Silver and gold are mined constantly. Current mining operations produce amount 10 ounces of silver for 1 ounce of gold. Silver holdings show that silver is more scarce than gold. The retail price difference is 79 to 1: meaning it takes 79 ounces of silver to buy 1 ounce of gold. This price ratio is the puzzle.
In a free market, the retail price of silver would be 1/10th the price of gold. Gold is currently priced at $1,300.00. Silver is $16.50. To reach balance, either gold should be $ 165.00 per ounce or Silver should be $ 130.00 per ounce.
Monetary experts suggest a fair gold price should be $10,000 to $60,000. Fair silver prices would be $1,000 to $6,000.
Unfortunately, the answer to this puzzle is the fraudulent production of contracts issued on non-existent metals. Banks are allowed to buy and sell ‘paper’ contracts that set the price of physical metal.
The good news is you can buy physical metal for these artificially low prices. The bad news is the banks have prices firmly under control.
Here is today’s beauty.
