After 4 years of worldwide silver deficit, supply meets demand. Anybody thinking that’s going to change is delusional
I have a bunch of constitutional silver but I don't know enough about the silver market to comment. Please explain what you mean. I came here specifically to see what our residents think about the latest surge and where it might be headed. Thanks.
PMs basically have been keeping pace with inflation. So you aren't losing money. For example you buy 1000 worth of gold and in 2 years the inflation is 20% and the value of gold is also 1200. 1000 in a savings account now has 20% less purchasing power. However, the PMs don't earn any interest or dividends. You could put that same 1000 in a good stock or mutual fund and it "could" be worth 1500. (Or 1200, or 1000 or 800.) Yes it was possible to get in low, and then sell now and get out high and make a profit, but it's generally just a hedge and a way to diversify so as not to have all your eggs in one basket. Now if there is some catastrophe, atomic war or economic collapse, money will be worthless and only silver and gold will have value, but there won't be any food to buy anyway. As for silver which has gone up and down in the past, because of the terrible inflation the last 5 years, I don't see how it will ever go below $40 again.
Sorry, not seeing it. Gold has nearly doubled since the beginning of 2023. We've had some inflation during that time, but prices in general have nowhere near doubled. And from its peak in 2011 to its bottom in 2015, gold dropped by over 40%. Do you remember a similar drop in prices during that same interval? Because I sure don't. Gold is a commodity, not a sacred currency, even though enough treat it as the latter to give it some extra lift. Its price fluctuates, chaotically. Of course, if you want to say gold is the only true measure of value, you can say that the dollar is moving down and up, instead of gold moving up and down. It just gets really silly trying to track literally everything else denominated in dollars "getting cheaper" as the price of gold spikes. And if you want to say PMs basically keep pace with inflation, you need to explain how an ounce of gold was worth 120 ounces of silver in late 2019, then less than 70 ounces of silver by the beginning of 2021...
If the doomsday scenario were to occur you can bet all your gold and silver that gold and silver would be worthless too. As you said, there'll be no more production of processed food. However, those who do have some won't be trading it for gold and silver. They'll be trading it for: water water filtration alcohol denatured and refined medical supplies incl. medications cigarettes feminine products baby food/formula ammunition canned goods gasoline diesel fuel and on and on..... Bottom line, gold and silver won't be worth squat after a couple of weeks into armageddon.
