Asymmetrical Bets for Precious Metals
Currently the most undervalued physical asset by FAR is physical Silver. This is for multiple reasons all that I will list below.
The main reason is that the market value for the physical asset is actually derived from the future spot price which is completely backwards and rigged this way for a reason, to be able to suppress the real price and not set off alarms for the public.
Jp Morgan hold 50% of the world physical silver reserves and because of this has the ability to short sell the price in ridiculous volume at the end of each day, spoofing others, and making them sell, to keep the price suppressed. JP Morgan have been fined Billions for doing this, and yet it still continues, because they make billions each month by doing this.
This holds the price at a low enough value that allows electronics manufacturers the ability to purchase all the silver they need to produce cell phones and other items while making large margins. I have no way of proving JP Morgan gets so sort of incentive from doing this for Samsung, Apple, Tesla, and other large tech manufacturers here in the US, but I wouldn’t be surprised if that were the case.
Silver is the most conductive metal in the plant and is required for the majority of high end electronics today. As the move to green energy increases, the demand for silver will increase exponentially. This is because over the last decade silver stores have been depleted. With the value being kept low, minors had no incentive to extract what they could out of the ground. They would much rather leave it there until it would be more lucrative to mine it. This has also stopped new exploration to find more silver mines,because its more advantageous to find other commodities like platinum and palladium, whose values have skyrocketed in the past decade.
With demand set to surge and JP Morgan looking to capitalize on their silver holdings they likely will flip around and go long on the metal in the near future, making the price catapult to new all time highs. This in combination with the threat of a currency collapse based on the amount of confidence lost in the dollar by other countries, sets silver up to also possibly be “revalued” to back a new financial system in the near future as well.
The current debt clock shows silver as having a real value of 2-4000/oz. 100-200 times higher than the current market value.
The other way to look at silver, is the hold to silver ratio. Historically silver should be around 14:1 silver oz to gold oz. With gold at $2000/oz that would bring silver up to around $140 if historically valued. The current gold to silver ratio is 76:1. Looking through history would show this to be an incredible buying opportunity at $26-30/oz depending on where you buy.
Holding precious metals in your possession is the only way to ensure you will be able to get ahold of it to sell when the time is right. Don’t make the mistake of holding paper silver.
Silver and gold are both significantly undervalued, but silver is the biggest Asymmetrical bet currently. Nov 2021