Physical SILVER: the most undervalued asset EVER?!?!

Описание: USdebtclock.org shows that the dollar to silver ratio in 1913 was $2.64 per ounce. The actual price of an ounce of silver was about $0.60 in 1913, from what I can gather from some simple online research. I used this to determine a factor of 0.227 (cost of an actual ounce / cost of a dollar-ratio ounce). I'm going to call it the sAg factor because it shows how low silver sinks in relation to the paper dollars in the economy.

The current dollar to silver ratio is $5121 per ounce. At the time of writing, the spot price is $25.15. Applying that same formula as above, we get a sAg factor of 0.005.

Today's sAg factor is a mere 2.2% (0.005 / 0.227) of that 1913 sAg factor. In 1913, I am presuming that the main demand for silver was based on its use as money and as a store of value. We now live in a world where the use of silver as a commodity is increasing exponentially.

If silver today were to merely reach 10% of its 1913 relationship to the sea of currency it swims in, the spot price of silver would be firmly in the triple digits at $116.25 (0.227 * 0.1 * $5121). Given the modern industrial demand and the increasing number of small investors starting to look at silver as a way to preserve purchasing power and wealth, this would appear to still be on the low side of the possibilities for silver's inevitable reevaluation.

Applying the entirety of that 1913 sAg factor of 0.227 results in a price of $1162.47 for an actual ounce of silver. History has shown that when the market pendulum finally swings in the opposite direction, prices tend to overshoot historic highs and create completely new relationships to the world around them. My goodness, where might this thing be headed...

This really put things in a new perspective for me and so I ask, is it really possible that silver is the most undervalued asset/commodity of all time?!?! It sure feels like it.

It's about time to take the shackles off this thing and let 'er run where she wants to go.

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#silver, #Wallstreetsilver, #silversqueeze