Silver has risen far less than gold since 1971.
While we saw gold go up by 131x, silver went up more modestly at 55x.
But even with that difference, silver has held its value far better than paper money.
“Paper money has already lost 99% of its value against gold since 1971.”
We can see how fickle paper currencies can be when measured against gold. Their value depends on monetary policy and the amount of money being created, while precious metals can’t simply be printed.
What’s becoming more serious is the continued expansion of the money supply. The monetary system is reaching a point where the destruction of paper money can accelerate.
The $10,000 gold objective comes from comparing global M1 with the world’s official gold holdings and applying a 40% gold backing.
Using roughly 35,000 tons of official gold produces an implied gold price of around $10,000 an ounce.
That gives us the reference for silver. But silver has its own reasons for moving much further:
Silver has been in deficit for seven or eight years.
Industrial demand continues to absorb physical supply.
Physical silver is limited.
Paper claims on silver far exceed the amount available for delivery.
The gold-silver ratio gives us another way to look at the potential.
The ratio is around 66 today. Its historical average has been around 15, while the natural occurrence of silver relative to gold is about 19 to 1. Silver production is around ten times greater than gold production by weight.
The view here is that silver could eventually reach a ratio of 10.
If gold reaches $10,000, the calculation will be:
$10,000 ÷ 10 = $1,000 silver
The move could take months or much longer. The point is to own silver before the market reaches the levels being discussed, rather than waiting until those levels become obvious to everyone.
The $1,000 silver objective comes from two things coming together: a much higher gold price and a much lower gold-silver ratio.
For anyone looking at silver as a way to protect wealth from the continued destruction of paper money, the opportunity is to own the physical metal before that repricing happens.
KEY INSIGHTS
00:05 – 01:05 | Silver could see a dramatic rise
Paper money is losing purchasing power, while silver could see an even stronger move than gold.
01:06 – 02:24 | Why gold could reach $10,000
The $10,000 gold objective is based on global M1, a 40% gold backing and roughly 35,000 tonnes of official gold.
02:25 – 04:13 | Precious metals for wealth preservation
Gold and silver are presented as protection against inflation and the destruction of paper money.
04:14 – 05:42 | Keep wealth outside the banking system
Physical gold and silver provide direct ownership without relying on banks or conventional financial assets.
06:39 – 08:25 | Silver faces a supply deficit
Industrial demand, years of supply deficits and large outstanding futures positions could support a major move in silver.
08:26 – 09:50 | The case for $1,000 silver
With gold at $10,000 and the gold-silver ratio reaching 10, silver would reach $1,000 per ounce.
