Gold vs Silver! Which is the better investment?

Gold vs Silver! Which is the better investment?

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I do not see gold and silver as mutually exclusive. I think both are monetary metals that have withstood the test of time in human civilization but only recently within the lifetime of some people here it got detached from our monetary system all because politicians wants to do what they do best which is to spend other people’s money.

Our aim to squeeze silver is not primarily to profit from this but to bring the prices up high enough so many will wake up and question why and when they dig deeper, they will realise the truth behind how their wealth is being stolen through inflation and that would be our first step towards a more honest monetary system. So in this crusade that we have started with the aim to steer this ship towards a more honest monetary system, I think perhaps we should start with silver first instead of gold for the following reasons:

1. Silver is more undervalued historically.

The chart below that tracks the number of times gold’s price over silver’s price says its all. As you can see we are still at elevated levels at around 65x currently. Given that oz for oz silver production is about 8-10x more than gold’s production and that the silver’s reserves is also around 10x – 11x that of gold in terms of abundance. I think it is not too much to expect gold should be priced perhaps around 20x of silver’s price. Not to mention also there’s a lot of industrial demand for silver which will be covered later on which is another indication that it should be priced more closer to gold.

Gold to silver price ratio (Credit to https://goldprice.org/gold-silver-ratio.html)

2. Silver is cheaper and thus a lower entry point for many.

To buy an oz of phyiscal silver is probably around US$32, but to buy an oz of gold is around US$1800. If we want more people to be on-board with us, silver would probably be a lower hurdle for many to cross.

3. Silver has a smaller market.

What is the true value is of the silver market is up for big debates. Jeff Currie from Goldman Sachs thinks silver is over a 1 trillion market (probably taking into account all the silver ever mined as possible supply) then we have the likes of goldsilver.com site that thinks silver is only a $16 billion market (for scale, that’s smaller than GME when it was around $200) as most the silver mined are already consumed and thus no longer feasible to recover them so what is left is just a fraction that can be traded. But one thing we can all agree on without a doubt that the gold market is for sure much bigger.

If we want to squeeze a market, it is always easier to squeeze a smaller market than a much larger one.

4. Silver has more industrial uses than gold.

Silver enjoys being in the position of the best of both worlds. On one hand it is a traditional monetary metal and on the other hand it has massive amount of industrial uses. This actually helps the squeeze even more because if silver stock runs low, and the industrial giants wakes up to this fact, they will snowball over to our side by increasing the buying pressure many folds. A fellow silverback u/goldielux1 posted a very comprehensive list of all the usages of silver in our modern society today and gold does not even come near to have that many usages. (See here : https://www.reddit.com/r/Wallstreetsilver/comments/ludu14/people_need_to_finally_realize_how_important/)

5. A massive move in silver will influence gold prices.

Gold and silver are highly correlated assets. Under normal conditions gold being the bigger market is more likely to move the silver market. However if the magnitude of the movement in the price of silver is large enough and it triggers the masses to awake to the need for a more honest monetary system, that will certainly drive up the price of gold as well. So by driving up silver and the awareness around why we need a more honest monetary system, this will indirectly drive up the price of gold as well.


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