The problem we have today is the water hasn't been found and the crop for coconuts is diminishing.

Currently, in Venezuela, 1oz of Silver buys them 38 days of nutritious food, for 5 people.

Keith Neumeyer of First Majestic Silver says that silver is coming out of the ground at a rate of 8 ounces for every 1 ounce of gold.

Hey Joe, another diminishing supply theory for Silver is that it's been used so much in making electronics and whatnot, but not being recycled back. All that silver used is just gone into trash, not returning to supply. It's ever diminishing. Gold however has mostly been recyclable and available. Its not worth it to fetch all the Silver out of all the electronics is was used in. Maybe one day.....

If we were to divide up all the above ground gold at this current moment each person on the entire planet would get about 3/4 of one ounce. There's just not enough to go around. Silver is much more rare and it is consumed in over 2000 different products. Silver is the money of gentleman and it always will be. Just my thoughts.

This logic assumes silver is not manipulated.

The metals are money, the rest are digital illusions of wealth in a Nintendo banking system

I discovered you about a month ago and am loving the way you break down these concepts and explain things in very simple easy to understand examples.

Joe, honestly (putting the foil hat aside) I believe a lot of people are looking into Many things in regards to silver...how many ounces have been dumped on the paper market the last 3 record days? This is getting Crazy!

I think you're answering yourself and the video without noticing it but right now the silver price is not determined by the free market. it's determined by special interests… so we need to ignore the current silver to gold ratio, according to you.

I’ve actually wondered about this for a while. Thanks for sharing

I've been stacking silver for about ten years now, and I've always seen the GSR argument as less compelling (for the exact reasons outlined in this video) than the tightening stock to flow ratio. I just like silver and see a higher silver price as necessary for further technological development that is clearly inevitable. Edit: lost everything in a tragic boating accident.

Who are you trying to con, what your saying, you could do with silver especially if the price went up, it's used in medical applications and so many other things, it's rarer than gold, because it's used up more, silver is the most undervalued asset on the face of this earth, you really need to do more research sorry.

The UK gold sovereign is a coin that was created to be equivalent in value to the pound sterling. The silver gold ratio indicated is about 48 : 1. This was maintained for almost 100 years from 1817 to the First World War.

Article I Section 10: No State shall coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of debts. 371.25 grains of pure silver = one REAL Dollar.

Silver has way more industrial utility than gold that's why I only own the silver 👌

Love ur vids man. Thanks as always!

My first time to view one of your videos. Well done. The information was valuable and your presentation of it was superb.

Joe, you make some VERY GOOD points. I would like to mention a couple of issues that I believe make silver largely underpriced still. Of course, these issues are all fairly debated, with room for different opinions, since the current market system is poorly regulated, NEVER truly AUDITED, and opaque at best, and the prices of both gold and silver have been severely manipulated downward by bullion bankers and financial elites who literally despise the middle class, the US Constitution, Freedom of Speech, Free Markets, the idea of government By and For the People - stuff like that. Anyway, my points: 1) silver is now being mined at a ratio of around 8 or 9 ounces per ounce of gold - historically a very low proportion. 2) unlike gold, ~40% of all new silver that is mined is *consumed* into products that make it either impossible to recycle (e.g., medical products) or very costly to recycle (e.g., electronic circuitry). 3) because of the downward price manipulations, the exploration and development required to continue current production levels from mines is significantly behind previous industrial cycles (it’s literally an approx. 30-year cycle of prices rising for long enough to encourage the expl. & dev. needed to maintain a given level of consumption. 4) this status of coming from behind in the current cycle comes at the same time that governments and manufacturers are gearing up for increased production of solar panels and EV’s. (EV’s use about a 2x factor of silver compared to conventional.) 5) with 800,000 people per week across Africa and Asia moving out of subsistence farming villages and nearer to the cities, and working jobs, the number of electronic devices is going to remain on the rise for a long time. 6) on the other hand, we do get better every year at reducing the size of electronic control circuits and applying thinner coatings on solar panels, etc.

I consider flipping my silver flipping to Gold once the ratio comes close to 20:1

According to the CRC tables, the ratio of silver to gold available in the Earth's crust is 18.75.

You do an excellent job of articulating and explaining economics.

What do you think about physical silver being used as a currency in the near future? This could happen in the case of inflation run amok. Or if they roll out a central bank digital currency, silver could be a great way to do transactions without being tracked.

Good timing! Thanks!

Clicked like before hearing. Your call on GBTC was right. Though will go up long term without the excess premium to BTC.

Get explanation. Awesome vids man... Thanks for your time you put into the videos.

Mining at the time is currently at 8-1. Silver is the most undervalued asset on the planet. Silver has MANY more uses than Gold as an industrial commodity. I’m thinking you must work for J.P.Morgan

I've learned quite a bit watching this channel 💰

Looking at an online dealers price, here in the UK, for 1oz of each the physical purchasing ratio is about 1 to 52. That’s including premiums on both and not including VAT @20% obviously. Edit: That’s dealers price. Private sales here make it a much lower ratio right now. Private sales are a ratio of around 1 to 33-40 on average. Paper spot prices are way off.

If you wanted to obtain more gold, would you buy it straight out OR trade some silver for it? If you would, please detail at what point (ratio, price etc) would you trade?

What are the key take always here. This subject of bent bankers controlling the SIV SIL contract pretty much hammered. Know it’s 200 times oversold to physical , paper to physical

Great explanation!

"Glint", "Kinesis" Where you can spend your gold with a debit card LOL. Just signed up for both.

This guy is missing a lot ... one key point is that silver has technological uses as well... and if the dollar is devalued, and God forbid the lights go out ... physical metals could be the only useful currency

Awesome video!

My confidence took a little hit Joe... I don't know what to think anymore, some pros say one thing & others another thing, I have heard everything from silver going nowhere to more than gold & everything in between... Only 1 thing is for sure, Wallstreet...

Now add the Fiat printing from thin air from EVERY country from around the world vs the relationship to the fiat exchange rate to Silver price

Are you serious suggesting that a new element has been developed that can replace silver? The ratio will go to 1:1 if human society continues to have high technology. Get ready for $1,000 Silver

Good point, which brings us to the next point: "Is gold still relevant at all in times of crypto?" Since the same thing that made silver irrelevant, perhaps make gold irrelevant. The monetary irrelevance of silver still hinges on the integrity of the gold warehouse book keeper of the digital ledger. If the warehouse is cheating, silver would become relevant again.

Great research, Joe.

The market price of silver was about 16:1 which was why the government chose that ratio. Also, the amount of silver to gold mined is about 8:1, which is very bullish for silver. As for digital banking, silver and gold can still be held at the bank with accounts drawn on these metals using bank cards.

Could you bring up 50 year Barron’s gold mining index and have a discussions?

Silver became low in demand due to being supplanted by fiat currency. If fiat currency crashes in value, then silver will become useful, and in demand again.

Insightful. Thanks

Thanks for this

Today I am seeing a ratio 83 to 1 and I’m seeing a really surprisingly good deal for a quarter ounce gold Britannia 2023 for the price of $497 at SDB

Coconut water is a diuretic and would cause dehydration if it's the sole source of fluids

I look at the 3 way ratio, Bitcoin to Gold to Silver.. Its kind of obvious both metals are losing monetary premium relative to btc and silver will likely lose all of it's monetary premium in our lifetime.

Yes but silver has a lot more utility. Silver has industrials use as well!

Personally, I use Lyn Alden's gauge to determine the fair value of gold: comparing the development of the amount of M2 money stock per capita to the development of the price of gold (as the amount of gold per capita is relatively stable at around 1 oz per person on earth), indexed at 1995. To determine the fair value of silver I then divide the fair value of gold by the 20-year average gold-to-silver ratio. That average is indeed rising slowly, but when you use a certain margin of safety it can be traded well.

Is it a sensible strategy to figure out the cost of silver (or gold) to pull out of the ground and then factor in some type of mark up that could represent a manufacturers cost? Meaning...if it only cost 8 dollars an ounce to pull the stuff out of the ground....what makes anybody think that it could realistically be worth more than...$15 to a manufacturer i.e. ..the real price of the metal

Ancient Egyptian’s had it to a one to one ratio where it should be.

Good thinking.

There are currently about 166.606 tonnes of above-ground gold stockpiles, this is enough to cover about 43 years of demand. Silver only has enough above-ground stockpiles to cover demand for just over two months.

If we only buy , demand ,and use gold and silver on a daily basis, there's was no way they can keep manipulate gold and silver.

I love what you do bro

You know, I can appreciate this. Silver is the Dark Horse play. It is. It's wisdom to know that. I can't see silver being worth more than the 15 ratio. I.e. that's the top. So buy it yes, gold... Buy it ...yes. NEVER SELL for anything but house, car, medical emergency.

so Joe from what You have said all we need is amazon fractional reserve bank infinite number of dollars or some crypto garbage and we can let the fed continue on, Gold/silver is just another flash from the past

But what about technology impacts of the future? I wonder how much of an impact this will have. Seems silver might have a more promising future from an industrial standpoint than gold? Not sure if this has ever been the case so much looking back. Just a thought.

According to the USGS there are 1,740,000 tons of silver deposits identified in the world , there are 187,000 tons of gold deposits identified in the world, (less than a 10-1 ratio). The comment in this video that we keep finding new deposits of silver and the implication that we don't keep finding gold is flat out wrong, the long term gold to silver ratio still generally holds with regards to identified deposits, and the mining ratio remains around 8 to 1. Furthermore there was an implication that the gold silver ratio has been slowly growing over time. That also is flat out wrong. The gold silver ration has generally been around 15 for over 5000 years. Admittedly much of that was legally pegged, however the argument that the legal peg in the coconut/fish example portrayed is incorrect because there would have been all types of arbitrage going on between various countries that would keep the value largely within the range of the mined ore. The gold to silver ratio only started to differ drastically from it's long term value of 15-20 around 1900 exacerbated by the Weimar Republic going into hyperinflation. Lastly, silver is considerably more difficult to process than gold as it is often encapsulated in silver chloride or silver sulfide and must go through considerable work to convert it into pure silver If it's not obvious, I believe we will see a return to a ratio in the neighborhood of 20 to 1 if we see an extreme inflationary scenario (likely).

Would you give your opinion and insight about whether we should as a nation bail out the state of Illinois?

Well things will change in how we're using silver in the next 3 months to 3 years. In my line of work Renewal energy mostly solar panels, silver is one of the main components to collect energy. Nonetheless, if your only investing in gold and silver, my opinion is also look at other assets to own.

You remind me of my econ buddies who I would cram with 2 hours before a midterm.

First Majestic Silver CEO said Silver was coming out the ground less than 10:1 vs Gold, I think it was 8:1. Silver is consumed more than Gold so I don't get the logic of shouldn't be lower than 20:1. Demand will increase for Silver with Teslas and the big green push.

I would encourage you to research GoldBacks out of Utah. And read some of Ted Baxters articles on silver.

After watching this episode it means that gold is also undervalued by a lot. In 1915 1oz of silver would be worth $304 a oz not including the trillions that were recently printed.

After silver was demonitized and the industrial revolution started. The gold to silver ratio spent a good period of time at 1:55.

Your premise is correct as long as you continue within the digital banking route. One reason people love silver to to have actual money in their grasp, and that precludes having digital records that can be monitored, manipulated or zero'd out due to some third party and their whims. I don't really care about the GSR, I just want some real money as back up for when the current crop of 'leaders' make their inevitable hash of our system and we need to begin again.

I think the problem is there 187 paper silver for every ACTUAL oz of silver. Meaning the price of silver is artificially low because of all the paper silver on the market. If people began to "cash in" their paper silver, they will find that 99% of there paper silver contracts are worthless. WAAAAAY more silver is being traded around, except the silver doesn't actually exist.

I think that you are completely discounting consumption. Gold has always had a price high enough that it made sense to recycle the little bit that is used in industry. However silver is consumed and the price has been held down long enough that new deposits are not economic to develop and the small amounts that are used in industry are not economic to recycle. Thus a huge distortion. There is far more gold on the surface of the planet then there is silver investment grade. And like someone else mentioned below. The vast quantity of paper silver that has been dumped on the market (billions of ounces) in the last few days is highly indicative of shit hitting the fan and people trying to cover their tracks.

If there is anything undervalued out there, it would definitely be your channel 🤙🏻 keep it up

Fact is, it has been so long since commodities have gone up, there are very few investors alive who know what the situation looks like when they do go up. And that is, they don't need a rationale to go up, just that they are in limited supply. As opposed to paper currency, which has no limits on its supply.

And a year later silver to gold ratio is 81.79 to 1

I was all ready to argue with you but you made an interesting point with is 'silver needed for monetary purposes'. Now honestly I don't know. My gut tells me you are wrong but I don't have a cogent argument so I will keep your thoughts swirling in the back of my head. I think, but really don't know, that you too easily dismissed historic (and mining) ratios. Additionally, does one really need gold. Isn't any scheme that is simply warehouse credits swapped back and forth just as capable with platinum or palladium or copper? Beyond that I follow technical analysis because perhaps it is an insight, in visual form, into human nature in markets. I also follow it because even if it's hooey a lot of people follow it. So to the 15/1 ratio thesis - a lot of people follow it. Again thanks for a good thought exercise.

Oz of silver cost the same as a pizza

What about industrial use for silver? I hear it is vast compared to the silver being mined and should for that reason push up the silver price

I wouldn't put much weight behind the ratio but supply and demand is a different story. Gold doesn't have much demand beyond investment and jewellery, silver on the other hand is seeing increased use in almost every sector its used in and virtually none of it is recycled. Factor in the amount of either metal in the ground and I can see room for big moves for silver in the future

Some states charge sales tax on metals. Is there a way around that?

Solar panels, electric vehicles and general electronics are 3 great reasons to hold silver in 2020 and now 2021. I appreciate your outlook however.

I'll trade you 75 IOU coconuts with these pieces of paper for 1 fish?

That point was fire 🔥

The price to produce silver has gone down the past year, the cost of producing gold has gone up. Measured in Energy the gold and silver ratio is right.

I’m LEARNING HERE!!!!

Goldback notes do exactly what you are talking about.

It's not a matter of finding a new deposit, it's a matter of being willing to exploit a deposit in the first place. Most gold and silver mines aren't gold and silver mines, they're copper mines, or uranium mines or mines of some other resource. Gold and silver tend to be byproducts of mines that mainly mine something else. The abundance of copper silver and gold in the crust can give us the actual ratios that should exists between these metal. But abundance doesn't really matter, what matter is exploitation and ease of access. The copper to silver ration is anywhere between the high 700 to the almost 1000:1. The price of copper compared to the price of silver is around 100:1. Sometimes as low as the mid 70's to 1, sometimes over 100:1. Same with gold, the silver to gold ratio is around 26:1. But in order for that ratio to be real you need to exploit all the silver and all the gold in the crust and the truth is most of it is not worth exploiting. You need to remember that there was a time when aluminum, one of the most abundant elements on the planet was more expensive then silver. Aluminum is literally more abundant than iron on earth. But it's a lot harder to get aluminium out of the soil than there is melting iron ore. As a result aluminium is stil more expensive then iron to this day. The silver-gold ration has always been manipulated and it still is. As for us not knowing when the ratio changed historically, that's actually a lie. More then once the ratio changed so quickly that new coins were almost immediately revalued. A good example is the British guinea. It was developed by Newton - yes, Issac Newton - when he was master of the mint as a new gold coin to replace the old one, it was supposed to be 1 gold guinea to 20 silver pounds, but not a year after it was first minted it had to be revalued at a 1:21 ration. So yeah, historically people were aware of when the price of gold or silver changed and bad money drove away good money. But what was good and what was bad depended on the ratio at the time.

silver is getting scarce as we use it up because of low manipulated prices. Mines have to go deeper nowadays and new discoveries are hard to find. In a couple of decades we have to mine it on the moon where its recently found, thus giving the phrase "to the moon" of the kids a new meaning

There is at least one possibility in which silver can eclipse gold in value for a ratio of 1:1 or even better. Gold and fiat based financial assets are already heavily held and controlled by banks and governments. These entities have very little silver and crypto exposure. Any commodity can be monetized or demonetized. The people at large can strategically seize power from the banks and government simply by adopting silver and crypto as money while simultaneously rejecting gold and fiat. The people at large are responsible for assigning value to money because they are the ones who use it most. If people willfully reject fiat and gold, then these assets that previously had value will become useless or at least much less valuable. Silver and crypto are the peoples money. Also, the argument on why silver is no longer needed as a result of digital banking is solid. But another important factor is who already possesses each metal. For example, Canada sold off all their gold, so if they were to adopt a gold based currency they would be poor. They would be better off adopting silver because it is easier to build reserves. All their digital accounting would apply to silver. Then all countries could either demand gold or silver for payments to create a system of checks and balances to enable better self regulation of international trade as well as their own reserves. A country with too much silver could demand gold in exchange for exports and decide to only pay in silver for imports. This will enable them to manage their own reserves. Otherwise a monometal global economy would mean those with the most metal will hold all the financial power. The second metal enables other countries to ‘demonetize’ the one metal by demanding usage of the other, which is a way to put that power in check.

There is more industrial use cases for silver then gold especially with EVs. Supply and demand. Personally I'm still buying silver over gold

Great video as always. From the perspective of industrial applications, my counterargument is that silver has a larger role to play than Gold. Wouldn't it then be possible for Silver to even become more valuable than Gold?

My ratio is 1 gold eagle divided by silver eagles.

I think even if the market been down it all about investing the more

His logic would put the GSR at 8 to 1. Because that is the amount coming out of the ground

It is also possible to argue why the GSR should be even lower than the hystorical 15 or 16. Both gold and silver are perfect money. The mining ratio is currently under 10, so probably GSR should also be under 10. If we look at the amount of metal available, the amount of silver is probably also less than 10 times the amount of gold. This would also support a low GSR. If people put the same amount of currency into silver as gold, silver's value will increase much faster because the value of the available metal is much lower now. And if people see that silver is going up faster, that is a reason to put money into it. Personally, I expect the GSR to go below 20 in a serious bull market. The bull market in 2011 was nothing compared to what will happen if and when the dollar and euro collapses. I think it will be 1980 on steroids. I would be shocked, but not surprised if GSR went significantly below 10. Because all precious metals are perfect money, we can also expect all of those to rise, although due to hystorical reasons, probably the focus will be on gold and silver.

Hedge silver with gold. Hedge gold with silver.

if I went bold id be depressed

Two coconuts and one fish 🤔

Watch this gold stock St James Gold (TSXV: LORD)(USA-OTC: LRDJF) it was the #1 gainer last week. Very low float and amount of shares. This can seriously move as you can see from last week. Precious metals are rocking now. People lie but numbers dont. governments are printing $$$ gold looks bullish to me in my opinion.

Dude.. the coconut fish thing was a bit lengthy.

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