold @ $5,000 with a Silver / Gold ratio of 15:1.. Silver is a slingshot to price targets well above $100/oz
- However, Rick Rule believes Silver / Gold ratio is just an measure of people's emotion and sentiment.
Why would people buy Gold / Silver?
- Dollar purchasing power is under direct attack
- Almost every financial advisor and hedge fund puts at least 10% gold in their portfolios, which is very different from 5 years ago when it was typically 0%.
- Stock market goes up and down based on news headlines alone. Fundamentals are gone. How long can the good news keep people's spirits up?
- 14 year olds have stopped playing Fortnight and are trading stonks through Robinhood. Their hypeman / ringleader is a guy called Davey Day Trader, who picks stocks by pulling random letters out of a scrabble bag. "Stocks only go up!"
- US FED practically doubled the available USD liquidity in the last 2 months. Some days it created $1 trillion in a single day, but settled at $100 billion per day.
- They don't even try to call it QE or hide it behind fancy names. Stock markets going down means elite rich people feel sad, FED wants to make rich people feel happy and has stated their unending, infinite ability to cheer them up (money printer go BRRRRR).
- 60 minutes interview has US FED admitting that they generate new money simply by entering a new number in a computer.
- Rich people happier while poor people get sadder and angrier is the largest wealth gap we'll probably see in our lifetimes.
- The longer this goes on, the less confidence there is in government issued money, the more people realise this is an everything bubble.
Silver Bullion: The Best 5 Year Investment
https://www.youtube.com/watch?v=9RNDc8_uMDQ
Crypto, Bitcoin, Ethereum, Gold & The Dollar, Forthcoming Moves
Silver / Gold ratio analysis
https://youtu.be/qSrzlVGRHCE?t=1922
Rick Rule on Gold / Silver setting the table commodities
https://youtu.be/55z7J1V4BTU?t=1288