Silver vs other metals Proof of undervalue

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#1 Thu, Aug 18, 2011 - 11:32pm
jackmeoff
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Silver vs other metals Proof of undervalue

So looking tonight 8/18/11 at all metals vs silver.

I am taking production YTD and seeing the vs ratio

gold to silver price is 45:1 production is 10:1

platinum to silver is 45.03:1 productions is 14.46:1

palladium to silver 18.59:1 production is 13.67:1

copper to silver .098:1 production 1:1133(oz to oz)

fair value if only production is taken into consideration.

gold to silver 183.60

platinum to silver 127.25

palladium to silver 55.20

copper to silver 283.25 (price per lbs/16 oz)

Edited by: jackmeoff on Nov 8, 2014 - 5:08am
Sun, Aug 21, 2011 - 5:04pm
Vypuero
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Keep in Mind

Just because something is in shorter supply does not mean it is more valuable. DEMAND is the other part of the equation. Some things are rare, but no one wants them, so they are not worth anything or very little. I do think silver will go up, but gold is more in demand because gold is money, and silver is not. 

Sun, Aug 21, 2011 - 7:32pm (Reply to #2)
Wanker
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Silver is not money?

Oh yes it is!!??!!

Are you mad? Its as much money as gold is only better because its industrial as well and the single best performing asset bar none in an hyper-inflationary environment (assuming no jiggery pokery).

Anyway that argument is rather dull what about this for inducing a hard-on.......

Stats taken from latest Jim Rickards James Turk interview:

Best estimate for current US gold holdings 8133 tons.

Therefore total US gold holdings in toz (31.1 toz /kg and 1000kg per ton) = 252,936,300 toz (!)

Turk believes some of the gold is gone - the leasing scam - so lets assume that 2/3rds of it is still there; and

When Ron Paul gets in he chooses a 40% backing (Rickards suggest this would be sensible) and by that time M3 is something like $16.6Trn.

Finally lets assume that the gold:silver ration at this point is at 1:40.

So how much is silver worth in dollars per toz????????????

((1.66x10E13/252936300) x (0.4 x (3/2)))/40 = $1000/toz

This puts gold at approx $40K/toz at 40% backing to M3 and values silver as a commodity only with no part in M3 and linked to the gold price through current market price ratios.

Sun, Aug 21, 2011 - 8:03pm
Vypuero
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I am not mad - There is not enough silver to use as money

It has some monetary qualities, and I am bullish on silver, but ultimately gold is money:

https://fofoa.blogspot.com/2011/05/costatas-silver-open-forum.html

Sun, Aug 21, 2011 - 8:17pm (Reply to #4)
ScottJ
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Gold is the money of

Gold is the money of kings;

Silver is the money of gentlemen;

Barter is the money of peasants;

But debt is the money of slaves.

Take everything in moderation, including moderation~
Sun, Aug 21, 2011 - 8:20pm (Reply to #2)
Mudsharkbytes
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Vypuero wrote: Just because

Vypuero wrote:

Just because something is in shorter supply does not mean it is more valuable. DEMAND is the other part of the equation. Some things are rare, but no one wants them, so they are not worth anything or very little. I do think silver will go up, but gold is more in demand because gold is money, and silver is not. 

I didn't realize there was more demand for palladium than silver!

Mon, Aug 22, 2011 - 4:13am (Reply to #6)
Wanker
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Supply and demand determine

Supply and demand determine (should determine) price movement direction. There are a multitude of other additional factors that determine price.

Thu, Aug 25, 2011 - 6:24am (Reply to #6)
giant catfish
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Mudsharkbytes wrote: Vypuero

Mudsharkbytes wrote:
Vypuero wrote:

Just because something is in shorter supply does not mean it is more valuable. DEMAND is the other part of the equation. Some things are rare, but no one wants them, so they are not worth anything or very little. I do think silver will go up, but gold is more in demand because gold is money, and silver is not. 

I didn't realize there was more demand for palladium than silver!

Cold fusion mate. All those fringe physicists reading Jean-Louis Naudin's website and trying to replicate the Mizuno version of the Pons / Fleischmann overunity cell.

Ahem. Actually that's bullshit - the Mizuno version uses thoriated tungsten and stainless steel, not palladium, so the demand isn't coming from the free energy crew.

Palladium, however, is a cheap Platinum Group Metal and has many of the catalytic properties of platinum. Pt is damned expensive so if one can build, say, a car exhaust catalytic converter using palladium instead of platinum, you're saving lots of cash.

Palladium is also hitting the shelves as jewellery. I had a bespoke pendant made from silver to my design (a catfish, naturally) and the jeweller suggested that I consider palladium as an alternative. I'll be acquiring a palladium Maple (I think Canada makes them?) first, as a special in my coin collection - but I can see his point. A *lot* cheaper than platinum but similarly lustrous and non-tarnishing...

cheeers, catfesh
randomness