The Silver Reset: Why Now Is the Time to Act
Let me start with a question: how many people are ignoring one of the most obvious buying opportunities of our time? Right now, silver is staring us in the face, practically begging for attention. Yet, most investors are too distracted by the glitter of gold or the noise of Wall Street to notice.
Let’s break this down.
The Gold vs. Silver Disconnect
In 2023, the world mined roughly 26,000 metric tons of silver and about 3,000 metric tons of gold. That means about 8.6 times more silver is produced annually than gold. Yet, gold trades at a whopping 86 times the price of silver($2,633/oz for gold versus $30.60/oz for silver).
How does this make sense?
The answer lies in central banks. Global central banks and governments hold about 36,700 tons of gold—roughly 17% of all the gold ever mined. That doesn’t sound huge, but in markets, even single-digit shifts in supply and demand can move prices dramatically.
When central banks gobble up gold and hold onto it, they’re creating scarcity, driving up prices. And they’re not slowing down. Gold remains the cornerstone of monetary reserves, and I wouldn’t be surprised to see us return to some version of the gold standard in the future.
Silver, however? It’s been sidelined—for now.
A History Lesson: Silver Was Once Money
Throughout history, gold and silver have been the twin pillars of monetary systems. While gold was used for big-ticket items like land purchases, silver was the currency of everyday transactions.
Until 1964, silver was a key part of U.S. coinage. Back then, money actually meant something—you could hold it in your hand and trust its value. Now? Fiat currency is like a car rolling downhill without brakes—it’s losing value faster than we can keep up.
The historical gold-to-silver ratio hovered around 1:8, reflecting their natural scarcity in the earth. Today, it’s closer to 1:86, a screaming signal that silver is wildly undervalued.
The Case for Silver’s Comeback
I believe silver will re-emerge as a personal monetary asset. When the global financial system starts creaking under its own weight—and it will—people will scramble to convert their savings into something tangible. Something analog. Something that can’t be hacked or inflated away.
For those looking for the security of precious metals but with more upside than gold, silver is the clear choice.
Silver’s Current Supply and Demand Picture
Demand for silver is booming, but not as money—at least, not yet.
Here’s where things stand:
- Physical Investment
- Physical demand (coins and bars) is forecast to drop by 15% in 2024, hitting a four-year low.
- In the U.S., sales of silver coins and bars have plummeted 40% to their lowest levels since 2019.
- This dip in physical investment is largely due to the lack of immediate crises. But don’t let that fool you—when crises return, demand will surge.
- Industrial Demand
- Silver’s industrial use is growing at a record pace, driven largely by the solar panel industry (up 7% in 2024).
- China’s renewable energy push is a massive tailwind for silver demand.
- ETF Investment
- Exchange-traded funds (ETFs) are seeing their first inflow in years, rising 8% in 2024.
The kicker? Silver is running record annual deficits, and this trend isn’t going anywhere. When investment demand catches fire again, silver prices will skyrocket.
The Catalyst for Silver’s Next Boom
History tells us that silver thrives on financial or monetary chaos. Here are some scenarios that could light the fuse:
- Sustained Inflation: Central banks can’t print their way out of inflation forever.
- Bank Crises: Many banks are sitting on massive unrealized losses, and rising interest rates are only making things worse.
- Sovereign Defaults: Governments worldwide are drowning in debt, and something has to give.
Let’s not forget: silver has already proven its resilience. In 2020, silver hit a low of $11.60/oz. Today, even with recent pullbacks, it’s holding strong around $30.60/oz, with highs near $35 earlier this year.
Why This Is Your Buying Opportunity
The current dip in silver prices is an opportunity that serious investors shouldn’t ignore. Could prices drop further? Maybe. But I’ll tell you this: if they do, I’m buying aggressively.
The time to act is now. Silver offers a unique blend of safety and upside potential. It’s a hedge against chaos and a bet on the future of real, tangible wealth.
Don’t Wait for the Crisis—Prepare Now
The winds of change are blowing through the financial system, and those who prepare will thrive. Protect yourself by diversifying into precious metals like silver.
Download Bill Brocius’ free eBook, Seven Steps to Protect Yourself from Bank Failure, and subscribe to Dedollarize for the insights you need to stay ahead.
Don’t be the one kicking yourself when silver shoots higher. Take control of your financial future today.
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