>>20670805Silver is a critical resource for almost all electronics.
Silver is currently being mined at, I believe, somewhere around 200M ozt less than the current worldwide demand.
Silver is no longer found in saturated enough deposits for it to be profitable to mine on its own, and the vast majority of the silver mined is a byproduct of other mined ores.
In terms of relative wealth, silver is currently quite cheap compared to the average American salary.
The average salaries from the years 1860-1915 (pre-federal reserve) could purchase ~639ozt of silver per year, whereas the average american salary now (say, $50-70,000) can purchase roughly ~2000 ozt of silver at a price of $30.
https://www.nber.org/system/files/chapters/c2497/c2497.pdfhttps://babel.hathitrust.org/cgi/pt?id=nnc1.cu56779232&seq=15https://babel.hathitrust.org/cgi/pt?id=coo1.ark:/13960/t6pz5sg7c&seq=122https://dqydj.com/individual-income-by-year/https://www.tradingview.com/chart/?symbol=OANDA%3AXAGUSDIf there were to be a return to a similar silver:salary ratio as the 1860s-1910s, silver would either need to be ~$108, or the average salary would need to drop to ~$19,000.
The best price to ever buy silver in the history of man was the year 2000, where the average US salary was $32,971, and the average price of silver was $4.6/ozt. This equates to about ~7100 ozt of silver if you converted your entire salary into silver.
To be in the top 1% of silver wealth, you would need to own around 367ozt of silver (spreadsheet in next post).
I don't disagree with the sentiment of investing into short-term profitable markets. (Even if you hate fiat currency, would it not be advantageous to make a short-term profit to then purchase more silver?)
But with that aside, I don't think that it's insane to believe that we will see a great increase in silver price as supply cannot fufill its demand.
