by Gary Christenson, Deviant Investor:
Silver prices have been crushed for over 4 years, especially in the paper futures markets. The predictable result has been reduced interest in real money – silver and gold. The media is more focused on Donald Trump, Caitlyn Jenner, and Hillary’s emails – not the reality of exponentially increasing debt, out-of-control spending, failed economic policies, and expensive wars.
Does anyone care that silver and gold have been real money and a store of value for 3,000 years, or that all unbacked paper money has eventually been inflated into worthlessness? While the central bankers and politicians distract the populace with Donald Trump stories, they prolong the game … and the wealth transfers.
IN THE BIG PICTURE:
The US gross domestic product and US government revenues rise as the dollar is “over-printed” and devalued. Does silver rise accordingly?
Examine the 20 year graphs of the Silver to GDP ratio and Silver to US Govt. revenues. Data source is the Federal Reserve Bank of St. Louis and silver has been multiplied by a trillion for the ratios.
These graphs show 20 years of data and indicate that silver prices are at the low end of the ratios. Expect higher silver prices in the next several years, probably soon.
Population adjusted national debt shows a similar story. Silver prices are at the low end of the 20 year range, about where they were in 2001. Silver prices hit $4.01 in November of 2001 and rallied by over a factor of 10 in the next decade. Some version of that will probably happen again.
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