Should I Buy Silver Or Gold? – Mike Maloney

Should I Buy Silver Or Gold? – Mike Maloney


and you feel the same about silver during deflationary is there a distinction between gold and silver you were talking about gold is still stood well the reason I good what gold will be better at first during the deflationary pour a point and that’s the reason I think the gold silver ratio will go from where it is at about 75 to 100 possibly I think that gold and silver will both go down silver will go down more than gold but then when they take off at first gold will go up silver will lag and then silver will make up all of its time and then some and it’ll as far as performance I think you’re probably going to see the gold silver ratio hit something like you know it went to 16 in 1980 it’s at 70 gold silvers value is 175th of golds it was 1/16 of gold in 1980 I think that this time if you look at the fundamentals half with gold only about 5% of all the gold ever mined throughout history five to ten percent has been used up or lost with silver it’s more than 50% and silver the supplies the ore bodies tend to occur a little closer to the surface gold tends to be deeper and so the mine above supplies used to be about 12 times more silver than gold in ancient times and so when you dig it up there was about 12 times more silver than gold circulating as money and so the free market was doing something called the price discovery mechanism figuring out the rarity of these two items and setting their exchange rate on the average for the first 2,000 years at twelve to one then government started manipulating with the Bank of England setting fixed exchange rates and so on and we had an average of about fifteen to one for a couple of hundred years and then it has been extremely out of whack for the last century since the late 1800s the gold silver ratio has been as high as a hundred but it hasn’t been at this natural ratio for a long time in the mean time we used up all the silver the my novel supplies one of the heads of a mining company when I used to do the silver summit up in Idaho he thought that the miner Bowl supplies might be an 8 to 1 ratio now instead of 12 because these surface deposits of silver get worked out and also most silver comes as a by-product from mining other metals well you saw what’s happening to copper and what’s happening to the CRB index and as the world economy slows down we’re not going to dig up as much copper and zinc and the things that we dig up where this where most of the silver comes from as a by-product there’s going to be less plumbing pipe demand in China there’s going to be less zinc castings created for automobiles stuff like that so as the mining of those metals goes down so does that silver supply just at a time when everybody wants silver for monetary demand so the price should be explosive I’m expecting that we will go to a higher value for silver than 1/16 I think we’ll probably go to 1/10 of gold’s price 1/5 who knows I mean you just have to look at all the data and try and use logic to come to a conclusion and you know I might be wrong on all of these things but I’m using as as much evidence as I can to build my case as possible and what I see you know there’s no possibility that the that the fiat currency game can go forever especially the way they’re abusing it now it would be an impossibility that this is a coincidence the only reason the stock market is up is because of this gift to Wall Street that Ben Bernanke created the coming charts here they should scare the hell out of anybody that is not a precious metals investor we are in the Bernanke bubble and it’s going to be followed by the Bernanke bust and Janet Yellen has left to do the cleanup work after this bust is over

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