munKNEE.com Your Key to Making Money
Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page.
There are way more U.S. dollars in existence today than at any point in history, but yet the silver price is not reflecting that reality. Currently, it is really one of the easiest decisions to make silver part of one’s investment portfolio.
Silver is still near all-time lows in many ways. One of the most significant measures wherein silver is at an all-time low, is its price relative to the amount of U.S. dollars (U.S. monetary base) in existence.
Below, is a long-term chart of the silver price relative to the US monetary base:
…The point is that silver is still really cheap. It can only be expensive if it comes into its own as a monetary asset. No industrial demand or other demand as a commodity (especially given the outlook of the world economy) will cause silver to be expensive or in a bubble.
Only when:
- debt-levels are at significant lows, can silver be near highs…
- the Dow has had a real crash could silver perhaps be overvalued at some point after…
- silver is considered an actual monetary asset (like the U.S. dollar or gold), and actually part of monetary reserves world-wide
could it possibly be considered fairly valued. Currently, it is really one of the easiest decisions to make silver part of one’s investment portfolio.
Below, is a long term chart of silver:
This is another illustration of how the silver price is currently relatively low.
On the chart above, the first phase of the silver bull market (marked 1 to 3, in black) was from 1993 to the end of 2001, and the second phase (marked 1 to 3, in blue) is from 2001 to the 2020 and beyond…Both of the phases appear to occur within in a broadening channel, from which they both broke down, after point 2.
As long as silver is below the blue broadening channel it is extremely cheap. Just like it was from about September 2000 to November 2003 when it was below the black broadening channel.
After breaking down from the channel there was a consolidation that ended at a new point 1. The first phase managed to get back inside the broadening channel again.
If the current pattern follows and does the same (by getting inside the channel), then we will see some high silver prices, but still not expensive. Only near the top of the broadening channel would I consider silver to be relatively expensive.
Conclusion
If you missed out on buying silver in 1999 to 2003, then now is your chance.
Editor’s Note: The original article by Hubert Moolman has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read. 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. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
A Few Last Words:
- Click the “Like” button at the top of the page if you found this article a worthwhile read as this will help us build a bigger audience.
- Comment below if you want to share your opinion or perspective with other readers and possibly exchange views with them.
- Register to receive our free Market Intelligence Report newsletter (sample here) in the top right hand corner of this page.
- Join us on Facebook to be automatically advised of the latest articles posted and to comment on any of them.
Related Articles from the munKNEE Vault:
1. Silver:Monetary Base Ratio Shows Silver To Be the Bargain of the Century!
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!
2. Gold/Monetary Base Ratio Suggests A Significant Monetary Event On the Horizon (+3K Views)
We could be close to major financial/monetary crisis and it is most likely that it could happen during a major stock market crash and recession.
3. What Massive Increase In Monetary Expansion Means For Gold & Gold Mining Stocks
The massive increase in monetary expansion initiated by the Federal Reserve in the wake of the lockdowns imposed to address Covid-19 is clearly a reason to own gold and, in the case of equity investors, gold mining stocks, on a long-term basis.
4. The Price Of Gold Vs Today’s Monetary Base Has Major Ramifications
I knew the monetary base had grown wildly but did not realize the extent until seeing it in graph form [in an article by Peter Degraaf. It is truly the Chart of the Century]. While Peter spent just one paragraph on this, let’s look at it in depth to get a better understanding of why it is so important and what it really means.
Silver will be an asset when the store shelves are empty and you’re forced to buy food from some faceless goon in a dark alley.
The U.S. Federal Reserve Notes, we were conned into accepting, will soon be a thing of the past. A fond memory of the good old days. Of a government run by sociopaths and a citizenry caught up in the Illusion that America is a kind nation. America is a nation of uninformed, ignorant, cowards who have had it way to easy, for way to long. God hasn’t shed his grace on America for quite some time.