100% Steem Power Post - A Complete Investment Primer Series

 CRISIS! CRISIS! I HAVE ALL OF THIS MONEY, WHAT DO I DO! 

Whether you have cryptos, cash, stocks, bonds or whatnot, you need to reconsider diversifying into this undervalued storage of wealth, and it isn't gold.

I have been in the financial industry for over 15 years and have  followed financial markets and geopolitical events while doing so for  over 15 years, and would like to share with you some conclusions I have  found based upon my research, analysis, exposure as well as some  strategies I am using to maximize my holdings during a time the  financial system is going through a reset. Now, I'm not cheering misery  here, I am merely trying to survive a financial hurricane by shuttering  the windows, shopping for food before the flood and not just survive,  but prosper from the information I have researched. Today's focus will  be on the gentleman's metal: Silver.    

                                                 

 Since the Presidential Working Group on Financial Markets  was established under the Reagan Administration in 1986, the  allegededly free markets have been manipulated full time by a small,  government based trading manipulation system, making true market  indicators very difficult to read. Unemployment figures? Since the  government has changed their unemployment reporting categories for the  U3 and U6 figures, the 25% true unemployment rate only appears to be  around 6%. John Williams of Shadowstats.com does a fine job breaking  down the statistical analysis here. So, with all of this manipulation of measurables and Fedgov manipulating  true market prices, what can I do to ensure my financial well-being when  they can no longer rig the markets? 

The following are the asset classes I have found to be the safest, at  a time where the Dow Jones Industrial Average, S&P 500 and other  market indices are at record highs, awaiting a bursting of the bond  market, stock capitalization and monetary inflation cycle.

Gold and Silver: A Practical Comparison 

Moreso silver than gold, but if you measure the stock market in gold  rather than manipulated and overprinted USD, the indication of a  collapse having already happened can be more clear. I found this site to  be particularly interesting for viewing the markets in gold, rather  than fiat HERE.  Why silver over gold? The past 60 days, the gold to silver ratio has  bounced between 65 and 75 ounces of silver to one ounce of gold, per this chart courtesy of goldprice.com. Why is this important? Per an article written for financialsense.com,     

• 9:1 is the ratio of silver to gold annual mine production
• 6:1 is the estimated ratio of economic gold to silver in the ground (USGS)
• 5:1 is the estimated physical ratio of all silverware, silver/gold   jewelry and other stocks above ground (according to CPM Group)
• 1:1 is the year-to-date ratio of investment dollar demand.
• 1:3 (more silver than gold) is the physical ratio of gold and silver coins/bullion

Ok, so with the mine production at 9:1, why is silver being priced at  65 to 1? Could this be an arbitrage opportunity? YES! Add to the fact  that silver is used much more heavily in industry (bandages and medical  equipment, solar panels, photography and electronics) which when  disposed is done so at such a small portion per product, that most of  this silver will be unrecoverable/unmineable! Per the following CHART,  you will see that 35% of industrial use of silver is electronics (small  parts, unmineable in a landfill), and 10% being uses for photography  (the glaze cover that photographs have on them, also mostly  unrecoverable due to the small amounts) as well as part of the remaining  percentage used to create bandages, silver nitrate, etc. for medical  purposes, due to its antibacterial properties. 

So, let's go ahead and pare that ratio of 9:1 conservatively and  say... oh, 6:1. With the 5:1 ratio above for all physical ratios for  investment/collection purposes, once silver meets its natural  equilibrium, arbitrage between these two metals will net you around 12  times more than your counterpart gold bug. 

 WHAT TYPE OF SILVER SHOULD I GET?

 I try to diversify my silver holdings in three categories: Junk  Silver, Coined Silver and junior miners of silver and silver contract  companies. 

Junk silver is any US dime, quarter or half dollar produced before 1965, as Lyndon Baines Johnson passed the Coinage Act of 1965.  

                                                      

The act debased all dimes and quarters of their silver content from  being 90% silver to zero, while debasing half dollars from 90% to 40%.  They abolished all silver out of the half dollar after 1970. Thanks, Mr.  "great society".  

So for purposes of smaller trading for bread and other supplies  during crisis times, these small dime and quarter denominations can be  helpful, when people most likely don't have exact change.

 SILVER COINS

 For longer term investment, I also purchase silver coins, also known  as silver "rounds" as well as certified 1 oz bars. The value of the coin  including the verification of the silver content by the company's  respective governments verifies, much like the junk silver, to add a  level of trust to a transaction. I found that the lowest overhead and  cost that I order from is www.sdbullion.com. They have coins from  Austria, Canada, the US, China and several other countries of verified  silver along with some of their coins have a cool theme, such as ... 

 JUNIOR MINING STOCKS 

With the suppression of the gold and silver markets admitted by Deutsche Bank and the short options of the COMEX with their SLV and GLD ETFs being leveraged at an over 542 paper silver to 1 true ounce,  once this game is up, junior and established miners should look to  outperform the market. I have already made over a 500% increase on CDE  (Couer Mines) and AG (First Majestic Silver) each, now I am playing my  hand at another up and coming gold, silver and uranium miner with a  great management team in place and some good projects in Alaska, Canad  and Brazil called Brazil Resources (BRIZF). It's a long hold, with  expected return between a year or two from now, but I am diversified  enough in the miners to be able to wait out the timeline. 

I hope that my article was helpful to you, and these notes shouldn't  be used as legal or financial advice, but rather just to share what may  be considered a personal protection strategy. Upvote and follow for more  articles on similar topics!   

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