Gold and Silver Spike. Will it Continue?

Gold and Silver Spike today. Gold is up $50 just today.  And 10% from its 30 day low. Silver is up 68 cents today and up 12% from its 30 day low.

Meanwhile:


  1. S&P 500 is down 11% from 1 year ago today.
  2. 30 year treasury funds are down almost 25% year over year.
  3. Vanguard Real Estate Index is down 14% year over year
  4. Savings Accounts average 4%
  5. Real Inflation is at 15%

Estimated Investment Returns with Inflation

S&P 500 (represents 75% of every dollar invested in the stock market) Down 26% over last 12 months with est inflation.

30 year treasuries Down 40% with inflation added in.

Real Estate: Down 29% with inflation

Savings Accounts: Down 11% with inflation 

Whereas Gold and Silver:

  • Gold: 30 day return is annualized at 120% less 15% inflation= 102%
  • Silver: 30 day return annualized at 144% less 15% = 129%

Are Gold and Silver Still an Undervalued Asset?

Consider the following:

 

  • There are 17 ounces of silver in the earth’s crust for every ounce of Gold. That means silver’s true value today is 1/17 of $1979 today or $116.41 per ounce. 
  • At Silver Spot is at 22.55 per oz. This means it has a 684% suppressed upside.
  • In 1913 One silver dollar (.735 oz Silver bought $100 in todays goods and services.
  • One ounce of gold bought $2500 in today’s goods and services.
  • IN Weimar Germany silver went from 18 marks per oz in 1918 to 1 billion marks in 1923.
  • In Weimar Germany Gold went from 383 marks in 1918 to 1 trillion marks in 1923.

Every Other Asset will disappear with the Dollar

Think about your living room with 4 people in it. Suddenly the entire town wants in. That is the near future of Gold and Silver.

THERE IS NOWHERE ELSE TO GO!