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The dollar era seems to be close to an end, and on the other hand, the silver market is booming like never before. According to Andy Schectman, the President & Owner of Miles Franklin Precious Metals, demand for silver is at all-time highs and prices are about to explode. In a recent interview with Quoth the Raven from Fringe Finance, the world-renowned expert in the field of precious metals warned about an imminent silver squeeze and how precious metals will play a role in the future of money worldwide while the U.S. dollar fatally collapses. Even though the silver market is a huge market, more silver is being consumed than is being mined each year. Only in 2020, nearly 850 million ounces were mined globally, but demand exceeded one billion ounces. In our modern world, silver is key. It’s essential for new applications in green energy and battery-powered vehicles and it’s in critical parts of most electronic devices. That’s why the industrial demand for silver has started to grow exponentially in recent years.
However, while industrial demand skyrockets annual global mine supply is dramatically falling, which according to Schectman, is an indication that a global renaissance in monetary demand is right upon us. All of this is happening at the same time Wall Street bullion banks manipulate the price of monetary metals. In fact, they have been doing this for decades, which allowed the global elites to accumulate massive amounts of physical gold and silver at subsidized prices.
Currently, the silver to gold ratio is 75 to 1, which means that it takes 75 ounces of silver to “purchase” one ounce of gold. In contrast, only seven ounces of silver are being mined for every one ounce of gold. That is to say, at a 7 to 1 ratio, silver is roughly 11 times undervalued in comparison to gold. The current price of gold is sitting at $1,800, and if you divide that price by 7 – the current global mining ratio – you get a silver price of $270. However, with gold trading at $3,000 gold, a number the expert expects to see sooner than later, then we get silver at a staggering $428 an ounce.
The truth is that precious metals are a critical part of our next monetary era. Although silver is mainly used for industrial purposes today, it has been a form of wealth protection for centuries, and every time the world economies face a new systemic change in their currencies, precious metals hold on to their value while fiat currencies like the U.S. dollar are bound to face a sharp collapse. Keeping in mind that over the past year, the U.S. central bank has printed trillions of new dollars, expanding the money supply to levels never before seen and unleashing inflation, the inherent value of the dollar has already plunged to record-low levels, and that lost purchasing power will never come back.
Therefore, a major paradigm shift is about to start, and while our leaders continue to print, borrow and spend money like there’s no tomorrow, on the other side of the planet, China is getting ahead of the game and it is backing its new digital currency with gold. As the expert notes, people will not be able to trade in a digital yuan for a piece of gold, but gold gives the Chinese digital currency reliability and proof that its value will not deteriorate over time. Already, the Chinese government is selling gold-backed yuan bonds that can be converted into physical gold on the Shanghai Gold Exchange.
The latest data shows that China has approximately 38,000 tonnes of gold, from which roughly 20,000 tonnes are owned by the state and 18,000 tonnes are owned by the people. Gold backing of their new digital Yuan with proof of the holdings on a distributed ledger would promptly create demand and credibility for the Chinese digital currency. “In one form or another, I believe that is exactly what will happen. And You don’t want to own dollar-denominated assets when that happens,” he warned.
The potential for a dollar collapse evolved from a “seemingly crazed idea” to a reality. The U.S. dollar is collapsing against other major currencies and the post-outbreak economic rebound will only intensify that process. The stage is set for an apocalyptic economic collapse and a ravaging financial crisis. Buy gold and silver, and get rid of your dollar-backed assets before the Everything Bubble bursts. Things are changing rapidly and very dark clouds and looming on the horizon, so be prepared!