Lions and friends…
I got a good post/question from Christina L on a previous post.
This is what she posted.
Can someone who’s been following Greg’s work pls tell me why he says Silver is his #1 favorite and Gold his #2 favorite and not the other way around. Is it because of the many uses of silver, personal preference, or some other reason? I always wonder why when he picks them up and talks about it and I’m pretty new here. Thanks!
This was my response.
Hi Christina. This is how I come to this. I look at the DOW/Gold ratio. The DOW being the Dow Jones Industrial Average. Today the DOW/Gold ratio is 16.5. The price of the DOW is 33,485 and Gold is $2020. Then I look at the gold/silver ratio, today this ratio is 80.8.
I believe that when the debt market hyper-bubble bursts, it will put enormous pressure on the stock market. This will push the DOW down substantially, in fact no one really knows where the bottom is.
Lets assume the bottom for the DOW is 6,000. I believe that gold will be on par with the DOW, or $6,000, a 1 to 1 ratio. I also believe that in a full-on stock market meltdown silver will hit at least a 15:1 with gold, maybe even 10:1. At 10 to one that puts silver at $600.
I hope that this answers your question as to why I believe that physical silver is the most undervalued asset in this context.
GM
love that shiny stuff 🪙
Silver is my savings & security, and my potential Dogecoin!