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Buying silver now is like buying silver back in 2003 when it was under $5 per troy ounce. It’s the bargain of the century!
The U.S. monetary base basically reflects the total amount of US currency issued. Originally, the monetary base was supposed to be backed by gold available at the Treasury or Federal Reserve to redeem the said currency issued by the Federal Reserve. This is not the case any more, therefore, the amount of dollars have grown exponentially over the years.
When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its lowest value it has ever been (see chart below).
Below, is a long-term chart of the silver price relative to the US monetary base (in billions of dollars)
Note that the ratio – the price of silver in terms of U.S. dollars in existence – is at its all-time 100-year low. In 1980, the all-time high was 0.361, whereas the ratio is currently at around 0.004. The US monetary base is currently around 3.304 trillion dollars so, if silver was today at its 1980 value, relative to the monetary base, it would be around $1,193 ozt…[As such:]
- silver is trading at 1.24% (14.84/1,193) of its 1980 high.
- It is now like buying silver back in 2003 when it was under $5 per troy ounce.
Silver is the bargain of the century.
Editor’s Note: The above excerpts* from the original article have been edited ([ ]) and abridged (…) for the sake of clarity and brevity. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)
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