…When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its all-time 100-year low making it the bargain of the century. Let me explain.
This article is an edited ([ ]) and revised (…) version of the original (written by Hubert Moolman) to ensure a faster & easier read. It may be re-posted as long as it includes a hyperlink back to this revised version to avoid copyright infringement.
The U.S. monetary base basically reflects the total amount of U.S. currency issued. Originally, the monetary base was supposed to be backed by gold available at the Treasury or Federal Reserve to redeem the said currency issued by the Federal Reserve. This is not the case any more, therefore, the amount of dollars has grown exponentially over the years.
The lower the price of silver is relative to the monetary base, the more the currency is debased. The U.S. dollar is now the most debased it has ever been over the last 100 years, relative to silver (and gold). With all the excess dollars out there, the market will eventually seek an equilibrium, which means that silver will spike in price relative to the U.S. monetary base, as it did in the late 70s.
Below, is a long-term chart of the silver price relative to the U.S. monetary base (in billions of dollars)
…In 1980 the all-time high was 0.361, whereas the ratio is currently at around 0.004. The US monetary base is currently around 3×946 billion dollars (or 3.946 trillion). Therefore, if silver was today at its 1980 value, relative to the monetary base, it would be around $1,424 (3946*0.361) so, in terms of US dollars in existence, silver is trading at 1.19% (17/1424) of its 1980 high – it is the bargain of the century.
There are many signs that point to the fact that the silver price is about to correct this situation, by spiking much higher. This will come about with a lot of financial pain, especially since it will come with a massive debt collapse.
munKNEE should be in everybody’s inbox and MONEY in everybody’s wallet!
If you want more articles like the one above sign up in the top right hand corner of this page and receive our FREE bi-weekly newsletter (see sample here).