Friday, November 29, 2013

$1,000 For One Ounce of Silver? …Don’t Laugh! — Andy Hoffman

Andy Hoffman from Miles Franklin joins us to for a clarion call about the true, real world value of PHYSICAL SILVER. With the market value of all available Bitcoins now more than $5 BILLION, compared to around $21 Billion for all investable PHYSICAL silver, Andy says “What we’re seeing is a speculative mania.”
Andy reminds us that the Chinese are fed up, and have now publicly drawn a line in the sand AGAINST the US Dollar, “The Chinese just made this incredible announcement that they no longer want to accumulate currency reserves. That is probably the most bullish thing I have heard for precious metals in my twelve years of watching this. They have $3.6 TRILLION of currency reserves and they want OUT. There’s only $100 billion of gold mined in a single year, worldwide. And $15 Billion of silver. The point is that gold and silver are way undervalued compared to the amount of buying that’s going to be coming into them.
Back to Bitcoin, I ask Andy, if $1,000 USD is possible for a single Bitcoin, what is one ounce of physical silver really worth? Andy says, “Alternative currencies are a viable concept… but Bitcoin doesn’t have intrinsic value, whereas silver for instance is the second most used commodity on earth, in fact three quarters of ALL production is used for things other than investment.
As for concrete value for an ounce of physical silver, Hoffman’s take is this: “My long standing price target, if it weren’t rigged, I would say it should be $1,000 – $4,000 an ounce right now. And that’s simply using the math of how much money the government SAYS has been printed and how much gold they SAY they have in reserve. And of course they have printed a lot more than they say and they have a lot less gold than they say.



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