Silver Would Need to Reach $700/oz to Achieve 1980 Value Based on Market Cap

David Morgan’s ResourceInvestor.com has released a 4 minute clip with Ryan Jordan, author of Silver- The People’s Metal on why modern portfolio’s should hold tangible assets such as PHYSICAL SILVER rather traditional financial assets like corporate and government bonds and securities.  Jordan points out that at the peak of the 1980 bull market in silver, the value of the world’s silver bullion reached 10% of the market cap of the entire US stock market.  In today’s terms, this would put the value of the world’s silver at over $1.5 TRILLION, or approximately $700/oz!

Full clip below:

 

The 1 oz .999 Silver Bullet Silver Shield Trivium Medallion is available now from SDBullion at only $2.99/oz over spot, ANY QUANTITY!

 

Comments

  1. What was and what will be are two different things.

  2. I thought that was Apple stock, the paper silver.

  3. That will make “this guy I know” very happy.

  4. I think the ideas presented there are somewhat hyperbolic, but nonetheless have a solid ideological base. I personally think silver should be between 150 and 200 easily – even without financial collapse.
     
    The facts are that something big has to break before it breaks north and all I can do is enjoy being the 1%ish of westerners who accumulates physical metal.

    • I also enjoy the fact of being the one percent of the Western people who accumulates physical precious metals especially at a young age. I wonder what is the percentage of the Western kids who accumulate physical precious metals. I have never meet a person of my age in real life who also buys precious metals.
       

  5. Dude, seriously?  Why not just say “silver is worth a million an ounce” and be done with it?

    LOL…. 

    • @Truth Over Hype: If every person on the planet were to get 1 even share of the entire world production of silver for 1 year, their share would be 1/10th ounce. Currently only 1% of the global population owns silver. The current spot price for 1/10 oz as I type is 3.62USD. Multiply that by 100% then multiply x 10 = 3,620 USD per ounce! You can buy 10 times your share right now for 32.62 USD. When the world financial system collapses do you really think JP Morgan or anyone else is going to pay you 3,620$ for your piece of paper? Keep buying that SLV. More PHYZZ for the rest of us, there ain’t nothing like the real thing! I’ll add this again when Ag is at 500USD an ounce and still only 1% has any?

    • We will soon say that when hyperinflation hits the USA. In my opinion, hyperinflation will begin when the Federal Reserve reintroduce the 500$ bill or the 1000$ bill in circulation unless if it introduce the electronic transaction system only by removing cash from circulation to hide inflation.
       

  6. NOTE: Just bought SLV at 31.25 for a trade today.  Waited all morning.  Might not even be the bottom.  But, see, if you start to use your head for more than the proverbial “tinfoil hat” rack, you can let the “waterfalls” turn into profit opportunity.  But, I know… I know…

    That’s not part of the script.

    Sigh.

    Okay, “keep on stacking” the “phyzzz” at “any price.” 

    • Why buy paper that is backed by 1 ounce of silver to 1,000 sold ounces? You will never be able to get physical metal for it unless you sell it for the fiat that is losing value every day you wait.
       
      Sock puppet!

    • @Truth Over Hype: I look into my crystal ball. I see depression. There is always a depression somewhere. But this time it’s different. Not just N. America and Europe. No, this time it’s global. Poverty, hunger & desperation everywhere you look. On the corner a farmer is selling carrots and bread from a cart. Carrots are selling for 600FRN each and a loaf of bread is 2,000FRN. Some DUDE walks up and hands him an an SLV and says “I’ll have a bundle of them carrots and a loaf of that bread”. The farmer LHAO and tells him, you must be joking! What am I going to do with this? I only sell food for money. Come back when you have some!      

    • Why? What’s the point of buying SLV? The whole main point of buying physical gold and silver is to preserve your purchasing power from coming collapse of this system and when it collapse, all paper assets including SLV will become completely worthless.

  7. Trailing at .12 stop on SLV.  In the money and will stay that way.

    See, every penny I can scrape together on these “waterfalls” I can “stack more phyzz” with later.

    Just sayin.

    Back to the script… 

  8. Big Closing Tomorrow Big Buy On The Phyzz Over The Weekend. I hope it stays around $32 for me or lower.

  9. Now up nearly 1% on that SLV.  The goal: No loss.  

    I guess “they” have chosen to let me scratch some out here.

    Back to the script! 

    • @Truth Over Hype
      Sounds to me like you want to brag about the size of your SLV punt. Feel free to share. I’m all ears.  ;)

    • Congratulation but “If you don’t hold it, you don’t own it”. You should think of your wealth in terms of how many physical ounces of precious metals you own and not how much dollars you have.

  10. Closed trade up 1%.  So, on a day where the “waterfall” caused some people to put on their tinfoil, er, silver, hats, I chose to make more “worthless fiat” to I could “stack more phyzzz.”

    Now, back to the script! 

  11. Give it time.   Based on minimum wage comparisons and looking at silver wages from the 1700′s in the colonies and the early USA, silver was over $200 an ounce. 

    Looking at the Roman era and the wages of a legionnaire and what bread it bought. Silver was $200-$400 / ounce then as well.
     

    • Yeah, but we have to work harder to extract an ounce of silver than the Romans did. For them, it was very simple. They had a lot of high grade lead ore to melt down. We don’t.

      World population during the time of the Roman Empire was about 1/100th of what it is today.

      $200 an ounce today is conservative.   

      Give it time indeed. 

    • Agree! Silver is way more undervalued compare to today’s purchasing power. One of the thing that silver is missing right now to have its full historical value is the monetary demand of it from everyone which is something that silver doesn’t have today.

    • It is not That it is under valued or over valued, It is whether or not the people today understand what IS VALUE!——How could a simple man know that “whether or not” could be so divisive? lol

  12. Tawnyard, no bragging.  No, I’ll let “doc” handle that end.  No, I’m just grateful to have go in at the lows today.  Looks like the “cartel” is getting beaten down now, huh?  Man, look at that move back up to…

    …wait…

    Where’s my copy of the script?

     

    • Boys, don’t get your backs up, we’ve just got a trader in our midst, that’s all.

      @TruthOverHype Really, there’s no need to be combative, or arrogant or dismissive. We’re all on the same team, we’ve just got different theories and different strategies.

      My strategy is to be 100% invested in metals, but diversified in how I hold them. To this end, I have a mixture of everything. I even have a small-ish trading fund holding ETFs. I don’t indulge in day trading, but I do trade between the metals over the longer term (arbitrage). I’ve studied this sector for over 3 years, and I am happy with my choices.

      By your own admission, you’re looking for high valuations in the precious metals. I mean, in the long term. Isn’t that right? Well permit me to point something out to you. Your method of trading the metals only serves to increase volatility. Our method (and I believe I’m speaking for the vast majority of SD members) serves to remove metals from the market which, ultimately, is the only way you’ll ever achieve your desired high valuations.

      We’re not alone in our methodology, Eric Sprott is one notable example of someone who invests in this way. Individually, we may be small and medium players in the precious metals market. Collectively, we’re a force to be reckoned with. We move the market.

      So, I would ask you to please bear that in mind if you wish to join our community. If you don’t hold with our ideals here at SD, feel  free to troll at Kitco forums. You’ll find many more people who think like you do.

      Respect.

      Tawnyard.  

    • @Tawnyard:

      If toh is just a trader, then why is he spamming this post like a TROLL?
      lolZ
       

    • I have often wondered what they meant by “a troll!” Now I know! You come to this site and look for a fight. but a fight is not what you are after. Not really. You want to say what you are thinking and hope for anything that you say tobe contested. Now I know what a troll is. Why didn’t I see it sooner? Go ahead try and shake my conviction. After all, it is not written in stone. Just a bedrock foundation on a faultline! Any Fact could easily have me rethinking what I’m thinking, BUT FACTS ARE FUNNY THINGS! THEY MUST BE **Factual**

  13. Physical silver is already trading for well over $700 an ounce.
    Silver Bullet and Silver Shield first strikes went for $878 and $721 on Greatsoutherncoins charity ebay auction this evening.

    Let that sink in: fresh minted one ounce coins; Max Keiser’s ‘imagine $500 silver’ is officially a reality.

    Of course these are special coins for a good cause, but the message behind the coins is one which will make this substantial statement all the more compelling a few years out. As the masses now may only come to their senses one by one, the race to exchange dying paper for ounces will soon begin.   

    • Gotcha! Great point. I see higher premiums all around, and I asked a cashier who has a decent stack from 
      saving register change, if he wanted to sell ant near spot and he said “not yet!”
      So I may have that opportunity in the future. I woulda liked to buy some NOW but I’ll have more fiat later… 

  14. I would not count the 1980s silver’s high price peak because the 50$ per ounce was driven by the Hunt Brothers. Without the Hunt Brothers, I would say that silver will at least reach 20$ per ounce in 1980 which is worth about 55$ in today’s official inflation value.

    •  Why did it gold go up to, at the same time? the hunts didn’t give damn about gold! <a href="mailto:well@Sumkid“>well@Sumkid: The hunts did not buy

    • @RocketsRedGlare That’s because gold didn’t go up that high like silver. If silver wasn’t manipulated by the Hunt Brothers, then silver would have been worth at least about 20$ per ounce at its 1980 peak. Divide the price of gold in 1980 which was about 850$ per ounce by the average gold to silver ratio which was about 40 ounces of silver for an ounce of gold before the 1980 peak which will give you about 20$ per ounce.

    • Silver follows gold. It is poor man’s gold. The rise in silver was due to the bull market in gold. Which was due to the inflationary policies of the Fed and US govt. The bull market only ended when hawkish FED Chairman Volcker raised interest rates. Not long after, Jim Sinclair dumped almost a billion dollars worth of gold on the market overnight. He didn’t so much call the end of the bull market, as precipitate it. 

    • @Sumkid During times of stress, when gold and silver become the safe haven asset of choice, the gold silver price ratio closes. It approaches the historic average, which is around 16 to 1. This is because, throughout history, for every 1 ounce of gold that was mined out of the ground, only 16 ounces of silver were mined.

      Price ratios of 50 to 1 and greater are artificial.  

      As people panic, and start piling into precious metals, the gold silver price ratio closes. And, in desperate situations, it overshoots. This is because there is far less investment silver to buy than gold. This is why smart people like Eric Sprott believe that the gold silver price ratio will probably hit 10 to 1.  

      Hell, silver got to $50 in 1980, and there were stockpiles of it everywhere. Enough for everybody, even the Hunt brothers. This time round, it’s going to be interesting. 

  15. @Sumkid; There will not be a 500$ bill. The whole idea is to hide the inflation. get it?

  16. @Sumkid: Look deeper!!! The Hunts’ were buying silver but silver is not gold!! They are not mirrors of eachother! Ask yourself. Then find the true answer! Don’t answer my question answer the fact as it is!

    • @RocketsRedGlare Exactly! The Hunt Brothers were buying silver and not gold which is why silver went up much more quickly than gold. If the Hunt Brothers were not there in the silver market, then 50$ per ounce would’ve never happened. The reason why all assets and commodities went up in 1980 is because there was an economic crisis during that time.
       

  17. @Sumkid; The Federal Reserve is not The begining or the the end! The start and fininish, The ying and the yang. It is nothing more than a piece, A piece of a pie! Your Canadian Central Bank is also one piece! You are no more in control of your money or condition than anyone else! we must all rise up together ! Together at the sane time!!! together! Everywhere! EVERYWHERE TOGETHER! SPREAD THE WORD!!!

    • @RocketsRedGlare The whole pie is owned by the elites including the banking families such as the Rothschild. I did tried to spread my word about the fundamentals of physical gold and silver but people don’t listen to me. They think I’m crazy. It’s better if you try to convince people who are close to you and that always listens to your words.

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