by Steve St. Angelo, SRSRocco Report:
Many investors believe the value of silver will surge much higher in percentage terms compared to gold during the next financial and economic crash. I happen to belong to that savvy group of silver investors, and for good reason. If we look at the charts below, the data proves that silver is certainly the more undervalued precious metal asset. Thus, it will likely make silver one of the best investment strategies of a lifetime.
While some readers may say that this is just more hype, the fundamentals provide us a pretty clear picture. That is, if we are able to understand the entire system and how things are likely to unfold.
Before I post these two charts, I want to say a few words about several emails I have received from my readers over the past week. After I wrote the article, UNLOCKING GOLD’S TRUE VALUE: The Economic Code – Finally Revealed, some readers finally understood that ENERGY is the critical factor in providing value to most goods and services in the world.
When they find out that ENERGY is everything, the LIGHT-BULBS go off and they finally get the vital importance. It took me years of research before it made sense to me. Still, the majority of my readers likely just skip over it and continue to see energy as just a part of the economy.
Even mainstream analysts separate the Energy Sector from the Health Care Sector, the Manufacturing Sector or even the Service Industry… so on and so forth. They look at energy as just a mere segment of the market. For some strange reason, they believe the Health Care, Manufacturing and Service sectors are powered by Fairies or Elves. I can assure you, all sectors of the market are run by energy. Take energy away, and Apple’s products and stock price would get flushed down the toilet.
When precious metals investors finally realize that ENERGY is the KEY to everything, they will no longer worry about gold and silver manipulation, the Federal Reserve FOMC meetings, the One World Government or dozens of other distractions.
I continue to read and hear about the ONE WORLD GOVERNMENT and how Globalism is going to rule the world. I would like to kindly remind those reading this article that globalism was a short-term arrangement only possible due to cheap and abundant oil production. As U.S. and global oil production heads south in earnest over the next 5-10 years, globalism will experience the same fate as the Dinosaur.
Conspiracy theory obsessed Americans in the future will no longer worry about the Global Elite and their One World Currency (for example), but rather if their neighbor is stealing their vegetables from their garden at night. Basically, fear or worry will move away from GRAND CONSPIRACIES to more practical day-to-day local or regional living situations.
Mark my words on this….
Anyhow, I am glad some readers are finally connecting the dots that energy is the key to everything.
That being said, there has been a lot of chatter over the years in the precious metals community that there is more gold investment in the world than silver. I actually have stated this a few times myself. So, I thought it would be a good idea to check this out and to see if it was true.
World Official Gold vs Silver Investment Holdings
If we go by the data from GFMS (Gold Fields Mineral Service), which is now apart of the Thomson Reuters conglomerate, and the CPM Group, total world official gold and silver investment holdings are a lot closer in range than I originally thought.
NOTE: I decided to use the data from the CPM Group’s 2016 Silver Yearbook because they are the only source that provides an estimated total for silver.
Of course, this data has to be taken with a grain of salt, but it does at least provide us with a decent estimate.
The chart below shows that the total “Official” world investment holdings of gold are 2.25 billion oz versus 2.54 billion oz for silver:
So, if we go by the “Official sources”, there is a wee bit more silver investment inventories in the world than gold. To understand how I arrived at these figures, let’s start with the following table:
This was found on Wikipedia, but the source was published by the USGS based on data from the World Gold Council. Wikipedia also provided updated Central Bank gold holdings as of June 2016. I then added the additional 5,000 tonnes of gold bar and coin demand from 2012-2015. Basically, total gold investment in the world is approximately 70,000 metric tons (mt). This translates to a cool 2.25 billion oz.
According to the CPM Group’s 2016 Silver Yearbook, they estimate total silver bar and coin inventories in the world at 2,539,000,000 oz or 2.54 billion oz. They break it down to 1.58 billion in silver coins and 961 million oz in silver bars. This figure looks about right to me, but of course, it’s an estimate. There could be more silver bullion held privately that we don’t know about, but that could also be true for gold.
Regardless, there is about 290 million oz more silver investment in the world than gold. Thus, according to these official sources, there is 13% more silver investment inventories than gold. However, that is not all that much when we compare the value of both.
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