RE: BM on SilverBob Moriarty says, ‘There is no shortage of silver. There never has been a shortage of silver. Until the laws of supply and demand are repealed, there never will be a shortage of silver.”
Bob goes on to argue the actual ratio of silver to gold in the earth's crust is not 16 to 1. He says it's “more like between 20 or 26 or 64 to one” and he cites the ‘Abundance of elements in Earth's crust’ provided by Wikipedia. His reference does suggest that there may be 64 times as much Silver than Gold within the earth’s crust but, it also reports an annual production of Silver recovery being only 8 times that of Gold.
While attempting to minimize the effect, he does admit that above ground Silver is consumed and at a growing rate. This fact along with the 8 to 1 production ratio is why Silver can’t yet be overvalued when it is still trading 32 times the price of Gold. Today’s valuation still violates the “laws of supply and demand”.
Bob should consider this also from Wikipedia:
The first Zimbabwean dollar was introduced in 1980 and replaced the Rhodesian dollar at par. At the time of its introduction, the Zimbabwean dollar was worth more than the U.S. dollar, with ZWD 1 = USD 1.47.
In the Guardian, on 18 July 2008, a report on Zimbabwe's inflation, said that an egg costs ZW$50 billion.
Would Bob argue that the egg is parabolic? Will the Zimbabwe dollar soon be valued higher with no one caring how it is managed?
Bob,
I love you but, you’re wrong about Silver. In this, another assault against authentic money, you have again failed to address the most significant fundamental. That is; the USA dollar’s status as the world’s reserve currency is coming to an end. How much higher in USA dollars will Silver go before you again tell us it's 'parabolic"?
Eggs will continue to go up.
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mineshack
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