While the price of gold is about 67 times the price of silver, it is logical to conclude that silver is richer and easier to obtain than silver. On the contrary, the evidence proves otherwise. In fact, very little silver can be found everywhere.
Surface Silver Holdings Recognized in Ounces
Silver ETF SLV 295,313,780
The U.S. Eagles hit 240,418,077
COMEX Warehouses 114,102,049
Approximate Private Bullion (without eagle or maple) 120,000,000
Central Fund of Canada 75,209,103
LBMA Estimated reserves 75,000,000
Canadian Maples hit 21,303,000
Silver ETF ZKB – SWISS 7,397,885
BMG Bullion Fund 5,033,609
There is about twice as much gold as silver in the form of investment rates on bullion and coins, and this ignores the fact that 52 percent of the world’s gold is stored in jewelry. While there is 953 million ounces of surface silver, there are about 1.803 million ounces of surface gold in the form of ingots.
It is also important to note some structural differences in the storage of gold and silver. About half of the gold bullion is in the hands of governments. There are no known silver reserves held by governments. Although governments have historically sold gold to finance their budgets and keep the price of gold, there is no similar ready-made enterprise that can sell silver bullion. Precious metal investors often keep their precious metals for years, decades, and periods measured in lifetimes. Most private investors will not sell their bullion for 10 percent or even 100 percent profit. Therefore, even if there is about 1 billion ounces of silver available, the question remains how much of it is sold close to today’s prices.
The estimated dollar value of all silver bullion is small compared to gold or other assets. In fact, silver measured in dollars is 1/127 of gold. The silver market of many investment funds is more than $ 16.88 billion, but it is easier to buy gold for a larger dollar. Silver may be one of the most neglected and unloved treasures of this century. Perhaps the reason why silver is so cheap is ironic, because it is very rare for assets to be invested by managers. Or is it?