I think you overstated the value of silver at 10 days wages. For example, a baker in 1900 average day's wage was 2.15 silver dollars, which was roughly 2 ounces of silver. So maybe a price of 70 dollars an ounce.
I think you overstated the value of silver at 10 days wages. For example, a baker in 1900 average day's wage was 2.15 silver dollars, which was roughly 2 ounces of silver. So maybe a price of 70 dollars an ounce.
I probably overstated. It's possible tho
Interesting blog tho :)
Good, that's the goal
You have to consider that silver in 1900 was not consumed, today we consume silver through electronics and many other products. There is a lot less then you think and the demand is high. Prices could actually go higher then that if you consider the population on earth.
I have actually done a bit of research on this. Basically, if you take a graph of world population and a graph of world silver production, they both look the same. As population increases, so does silver production. Silver production grows just enough to meet demand. Silver salesmen will tell you that there is more gold than silver so silver price must go up. There is more gold because gold is used as a store of wealth, and silver is mostly just used for industry and jewelry. Silver is a much more common element, something like 50 to 1 in the earth's crust. But the main driver for gold and silver prices is the cost to mine and purify. Gold costs about 500 an ounce, while silver costs 10-15 dollars an ounce.
I agree with you on the industrial aspect, but when the world reserve currency will stop being seen as safe haven and gold and bitcoin will be to expensive for this large amount of people, silver will be seen as money again and then it will be a VERY SMALL market and the price will temporarily skyrocket.
That is interesting! What do you think must or will happen to gold to make people think it is not a safe haven? I can see regulators or viruses or hacking possibly ruining bitcoin.
Gold is money and it will always be seen as safe haven, it's just that it will be to expensive for most of the people looking for safety and bitcoin is new in this environment and many people will be scared to invest in it. Silver is cheap. Very cheap thanks to market manipulation. I've been looking at this market for a long time and I'm very very bullish on silver. I will be posting a lot on this topic if you want to see my views on it.
For sure! I am following you