Silver: The Most Undervalued Asset in the History of the World

May 19, 2017
May 19, 2017 Greg Steinberg

Silver: The Most Undervalued Asset in the History of the World

Silver. It is even rarer than gold, yet trades at a discount to the gold price. Why?

Currently, there are 777,275 tonnes of silver in existence. 1,411,475 tonnes have been mined, but 634,199 tonnes are unrecoverable. Of the 777,275 tonnes in existence, only 29,665 tonnes are in investor hands, whether in the silver ETFs like SLV, or in personal storage.

On the other hand, there are 166,500 tonnes of gold in existence, where most is investor hands. If you compare all the silver mined to all the gold mined, you get a ratio of close to 9:1. This makes the current 75 to 1 ratio a godsend to silver investors because you can accumulate silver so cheaply.

Buy Gold and Silver - Money Metals Exchange

This does not take into account all the industrial use of silver. (And military use. Read my previous piece on demand from the military.Remember, only a small portion of the silver ever mined is in investor hands. Most of the gold in existence, however, is in investor hands.

How tiny is the silver market? Very. If you take all the silver in investor hands, and multiply it by the current price, you get around $16 billion. Even gold has $6.6 trillion market cap. That great company Snapchat is worth $23 billion. Facebook is worth $414 billion. It really won’t take much interest by investors to really rock the boat and skyrocket the price of silver.

[READ: Silver Sees Huge Potential For Gains]




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