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It's important
to review the fundamentals from time to time. It is important to not only study the
current supply and demand for silver and gold, but potential demand. This potential demand is the total
amount of money and/or assets that could be sold to buy silver, and is
reflected in this study. Of the
two, current vs. potential, I think potential demand is far more important,
because it shows the potential change and likely change that will increase
the value of silver.
I published
these figures in 2003, 2006, 2008, (links to prior years can be found
here: http://silverstockreport.com/2008/moneycharts.html
) and now here's another update in 2012.
Following each figure is the source and YEAR of the info. The source and YEAR is very important. Sometimes, the source is several years
old, because this kind of data is hard to gather. For many years, it was extremely
difficult to source the world bond market size, or the size of total issued
and printed money. In my prior
reports, I've seen many people re-post my work without listing a source which
then makes it difficult for me to later track down current info, because when
doing a google search, I encounter people just
re-posting my data, without listing either the source or year! Therefore, if you copy this data,
please acknowledge this as a source, and link back to www.silverstockreport.com/2012/money-chart-2012.html
, and source the year! The source
is important not only for future research, but so you can verify the data,
and see that I'm not making these things up. There really are very many things that
are completely over valued, especially when
compared to real money, which is silver, and gold.
It should be
noted that M3, a measure of money in the banks, was discontinued by the
Federal Reserve a few years ago, probably because the number was increasing
so fast, it was embarassing.
For my European
readers, or American readers who forgot the numerical definition of very
large numbers.
1,000,000,000,000:
1 Trillion dollars
1,000,000,000: 1 Billion dollars
1,000,000: 1 Million dollars
$708,000,000,000,000
(708 trillion)
Amounts
outstanding of over-the-counter (OTC) derivatives, end-June 2011, Table 19
http://www.bis.org/publ/otc_hy1111.htm
http://www.bis.org/statistics/otcder/dt1920a.pdf
$70,000,000,000,000
(70 trillion)
World GDP,
Gross Domestic Product (annual) (2011, CIA)
http://en.wikipedia.org/wiki/List_of_countrie...y_GDP_(nominal)
$69,900,000,000,000
(69.9 trillion)
Domestic debt securities
amounts outstanding, all issuers, Sept 2011, Table 16A
http://www.bis.org/publ/qtrpdf/r_qa1203_anx16a.pdf
$45,000,000,000,000
(45 trillion)
World Market
Capitalization of Listed Companies, 2011
http://data.worldbank.org/indicator/CM.MKT...s?display=graph
$28,700,000,000,000
(28.7 trillion)
International
Debt securities, all issuers, all countries, Dec. 2011 Table 11
http://www.bis.org/publ/qtrpdf/r_qa1203_anx11.pdf
$15,700,000,000,000
(15.7 trillion)
US National
Debt (of the U.S. Government) May 7th, 2012
http://www.treasurydirect.gov/NP/BPDLog...?application=np
http://www.brillig.com/debt_clock/
$15,000,000,000,000
(15 trillion)
US GDP (Gross
Domestic Product) (Value of Annual Economy of the United States) 2011
http://en.wikipedia.org/wiki/U.S._GDP
$12,200,000,000,000
(12.5 trillion)
China Annual
GDP (PPP) Purchasing Power Parity, 2012
http://en.wikipedia.org/wiki/Economy...public_of_China
$9,000,000,000,000
(9 trillion)
Total World
Historical Gold Production up to 2012
170,000
tonnes (2012) x 32,151oz/tonne = 5,465,670,000 oz.
http://www.gold.org/investment/wh...here/faqs/#q023
$3,600,000,000,000
(3.6 trillion)
U.S. Federal
Spending -- Fiscal year 2011
http://en.wikipedia.org/wiki/U...vernment_budget
$3,200,000,000,000
(3.2 trillion)
Estimated
Annual World Oil Production, April 2012, est.
90 million
barrels/day, at $98/barrel x 365 day/year = $3,219,300 million = $3.2
trillion
http://en.wikipedia.org/wik..._oil_production
http://omrpublic.iea.org...orld/Wb_all.pdf
(side note, the
world did NOT hit peak oil production at any time since 2005, when the world
production was 78 million barrels/day)
$1,600,000,000,000
(1.6 trillion)
2011 Budget
Deficit of the United States federal government -- Fiscal year 2011
http://en.wikipedia.o..._federal_budget
$1,400,000,000,000
(1.4 trillion)
Total World
Historical Silver Production up to 2012
47 billion
ounces, at $30/oz. = $1,410 billion
http://www.gold-ea...tler110799.html
http://www.gpmgroup.com
(2008 annual yearbook)
Note the switch
from trillions to billions now.
$532,000,000,000
(532 billion)
Market Cap of
Apple Stock
< target="_blank"span lang=EN-US
>http://finance....s=aapl&ql=1
(Note, when a
company is "worth" more than all the gold that the nation has, I
think that company is over valued.)
$428,000,000,000
(428 billion)
U.S. Official
Treasury-Owned gold:
261,498,899
ounces at $1640/oz. = $428 billion
(not
independently audited since before 1960's)
http://fms.t...ld/current.html
$144,000,000,000
(144 billion) June 2011
Silver
Derivatives (Other Precious Metals)
Amounts
Outstanding of OTC (Over the Counter [non-reportable]) -- Commodity Linked
Derivatives -- Table 22A
http://ww...df/r_qa1203.pdf
$120,000,000,000
(120 billion)
World 2010 Gold
Production
2500 tons x
29,167 troy oz/ton = 72,917,500 oz. x $1640/oz. =
119,584,700,000
http://minerals.usgs.gov/minerals/pubs/mcs/2011/mcs2011.pdf -p.67
$23,000,000,000
(23 billion)
World 2011
Silver Mine Production:
761.6 million
ounces, at $30/oz. = $23 billion
http:/...ver-production/
$3,000,000,000
(3 billion)
World 2011
Silver Investment Demand
100 million oz.
x $30/oz. = $3 billion
$1,200,000,000
(1.2 billion)
USA 2011 Silver
Eagle Coin Demand
40 million oz.
x $30/oz. = $1.2 billion
htt...n=MintageTotals
Now, we move
down from billions to millions
$12,000,000 (12
million)
Total estimated
profit for all US Coin Dealers on selling Silver Eagles at 1% (after costs)
of 1.2 billion
$3000 (3
thousand)
Total estimated
annual profit per coin dealer for selling Silver Eagles:
$12 million divided
by 4000
Total estimated
coin dealers in the USA: 4000
If selling
silver coins with "high premiums" is a scam, it's the least costly
scam in the monetary universe, in other words, selling honest silver as money
is the most honorable business in the world. In fact, it might just also be among
the least profitable of businesses to enter.
You can look us
up and call us at www.jhmint.com
We are a small
business, but a relatively large one in the gold and silver trade. We think we might be among the top
20-30 coin dealers in the USA, based on business volume. Most that are bigger require
application forms or large minimum order sizes. We also ship among the fastest,
often faster than our suppliers, as we put product in the mail either the
same day or the day after your wire transfer clears.
Other sources:
....org/statistics
http://data.worldbank.org
http://www.bis.org
Market Cap of
Total Public Companies, listed and sorted by largest national totals, 2011
http://tinyurl.com/86skplq
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I strongly
advise you to take possession of real gold and silver, at anywhere near
today's prices, while you still can. The fundamentals indicate rising
prices for decades to come, and a major price spike can happen at any time.
JH MINT &
Coin Shop
13241 Grass
Valley Ave
Grass Valley,
CA 95945
(530) 273-8175
www.jhmint.com
Minimum
telephone order $5000 for free shipping, USA shipping only.
Open 10AM to
5PM Pacific Time, Monday to Friday, closed weekends and bank holidays. (Also Closed from Dec. 25th to Jan
1st)
Kerri handles
internet phone orders:
kerri@jhmint.com
(530) 273-8822
NEW Location in
Auburn, CA!
JH MINT Silver
& Gold
1760 Highway 49
A140
Auburn, CA
95603
(530) 889-1086
www.jhmint.com
You can also
buy silver from my mom at www.momssilvershop.com
Mom will ship
overseas, even large orders up to $300,000 or larger, and also in lots of
more or less than 100 ounces.
3510 Auburn
Blvd #12
Sacramento, CA
95821
Sincerely,
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