Silver is inexpensive because silver is not being used as money anywhere in the world. Reduced demand for silver money causes a reduced price. This trend has taken over 100 years to fully develop.
The second trend is the age of electronics that began at the end of World War II, and has now lasted 60 years. Annual consumption of silver exploded upwards, about 10 times greater than before, and an average person in a first world nation consumes seven tenths of an ounce of silver per year. This has resulted in the consumption of about 90% of all the silver in the world, during a time when the world was reducing demand for silver as money.
The third trend is the abnormally large growth, in every nation of the world, of paper money not backed by any precious metal. Our monetary system is built on countless frauds, and is now beginning to show major signs of failing.
For over 2000 years, the amount of silver in a silver dime was worth a day’s wage — whether in Roman times when it was known as a denarius, or whether over 100 years ago in the U.S. Yet today, you can buy a silver dime, dated 1964 or earlier, for about 50 cents if you buy them in bulk, by the bag, for about $5000. Yet today, an average day’s wage is about $150.
Due to the coming failure of our monetary system, I expect silver to return to its historic value, and even higher due to the shortage. This means that I expect a silver dime that you can buy today for 50 cents to rise in value to where it should be able to buy what $150 buys today. That is a rise in value by over 300 times. That means a bag of silver, for $5000, should rise in value to over $1.5 million dollars by the time paper money fails and society demands to use silver and gold as money again.
Current monetary demand for silver is zero. Investment demand stands at a tiny 25 million oz. per year, out of 600 to 700 million oz. produced per year. I believe that a single billionaire could push up the price of silver to well over $25/oz. with less than $1 billion dollars of buying power.
We are in a time period where the false wealth of U.S. paper dollars has been shrinking in value, as measured in gold, since 2001.