Tuesday, August 20, 2019

Imagine what the price of gold or silver would be if just 5% of the world's investment income went into precious metals

On Aug. 19, long time money manager Mark Mobius spoke with Bloomberg Business and doubled down on a previous statement that the investment public should not only get into physical gold, but also that it should encompass 10% of their investment portfolios.

Yet gold is not the only precious metal that serves as a monetary safe haven to protect oneself from devaluing fiat currencies.  And looking back at an infograph made by the Visual Capitalist back in 2017, we have to beg the question... how much would both gold and silver be priced at if just 5% (vs. even 10%) of the world's investment income was dedicated towards these metals.

(Note. according to {Peter Schiff, just 1% of all investment income is currently dedicated towards gold and silver, with the majority of it being in the form of paper derivatives.)

All of the World's Money and Markets in One Visualization (2017 Update)

The current value of all available silver at the time of this project was around $77 billion, while the value of gold was estimated to be at around $7.7 trillion (now valued at $9.058 trillion at $1505 spot price).  Meanwhile the estimated total of combined equities, real estate, and derivatives (also not counting bonds) back in 2017 was around $834 trillion.

So taking these figures of investment values within the overall market, the percentage of money currently placed in either gold or silver is 1/100th of a percent, or .01.

Now imagine what the price of metals would be if this were to go from .01 to 5% (500 times), while also noting the recent works of SRS Rocco which shows that we reached Peak Gold production back in early 2018 and where central banks hold the largest accumulation of physical gold which is unavailable to the public.

At some point in the near future, the fiat currency experiment will end and people will be screaming for something that is tangible, and where they can actually hold in their hands.  And while two generations have grown up since 1971 not knowing the true value of gold and silver in the monetary system, when that paradigm finally breaks it will see a worldwide rush into the metals that will make 2017s Bitcoin mania look like a tiny drizzle.


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