Today we will go over Exters Pyramid, the creator and where Silver stands on the pyramid. The creator of the pyramid was a man named John Exter. He was an American economist and worked on the Board of Governors at the Federal Reserve.
The pyramid is a tool for visualizing the organization of asset classes in terms of risk and size. Below is an updated version of his pyramid. Starting at the bottom of the pyramid shows the safest assets and their size. That obviously makes the top of the pyramid the most risky investments. Up top you will see that the Derivatives and Unfunded Government Liabilities hold a this space firmly.
Exter’s Pyramid Infograph
The pictures below in this post are all from Demonocracy.info. Let’s have a look at a few of them. Keep in mind those large stacks you see are piles of $100 bills for reference.
This should strike fear in anyone who takes time to look at it. Just the derivatives shown is more than all the money created in the world. Starting from the right side you can see how much it would take to cover the derivatives and unfunded liabilities. Working your way across to the far left you can see how small the gold market is. But what about the silver market? You may not see it on here, unless you look very closely.
Ah, there it is! Just barely enough to cover the very point of the pyramid, Yes the silver markets are really that small. Being at the very bottom of the pyramid it has plenty of room to grow when people move to safer assets.
How much silver per person in the world?
The current population of the world is around 7.1 Billion people. The known above ground total of Silver is roughly 50 Billion. That seems like a decent amount until you realize that 50% of that silver is used in industrial applications. Even if we used the 50 Billion, we would end up with only 7ozs.
The actual breakdown looks more like this.
Adding up these totals you come up with 26 Billion. Now if we divide that by the population we end up with 3ozs each. This does not take into consideration the silver that will never be recovered from the electronics in landfills. Some of the analysts put the number just below 1oz per person after everything is figured in.
This is not financial advice, but if you have an opportunity to pick some up for a good deal, I would suggest you do it. I hope you learned something from this post and can take it with you in your precious metals investing journey. If you have any questions or comments please leave them in the comment section.
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