Is A Silver Supply Deficit Inevitable?
David I. Kranzler | Nov 16, 2021 11:52PM ET
Silver is both a monetary metal and store of wealth—as such, older than gold in fact—and a metal that is critical to a multitude of industrial applications. Silver is not only historically cheap relative to gold, but it is headed into a major supply deficit.
For most of civilized human history, the gold/silver ratio has been below 16. The ratio of ounces silver and gold pulled out of the ground currently is around 9. During the Roman Empire the ratio was 8 to 1. From the late 1600’s to 1900, the gold/silver ratio averaged just over 16. Currently, the GSR is 75.
The only conclusion to draw from this is that silver is one of the most undervalued hard assets in the world right now.
Kinesis Money invited me onto their podcast to discuss the impact of retail silver buying on the market, the future of gold and silver premiums, and industry predictions of a severe silver supply deficit in years to come:
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