5/01 ANDY HOFFMAN (CryptoGoldCentral.com): Holders Of Large Amounts of Physical Silver, Beware!

Between 2002 and 2017, I was one of the world’s most well-known advocates of Precious Metal ownership. For 5,000 years, gold and silver had widely recognized monetary value, which lasted through centuries of fiat currency destruction. Even though they started to lose the “inflation-adjusted” battle – due to derivative dilution, propaganda, and a reduced public interest - it still seemed a fait accompli that fiat currency would collapse; and in the absence of a better monetary alternative, even PM markets heavily diluted by paper derivatives would thrive.

When I started to believe in, and buy, Bitcoin in early 2016, I sensed the potential for dramatic monetary change. Per the dozens of articles I penned, I initially believed Bitcoin and Precious Metals could co-exist, as “twin destroyers of fiat currency.” However, as Bitcoin matured in 2017 – when it won the scaling debate, ensuring its existence - I permanently changed my view. In the summer of 2017, just after SegWit was locked in, I very publicly sold my silver, went all-in Bitcoin, and left my position as Marketing Director of a major bullion dealer to start CryptoGoldCentral.com.

At the time, I still held my gold – hence the name, cryptogoldcentral.com. In fact, one of my first CGC articles was titled “big value in small packages – why Bitcoin and gold, not silver, are the future of wealthy storage.” The reason being, that in a world where Bitcoin is a dominant monetary asset, the concept of silver retaining monetary value became laughable – particularly “junk silver,” which in my view, is now pure junk. At least gold still was valuable enough, that significant amounts could be stored in small places.

https://cryptogoldcentral.com/2017/09/23/big-value-in-small-packages-why-bitcoin-and-gold-not-silver-are-the-future-of-wealth-storage/

In early 2018, I very publicly sold my gold, too, never to return – given my view that in the emerging Digital Age, gold, like silver, will finally become a “barbarous relic.” Sure, a handful of backwards-thinking Central banks might continue to acquire it – LOL, with printed fiat currency. However, most will sell it, or find new and creative ways to leverage it with derivatives. As for the retail public, only the oldest, most die hard “goldbugs” still own gold and silver now – whilst Millennials and Gen Z’s want nothing to do with them. Heck, even jewelry is no longer popular!

The more I see the value of cryptocurrency – and not just Bitcoin – the more I realize that the things we used to view as unique, valuable traits of gold and silver are mere fallacies. For example, Precious Metals were always considered “decentralized,” when nothing could be further from the truth. Also, they are as far from fungible, portable, liquid, and universally utilized as one could get – and given that, let’s face it, the dollar isn’t going anywhere, even the Armageddon scenario of a fiat collapse appears less likely. And if it did, I assure you physical bullion would decidedly NOT become more valuable, in the burgeoning age of cryptocurrency.

Regarding today’s title, consider that when I sold my silver two years ago, the only products paying more than spot, barely so, were Eagles and Maples. The rest paid spot or less; with some products, like “junk,” paying as much as 10% less. This, BEFORE the massive cost, and risk, of actually selling it, if you don’t live near a large coin shop or bullion dealer.

As for gold, more than a year ago my authentic numismatics paid 10% less than spot, and even some premium bullion coins returned spot or less. And this was one to two years ago – before prices declined further, and Mint sales continued to plummet. Not to mention, as the dollar strengthened, and crypto gained further traction. Recently, a CGC client sold 10,000 ounces of junk silver for more than 10% below spot – and all I could think about was, this silver will NEVER again be bought, if a market still exists for it now.

That said, this sorry state isn’t even considering what’s about to occur, particularly if crypto gains strength, as it must. Which is, DECADES of massive gold and silver selling by Millennials, Gen Z’s, and beyond - who INHERIT bullion from parents and grandparents, and race as fast as they can to the nearest coin shop, pawn shop, bullion dealer, or eBay or Craig’s List portal to SELL, SELL, SELL at any price, any cost. Not to mention, when the first major Central bank announces it, too, is moving into the Digital future by divesting its gold – thus, prompting others to do the same.

With gold, the process will take longer, as it’s history, and cache are more powerful. Not to mention, storing metal that costs $1,280/oz is a lot cheaper and easier than metal that costs $14.60/oz. However, it will inevitably occur – and in silver, that time is NOW. To that end, the decimation of the bullion industry that commenced in my final years there, as demand died and premiums vanished, is only getting started, in my VERY strong view. Thus, if you still hold large amounts of heavy, increasingly useless silver, my advice to you is to sell it as fast as you can, for as much as you can get!