Bill Holter: Please Relax About The Current Gold To Silver Ratio As Silver Will Be ‘Gold On Steroids’

Friday, May 11, 2018
By Paul Martin

SilverDoctors.com
May 11, 2018

If the ratio stays the same then silver performs equally, but there’s reasons to expect the ratio to fall and silver to outperform gold. Here’s why…

by Bill Holter of JS Mineset

A Popular Question

Because we have received a dozen or more questions on the same topic, I thought it might be a good idea to discuss. Michael Pento was recently interviewed by Greg Hunter They spoke about many topics including the silver/gold ratio. The questions we received were panicky in nature from holders of silver. Paraphrasing, “do you agree with Michael Pento that silver will not do anything on the upside if we enter a depression”?

I had not listened to the interview when the questions (mostly all the same) came rolling in. As a side note, rarely do I watch interviews or read opinion pieces from other authors. Not because I think I know it all, but because of the way I am wired. Explaining this, I am voracious for data and facts that I can use with past data and facts to form my own opinion(s). What good would it do if I simply parroted what others “believe”? While I am always open to other opinions or why my own may be wrong, it is important to me to be original and authentic in thought rather than repeat what others believe.

After watching Michael’s interview, I agree with most all of what was said. He did not pan or badmouth silver. All he said was he believes the 80-1 ratio between silver and gold will probably remain during an economic depression and that he prefers gold. He talked about precious metals going ballistic, that physical metal is the way to own it and paper holders (he was not talking about mining equities) will discover they own nothing. All good stuff and he very well may be correct but claiming the 80-1 ratio will hold is not telling you silver will underperform gold from current levels so please relax.

My personal opinion on silver (and Jim coined the phrase) is it will be “gold on steroids” for several reasons. First, silver is mined at a ratio of just under 10-1 versus gold and this is also about the same ratio as it is believed to exist in the Earth’s crust. I call it “God’s ratio”. Secondly, silver has traditionally been “used” for the last 100 years. Yes it is still stacked but much of the demand comes from industrial, military, technological, medical and solar uses. And yes there is scrap recovery but much silver is basically lost forever once used. There are no huge known stockpiles other than the 500 million+ ounce supposed hoard by JP Morgan and this is important.

{A couple other thoughts, under chaos conditions gold is portable and silver not so much whereas silver will be spendable and gold not so much. These differences are due to weight/value and transaction/the ability make change (as in change back for your gold coin). Also, when the masses do finally stampede into metals, silver is/will be more affordable to the average man on the street. This alone argues for higher demand for silver than gold under financially stressed conditions}.

If you understand that EVERYTHING is manipulated and rigged in price, and if you understand this has and is done using leverage (borrowed money and derivatives), then you should ask “why”. This is simple, it is ALL about the dollar and the ability of the US Treasury to borrow literally unlimited amounts of capital. It is all about control and the ability to pay for and continue control. Gold and silver are direct enemies of fiat dollars or fiat anything. They have been suppressed in price in an effort to support the value of paper currencies.

The Rest…HERE

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