IS SILVER MORE PRECIOUS THAN GOLD?
When one is doing a comparison of items as to their value a lot depends on the circumstances one is in. For example if you are lost in the desert and dying of thirst, water becomes very precious, yet it is one of the most abundant things on the planet.
Why is gold a $1000.00 per ounce and silver $17.00 per ounce when;
We have more gold above ground than silver.
We consume silver and store gold. One-day silver will be very scarce.
If you were in the hospital with 3rd degree burns what would you rather have, an ounce of gold or silver? Silver kills bacteria and can save your life. One wonders why silver is not used for the swine flue, if it really is a threat. [Can’t put a patent on silver maybe] Check out colloidal silver HERE.
Silver is about 10 times more plentiful in the earths crust then gold, why is it not 10 to 1 in price?
Silver is money same as gold, in the US Constitution a dollar is defined as 371.25 grains of silver. [400 grains per ounce] When Iraq was putting together their constitution, Jay Leno said, “Send them ours [constitution] as we are not using it any more”. How true.
In 1900 there was 1 billion oz. of gold above ground at $20.00 per oz. = 20 Billion
In 1900 there was 12 billion oz. of silver above ground at $0.65 per oz. = 7.8 Billion
Ratio was $20.00 divided by $0.65 = 30 oz. silver to 1 oz of gold
Ratio in market cap is 20 billion divided by 7.8 billion = 2.56 to 1
The Total amount of gold was worth 2.5 times more than silver in 1900
In 2009 there is approx. 5 billion oz. of gold at $1000.00 = 5 trillion dollars
In 2009 there is approx. 1 billion oz. of silver at $17.00 per oz. = 17 billion dollars
Ratio is $1000.00 divided by $17.00 = 58 to 1
Ratio in market cap is 5 trillion dollars divided by 17 billion dollars = 294 to 1
The Total amount of gold is worth approximately 294 times more than silver in 2009.
If we used 1900’s market cap at 2.5 to 1, silver’s price today would be, 5 trillion dollars worth of gold divided by 2.5 = 2 trillion dollars [silvers value] divided by 1 billion ounces of silver = $2000.00 per ounce.
Note: [I believe more silver would appear with higher prices, this is only meant to show how undervalued silver is]
Saying silver is undervalued is an understatement of the century, both gold and silver’s true cost of production is probably double their current price when you add all the other costs of exploration and such. Currency creation will drive the prices a lot higher in the near future and also one day soon, silver will be priced for its rarity and not for its cost of production as most silver is a by-product from gold, copper and zinc mines.
Getting back to the title of this article, is silver more precious than gold? Society today would have a hard time without silver as we consume it in so many products. I believe silver is more precious than gold, as to the value today, gold is more valuable in dollar terms. A more realistic dollar value today for gold would be $3000.00 per ounce and silver at $300.00 per ounce. This is a 10 to 1 ratio, common sense tells us that the ratio will turn in silvers favour in the future.
Check out these site’s as no one has done more for educating investors about silver and gold than Jim Sinclair at www.jsmineset.com or Ted Butler at www.butlerresearch.com or Bill Murphy at www.LeMetropoleCafe.com or Jason Hommel at www.silverstockreport.com/
The name SILVER is so precious no other word in the English language rhymes with it.
Wm. J Murray
President Silver Phoenix Resources Inc.
“From the prospector comes the salt of the earth”
: W J Murray