Theoretical – Silver Value Target
Just saw something that I believe was showing that website that has the debt clock and all those various monetary and debt stats. Apparently, the approx. number of paper ounces of silver is just a few ounces shy of 400, for every ounce of actual physical metal.
How they calculated and if it is fairly accurate, I don’t know. Using the 400 to 1 ratio of paper to real silver, projects a silver value (not price) of $12,000 per ounce, at $30 for physical.
That would be with everything being equal and not factoring in the fact that all the people unable to get the silver they needed and or wanted, because it doesn’t exist physically in the volume to satisfy demand, would create a panic.
So while some of that demand would drop off because of the much higher price, others would pay even higher prices, if it was an absolute necessity for their military, industrial and or other needs.
Remember, if you have already accounted for every physical ounce in existence, (of course that is the catch, how accurate are the numbers) there isn’t going to be anyone coming to provide additional metal that wasn’t for sale, because the price wasn’t attractive enough. There isn’t any additional metal available, at any price.
That is how you get true price discovery(supply and demand) when manipulation is removed from the marketplace. While this is just a theoretical exercise, it demonstrates how undervalued silver is, in the current manipulated environment.
I read somewhere $47 by end of June 2024.