There are several reasons why one should buy or acquire physical silver, but one of the fundamental reasons in support of buying or acquiring silver, very few investors seem to grasp, is the fact that the global fiat currency supply has increased seven-fold since 1980, eating away at the purchase value of fiat currency (paper currency, non-redeemable paper notes, electronic currency).

The supply of physical silver has remained more or less static over the period in which global fiat currency supply has grown seven-fold, with silver mining not able to meet the growing annual demand for silver for 16 consecutive years, which had pretty much depleted above-ground silver stock piles. Unlike fiat money, silver, physical silver that is, cannot be created out of thin air or created in a factory/lab, but needs to be mined. Now common sense dictates that the more fiat currency (paper currency, non-redeemable paper notes, electronic currency) that gets created out of thin air, the more the purchase value of the relevant fiat currency will decline. If one considers how food and fuel prices have more than doubled since 1980, how the cost of living has rocketed, then it makes sense if one considers that global fiat currency has increased seven-fold, because there was clearly a substantial drop in the purchase value of fiat currency.

Given the above, considering that the silver price reached a high of $50 ($49.45 to be exact) in 1980 and is currently trading at levels of $32 per troy ounce, why has the price of almost anything else more than doubled as a result of a drop in the purchase value of fiat currency since 1980, but the silver price has declined? Now the true silver investor knows that the “paper gimmick” and silver market manipulation are the main reasons why the silver price has declined. We therefore have to accept that the current silver price is not reflective of silver true worth/value; otherwise we’re surely living in La La Land or some fantasy world, because even the prices of Zerox paper has more than doubled since 1980.

Thus, if we want to estimate a realistic silver price, a silver price that roughly reflects the true value/worth of silver, then we should not only consider that silver is money and had been used as money for much longer than fiat currency, but that a drop in the purchase value of fiat currency must lead to an increase in the silver price as the case was with most consumer and other goods since 1980. Thus, if we take the 1980 peak price for silver of roughly $50 an ounce, and multiply it by 7, we get to $350 an ounce. Silver is therefore, based on a rough estimate, supposed to trade at a price level of $350 an ounce or higher, which would be more reflective of silver true worth/value.

Now let’s play devil’s advocate and multiply the figure of $50 by only 2, assuming that the silver price was supposed to at least double since 1980 like most consumer goods. We then get to $100 an ounce. Thus, purely based on the fact that the global fiat currency supply has increased seven-fold since 1980, erroneously assuming like the majority of people that silver is not money, but just another consumer good or something that goes into silverware and silver jewelry, one can safely assume that the true worth/value of silver is anything between a $100 and $350 an ounce.

Given the above, knowing that the silver price is currently trading at price levels around $32 an ounce, can you honestly say that you’re not interested in something as solid as silver when you can get it at a discount of at least 55% to its true worth/value (assuming a premium of more or less 40% over spot and a value/worth of $100)?

Do we need to stress that 55% is a very conservative estimate at best, that the discount you will receive when you buy at current silver price levels of more or less $32 an ounce, will actually be closer to a 1000%? Based of course on the fact that global fiat currency supply has increased seven-fold since 1980 and that silver is indeed money, especially in the form of silver coins.

Yes, it is a mouthful indeed, but we truly hope that you have at least grasped the following: The more fiat currency (paper currency, non-redeemable paper notes, electronic currency) they create, the more the prices of consumer and other goods have to increase at the end of the day to make up for the drop in purchase value as a result of an increase(s) in the fiat currency supply (assuming for one that businesses don’t want to make less profit, don’t want to fire employees and are not able to cut business costs further). Now of course, these factors normally don’t come into play simultaneously, which affords one with a window opportunity to take steps to protect one’s monetary wealth (and even survive somewhere down the road!), before economic shocks such as depressions and hyperinflation become a reality, before all the factors come into play and the curtains close, before the next play starts.

To be brutally honest, we are at a time of history where the current window of opportunity is closing at an alarming fast rate. Needless to say, it will be shut by the time the majority of people realize what is actually going on. Good news is that there is still time left to go against the flow, time to jump ship before the ship hits the rocks. One of the most cost-effective steps you can take to protect your monetary wealth is to buy and hold physical silver, especially in the form of silver coins. You’ve got to ignore what the majority of people and the mainstream media have to say about silver, especially if you cannot afford to buy gold. If you’re not willing to do that, then it will seriously impair your chances to survive the coming debt-based currency collapse.

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