The liquidity in silver will dry up very easily, if the crisis hits. Already in 1999 the physical was almost out and 2008 it was in a serious shortage. The key to understanding this is to know that exchanges around the world deal only with about 200 Moz of actual silver, and the coinshops come second. 99% of the world's silver is not in any liquid form and will be unavailable to investors should something happen.
If it is a reasonable thing to secure your share of the world's bitcoins, so is it with silver. I am delighted to see that bitcoin folks generally favor silver second only to bitcoin, and silver (&gold) people are flocking to bitcoins. This is a great synergy
If it is a reasonable thing to secure your share of the world's bitcoins, so is it with silver. I am delighted to see that bitcoin folks generally favor silver second only to bitcoin, and silver (&gold) people are flocking to bitcoins. This is a great synergy
I really disagree with this. In contrast to bitcoin and gold, the silver stock grows at a rate of 6/8% per year. The economy (products/services/assets) only grows by 1/2% per year so logic dictates that the purchasing power of silver will go down over time, as it indeed has done (long term).
The gold stock only grows with 1/2% per year, same growth rate as economy. Bitcoin now grows at 5/10% per year but will not grow at all soon enough, which never happened with previous money, and therefore has the only fundamentals to increase in purchasing power over time.
Maximum about 400Moz of the mine production stays aboveground. This is 2% of the total stock of 20B. So it is only slightly worse than gold.
How can silver disappear back underground?
At worst it ends up on waste bells, but all that is recyclable, and will be recycled if the price goes up enough, giving indeed an 'inflation' rate of 6/8% per year.
The amount of silver that is unrecoverable for reasonable price is negligible.
