I got to thinking, which is a very dangerous thing. Many people have been calculating the ‘true’ price of gold in terms of U.S. Dollars in the system and the amount of physical gold and came to some number that is anywhere from $5,000 to $60,000. Unfortunately, the U.S. is not the only nation that has a currency and gold. To that end, I redid the calculation based on the global amount of debt ($152 Trillion) and total amount of physical gold (166 Tonnes) and also silver (1.411 million Tonnes), since it is money, using their respective physical ratios to come to a solution.
It has been estimated that 1.4 million tonnes of silver and 166.5 thousand tons of gold have been produced globally by man. This equates to 45.12 billion ounces of silver and 5.3 billion ounces of gold. This produces a ratio of about
8.47 of gold to silver. This means that in a gold and silver monetary system, gold should only be worth 8.47 times that of silver. So, now on with the calculation…
First, I needed to translate the tonnes to ounces:
45,167,200,000 ounces of physical silver
5,328,000,000 ounces of physical gold
Next, using the physical silver/gold ratio of 8.477327, a value of 10,660,609,208.57 ounces of ‘money’ (gold and silver) results. I just multiplied the gold by two because of the ratio. Finally, I divided the $152 Trillion global debt, as reported by the IMF, by the 10.660 billion figure and I calculated a result of gold being $14,264 per ounce and silver being $1,682 per ounce. Keep stacking physical!
This is not surprising Scott.Now that I am on WordPress , I can start following you again though I wish you would go back to making You Tube videos as well.Until I joined this site , I was worried about you and yours.Glad to see you’re till around my Friend.
Reblogged this on John Barleycorn and commented:
THANK YOU SCOTT!!!
GREAT to have you back!!!
Thanks… I am not going to do videos for a while; however, I can at least have this site up. 🙂
You make a REAL difference no matter what the medium. We’re all better for what you CAN do. We’ll be just a tad more entertained when the videoa’s come back!
Take Care & Be Well….
Welcome Back Scott. You have been missed.
Good stuff. Just a couple of things though, you can’t eat or drink or shoot gold or silver…
Your priorities are absolutely right on target. Gold and silver will only be good as a means of wealth preservation (or in the case of silver, wealth expansion because of the manipulated ratio.).
I appreciate you Scott, it’s great having you back! Hope the move was was good, you still in Texas?
Yep… In the Midland/Odessa area. 🙂