We were pondering to add a question mark to the title of this article, but then decided to make a statement instead of having it hang in the air, like we’re not sure what we’re talking about or have any doubt in our minds that silver has more upward price potential than gold.
Now we can proceed and entertain you with various reasons why we are of the opinion that silver has more upward potential than gold, in brutal honesty not only in terms of price, but we have chosen only to focus on the fact that silver has been in a bear market for a very long time and only started to get out of it more or less in the year 2000 (from an inflation-adjusted perspective of course). It might surprise some investors, but silver “…has been in a bear marketplace since the late 1400s” (Silver Dollar Values Prices Will Be Skyrocketing, Now Should I Invest in Silver Instead Of Gold?, PRLOG, John Bear, 15 October 2011).
Given the above, needless to say, the silver price still has a long way to go, especially considering the negative effect silver market manipulation and the “paper gimmick” are still having on the silver price, despite the fact that silver has broken out of its bear market in round about the year 2000 in inflation-adjusted terms as already mentioned.
Good news however, at least to those who buy and hold physical silver, is that this round of the “paper gimmick” is expected to come to an end within this decade, especially when the Federal Reserve Note (commonly referred to as “the Dollar”) and other fiat currencies collapse as a result of hyperinflation.
Yes, hyperinflation, although you should not expect a mention of it in the mainstream media. Hyperinflation because we are of the opinion that the bankers and politicians will continue to monetize the debt by printing/creating more and more fiat money (non-redeemable paper notes, paper money, electronic money, fiat currencies). This will lead to bigger and bigger drops in the purchase value of fiat currency and bigger and bigger price increases as far as consumer and other goods are of a concern, resulting in hyperinflation, which is expected to destroy all fiat currencies, especially when it takes the fraudulent Federal Reserve Note down. It is after all no secret that global fiat money supply has increased seven-fold from 1980 levels. It is nothing short of a global fiat Ponzi scheme, not only designed to enrich criminals while decent folk have to toil away each day, but to enslave 99.99% of the world population and murder countless numbers of innocent people.
Needless to say, silver is “like a tightly coiled spring that is about to turn out to be unleashed” (Silver Dollar Values Prices Will Be Skyrocketing, Now Should I Invest in Silver Instead Of Gold?, PRLOG, John Bear, 15 October 2011).
No amount of paper-based manipulation is going to stop the run we’re going to see in the prices charged for physical silver in the days, months and years to come. Any fool can see that there is an ever growing discrepancy between the paper price, as quoted in the mainstream media (and elsewhere), and the price physical silver is really going for in the physical marketplace.
The premiums over the top of the spot price of silver (silver price) have increased considerably over the last months, but without a resultant fall in the demand for physical silver. In fact, those premiums and prices are driven by a demand for physical silver, because although less than an estimated 1% of the world population gets or understands silver, those who do get it are willing to pay substantial premiums over spot for physical silver. They know for a fact that silver is money, especially in the form of silver coins, and that the true value/worth of silver is not even remotely matched in the prices asked for physical silver at the moment.
Now the reason we believe silver will outperform gold, is because “…silver is a rare metal, more rare than gold” and the silver price has been suppressed for a much longer time than the case is with gold, especially as can be seen in a consideration of the Gold/Silver Ratio (GSR) over time. If one considers that “silver reserves have been estimated at one-hundredth of gold reserves,” then it really and truly boggles the mind that silver can trade at a price level of $32 an ounce or that the Gold/Silver Ratio (GSR) can currently be at more or less 1:52, while the historic average is closer to 15:1. Be sure to buy physical silver while it is still dirt cheap compared to its true worth/value.