The World Gold Council recently stated that the production in silver mines has remained stable in the last decade. The supply has averaged around eighty million troy ounces or 2500 tons. In the five centuries leading up to the 1800s, the silver to gold ratio never exceeded 20 and always remained above 15. However, in the last one and a half century there have been rapid changes from the norm. This has been the case since the Rothschild controlled debt-based currency system centred on the Bank of England.
The recent volatility reflects the fact that precious metals and their political nature come between the extravagant megalomaniacs who have recently inhabited political offices. Deliberate and illegal downward manipulation of the silver price has created a greed which consumed physical silver in vast quantities in recent years; to the point where world silver supply (physical silver supply) is barely keeping up with world silver demand (physical silver demand). However, good news is that this criminal element which demonetized silver has been identified, and maybe more importantly, the best non-violent means to defeat them and to return to a monetary system consisting of real money has been identified. One of the best ways to fight this element is to continue to buy physical silver while largely ignoring silver price movements. It is no secret after all that they illegally manipulate the silver paper downwards through the creation of almost endless mountains of paper silver, but sooner or later people are going to lose all confidence in paper or debt-based assets such as fiat currency (non-redeemable paper notes), paper silver, etc. We are confident that the coming collapse of the U.S. Dollar (or rather Federal Reserve Notes) is going to lead to such a collapse of confidence.
Several factors, largely created and driven by the above-mentioned criminal element, contributed to the depreciation of the silver price and a pretty fast reduction in world silver stockpiles. The main factor that created this delusion about silver’s true worth is the fact that bi-metalism was ended. Other factors include silver sales by Scandinavian countries and Germany and increased silver production in the USA.
Germany switched from silver mono-metalism to gold mono-metalism, which is a unique situation compared to other countries that usually go from bi-metalism to a gold standard. Germany had substantial inventories to sell and the threat of sales depressed prices significantly. This had a more devastating effect than the actual sales did.
The silver stockpiles are gone and there is an increased demand for physical silver as an investment. It is expected that the historic 15:1 ratio will be achieved again in the near future. Experts also predict a reversal to a mean.
Physical silver trades at a premium to the paper COMEX price and it is believed that Eric Sprott, the CEO of Sprott Asset Management, possesses the real silver used to back his fund. Sprott Money publishes its share price and NAV daily for the purposes of transparency. Investors may convert or exchange their shares for physical silver at any point in time.
COMEX only possesses a small portion of the physical metal for which they sell each paper contract. It was speculated that the fraction they own may be as little as a hundredth of the physical metal for each paper metal contract they sell. Reliable market participants say that it is very difficult to secure physical delivery of their investment products from COMEX. Those investors who have been through the process report inexplicable delays.
Meanwhile, the companies who promote these frauds get away with it using semantics by referring to terms such as “allocated” and “unallocated” accounts. Experts conclude that a time is coming soon when real silver (physical silver) and gold (physical gold) will not be attainable with fiat money (or paper-based assets) at any price. To procure precious metals in future, other tangible resources will have to be sold or traded. It is therefore wise to acquire or buy physical silver while it is still attainable with fiat currency (non-redeemable paper notes), especially before the U.S. Dollar collapses. Nobody in his right mind is going to exchange physical silver, which is real money, for ‘dirty green toilet paper’ when the U.S. Dollar and other fiat currencies completely collapse.