While the surging gold price has received most of the spotlight in the
market, silver will outperform the king monetary metal over the longer
term. Key fundamental factors make silver the more attractive asset and
investment to own versus gold when we look closely at the data.
However, that doesn’t mean precious metals investors shouldn’t own
gold. Investors need to own both precious metals, but I believe silver
will provide better returns than gold in the future.
Now, there is this notion put forth by many precious metals analysts that
central banks will be forced, at some point, to back their currencies by
gold. Thus, the idea is that gold will reset at a much higher
price. While that is a possibility, backing debt-based currencies with
gold will not solve our coming energy crisis. And, let me tell you,
it’s an energy predicament that we have no real solution.
You see, it doesn’t really matter if we back fiat money with
gold. The REAL ISSUE has always been ENERGY. The massive
increase in debt and derivatives are a symptom of the Falling EROI (Energy
Returned On Investment) of oil. Basically, while gold may solve certain
issues in regards to “Confidence” in money, it doesn’t fix our energy
problems.
I touched on this briefly in my newest video,Why
Silver Is Better Than Gold. However, most of the video
explains new charts that show fundamental factors on why silver is a better
investment than gold as well as some key price levels for the short term.
One of the more important charts in the video shows the amount of
“Identifiable” physical gold and silver investment stocks. Interestingly,
according to the data from the World Gold Council and the World Silver
Surveys, there is just about the same amount of physical gold investment as
there is silver.
These official sources estimate there are about 2.4 billion ounces
of gold and 2.45 billion ounces of silver held in public and private vaults,
including central bank holdings. Yes, there is likely a great
deal of physical gold and silver held by investors at home or in secret
vaults that are not included in those figures. But, these amounts still
wouldn’t change the values of these metals all that much.
For example, even if we assume, there might be another 2.5 billion oz of
physical silver investment held by investors, that would only increase the
value of the total physical silver investment to say, $100 billion.
Still, a drop in the bucket compared to the over $465 trillion in Global Real
Estate, Bonds and Stocks.
I have included several new fundamental charts in the video on why silver
will outperform gold on the longer-term basis. Also, some updated
silver price charts show where I believe are the next important levels for
silver.
Lastly, I wanted to thank everyone for subscribing to the SRSrocco Report
Youtube Channel as I now have over 10,000 subscribers.
As I mentioned, at the beginning of the video, I said that I also post Oil
and Energy videos on the SRSrocco Report Youtube Channel. Precious
metals investors need to watch and understand these energy videos.
Why? Because, the world is about the hit an ENERGY BRICK WALL and that
is bad for 99% of assets held in Stocks, Bonds, and Real Estate.
Unfortunately, a significant percentage of my precious metals
followers don’t pay much attention to my energy articles and videos.
But, I have also found that most of the individuals in the energy industry
that I communicate with, don’t really care about precious metals. And
worse yet… the Financial people could give a rats ass about energy or
precious metals.
This is the problem of being TOO SPECIALIZED and not OPEN-MINDED.
If you start to look at my past energy articles and videos, you will
CONNECT-THE-DOTS on why energy is the number one driver of the economy and
why it will negatively impact most stocks, bonds, and real estate.
However, what’s terrible for most assets will be good for the precious
metals, especially silver.
SRSrocco Report
